Securities (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities at June 30, 2024 and December 31, 2023 are summarized as follows:

	June 30, 2024
				Gross		Gross
	Amortized			Unrealized		Unrealized
	Cost			Gains		Losses			Fair Value
	(in thousands)
Available-for-Sale Securities:
U.S. Government Bonds	$	2,992		$	—	$	(196	)	$	2,796
Corporate Bonds		25,773			—		(1,859	)		23,914
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		36,886			—		(6,280	)		30,606
FHLMC Certificates		9,611			—		(1,523	)		8,088
FNMA Certificates		58,797			—		(11,174	)		47,623
GNMA Certificates		99			—		(1	)		98
Total available-for-sale securities	$	134,158		$	—	$	(21,033	)	$	113,125
Held-to-Maturity Securities:
U.S. Agency Bonds	$	25,000		$	—	$	(253	)	$	24,747
Corporate Bonds		82,500			—		(2,230	)		80,270
Mortgage-Backed Securities:
Collateralized Mortgage Obligations (1)		200,684			—		(8,533	)		192,151
FHLMC Certificates		3,664			—		(274	)		3,390
FNMA Certificates		112,925			—		(5,565	)		107,360
SBA Certificates		17,558			169		—			17,727
Allowance for Credit Losses		(218	)		—		—			—
Total held-to-maturity securities	$	442,113		$	169	$	(16,855	)	$	425,645

(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.

Company's Securities Gross Unrealized Losses and Fair Values, Aggregated by Length of Time Individual Securities Have Been in a Continuous Unrealized

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 June 30, 2024 and December 31, 2023:

	June 30, 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	$	—	$	—		$	2,796	$	(196	)	$	2,796	$	(196	)
Corporate Bonds		—		—			23,914		(1,859	)		23,914		(1,859	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		—		—			30,606		(6,280	)		30,606		(6,280	)
FHLMC Certificates		—		—			8,088		(1,523	)		8,088		(1,523	)
FNMA Certificates		—		—			47,623		(11,174	)		47,623		(11,174	)
GNMA Certificates		—		—			98		(1	)		98		(1	)
Total available-for-sale securities	$	—	$	—		$	113,125	$	(21,033	)	$	113,125	$	(21,033	)
Held-to-Maturity Securities:
U.S. Agency Bonds	$	—	$	—		$	24,747	$	(253	)	$	24,747	$	(253	)
Corporate Bonds		3,235		(265	)		77,035		(1,965	)		80,270		(2,230	)
Mortgage-Backed Securities:
Collateralized Mortgage Obligations		11,696		(52	)		180,455		(8,481	)		192,151		(8,533	)
FHLMC Certificates		—		—			3,390		(274	)		3,390		(274	)
FNMA Certificates		—		—			107,360		(5,565	)		107,360		(5,565	)
Total held-to-maturity securities	$	14,931	$	(317	)	$	392,987	$	(16,538	)	$	407,918	$	(16,855	)

	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	)

Summary of Maturities of Securities

The following is a summary of maturities of securities at June 30, 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.

	June 30, 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		2,992			2,796
More than five years through ten years		—			—
		2,992			2,796
Corporate Bonds:
Amounts maturing:
Three months or less	$	4,000		$	3,960
More than three months through one year		—			—
More than one year through five years		1,000			598
More than five years through ten years		20,773			19,356
		25,773			23,914
Mortgage-Backed Securities		105,393			86,415
Total available-for-sale securities	$	134,158		$	113,125
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			24,747
More than five years through ten years		—			—
		25,000			24,747
Corporate Bonds:
Amounts maturing:
Three months or less	$	—		$	—
More than three months through one year		35,000			34,529
More than one year through five years		40,000			39,081
More than five years through ten years		7,500			6,660
		82,500			80,270
Mortgage-Backed Securities		334,831			320,628
Allowance for Credit Losses		(218	)		—
Total held-to-maturity securities	$	442,113		$	425,645

	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

Schedule of Activity in Allowance for Credit Losses for Held-to-maturity Securities

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

	For the Six
	Months Ended			For the Year Ended
	June 30, 2024			December 31, 2023
	(in thousands)
Allowance for credit losses on securities at beginning of period	$	398		$	—
Impact on CECL adoption		—			662
Benefit for credit losses		(180	)		(264	)
Allowance for credit losses on securities at end of period	$	218		$	398