SECURITIES

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

The amortized cost of securities available for sale and their estimated fair values at September 30, 2021 and December 31, 2020 are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
September 30, 2021
Available for sale
U.S. Treasury Note	$	6,901	$	—	$	(128)	$	6,773
Corporate Bonds	86,169		2,038		(89)		88,118
U.S. Government agency obligations	25,311		73		(144)		25,240
Obligations issued by U.S. states and their political subdivisions	21,106		1,161		(3)		22,264
Mortgage-backed securities: Residential one-to-four family	123,930		237		(1,364)		122,803
Multifamily	41,497		790		(73)		42,214
Asset-backed securities	6,769		11		(46)		6,734
Total available-for-sale	$	311,683	$	4,310	$	(1,847)	$	314,146


December 31, 2020
Available for sale
U.S. Treasury Note	$	9,989	$	11	$	—	$	10,000
Corporate Bonds	57,478		1,863		—		59,341
U.S. Government agency obligations	19,787		89		(201)		19,675
Obligations issued by U.S. states and their political subdivisions	23,280		1,515		—		24,795
Mortgage-backed securities: Residential one-to-four family	71,773		951		(8)		72,716
Multifamily	56,563		1,499		(2)		58,060
Total available-for-sale	$	238,870	$	5,928	$	(211)	$	244,587

The amortized cost of securities held-to-maturity and their estimated fair values at September 30, 2021 and December 31, 2020, are as follows:


	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Estimated Fair Value
	(In thousands)
September 30, 2021
Held-to-maturity

Collateralized loan obligation	$	3,000	$	—	$	—	$	3,000

Asset-backed securities	15,325		—		(186)		15,139
Corporate bonds	5,000		8		—		5,008
Total held-to-maturity	$	23,325	$	8	$	(186)	$	23,147

	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Estimated Fair Value
	(In thousands)
December 31, 2020
Held-to-maturity

Collateralized loan obligation	$	7,005	$	—	$	(26)	$	6,979
Total Held-to-maturity	$	7,005	$	—	$	(26)	$	6,979

Proceeds from sales and calls of available-for-sale securities totaled $10.0 million and $14.0 million in the three and nine months ended September 30, 2021 and $6.5 million and $11.4 million in the three and nine months ended September 30, 2020, respectively.

There were no other-than-temporary impairment (“OTTI”) charges for the three and nine months ended September 30, 2021 or September 30, 2020, respectively.

The amortized cost and fair value of debt securities are shown below by contractual maturity. Expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. Securities not due at a single maturity are shown separately:


	September 30, 2021
	Amortized Cost		Estimated Fair Value
	(In thousands)
Available-for-sale
Due in one year or less	$	11,257	$	11,388
Due from one year to five years	91,243		93,410
Due from five to ten years	38,783		39,422
Due after ten years	4,973		4,909
Mortgage-backed securities	165,427		165,017
Total	$	311,683	$	314,146

Held-to-maturity
Due in one year or less	$	3,000	$	3,000
Due from one year to five years	11,084		11,067
Due from five to ten years	9,241		9,080

Total	$	23,325	$	23,147

The following tables summarize available-for-sale securities with unrealized losses at September 30, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous loss position.


	Less than 12 Months				12 Months or More				Total
	Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value
	(In thousands)
September 30, 2021
Available for sale
U.S. Treasury Note	$	(128)	$	6,773	$	—	$	—	$	(128)	$	6,773
Corporate Bonds	(89)		17,415		—		—		(89)		17,415
U.S. Government agency obligations	—		—		(144)		8,680		(144)		8,680
Obligations issued by U.S. states and their political subdivisions	(3)		1,851		—		—		(3)		1,851
Mortgage-backed securities:
Residential one-to-four family	(1,364)		106,396		—		—		(1,364)		106,396
Multifamily	(73)		916		—		186		(73)		1,102
Asset-backed securities	(46)		1,713		—		—		(46)		1,713
Total available-for-sale	$	(1,703)	$	135,064	$	(144)	$	8,866	$	(1,847)	$	143,930

December 31, 2020
Available for sale
U.S. Treasury Note	$	—	$	—	$	—	$	—	$	—	$	—
Corporate Bonds	—		—		—		—		—		—
U.S. Government agency obligations	(54)		3,559		(147)		10,014		(201)		13,573
Obligations issued by U.S. states and their political subdivisions	—		—		—		—		—		—
Mortgage-backed securities:
Residential one-to-four family	(7)		3,228		(1)		115		(8)		3,343
Multifamily	(2)		738		—		313		(2)		1,051
Total available-for-sale	$	(63)	$	7,525	$	(148)	$	10,442	$	(211)	$	17,967

There was one collateralized loan obligation held to maturity security in an unrecognized loss position for more than twelve months at September 30, 2021. This collateralized loan obligation security had a fair value of $3.0 million, and was in a minimal unrecognized loss position, at September 30, 2021. The Company did not have any held to maturity securities in an unrecognized loss position for more than twelve months at December 31, 2020. There were two asset-backed held to maturity securities with total fair value of $15.1 million, in an aggregate unrecognized loss position for less than twelve months of $186 thousand, at September 30, 2021, and one collateralized loan obligation held to maturity security with a fair value of $3.0 million, in an unrecognized loss position for less than 12 months of $26 thousand, at December 31, 2020.

On September 30, 2021, three U.S. Government agency obligations, one U.S Treasury note, two obligations issued by U.S. states and their political subdivisions, and twenty-six mortgage-backed securities held by the Company were in an unrealized loss position in the available-for-sale portfolio. These securities were all issued by U.S. Government-sponsored entities and agencies, which the government has affirmed its commitment to support. There were also seven investment grade corporate bonds and two asset-backed securities in an unrealized loss position. The Company does not consider these securities to be other-than-temporarily impaired due to the decline in fair

value being attributable to changes in interest rates and liquidity, not credit quality. The Company also does not intend to sell these securities, nor does it foresee being required to sell them before the anticipated recovery (maturity).

Securities pledged at September 30, 2021 and December 31, 2020, had a carrying amount of $9.8 million and $12.7 million, respectively, and were pledged to secure public deposits, Federal Home Loan Bank (“FHLB”) advances, repurchase agreements and derivatives.