Securities

3 Months Ended

Mar. 31, 2022

NOTE (4) – Securities

The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolios as of the periods indicated and the corresponding amounts of unrealized gains and losses that were recognized in accumulated other comprehensive income (loss):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
March 31, 2022:
Federal agency mortgage-backed securities	$	79,222	$	31	$	(4,368	)	$	74,885
Federal agency collateralized mortgage obligations (“CMO”)		8,910		11		(373	)		8,548
Federal agency debt		42,035		58		(1,826	)		40,267
Municipal bonds		4,890		-		(354	)		4,536
U. S. Treasuries		28,168		-		(1,104	)		27,064
SBA pools		15,770		18		(780	)		15,008
Total available-for-sale securities	$	178,995	$	118	$	(8,805	)	$	170,308
December 31, 2021:
Federal agency mortgage-backed securities	$	70,078	$	196	$	(244	)	$	70,030
Federal agency CMOs		9,391		11		(115	)		9,287
Federal agency debt		38,152		106		(270	)		37,988
Municipal bonds		4,898		40		(23	)		4,915
U.S. Treasuries		18,169		-		(218	)		17,951
SBA pools		16,241		122		(138	)		16,225
Total available-for-sale securities	$	156,929	$	475	$	(1,008	)	$	156,396

The Bank held 129 securities with unrealized losses of $8.8 million at March 31, 2022. None of these securities has been in a loss position for greater than one year. The Bank’s securities were primarily issued by the federal government or its agencies. The unrealized gains or losses on our available-for-sale securities at March 31, 2022 were primarily caused by movements in market interest rates subsequent to the purchase of such securities.

The Bank held 129 securities with unrealized losses of $1.0 million at December 31, 2021. None of these securities has been in a loss position for greater than one year. The Bank’s securities were primarily issued by the federal government or its agencies. The unrealized gains or losses on our available-for-sale securities at December 31, 2021 were primarily caused by movements in market interest rates subsequent to the purchase of such securities.

Securities with a market value of $61.9 million were pledged as collateral for securities sold under agreements to repurchase as of March 31, 2022, and included $22.3 million of U.S. Government Agency securities, $33.5 million of mortgage-backed securities, $4.1 million of federal agency CMO and $2.0 million of Small Business Administration (“SBA”) pool securities. Securities with a market value of $53.2 million were pledged as collateral for securities sold under agreements to repurchase as of December 31, 2021 and included $25.9 million of federal agency mortgage-backed securities, $13.3 million of federal agency debt, $9.8 million of SBA pool, and $4.2 million of federal agency CMO. (See Note 7 – Borrowings). There were no securities pledged to secure public deposits at March 31, 2022 or December 31, 2021.

The amortized cost and estimated fair value of all investment securities available-for-sale at March 31, 2022, by contractual maturities are shown below. Contractual maturities may differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)

Due in one year or less	$	1,009	$	-	$	(5	)	$	1,004
Due after one year through five years		49,938		-		(2,086	)		47,852
Due after five years through ten years		19,373		8		(1,075	)		18,306
Due after ten years ⁽¹⁾		108,675		110		(5,639	)		103,146
	$	178,995	$	118	$	(8,805	)	$	170,308

⁽¹⁾	^{Mortgage-backed securities, collateralized mortgage obligations and SBA pools do not have a single stated maturity date and therefore have been included in the “Due after ten years” category.}

At March 31, 2022 and December 31, 2021, there were no holdings of securities by any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. There were no sales of securities during the three months ended March 31, 2022.