Securities

9 Months Ended

Sep. 30, 2023

NOTE 3 – SECURITIES

The following tables summarize the amortized cost and fair value of the Company’s available-for-sale securities portfolio at September 30, 2023 and December 31, 2022 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2023 (unaudited)
Corporate debt	$	9,980	$	-	$	2,980	$	7,000
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		1,511		-		38		1,473
Mortgage-backed securities - residential ⁽¹⁾		7		-		-		7
Total	$	11,498	$	-	$	3,018	$	8,480

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

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	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 September 30, 2023 or September 30, 2022.

There were no sales of securities during the three and nine months ended September 30, 2023 and 2022.

The amortized cost and fair value of debt securities at September 30, 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.



	September 30, 2023					December 31, 2022
	(unaudited)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	1,511	$	1,473	$	2,001	$	1,961
Due from one to five years		-		-		1,024		964
Due from five to ten years		9,980		7,000		9,978		7,500
Mortgage-backed securities - residential		7		7		17		17
Total	$	11,498	$	8,480	$	13,020	$	10,442

Fair value of securities pledged as collateral was as follows:


	September 30, 2023		December 31, 2022
	(unaudited)
Pledged as collateral for:
FHLB advances	$	988	$	967
Public deposits		486		479
Total	$	1,474	$	1,446

At September 30, 2023 and December 31, 2022, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity.

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The following table summarizes securities with unrealized losses at September 30, 2023 and December 31, 2022, aggregated by major security type and length of time in a continuous unrealized loss position.



September 30, 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	$	-	$	-	$	7,000	$	2,980	$	7,000	$	2,980
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		-		-		1,473		38		1,473		38
Mortgage-backed securities - residential ⁽¹⁾		2		-		5		-		7		-
Total temporarily impaired	$	2	$	-	$	8,478	$	3,018	$	8,480	$	3,018

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




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 September 30, 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 September 30, 2023 and December 31, 2022.