Securities

6 Months Ended

Jun. 30, 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 dates indicated and the corresponding amounts of unrealized gains and losses which were recognized in accumulated other comprehensive income (loss):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In thousands)
June 30, 2022:
Federal agency mortgage-backed securities	$	90,453	$	13	$	(7,364	)	$	83,102
Federal agency collateralized mortgage obligations (“CMO”)		27,385		79		(644	)		26,820
Federal agency debt		51,598		47		(2,771	)		48,874
Municipal bonds		4,882		-		(543	)		4,339
U.S. Treasuries		62,656		63		(1,539	)		61,180
SBA pools		15,189		25		(1,231	)		13,983
Total available-for-sale securities	$	252,163	$	227	$	(14,092	)	$	238,298
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 175 securities with unrealized losses of $14.1 million at June 30, 2022. Thirty-one, 31, of these securities had aggregate unrealized losses of $200 thousand and 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 as of June 30, 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 $72.7 million were pledged as collateral for securities sold under agreements to repurchase as of June 30, 2022, and included $35.1 million of U.S. Government Agency securities, $27.6 million of mortgage-backed securities, $6.2 million of SBA pool securities and $3.8 million of federal agency CMO. 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 securities, and $4.2 million of federal agency CMO. (See Note 8 – Borrowings). There were no securities pledged to secure public deposits at June 30, 2022 or December 31, 2021.

At June 30, 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.

The amortized cost and estimated fair value of all investment securities available-for-sale at June 30, 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	$	1,005	$	-	$	(5	)	$	1,000
Due after one year through five years		103,542		63		(3,393	)		100,212
Due after five years through ten years		40,021		55		(2,173	)		37,903
Due after ten years ⁽¹⁾		107,595		109		(8,521	)		99,183
	$	252,163	$	227	$	(14,092	)	$	238,298

⁽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 June 30, 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.