Investments, Available for Sale

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investments AFS at the dates indicated were as follows:


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value



Student Loan Pools	$	57,131,715	$	6,090	$	1,303,979	$	55,833,826
Small Business Administration (“SBA”) Bonds	94,018,900		508,204		2,831,043		91,696,061
Tax Exempt Municipal Bonds	21,550,469		593,719		1,224,676		20,919,512
Taxable Municipal Bonds	64,729,848		—		11,794,778		52,935,070
Mortgage-Backed Securities ("MBS")	350,265,323		39,438		30,619,157		319,685,604
Total Available For Sale	$	587,696,255	$	1,147,451	$	47,773,633	$	541,070,073

	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Student Loan Pools	$	60,854,658	$	11,647	$	1,709,323	$	59,156,982
SBA Bonds	102,292,600		584,290		3,246,923		99,629,967
Tax Exempt Municipal Bonds	22,536,806		405,341		1,631,819		21,310,328
Taxable Municipal Bonds	65,249,883		—		14,480,144		50,769,739
MBS	353,223,361		29,861		33,971,954		319,281,268
Total Available For Sale	$	604,157,308	$	1,031,139	$	55,040,163	$	550,148,284

Student Loan Pools are typically 97% guaranteed by the United States government while SBA bonds are 100% backed by the full faith and credit of the United States government. The majority of the MBS included in the tables above and below are issued or guaranteed by an agency of the United States government such as Ginnie Mae, or by Government Sponsored Entities ("GSEs"), including Fannie Mae and Freddie Mac. Ginnie Mae MBS are backed by the full faith and credit of the United States government, while those issued by GSEs are not. Also included in MBS in the tables above and below are private label collateralized mortgage obligation ("CMO") securities, which are issued by non-governmental real estate mortgage investment conduits and are not backed by the full faith and credit of the United States government. At March 31, 2023, the Company held an amortized cost and fair value of $61.3 million and $54.8 million in private label CMO securities, compared to an amortized cost and fair value of $60.1 million and $53.8 million at December 31, 2022, respectively. There was no allowance for credit losses recorded on investments AFS as of March 31, 2023.

The amortized cost and fair value of investments AFS at March 31, 2023 are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without call or prepayment penalties. Since MBS are not due at a single maturity date, they are disclosed separately, rather than allocated over the maturity groupings set forth in the table below.


	March 31, 2023
Investments AFS:	Amortized Cost		Fair Value
One Year or Less	$	17,789	$	17,640
After One – Five Years	4,587,262		4,529,933
After Five – Ten Years	74,277,652		70,811,848
More Than Ten Years	158,548,229		146,025,048
MBS AFS	350,265,323		319,685,604
Total AFS	$	587,696,255	$	541,070,073

At March 31, 2023, the amortized cost and fair value of investments AFS pledged as collateral for certain deposit accounts, FHLB advances and other borrowings were $374.3 million and $348.3 million, compared to an amortized cost and fair value of $318.0 million and $297.0 million at December 31, 2022, respectively.

There were no sales of investments AFS during the three months ended March 31, 2023 and 2022; and therefore, no proceeds from sales, gross gains or gross losses were recorded during those periods.

The following table shows the gross unrealized losses and estimated fair value of available sale securities for which an allowance for credit losses has not been recorded aggregated by category and length of time that securities have been in a continuous unrealized loss position at March 31, 2023.


	March 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses



Student Loan Pools	$	6,532,605	$	96,105	$	44,272,894	$	1,207,874	$	50,805,499	$	1,303,979
SBA Bonds	3,627,220		18,733		44,567,268		2,812,310		48,194,488		2,831,043
Tax Exempt Municipal Bonds	519,710		9,017		12,819,506		1,215,659		13,339,216		1,224,676
Taxable Municipal Bonds	—		—		52,935,070		11,794,778		52,935,070		11,794,778
MBS	19,109,549		801,062		298,058,704		29,818,095		317,168,253		30,619,157
	$	29,789,084	$	924,917	$	452,653,442	$	46,848,716	$	482,442,526	$	47,773,633

The following table shows the gross unrealized losses and estimated fair value of available sale securities aggregated by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2022.


	December 31, 2022
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses



Student Loan Pools	$	24,768,260	$	637,963	$	30,684,124	$	1,071,360	$	55,452,384	$	1,709,323
SBA Bonds	8,403,975		120,766		45,969,373		3,126,157		54,373,348		3,246,923
Tax Exempt Municipal Bonds	8,050,944		718,645		4,929,289		913,174		12,980,233		1,631,819
Taxable Municipal Bonds	14,427,796		3,196,761		36,341,943		11,283,383		50,769,739		14,480,144
MBS	146,016,464		11,132,554		170,578,059		22,839,400		316,594,523		33,971,954

	$	201,667,439	$	15,806,689	$	288,502,788	$	39,233,474	$	490,170,227	$	55,040,163

Securities classified as investments AFS are recorded at fair market value. At March 31, 2023 and December 31, 2022, 411 and 416 individual investments AFS were in a loss position, including 339 and 211 securities that were in a loss position for greater than 12 months, respectively. The Company has the ability and intent to hold these securities until such time as the value recovers or the securities mature. The decrease in unrealized losses within the AFS portfolio during the three months ended March 31, 2023 resulted in a $1.4 million decrease in net deferred taxes, which is included in "Other Assets" on the Consolidated Balance Sheets at March 31, 2023.

The Company believes, based on industry analyst reports and credit ratings, that the deterioration in value is attributable to changes in market interest rates and is not in the credit quality of the issuer and therefore, unrealized losses have not been recognized into income. The Company reviews its investment securities portfolio at least quarterly and more frequently when economic conditions warrant, assessing whether an allowance for credit loss is deemed necessary.

Accrued interest receivable on available for sale debt securities totaled $2.9 million at March 31, 2023 and was excluded from the estimate of credit losses.