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SECURITIES HELD TO MATURITY
 3 Months Ended
Mar. 31, 2023
Held-to-maturity Securities  
Marketable Securities [Line Items]  
SECURITIES AVAILABLE FOR SALE AND SECURITIES HELD TO MATURITY

NOTE 3 – SECURITIES HELD TO MATURITY

The following table summarizes the amortized cost, fair value, and gross unrecognized gains and losses of securities held to maturity by contractual maturity at March 31, 2023 and December 31, 2022:

 

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

$

10,000,000

 

 

$

—

 

 

$

(428,570

)

 

$

9,571,430

 

Five through ten years

 

 

3,000,000

 

 

 

—

 

 

 

(388,377

)

 

 

2,611,623

 

Corporate bonds due in:

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

 

2,447,722

 

 

 

—

 

 

 

(57,009

)

 

 

2,390,713

 

Five through ten years

 

 

17,277,373

 

 

 

—

 

 

 

(1,511,930

)

 

 

15,765,443

 

Municipal obligations due in:

 

 

 

 

 

 

 

 

 

 

 

 

Less than one year

 

 

7,700,335

 

 

 

—

 

 

 

(6,787

)

 

 

7,693,548

 

One through five years

 

 

902,310

 

 

 

—

 

 

 

(72,825

)

 

 

829,485

 

Five through ten years

 

 

375,000

 

 

 

1,961

 

 

 

—

 

 

 

376,961

 

Greater than ten years

 

 

1,727,132

 

 

 

—

 

 

 

(309,700

)

 

 

1,417,432

 

MBSs:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

13,991,428

 

 

 

840

 

 

 

(1,530,638

)

 

 

12,461,630

 

Commercial

 

 

20,785,906

 

 

 

—

 

 

 

(2,702,218

)

 

 

18,083,688

 

Total

 

$

78,207,206

 

 

$

2,801

 

 

$

(7,008,054

)

 

$

71,201,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective January 1, 2023, the company adopted the provision of ASC 326, which requires management to complete an evaluation of the HTM securities portfolio to identify whether any allowance for credit losses is required. Management completed an evaluation as of the adoption date and determined the allowance for credit losses on the HTM portfolio was not significant. This determination was based on financial review of securities and ratings of each security.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Fair
Value

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

$

10,000,000

 

 

$

—

 

 

$

(456,850

)

 

$

9,543,150

 

Five through ten years

 

 

3,000,000

 

 

 

—

 

 

 

(466,866

)

 

 

2,533,134

 

Corporate bonds due in:

 

 

 

 

 

 

 

 

 

 

 

 

One through five years

 

 

2,444,729

 

 

 

1,269

 

 

 

(55,836

)

 

 

2,390,162

 

Five through ten years

 

 

15,825,262

 

 

 

54,738

 

 

 

(1,045,557

)

 

 

14,834,443

 

Municipal obligations due in:

 

 

 

 

 

 

 

 

 

 

 

 

Less than one year

 

 

7,706,402

 

 

 

—

 

 

 

(36,250

)

 

 

7,670,152

 

One through five years

 

 

902,545

 

 

 

—

 

 

 

(84,742

)

 

 

817,803

 

Five through ten years

 

 

375,000

 

 

 

1,286

 

 

 

—

 

 

 

376,286

 

Greater than ten years

 

 

1,728,184

 

 

 

—

 

 

 

(346,586

)

 

 

1,381,598

 

MBSs:

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

14,425,827

 

 

 

410

 

 

 

(1,431,861

)

 

 

12,994,376

 

Commercial

 

 

21,019,360

 

 

 

—

 

 

 

(2,860,813

)

 

 

18,158,547

 

Total

 

$

77,427,309

 

 

$

57,703

 

 

$

(6,785,361

)

 

$

70,699,651

 

 

All of the MBSs are issued by the following government sponsored agencies: FHLMC, FNMA and GNMA.

 

NOTE 3 – SECURITIES HELD TO MATURITY (Continued)

The age of unrecognized losses and the fair value of related securities were as follows:

 

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency obligations

 

$

—

 

 

$

—

 

 

$

12,183,053

 

 

$

(816,947

)

 

$

12,183,053

 

 

$

(816,947

)

Corporate bonds

 

 

13,871,194

 

 

 

(1,103,901

)

 

 

4,284,963

 

 

 

(465,038

)

 

 

18,156,157

 

 

 

(1,568,939

)

Municipal bonds

 

 

7,693,548

 

 

 

(6,787

)

 

 

2,246,917

 

 

 

(382,525

)

 

 

7,693,548

 

 

 

(389,312

)

MBSs – residential

 

 

932,470

 

 

 

(27,773

)

 

 

11,366,555

 

 

 

(1,502,865

)

 

 

12,299,025

 

 

 

(1,530,638

)

MBSs – commercial

 

 

—

 

 

 

—

 

 

 

18,083,688

 

 

 

(2,702,218

)

 

 

18,083,688

 

 

 

(2,702,218

)

Total

 

$

22,497,212

 

 

$

(1,138,461

)

 

$

48,165,176

 

 

$

(5,869,593

)

 

$

68,415,471

 

 

$

(7,008,054

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and agency obligations

 

$

9,543,150

 

 

$

(456,850

)

 

$

2,533,134

 

 

$

(466,866

)

 

$

12,076,284

 

 

$

(923,716

)

Corporate bonds

 

 

11,464,282

 

 

 

(680,447

)

 

 

3,329,054

 

 

 

(420,946

)

 

 

14,793,336

 

 

 

(1,101,393

)

Municipal bonds

 

 

7,670,152

 

 

 

(36,250

)

 

 

2,199,401

 

 

 

(431,328

)

 

 

9,869,553

 

 

 

(467,578

)

MBSs – residential

 

 

2,008,303

 

 

 

(101,341

)

 

 

10,809,648

 

 

 

(1,330,520

)

 

 

12,817,951

 

 

 

(1,431,861

)

MBSs – commercial

 

 

7,383,822

 

 

 

(282,984

)

 

 

10,774,725

 

 

 

(2,577,829

)

 

 

18,158,547

 

 

 

(2,860,813

)

Total

 

$

38,069,709

 

 

$

(1,557,872

)

 

$

29,645,962

 

 

$

(5,227,489

)

 

$

67,715,671

 

 

$

(6,785,361

)

No allowance for credit losses on the securities above have been recorded because the issuers of the securities are of high credit quality and the decline in fair value was due to changes in interest rates and other market conditions. The fair value is expected to recover as the securities approach maturity. At March 31, 2023 and December 31, 2022, securities held to maturity with a carrying amount of $5,147,814 and $5,293,804, respectively, were pledged to secure repurchase agreements at the Federal Home Loan Bank of New York. There were 58 securities in a loss position at March 31, 2023. At December 31, 2022 the Bank does not consider these securities to be other-than-temporary impaired. At March 31, 2023 and December 31, 2022, securities held to maturity with a carrying value of $5,311,643 and $5,293,804, respectively, were pledged to secure public deposits.