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Securities
 9 Months Ended
Sep. 30, 2023
Securities [Abstract]  
Securities

2. SECURITIES

The amortized cost of securities and their approximate fair value at September 30, 2023 and December 31, 2022 were as follows:

September 30, 2023

(in thousands)

Amortized

Unrealized

Fair

Cost

Gains

Losses

Value

Available for Sale:

Debt securities:

U.S. treasuries and government agencies

$

160,603

$

-

$

(27,218)

$

133,385

States and political subdivisions

22,631

1

(1,613)

21,019

Total debt securities

183,234

1

(28,831)

154,404

Mortgage-backed securities:

FNMA

$

71,375

$

-

$

(15,211)

$

56,164

FHLMC

45,360

-

(7,943)

37,417

GNMA

39,082

-

(9,420)

29,662

SBA

20,992

-

(3,070)

17,922

CMO

51,129

-

(12,238)

38,891

Total mortgage-backed securities

$

227,938

$

-

$

(47,882)

$

180,056

Total securities designated as available for sale

$

411,172

$

1

$

(76,713)

$

334,460

Held to Maturity:

Debt securities

States and political subdivisions

$

2,170

$

-

$

(103)

$

2,067

Total securities designated as held to maturity

$

2,170

$

-

$

(103)

$

2,067

December 31, 2022

(in thousands)

Amortized

Unrealized

Fair

Cost

Gains

Losses

Value

Available for Sale:

Debt securities:

U.S. treasuries and government agencies

$

165,495

$

1

$

(24,814)

$

140,682

States and political subdivisions

23,480

4

(1,662)

21,822

Total debt securities

188,975

5

(26,476)

162,504

Mortgage-backed securities:

FNMA

$

75,921

$

-

$

(12,819)

$

63,102

FHLMC

46,922

-

(6,695)

40,227

GNMA

40,039

-

(6,580)

33,459

SBA

22,556

-

(2,419)

20,137

CMO

53,803

-

(8,906)

44,897

Total mortgage-backed securities

$

239,241

$

-

$

(37,419)

$

201,822

Total securities designated as available for sale

$

428,216

$

5

$

(63,895)

$

364,326

Held to Maturity:

Debt securities

States and political subdivisions

$

6,949

$

-

$

(140)

$

6,809

Total securities designated as held to maturity

$

6,949

$

-

$

(140)

$

6,809

Available for sale securities with a total fair value of $198 million and $226 million were pledged as collateral to secure public deposits and for other purposes required or permitted by law at September 30, 2023 and December 31, 2022, respectively.

The scheduled maturities of debt and mortgage-backed securities at September 30, 2023 are summarized below. All maturity amounts are contractual maturities. Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations with or without call premiums.

September 30, 2023

Amortized

Estimated

cost

fair value

(in thousands)

Debt securities available for sale:

Due in one year or less

$

9,822

$

9,653

Due after one year through five years

91,731

83,450

Due after five years through ten years

57,684

45,852

Due after ten years

23,997

15,449

$

183,234

$

154,404

Mortgage-backed securities

available for sale

$

227,938

$

180,056

Total

$

411,172

$

334,460

Debt securities held to maturity:

Due in one year or less

$

1,476

$

1,473

Due after one year through five years

324

296

Due after five years through ten years

370

298

Due after ten years

-

-

Total

$

2,170

$

2,067

Contractual maturities of the Company’s mortgage-backed securities generally exceed ten years; however, the effective lives may be significantly shorter due to prepayments of the underlying loans and due to the nature of these securities.

There were no gross realized gains or losses from sales of investment securities for the three and nine month periods ended September 30, 2023 and 2022.

Management has assessed the securities available for sale in an unrealized loss position at September 30, 2023 and December 31, 2022 and determined the decline in fair value below amortized cost to be temporary. In making this determination, management considered the period of time the securities were in a loss position, the percentage decline in comparison to the securities’ amortized cost, and the financial condition of the issuer (primarily government or government-sponsored enterprises). In addition, management does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost. Management believes the decline in fair value is primarily related to market interest rate fluctuations and not to the credit deterioration of the individual issuers.

The Company has not recorded any other-than-temporary impairment (“OTTI”) charges during the nine month period ended September 30, 2023 and did not record any OTTI charges during 2022. The credit worthiness of the Company’s securities portfolio is largely reliant on the ability of U.S. government sponsored agencies such as Federal Home Loan Bank (“FHLB”), Federal National Mortgage Association (“FNMA”), Government National Mortgage Association (“GNMA”), and Federal Home Loan Mortgage Corporation (“FHLMC”), and municipalities throughout New York State to meet their obligations. In addition, dysfunctional markets could materially alter the liquidity, interest rate, and pricing risk of the portfolio. Past performance is not a guarantee for similar performance of the Company’s securities portfolio in future periods.


‎

Information regarding unrealized losses within the Company’s available for sale securities at September 30, 2023 and December 31, 2022 is summarized below.

September 30, 2023

Less than 12 months

12 months or longer

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(in thousands)

Available for Sale:

Debt securities:

U.S. treasuries and government agencies

$

-

$

-

$

133,385

$

(27,218)

$

133,385

$

(27,218)

States and political subdivisions

1,922

(117)

18,141

(1,496)

20,063

(1,613)

Total debt securities

1,922

(117)

151,526

(28,714)

153,448

(28,831)

Mortgage-backed securities:

FNMA

$

55

$

(1)

$

56,109

$

(15,210)

$

56,164

$

(15,211)

FHLMC

24

-

37,393

(7,943)

37,417

(7,943)

GNMA

-

-

29,662

(9,420)

29,662

(9,420)

SBA

-

-

17,921

(3,070)

17,921

(3,070)

CMO

-

-

38,891

(12,238)

38,891

(12,238)

Total mortgage-backed securities

$

79

$

(1)

$

179,976

$

(47,881)

$

180,055

$

(47,882)

Held to Maturity:

Debt securities:

States and political subdivisions

$

-

$

-

$

2,067

$

(103)

$

2,067

$

(103)

Total temporarily impaired

securities

$

2,001

$

(118)

$

333,569

$

(76,698)

$

335,570

$

(76,816)

December 31, 2022

Less than 12 months

12 months or longer

Total

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

Value

Losses

Value

Losses

Value

Losses

(in thousands)

Available for Sale:

Debt securities:

U.S. treasuries and government agencies

$

68,292 

$

(5,929)

$

71,389 

$

(18,885)

$

139,681 

$

(24,814)

States and political subdivisions

19,540 

(1,645)

418 

(17)

19,958 

(1,662)

Total debt securities

87,832 

(7,574)

71,807 

(18,902)

159,639 

(26,476)

Mortgage-backed securities:

FNMA

$

23,242 

$

(3,081)

$

39,860 

$

(9,738)

$

63,102 

$

(12,819)

FHLMC

11,927 

(790)

28,300 

(5,905)

40,227 

(6,695)

GNMA

10,763 

(1,298)

22,696 

(5,282)

33,459 

(6,580)

SBA

16,996 

(1,971)

3,141 

(448)

20,137 

(2,419)

CMO

11,288 

(673)

33,609 

(8,233)

44,897 

(8,906)

Total mortgage-backed securities

$

74,216 

$

(7,813)

$

127,606 

$

(29,606)

$

201,822 

$

(37,419)

Held to Maturity:

Debt securities:

States and political subdivisions

$

6,627 

$

(118)

$

182 

$

(22)

$

6,809 

$

(140)

Total temporarily impaired

securities

$

168,675 

$

(15,505)

$

199,595 

$

(48,530)

$

368,270 

$

(64,035)