| Investment Securities |
The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows:
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September 30, 2022 |
|
(In Thousands) |
|
Amortized
Cost |
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Gross
Unrealized
Gains |
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Gross
Unrealized
Losses |
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Fair
Value |
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Available for Sale: |
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Small Business Administration loan pools |
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$ |
914 |
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$ |
- |
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|
$ |
(13 |
) |
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$ |
901 |
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Obligations of state and political subdivisions |
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44,352 |
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1 |
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(6,006 |
) |
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38,347 |
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Mortgage-backed securities in government-sponsored entities |
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44,102 |
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- |
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(4,652 |
) |
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39,450 |
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$ |
89,368 |
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|
$ |
1 |
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$ |
(10,671 |
) |
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$ |
78,698 |
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Held to Maturity: |
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Corporate debentures |
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$ |
14,993 |
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$ |
- |
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$ |
(883 |
) |
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$ |
14,110 |
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Structured mortgage-backed securities |
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17,578 |
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- |
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(773 |
) |
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16,805 |
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$ |
32,571 |
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$ |
- |
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$ |
(1,656 |
) |
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$ |
30,915 |
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December 31, 2021 |
|
(In Thousands) |
|
Amortized
Cost |
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Gross
Unrealized
Gains |
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Gross
Unrealized
Losses |
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Fair
Value |
|
Available for Sale: |
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Small Business Administration loan pools |
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$ |
1,099 |
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$ |
- |
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$ |
(15 |
) |
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$ |
1,084 |
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Obligations of state and political subdivisions |
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46,115 |
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2,405 |
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(38 |
) |
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48,482 |
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Mortgage-backed securities in government-sponsored entities |
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54,239 |
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382 |
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(404 |
) |
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54,217 |
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$ |
101,453 |
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$ |
2,787 |
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|
$ |
(457 |
) |
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$ |
103,783 |
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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.
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September 30, 2022 |
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Less Than Twelve Months |
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Twelve Months or Greater |
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Total |
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(In Thousands) |
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Fair Value |
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Gross Unrealized Loss |
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Fair Value |
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Gross Unrealized Loss |
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Fair Value |
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Gross Unrealized Loss |
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Available for Sale: |
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Small Business Administration loan pools |
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$ |
331 |
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$ |
(1 |
) |
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$ |
570 |
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$ |
(12 |
) |
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$ |
901 |
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|
$ |
(13 |
) |
Obligations of state and political subdivisions |
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35,929 |
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(5,474 |
) |
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1,668 |
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(532 |
) |
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37,597 |
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(6,006 |
) |
Mortgage-backed securities in government-sponsored entities |
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25,466 |
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(2,611 |
) |
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13,984 |
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(2,041 |
) |
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39,450 |
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(4,652 |
) |
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$ |
61,726 |
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$ |
(8,086 |
) |
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$ |
16,222 |
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$ |
(2,585 |
) |
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$ |
77,948 |
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$ |
(10,671 |
) |
Held to Maturity: |
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Corporate debentures |
|
$ |
14,110 |
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|
$ |
(883 |
) |
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$ |
- |
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$ |
- |
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$ |
14,110 |
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|
$ |
(883 |
) |
Structured mortgage-backed securities |
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16,805 |
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(773 |
) |
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- |
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- |
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16,805 |
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(773 |
) |
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$ |
30,915 |
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|
$ |
(1,656 |
) |
|
$ |
— |
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$ |
— |
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$ |
30,915 |
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$ |
(1,656 |
) |
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December 31, 2021 |
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Less Than Twelve Months |
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Twelve Months or Greater |
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Total |
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(In Thousands) |
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Fair Value |
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Gross Unrealized Loss |
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Fair Value |
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Gross Unrealized Loss |
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Fair Value |
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Gross Unrealized Loss |
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Available for Sale: |
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Small Business Administration loan pools |
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$ |
- |
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$ |
- |
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$ |
1,084 |
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$ |
(15 |
) |
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$ |
1,084 |
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$ |
(15 |
) |
Obligations of state and political subdivisions |
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3,189 |
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(38 |
) |
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- |
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- |
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3,189 |
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(38 |
) |
Mortgage-backed securities in government-sponsored entities |
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23,420 |
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(266 |
) |
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4,687 |
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(102 |
) |
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28,107 |
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(368 |
) |
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$ |
26,609 |
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$ |
(304 |
) |
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$ |
5,771 |
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$ |
(117 |
) |
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$ |
32,380 |
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$ |
(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.
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Available for Sale Securities |
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Held to Maturity Securities |
|
(In Thousands) |
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Amortized
Cost |
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Fair
Value |
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Amortized
Cost |
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Fair
Value |
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Due within one year |
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$ |
133 |
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$ |
134 |
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$ |
3,000 |
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$ |
2,945 |
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Due after one year through five years |
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6,728 |
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6,497 |
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11,993 |
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|
11,165 |
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Due after five years through ten years |
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11,958 |
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11,000 |
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- |
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- |
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Due after ten years |
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26,447 |
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21,617 |
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- |
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- |
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Mortgage-backed securities and Collateralized mortgage obligations |
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44,102 |
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39,450 |
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17,578 |
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|
|
16,805 |
|
|
|
$ |
89,368 |
|
|
$ |
78,698 |
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|
$ |
32,571 |
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$ |
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.
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(In Thousands) |
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For the Three Months Ended September 30, |
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For the Nine Months Ended September 30, |
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2022 |
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|
2022 |
|
Proceeds |
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$ |
|
— |
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$ |
|
513 |
|
Gross gains |
|
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|
— |
|
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|
13 |
|
Gross losses |
|
|
|
— |
|
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|
— |
|
Net gain |
|
$ |
|
— |
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$ |
|
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.
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