Investment Securities

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

The tables below show the amortized cost and fair value, by type, of the Bank’s available for sale debt securities as of September 30, 2024 and December 31, 2023:


	September 30, 2024
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
Available for sale:
U.S. government sponsored agencies	$	141,411	$	371	$	7,140	$	134,642
Mortgage-backed securities: residential		83,827		123		5,187		78,763
Corporate bonds		31,174		80		660		30,594
Small Business Administration		32		—		—		32
Total available for sale	$	256,444	$	574	$	12,987	$	244,031

	December 31, 2023
Available for sale:
U.S. government sponsored agencies	$	146,112	$	175	$	10,760	$	135,527
Mortgage-backed securities: residential		85,902		52		7,159		78,795
Corporate bonds		37,298		—		1,787		35,511
Small Business Administration		66		—		1		65
Total available for sale	$	269,378	$	227	$	19,707	$	249,898

As of September 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of Bank equity.

The Bank evaluates securities for impairment when there has been a decline in fair value below the amortized cost basis at least quarterly. Accordingly, management is able to effectively measure and monitor the unrealized loss position on these securities and because the Bank does not intend to sell the securities and it is not more-likely-than-not that the Bank will be required to sell the investments before recovery of their amortized cost basis, the Bank determined no allowance for credit loss was required as of September 30, 2024 or December 31, 2023.

Accrued interest receivable on investment securities totaled $1.5 million and $1.7 million as of September 30, 2024 and December 31, 2023, respectively, and was reported in accrued interest receivable on the balance sheets.

A summary of securities with gross unrealized losses at September 30, 2024 and December 31, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:


	September 30, 2024
	Less Than 12 Months				12 Months or More
			Gross				Gross		Total
	Fair		Unrealized		Fair		Unrealized		Unrealized
	Value		Losses		Value		Losses		Losses
Available for sale:
U.S. government sponsored agencies	$	—	$	—	$	122,400	$	7,140	$	7,140
Mortgage-backed securities and small business administration		6,371		3		60,391		5,184		5,187
Corporate bonds		—		—		22,963		660		660
Total available for sale	$	6,371	$	3	$	205,754	$	12,984	$	12,987

	December 31, 2023
Available for sale:
U.S. government sponsored agencies	$	5,491	$	9	$	126,532	$	10,751	$	10,760
Mortgage-backed securities and small business administration		10,241		98		64,263		7,062		7,160
Corporate bonds		2,507		88		33,004		1,699		1,787
Total available for sale	$	18,239	$	195	$	223,799	$	19,512	$	19,707

The amortized cost and estimated fair value by maturity or next repricing date of investment securities at September 30, 2024 are shown in the following table. Fixed rate securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities.


	Amortized		Fair
	Cost		Value
Within one year or less	$	26,722	$	26,140
One through five years		107,828		103,799
After five through ten years		88,248		84,457
Over ten years		33,646		29,635
Total	$	256,444	$	244,031

At September 30, 2024 and December 31, 2023, approximately $155 million and $170 million of investments were pledged to secure various deposits or borrowings, respectively.

Additional information related to fair value of investment securities is provided in note 9.