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Investment Securities
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
3.
INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows:

 

 

 

September 30, 2022

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

914

 

 

$

-

 

 

$

(13

)

 

$

901

 

Obligations of state and political subdivisions

 

 

44,352

 

 

 

1

 

 

 

(6,006

)

 

 

38,347

 

Mortgage-backed securities in government-sponsored entities

 

 

44,102

 

 

 

-

 

 

 

(4,652

)

 

 

39,450

 

 

 

$

89,368

 

 

$

1

 

 

$

(10,671

)

 

$

78,698

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

14,993

 

 

$

-

 

 

$

(883

)

 

$

14,110

 

Structured mortgage-backed securities

 

 

17,578

 

 

 

-

 

 

 

(773

)

 

 

16,805

 

 

 

$

32,571

 

 

$

-

 

 

$

(1,656

)

 

$

30,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

(In Thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

1,099

 

 

$

-

 

 

$

(15

)

 

$

1,084

 

Obligations of state and political subdivisions

 

 

46,115

 

 

 

2,405

 

 

 

(38

)

 

 

48,482

 

Mortgage-backed securities in government-sponsored entities

 

 

54,239

 

 

 

382

 

 

 

(404

)

 

 

54,217

 

 

 

$

101,453

 

 

$

2,787

 

 

$

(457

)

 

$

103,783

 

 

 

The following tables show the Company's gross unrealized losses and fair value, aggregated by investment category and length of time the individual debt securities have been in a continuous unrealized loss position.

 

 

 

 

September 30, 2022

 

 

 

Less Than Twelve Months

 

 

Twelve Months or Greater

 

 

Total

 

(In Thousands)

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

331

 

 

$

(1

)

 

$

570

 

 

$

(12

)

 

$

901

 

 

$

(13

)

Obligations of state and political subdivisions

 

 

35,929

 

 

 

(5,474

)

 

 

1,668

 

 

 

(532

)

 

 

37,597

 

 

 

(6,006

)

Mortgage-backed securities in government-sponsored entities

 

 

25,466

 

 

 

(2,611

)

 

 

13,984

 

 

 

(2,041

)

 

 

39,450

 

 

 

(4,652

)

 

 

$

61,726

 

 

$

(8,086

)

 

$

16,222

 

 

$

(2,585

)

 

$

77,948

 

 

$

(10,671

)

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debentures

 

$

14,110

 

 

$

(883

)

 

$

-

 

 

$

-

 

 

$

14,110

 

 

$

(883

)

Structured mortgage-backed securities

 

 

16,805

 

 

 

(773

)

 

 

-

 

 

 

-

 

 

 

16,805

 

 

 

(773

)

 

 

$

30,915

 

 

$

(1,656

)

 

$

—

 

 

$

—

 

 

$

30,915

 

 

$

(1,656

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

Less Than Twelve Months

 

 

Twelve Months or Greater

 

 

Total

 

(In Thousands)

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Administration loan pools

 

$

-

 

 

$

-

 

 

$

1,084

 

 

$

(15

)

 

$

1,084

 

 

$

(15

)

Obligations of state and political subdivisions

 

 

3,189

 

 

 

(38

)

 

 

-

 

 

 

-

 

 

 

3,189

 

 

 

(38

)

Mortgage-backed securities in government-sponsored entities

 

 

23,420

 

 

 

(266

)

 

 

4,687

 

 

 

(102

)

 

 

28,107

 

 

 

(368

)

 

 

$

26,609

 

 

$

(304

)

 

$

5,771

 

 

$

(117

)

 

$

32,380

 

 

$

(421

)

The Company reviews its position quarterly and believes that as of September 30, 2022 and December 31, 2021, the declines outlined in the above tables represent temporary declines, and the Company does not intend to sell, and does not believe it will be required to sell, these debt securities before recovery of their cost basis, which may be at maturity. There were 181 and 41 available for sale debt securities with unrealized losses at September 30, 2022 and December 31, 2021, respectively. There were ten and zero held to maturity debt securities with unrealized losses at September 30, 2022 and December 31, 2021, respectively. The Company has concluded that the unrealized losses disclosed above are not other than temporary, but are the result of interest rate changes that are not expected to result in the noncollection of principal and interest during the year.

As of September 30, 2022, amortized cost and fair value by contractual maturity, where applicable, are shown below. Actual maturities may differ from contractual maturities because the borrower may have the right to prepay obligations with or without penalty.

 

 

 

Available for Sale Securities

 

 

Held to Maturity Securities

 

(In Thousands)

 

Amortized
Cost

 

 

Fair
Value

 

 

Amortized
Cost

 

 

Fair
Value

 

Due within one year

 

$

133

 

 

$

134

 

 

$

3,000

 

 

$

2,945

 

Due after one year through five years

 

 

6,728

 

 

 

6,497

 

 

 

11,993

 

 

 

11,165

 

Due after five years through ten years

 

 

11,958

 

 

 

11,000

 

 

 

-

 

 

 

-

 

Due after ten years

 

 

26,447

 

 

 

21,617

 

 

 

-

 

 

 

-

 

Mortgage-backed securities and Collateralized mortgage obligations

 

 

44,102

 

 

 

39,450

 

 

 

17,578

 

 

 

16,805

 

 

 

$

89,368

 

 

$

78,698

 

 

$

32,571

 

 

$

30,915

 

 

The following table summarizes sales of debt securities for the three and nine months ended September 30, 2022. There were no sales of debt securities for the three and nine months ended September 30, 2021.

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2022

 

 

2022

 

 Proceeds

 

 $

 

—

 

 

 $

 

513

 

 Gross gains

 

 

 

—

 

 

 

 

13

 

 Gross losses

 

 

 

—

 

 

 

 

—

 

 Net gain

 

 $

 

—

 

 

 $

 

13

 

 

 

The Company had pledged debt securities with a carrying value of $46,316 and $45,300 to secure public monies as of September 30, 2022 and December 31, 2021, respectively.