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SECURITIES
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
The amortized cost of securities available-for-sale and their estimated fair values at September 30, 2024 and December 31, 2023 are as follows:
Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesEstimated
Fair
Value
(In thousands)
September 30, 2024
U.S. Treasury notes$36,622 $62 $(1,067)$35,617 
Corporate bonds77,153 227 (3,675)73,705 
U.S. Government agency obligations1,125 — (85)1,040 
Obligations issued by U.S. states and their political subdivisions
6,373 — (243)6,130 
Mortgage-backed securities:
Residential
167,025 585 (17,879)149,731 
Multifamily
10,955 — (626)10,329 
Asset-backed securities14,432 13 (191)14,254 
Total$313,685 $887 $(23,766)$290,806 
December 31, 2023
U.S. Treasury notes$36,935 $— $(1,875)$35,060 
Corporate bonds82,248 56 (5,681)76,623 
U.S. Government agency obligations11,519 — (379)11,140 
Obligations issued by U.S. states and their political subdivisions
6,423 — (228)6,195 
Mortgage-backed securities:
Residential
149,808 — (21,266)128,542 
Multifamily12,522 — (999)11,523 
Asset-backed securities15,010 — (327)14,683 
Total$314,465 $56 $(30,755)$283,766 
The amortized cost of securities held-to-maturity, allowance for credit losses and their estimated fair values at September 30, 2024 and December 31, 2023, are as follows:
Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated
Fair
Value
(In thousands)
September 30, 2024
Corporate bonds$18,600 $— $(2,989)$15,611 
Asset-backed securities14,641 — (995)13,646 
Total$33,241 $— $(3,984)$29,257 
Allowance for credit loss(122)
$33,119 
December 31, 2023
Corporate bonds$18,600 $— $(3,593)$15,007 
Asset-backed securities14,812 — (1,496)13,316 
Total$33,412 $— $(5,089)$28,323 
Allowance for credit loss(158)
$33,254 
At September 30, 2024 and December 31, 2023, the allowance for credit losses on securities held-to-maturity totaled $122 thousand and $158 thousand respectively, and related to the corporate bonds. The asset-backed securities are in a AAA tranche determined by a third party. No loss is expected on these securities.
Securities pledged at September 30, 2024 and December 31, 2023 had a carrying amount of $58.6 million and $11.7 million, respectively, and were pledged to our credit line with the Federal Reserve Bank and to secure public deposits.
The amortized cost and fair value of debt securities are shown below by contractual maturity as of September 30, 2024. Expected maturities on mortgage and asset-backed securities generally exceed 20 years; however, they may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties.
Amortized Cost (1)
Estimated Fair Value
(In thousands)
Available-for-sale
Due in one year or less$42,941 $42,796 
Due from one year to five years28,331 27,878 
Due from five to ten years43,011 40,700 
Due after ten years6,990 5,118 
Mortgage-backed and asset-backed securities192,412 174,314 
Total$313,685 $290,806 
Held-to-maturity
Due from five to ten years 18,600 15,611 
Mortgage-backed and asset-backed securities14,641 13,646 
Total$33,241 $29,257 
(1) Excludes the allowance for credit losses on held-to-maturity securities at September 30, 2024.
Credit Quality Indicators
Credit ratings are a key measure for estimating the probability of a bond’s default and for monitoring credit quality on an on-going basis. For bonds other than U.S. Treasuries and bonds issued or guaranteed by U.S. government agencies, credit ratings issued by one or more nationally recognized statistical rating organization are considered in conjunction with an assessment by the Company’s management. Investment grade reflects a credit quality of BBB- or above. None of the Company’s securities are on non-accrual status, nor are any past due.
The table below indicates the credit profile of the Company’s debt securities held-to-maturity at amortized cost for the periods shown.
September 30, 2024AAAA1BBB+BBBBBB-Total
(In thousands)
Corporate bonds$— $— $1,600 $16,000 $1,000 $18,600 
Asset-backed securities8,718 5,923 — — — 14,641 
Total held-to-maturity$8,718 $5,923 $1,600 $16,000 $1,000 $33,241 
December 31, 2023AAAA1BBB+BBBBBB-Total
(In thousands)
Corporate bonds$— $— $1,600 $11,000 $6,000 $18,600 
Asset-backed securities8,844 5,968 — — — 14,812 
Total held-to-maturity$8,844 $5,968 $1,600 $11,000 $6,000 $33,412 
At September 30, 2024 and December 31, 2023, there was one security with a value of $2.0 million included in the BBB rating that had a split rating.
The following tables summarize available-for-sale securities with unrealized losses at September 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous loss position.
Less than 12 Months12 Months or MoreTotal
Unrealized LossesEstimated
Fair Value		Unrealized LossesEstimated
Fair Value		Number of SecuritiesUnrealized LossesEstimated
Fair Value
(Dollars in thousands)
September 30, 2024
U.S. Treasury notes$— $— $(1,067)$25,867 3$(1,067)$25,867 
Corporate bonds(9)9,994 (3,666)43,022 23(3,675)53,016 
U.S. Government agency obligations— — (85)1,040 2(85)1,040 
Obligations issued by U.S. states and their political subdivisions— — (243)6,130 5(243)6,130 
Mortgage-backed securities:
Residential— — (17,879)120,805 42(17,879)120,805 
Multifamily(3)2,120 (623)8,209 5(626)10,329 
Asset-backed securities— 5,000 (191)4,242 3(191)9,242 
Total$(12)$17,114 $(23,754)$209,315 83$(23,766)$226,429 
December 31, 2023
U.S. Treasury notes$— $— $(1,875)$35,060 4$(1,875)$35,060 
Corporate bonds(7)8,260 (5,674)61,156 30(5,681)69,416 
U.S. Government agency obligations— — (380)11,140 3(380)11,140 
Obligations issued by U.S. states and their political subdivisions— — (228)6,195 5(228)6,195 
Mortgage-backed securities:
Residential— 2 (21,266)128,535 48(21,266)128,537 
Multifamily— — (999)11,524 6(999)11,524 
Asset-backed securities(21)4,991 (305)4,680 3(326)9,671 
Total$(28)$13,253 $(30,727)$258,290 99$(30,755)$271,543 
Of the 83 available-for-sale securities in an unrealized loss position at September 30, 2024, 52 are comprised of U.S. Government agency obligations, Treasury notes, and mortgage-backed securities. These securities were all issued by U.S. Government-sponsored entities and agencies, which the government has affirmed its commitment to support. Corporate bonds, obligations issued by U.S. states and their political subdivisions and asset-backed securities in an unrealized loss position all experienced a decline in fair value, which is attributable to changes in interest rates and liquidity, not credit quality. The Company also does not intend to sell these securities, nor does it foresee being required to sell them before the anticipated recovery or maturity.
The following tables summarizes held-to-maturity securities with unrealized losses at September 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous loss position.
Less than 12 Months12 Months or MoreTotal
Unrealized LossesEstimated
Fair Value		Unrealized LossesEstimated
Fair Value		Number of SecuritiesUnrealized LossesEstimated
Fair Value
(Dollars in thousands)
September 30, 2024
Corporate Bonds— — (2,989)15,611 9(2,989)15,611 
Asset-backed securities— — (995)13,646 2(995)13,646 
Total$— $— $(3,984)$29,257 11$(3,984)$29,257 
Less than 12 Months12 Months or MoreTotal
Unrealized LossesEstimated
Fair Value		Unrealized LossesEstimated
Fair Value		Number of SecuritiesUnrealized LossesEstimated
Fair Value
(Dollars in thousands)
December 31, 2023
Corporate Bonds— — (3,593)15,007 9(3,593)15,007 
Asset-backed securities— — (1,496)13,316 2(1,496)13,316 
Total$— $— $(5,089)$28,323 11$(5,089)$28,323 
The held-to-maturity securities in an unrealized loss position at September 30, 2024, are corporate bonds and asset-backed securities. Unrealized losses are 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 or maturity.