XML 19 R12.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Securities

Note 3. Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities at March 31, 2024 and December 31, 2023 are summarized as follows:

 

 

 

March 31, 2024

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds

 

$

2,991

 

 

$

—

 

 

$

(211

)

 

$

2,780

 

Corporate Bonds

 

 

25,782

 

 

 

—

 

 

 

(2,262

)

 

 

23,520

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

38,183

 

 

 

—

 

 

 

(6,229

)

 

 

31,954

 

FHLMC Certificates

 

 

9,903

 

 

 

—

 

 

 

(1,424

)

 

 

8,479

 

FNMA Certificates

 

 

60,158

 

 

 

—

 

 

 

(10,948

)

 

 

49,210

 

GNMA Certificates

 

 

102

 

 

 

—

 

 

 

(1

)

 

 

101

 

Total available-for-sale securities

 

$

137,119

 

 

$

—

 

 

$

(21,075

)

 

$

116,044

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agency Bonds

 

$

25,000

 

 

$

—

 

 

$

(289

)

 

$

24,711

 

Corporate Bonds

 

 

82,500

 

 

 

—

 

 

 

(2,211

)

 

 

80,289

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

207,079

 

 

 

—

 

 

 

(7,468

)

 

 

199,611

 

FHLMC Certificates

 

 

3,819

 

 

 

—

 

 

 

(253

)

 

 

3,566

 

FNMA Certificates

 

 

116,085

 

 

 

—

 

 

 

(5,263

)

 

 

110,822

 

SBA Certificates

 

 

18,945

 

 

 

169

 

 

 

—

 

 

 

19,114

 

Allowance for Credit Losses

 

 

(473

)

 

 

—

 

 

 

—

 

 

 

—

 

Total held-to-maturity securities

 

$

452,955

 

 

$

169

 

 

$

(15,484

)

 

$

438,113

 

 

(1)
Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.

 

 

 

December 31, 2023

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

 

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Fair Value

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds

 

$

2,990

 

 

$

—

 

 

$

(206

)

 

$

2,784

 

Corporate Bonds

 

 

25,790

 

 

 

—

 

 

 

(2,122

)

 

 

23,668

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

39,375

 

 

 

—

 

 

 

(6,227

)

 

 

33,148

 

FHLMC Certificates

 

 

10,163

 

 

 

—

 

 

 

(1,482

)

 

 

8,681

 

FNMA Certificates

 

 

61,359

 

 

 

—

 

 

 

(9,842

)

 

 

51,517

 

GNMA Certificates

 

 

104

 

 

 

—

 

 

 

—

 

 

 

104

 

Total available-for-sale securities

 

$

139,781

 

 

$

—

 

 

$

(19,879

)

 

$

119,902

 

 

 

 

 

 

 

 

 

 

 

 

 

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agency Bonds

 

$

25,000

 

 

$

—

 

 

$

(181

)

 

$

24,819

 

Corporate Bonds

 

 

82,500

 

 

 

—

 

 

 

(2,691

)

 

 

79,809

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations (1)

 

 

212,093

 

 

 

104

 

 

 

(5,170

)

 

 

207,027

 

FHLMC Certificates

 

 

3,897

 

 

 

—

 

 

 

(244

)

 

 

3,653

 

FNMA Certificates

 

 

118,944

 

 

 

—

 

 

 

(4,088

)

 

 

114,856

 

SBA Certificates

 

 

19,712

 

 

 

166

 

 

 

—

 

 

 

19,878

 

Allowance for Credit Losses

 

 

(398

)

 

 

—

 

 

 

—

 

 

 

—

 

Total held-to-maturity securities

 

$

461,748

 

 

$

270

 

 

$

(12,374

)

 

$

450,042

 

 

(1)
Comprised of FHLMC, FNMA and GNMA issued securities.

The Company’s securities portfolio had 40 available-for-sale securities and 33 held-to-maturity securities at both March 31, 2024 and December 31, 2023. There were no available-for-sale and held-to-maturity securities sold during the three months ended March 31, 2024 and for the year ended December 31, 2023. One held-to-maturity security in the amount of $10.0 million matured and/or was called during the year ended December 31, 2023. There were no securities that matured and/or were called during the three months ended March 31, 2024. The Company did not purchase any available-for-sale securities and held-to-maturity securities during the three months ended March 31, 2024 and during the year ended December 31, 2023.

The following table presents the Company's gross unrealized losses and fair values of its securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2024 and December 31, 2023:

 

 

 

March 31, 2024

 

 

 

Securities With Gross Unrealized Losses

 

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

Total

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds

 

$

—

 

 

$

—

 

 

$

2,780

 

 

$

(211

)

 

$

2,780

 

 

$

(211

)

Corporate Bonds

 

 

—

 

 

 

—

 

 

 

23,520

 

 

 

(2,262

)

 

 

23,520

 

 

 

(2,262

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations

 

 

—

 

 

 

—

 

 

 

31,954

 

 

 

(6,229

)

 

 

31,954

 

 

 

(6,229

)

FHLMC Certificates

 

 

—

 

 

 

—

 

 

 

8,479

 

 

 

(1,424

)

 

 

8,479

 

 

 

(1,424

)

FNMA Certificates

 

 

—

 

 

 

—

 

 

 

49,210

 

 

 

(10,948

)

 

 

49,210

 

 

 

(10,948

)

GNMA Certificates

 

 

—

 

 

 

—

 

 

 

101

 

 

 

(1

)

 

 

101

 

 

 

(1

)

Total available-for-sale securities

 

$

—

 

 

$

—

 

 

$

116,044

 

 

$

(21,075

)

 

$

116,044

 

 

$

(21,075

)

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agency Bonds

 

$

—

 

 

$

—

 

 

$

24,711

 

 

$

(289

)

 

$

24,711

 

 

$

(289

)

Corporate Bonds

 

 

3,304

 

 

 

(196

)

 

 

76,985

 

 

 

(2,015

)

 

 

80,289

 

 

 

(2,211

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations

 

 

33,444

 

 

 

(423

)

 

 

166,167

 

 

 

(7,045

)

 

 

199,611

 

 

 

(7,468

)

FHLMC Certificates

 

 

—

 

 

 

—

 

 

 

3,566

 

 

 

(253

)

 

 

3,566

 

 

 

(253

)

FNMA Certificates

 

 

—

 

 

 

—

 

 

 

110,822

 

 

 

(5,263

)

 

 

110,822

 

 

 

(5,263

)

Total held-to-maturity securities

 

$

36,748

 

 

$

(619

)

 

$

382,251

 

 

$

(14,865

)

 

$

418,999

 

 

$

(15,484

)

 

 

 

 

 

December 31, 2023

 

 

 

Securities With Gross Unrealized Losses

 

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

Total

 

 

Total

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government Bonds

 

$

—

 

 

$

—

 

 

$

2,784

 

 

$

(206

)

 

$

2,784

 

 

$

(206

)

Corporate Bonds

 

 

—

 

 

 

—

 

 

 

23,668

 

 

 

(2,122

)

 

 

23,668

 

 

 

(2,122

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations

 

 

—

 

 

 

—

 

 

 

33,148

 

 

 

(6,227

)

 

 

33,148

 

 

 

(6,227

)

FHLMC Certificates

 

 

—

 

 

 

—

 

 

 

8,681

 

 

 

(1,482

)

 

 

8,681

 

 

 

(1,482

)

FNMA Certificates

 

 

—

 

 

 

—

 

 

 

51,517

 

 

 

(9,842

)

 

 

51,517

 

 

 

(9,842

)

GNMA Certificates

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total available-for-sale securities

 

$

—

 

 

$

—

 

 

$

119,798

 

 

$

(19,879

)

 

$

119,798

 

 

$

(19,879

)

Held-to-Maturity Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agency Bonds

 

$

—

 

 

$

—

 

 

$

24,819

 

 

$

(181

)

 

$

24,819

 

 

$

(181

)

Corporate Bonds

 

 

3,288

 

 

 

(212

)

 

 

76,521

 

 

 

(2,479

)

 

 

79,809

 

 

 

(2,691

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Mortgage Obligations

 

 

81,875

 

 

 

(725

)

 

 

112,339

 

 

 

(4,445

)

 

 

194,214

 

 

 

(5,170

)

FHLMC Certificates

 

 

—

 

 

 

—

 

 

 

3,653

 

 

 

(244

)

 

 

3,653

 

 

 

(244

)

FNMA Certificates

 

 

—

 

 

 

—

 

 

 

114,856

 

 

 

(4,088

)

 

 

114,856

 

 

 

(4,088

)

Total held-to-maturity securities

 

$

85,163

 

 

$

(937

)

 

$

332,188

 

 

$

(11,437

)

 

$

417,351

 

 

$

(12,374

)

 

 

At March 31, 2024 and December 31, 2023, the Company had 40 available-for-sale securities, for both periods, and 30 and 31 held-to-maturity securities at March 31, 2024 and December 31, 2023, respectively, with gross unrealized loss positions. Management reviewed the financial condition of the entities underlying the securities at both March 31, 2024 and December 31, 2023. The unrealized losses related to the Company debt securities were issued by U.S. government-sponsored entities and agencies. The Company does not believe

that the debt securities that were in an unrealized loss position as of March 31, 2024 represents a credit loss impairment. The gross unrealized loss positions related to mortgage-backed securities and other obligations issued by the U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Total gross unrealized losses were primarily attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities.

Management reviewed the collectability of the corporate bonds taking into consideration of such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting date. Management believes the unrealized losses on the corporate bonds are primarily attributable to changes in the interest rates and not changes in the credit quality of the issuers of the corporate bonds.

The following is a summary of maturities of securities at March 31, 2024 and December 31, 2023. Amounts are shown by contractual maturity. Because borrowers for mortgage-backed securities have the right to prepay obligations with or without prepayment penalties, at any time, these securities are included as a total within the table.

 

 

 

March 31, 2024

 

 

 

Amortized

 

 

Fair

 

 

 

Cost

 

 

Value

 

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

U.S. Government Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

—

 

 

 

—

 

More than one year through five years

 

 

2,991

 

 

 

2,780

 

More than five years through ten years

 

 

—

 

 

 

—

 

 

 

2,991

 

 

 

2,780

 

Corporate Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

4,000

 

 

 

3,910

 

More than one year through five years

 

 

1,000

 

 

 

137

 

More than five years through ten years

 

 

20,782

 

 

 

19,473

 

 

 

25,782

 

 

 

23,520

 

Mortgage-Backed Securities

 

 

108,346

 

 

 

89,744

 

Total available-for-sale securities

 

$

137,119

 

 

$

116,044

 

Held-to-Maturity Securities:

 

 

 

 

 

 

U.S. Agency Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

—

 

 

 

—

 

More than one year through five years

 

 

25,000

 

 

 

24,711

 

More than five years through ten years

 

 

—

 

 

 

—

 

 

 

25,000

 

 

 

24,711

 

Corporate Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

25,000

 

 

 

24,673

 

More than one year through five years

 

 

50,000

 

 

 

48,851

 

More than five years through ten years

 

 

7,500

 

 

 

6,765

 

 

 

82,500

 

 

 

80,289

 

Mortgage-Backed Securities

 

 

345,928

 

 

 

333,113

 

Allowance for Credit Losses

 

 

(473

)

 

 

—

 

Total held-to-maturity securities

 

$

452,955

 

 

$

438,113

 

 

 

 

 

 

December 31, 2023

 

 

 

Amortized

 

 

Fair

 

 

 

Cost

 

 

Value

 

 

 

(in thousands)

 

Available-for-Sale Securities:

 

 

 

 

 

 

U.S. Government Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

—

 

 

 

—

 

More than one year through five years

 

 

2,990

 

 

 

2,784

 

More than five years through ten years

 

 

—

 

 

 

—

 

 

 

2,990

 

 

 

2,784

 

Corporate Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

4,000

 

 

 

3,863

 

More than one year through five years

 

 

1,000

 

 

 

536

 

More than five years through ten years

 

 

20,790

 

 

 

19,269

 

 

 

25,790

 

 

 

23,668

 

Mortgage-Backed Securities

 

 

111,001

 

 

 

93,450

 

Total available-for-sale securities

 

$

139,781

 

 

$

119,902

 

Held-to-Maturity Securities:

 

 

 

 

 

 

U.S. Agency Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

—

 

 

 

—

 

More than one year through five years

 

 

25,000

 

 

 

24,819

 

More than five years through ten years

 

 

—

 

 

 

—

 

 

 

25,000

 

 

 

24,819

 

Corporate Bonds:

 

 

 

 

 

 

Amounts maturing:

 

 

 

 

 

 

Three months or less

 

$

—

 

 

$

—

 

More than three months through one year

 

 

25,000

 

 

 

24,650

 

More than one year through five years

 

 

50,000

 

 

 

48,265

 

More than five years through ten years

 

 

7,500

 

 

 

6,894

 

 

 

82,500

 

 

 

79,809

 

Mortgage-Backed Securities

 

 

354,646

 

 

 

345,414

 

Allowance for Credit Losses

 

 

(398

)

 

 

—

 

Total held-to-maturity securities

 

$

461,748

 

 

$

450,042

 

 

At March 31, 2024, 20 available-for-sale securities with a fair value totaling $66.0 million and 11 held-to-maturity securities with an amortized cost totaling $136.6 million were pledged at the Federal Reserve Bank of New York ("FRBNY") as collateral for borrowing activities. At December 31, 2023, 26 available-for-sale securities with a fair value totaling $93.3 million and 17 held-to-maturity securities with an amortized cost totaling $193.3 million were pledged at the FRBNY as collateral for borrowing activities.

 

The following table presents the activity in the allowance for credit losses for held-to-maturity securities:

 

 

 

For the Three

 

 

 

 

 

 

Months Ended

 

 

For the Year Ended

 

 

 

March 31, 2024

 

 

December 31, 2023

 

Allowance for credit losses on securities at beginning of period

 

$

398

 

 

$

—

 

Impact on CECL adoption

 

 

—

 

 

 

662

 

Provision (benefit) for credit losses

 

 

75

 

 

 

(264

)

Allowance for credit losses on securities at end of period

 

$

473

 

 

$

398

 

 

At March 31, 2024 and December 31, 2023, the entire allowance for credit losses on securities was allocated to corporate bonds.