Securities

3 Months Ended

Mar. 31, 2023

NOTE 3 – SECURITIES

The following tables summarize the amortized cost and fair value of the available-for-sale securities portfolio at March 31, 2023 and December 31, 2022 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2023 (unaudited)
Corporate debt	$	9,979	$	-	$	2,779	$	7,200
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		2,520		-		72		2,448
Mortgage-backed securities - residential ⁽¹⁾		13		-		-		13
Total	$	12,512	$	-	$	2,851	$	9,661

⁽¹⁾Unrealized loss is less than $1 resulting in rounding to zero.


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2022
Corporate debt	$	9,978	$	-	$	2,478	$	7,500
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		3,025		-		100		2,925
Mortgage-backed securities - residential		17		-		-		17
Total	$	13,020	$	-	$	2,578	$	10,442

There was no impairment recognized in accumulated other comprehensive (loss) for securities available for sale at March 31, 2023 or March 31, 2022.

There were no sales of securities during the three months ended March 31, 2023 and 2022.

The amortized cost and fair value of debt securities at March 31, 2023 and December 31, 2022 are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.



	March 31, 2023					December 31, 2022
	(unaudited)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	2,010	$	1,964	$	2,001	$	1,961
Due from one to five years		510		484		1,024		964
Due from five to ten years		9,979		7,200		9,978		7,500
Mortgage-backed securities - residential		13		13		17		17
Total	$	12,512	$	9,661	$	13,020	$	10,442

Fair value of securities pledged as collateral was as follows:


	March 31, 2023		December 31, 2022
	(unaudited)
Pledged as collateral for:
FHLB advances	$	975	$	967
Public deposits		484		479
Total	$	1,459	$	1,446

At March 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity.

The following table summarizes securities with unrealized losses at March 31, 2023 and December 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position.



March 31, 2023 (unaudited)	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Corporate debt	$	-	$	-	$	7,200	$	2,779	$	7,200	$	2,779
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		-		-		2,448		72		2,448		72
Mortgage-backed securities - residential ⁽¹⁾		13		-		-		-		13		-
Total temporarily impaired	$	13	$	-	$	9,648	$	2,851	$	9,661	$	2,851

⁽¹⁾Unrealized loss is less than $1 resulting in rounding to zero.

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December 31, 2022	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Corporate debt	$	-	$	-	$	7,500	$	2,478	$	7,500	$	2,478
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		1,482		19	$	1,443		81		2,925		100
Mortgage-backed securities - residential ⁽¹⁾		17		-		-		-		17		-
Total temporarily impaired	$	1,499	$	19	$	8,943	$	2,559	$	10,442	$	2,578

⁽¹⁾Unrealized loss is less than $1 resulting in rounding to zero.

The unrealized losses at March 31, 2023 and December 31, 2022 were related to one corporate debt security, two mortgage-backed securities and multiple U.S. Treasuries. Because the decline in fair value was attributable to changes in market conditions, and not credit quality, and because the Company did not have the intent to sell these securities and it was likely that it would not be required to sell these securities before their anticipated recovery, the Company did not consider these securities to be impaired at March 31, 2023 and December 31, 2022.