Securities

12 Months Ended

Dec. 31, 2023

Securities [Abstract]

Securities

3.SECURITIES

The amortized cost of securities and their approximate fair value at December 31 were as follows:

	2023
	(in thousands)
	Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value
Available for Sale:
Debt securities:
U.S. treasuries and government agencies	$	114,152	$	-	$	(17,912)	$	96,240
States and political subdivisions		6,258		2		(231)		6,029
Total debt securities	$	120,410	$	2	$	(18,143)	$	102,269
Mortgage-backed securities:
FNMA	$	66,262	$	2	$	(11,294)	$	54,970
FHLMC		36,743		-		(5,569)		31,174
GNMA		38,793		-		(7,683)		31,110
SBA		20,776		-		(2,291)		18,485
CMO		47,741		-		(10,069)		37,672
Total mortgage-backed securities	$	210,315	$	2	$	(36,906)	$	173,411
Total securities designated as available for sale	$	330,725	$	4	$	(55,049)	$	275,680
Held to Maturity:
Debt securities
States and political subdivisions	$	2,059	$	1	$	(72)	$	1,988
Total securities designated as held to maturity	$	2,059	$	1	$	(72)	$	1,988

	2022
	(in thousands)
	Amortized		Unrealized				Fair
	Cost		Gains		Losses		Value
Available for Sale:
Debt securities:
U.S. 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 $172 million and $226 million were pledged as collateral to secure public deposits and for other purposes required or permitted by law at December 31, 2023 and 2022, respectively.

The scheduled maturity of debt and mortgage-backed securities at December 31, 2023 is 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.

	December 31, 2023
	Amortized		Estimated
	cost		fair value
		(in thousands)
Debt securities available for sale:
Due in one year or less	$	5,750	$	5,711
Due after one year through five years		42,031		38,663
Due after five years through ten years		48,633		40,830
Due after ten years		23,996		17,065
		120,410		102,269
Mortgage-backed securities
available for sale		210,315		173,411
Total	$	330,725	$	275,680
Debt securities held to maturity:
Due in one year or less	$	1,394	$	1,394
Due after one year through five years		295		278
Due after five years through ten years		370		316
Due after ten years		-		-
Total	$	2,059	$	1,988

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.

The Company realized gross losses on sales of securities of $5.0 million, in 2023. The proceeds from the sale was $73 million. There were no realized gains in 2023. There were no realized gains or losses from sales of securities in 2022 or 2021.

Information regarding unrealized losses within the Company’s available for sale securities at December 31, 2023 and 2022 is summarized below. The securities are primarily U.S. government sponsored entities securities or municipal securities. All unrealized losses are considered temporary and related to market interest rate fluctuations.

‎

	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. government agencies	$	-		-	$	95,240		(17,912)	$	95,240		$	(17,912)
States and political subdivisions		878		(2)		4,194		(229)		5,072			(231)
Total debt securities	$	878	$	(2)	$	99,434	$	(18,141)	$	100,312		$	(18,143)
Mortgage-backed securities:
FNMA	$	-		-	$	54,831		(11,294)	$	54,831		$	(11,294)
FHLMC		-		-		31,174		(5,569)		31,174			(5,569)
GNMA		-		-		31,110		(7,683)		31,110			(7,683)
SBA		-		-		18,485		(2,291)		18,485			(2,291)
CMO		-		-		37,674		(10,069)		37,674			(10,069)
Total mortgage-backed securities	$	-	$	-	$	173,274	$	(36,906)	$	173,274		$	(36,906)
Held to Maturity:
Debt securities:
States and political subdivisions	$	444	$	(1)	$	643	$	(71)	$	1,087		$	(72)
Total temporarily impaired
securities	$	1,322	$	(3)	$	273,351	$	(55,118)	$	274,673		$	(55,121)
	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. 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)

Management has assessed the securities available for sale in an unrealized loss position at December 31, 2023 and determined that it expected to recover the amortized cost basis of its securities. As of December 31, 2023, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired 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. As a result, the Company does not hold allowance for credit losses relating to securities. The Company holds no

securities backed by sub-prime or Alt-A residential mortgages or commercial mortgages and also does not hold any trust-preferred securities.

The creditworthiness of the Company’s portfolio is largely reliant on the ability of U.S. government agencies such as the Federal Home Loan Bank (“FHLB”), Federal National Mortgage Association (“FNMA”), and the 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. The stable past performance is not a guarantee for similar performance going forward.