Investment Securities (Tables)

6 Months Ended

Jun. 30, 2024

Investment Securities

Summary of amortized cost and fair value of securities available-for-sale

Investment securities available for sale (AFS):

	June 30, 2024
			GROSS		GROSS		ALLOWANCE
			UNREALIZED		UNREALIZED		FOR CREDIT		FAIR
	COST BASIS		GAINS		LOSSES		LOSSES		VALUE
	(IN THOUSANDS)
U.S. Agency	$	5,462	$	—	$	(715)	$	—	$	4,747
U.S. Agency mortgage-backed securities		104,767		87		(12,863)		—		91,991
Municipal		10,839		—		(776)		—		10,063
Corporate bonds		61,108		46		(3,616)		(360)		57,178
Total	$	182,176	$	133	$	(17,970)	$	(360)	$	163,979

Investment securities available for sale (AFS):

	December 31, 2023
			GROSS		GROSS		ALLOWANCE
			UNREALIZED		UNREALIZED		FOR CREDIT		FAIR
	COST BASIS		GAINS		LOSSES		LOSSES		VALUE
	(IN THOUSANDS)
U.S. Agency	$	6,035	$	—	$	(696)	$	—	$	5,339
U.S. Agency mortgage-backed securities		104,820		179		(11,924)		—		93,075
Municipal		11,159		1		(800)		—		10,360
Corporate bonds		62,004		46		(4,187)		(926)		56,937
Total	$	184,018	$	226	$	(17,607)	$	(926)	$	165,711

Summary of amortized cost and fair value of securities held-to-maturity

Investment securities held to maturity (HTM):

	June 30, 2024
			GROSS		GROSS				ALLOWANCE
			UNREALIZED		UNREALIZED		FAIR		FOR CREDIT
	COST BASIS		GAINS		LOSSES		VALUE		LOSSES
	(IN THOUSANDS)
U.S. Agency	$	2,500	$	—	$	(382)	$	2,118	$	—
U.S. Agency mortgage-backed securities		26,771		24		(2,372)		24,423		—
Municipal		32,771		—		(2,819)		29,952		(2)
Corporate bonds and other securities		4,404		—		(134)		4,270		(98)
Total	$	66,446	$	24	$	(5,707)	$	60,763	$	(100)

Investment securities held to maturity (HTM):

	December 31, 2023
			GROSS		GROSS				ALLOWANCE
			UNREALIZED		UNREALIZED		FAIR		FOR CREDIT
	COST BASIS		GAINS		LOSSES		VALUE		LOSSES
	(IN THOUSANDS)
U.S. Agency	$	2,500	$	—	$	(379)	$	2,121	$	—
U.S. Agency mortgage-backed securities		24,222		49		(2,058)		22,213		—
Municipal		32,787		—		(2,797)		29,990		(2)
Corporate bonds and other securities		4,470		—		(173)		4,297		(35)
Total	$	63,979	$	49	$	(5,407)	$	58,621	$	(37)

Schedule of investment securities

	June 30, 2024
	Available for sale				Held to maturity
	Cost Basis		Fair Value		Cost Basis		Fair Value
Within 1 year	$	7,368	$	7,312	$	3,064	$	3,027
After 1 year but within 5 years		37,607		35,694		16,260		15,484
After 5 years but within 10 years		37,562		34,068		19,371		17,025
Over 10 years		99,639		86,905		27,751		25,227
Total	$	182,176	$	163,979	$	66,446	$	60,763

Schedule of investments with unrealized losses

	June 30, 2024
	LESS THAN 12 MONTHS				12 MONTHS OR LONGER				TOTAL
	FAIR		UNREALIZED		FAIR		UNREALIZED		FAIR		UNREALIZED
	VALUE		LOSSES		VALUE		LOSSES		VALUE		LOSSES
U.S. Agency	$	—	$	—	$	4,747	$	(715)	$	4,747	$	(715)
U.S. Agency mortgage-backed securities		15,632		(151)		69,043		(12,712)		84,675		(12,863)
Municipal		250		(1)		9,813		(775)		10,063		(776)
Corporate bonds		3,402		(15)		45,146		(3,601)		48,548		(3,616)
Total	$	19,284	$	(167)	$	128,749	$	(17,803)	$	148,033	$	(17,970)

Schedule of allowance for credit losses on available for sale debt securities

The following tables present the activity in the allowance for credit losses on available for sale debt securities by major security type for the three and six months ended June 30, 2024 and 2023 (in thousands).

	Three months ended June 30, 2024
	Balance at March 31, 2024		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2024
Corporate bonds	$	116	$	—	$	—	$	244	$	360
Total	$	116	$	—	$	—	$	244	$	360

	Three months ended June 30, 2023
	Balance at March 31, 2023		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2023
Corporate bonds	$	926	$	—	$	—	$	—	$	926
Total	$	926	$	—	$	—	$	—	$	926

	Six months ended June 30, 2024
	Balance at December 31, 2023		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2024
Corporate bonds	$	926	$	(491)	$	—	$	(75)	$	360
Total	$	926	$	(491)	$	—	$	(75)	$	360

	Six months ended June 30, 2023
	Balance at December 31, 2022		Impact of Adopting ASC 326		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2023
Corporate bonds	$	—	$	—	$	—	$	—	$	926	$	926
Total	$	—	$	—	$	—	$	—	$	926	$	926

Schedule of allowance for credit losses on held to maturity debt securities

The following tables present the activity in the allowance for credit losses on held to maturity debt securities by major security type for the three and six months ended June 30, 2024 and 2023 (in thousands).

	Three months ended June 30, 2024
	Balance at March 31, 2024		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2024
U.S. Agency	$	—	$	—	$	—	$	—	$	—
U.S. Agency mortgage-backed securities		—		—		—		—		—
Municipal		2		—		—		—		2
Corporate bonds and other securities		88		—		—		10		98
Total	$	90	$	—	$	—	$	10	$	100

	Three months ended June 30, 2023
	Balance at March 31, 2023		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2023
U.S. Agency	$	—	$	—	$	—	$	—	$	—
U.S. Agency mortgage-backed securities		—		—		—		—		—
Municipal		3		—		—		(1)		2
Corporate bonds and other securities		80		—		—		27		107
Total	$	83	$	—	$	—	$	26	$	109

	Six months ended June 30, 2024
	Balance at December 31, 2023		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2024
U.S. Agency	$	—	$	—	$	—	$	—	$	—
U.S. Agency mortgage-backed securities		—		—		—		—		—
Municipal		2		—		—		—		2
Corporate bonds and other securities		35		—		—		63		98
Total	$	37	$	—	$	—	$	63	$	100

	Six months ended June 30, 2023
	Balance at December 31, 2022		Impact of Adopting ASC 326		Charge-Offs		Recoveries		Provision (Recovery)		Balance at June 30, 2023
U.S. Agency	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Agency mortgage-backed securities		—		—		—		—		—		—
Municipal		—		3		—		—		(1)		2
Corporate bonds and other securities		—		111		—		—		(4)		107
Total	$	—	$	114	$	—	$	—	$	(5)	$	109

Schedule of amortized cost of held to maturity debt securities aggregated by credit quality indicator

Specifically, the following table summarizes the amortized cost of held to maturity debt securities at June 30, 2024, aggregated by credit quality indicator (in thousands).

	June 30, 2024
	Credit Rating
	AAA/AA/A		BBB/BB/B		Unrated		Total
U.S. Agency	$	2,500	$	—	$	—	$	2,500
U.S. Agency mortgage-backed securities		26,771		—		—		26,771
Municipal		32,771		—		—		32,771
Corporate bonds and other securities		2,999		—		1,405		4,404
Total	$	65,041	$	—	$	1,405	$	66,446