Investments, HTM

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

The Company’s investments HTM portfolio is recorded at amortized cost. The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investments HTM at the date indicated were as follows:


	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
US Treasury Bonds	$	34,600,540	$	—	$	486,165	$	34,114,375
FHLB Bond	1,000,000		—		4,852		995,148
Student Loan Pools	18,494,187		100,836		67,488		18,527,535
SBA Bonds	15,448,896		716,125		—		16,165,021
Taxable Municipal Bonds	954,460		—		42,860		911,600
MBS	109,680,425		47,045		4,588,424		105,139,046
Total Held To Maturity	$	180,178,508	$	864,006	$	5,189,789	$	175,852,725

	December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
US Treasury Bonds	$	34,511,849	$	—	$	682,198	$	33,829,651
FHLB Bond	1,000,000		—		1,360		998,640
Student Loan Pools	16,387,997		88,489		59,090		16,417,396
SBA Bonds	3,521,293		162,235		—		3,683,528
Taxable Municipal Bonds	951,864		—		60,134		891,730
MBS	111,064,613		29,194		5,451,179		105,642,628
Total HTM	$	167,437,616	$	279,918	$	6,253,961	$	161,463,573

At March 31, 2023 and December 31, 2022, 49 and 54 individual investments HTM were in a loss position, including 13 and six securities that were in a loss position for greater than 12 months, respectively. The Company believes, based on industry analyst reports and credit ratings, that the deterioration in value was attributable to changes in market interest rates and was not in the credit quality of the issuer. The Company has the ability and intent to hold these securities to maturity.

The estimate of expected credit losses is primarily based on the ratings assigned to the securities by debt rating agencies and the average of the annual historical loss rates associated with those ratings. The Company then multiplies those loss rates, as adjusted for any modifications to reflect current conditions and reasonable and supportable forecasts as considered necessary, by the remaining lives of each individual security to arrive at a lifetime expected loss amount. Additionally, private label collateralized mortgage obligation ("CMO") securities which are not explicitly or implicitly guaranteed by the U.S. government are evaluated utilizing underlying pool data such as historical loss rates, loan-to-value ratios and credit enhancement data.

All mortgage-backed securities issued by government-sponsored corporations are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The state and local governments securities held by the Company are highly rated by major rating agencies.

As a result of the analysis, there was no allowance for credit losses recorded for investments HTM as of March 31, 2023.

As of March 31, 2023, there were no debt securities held to maturity that were classified as either nonaccrual or 90 days or more past due and still accruing.

Accrued interest receivable on held to maturity debt securities totaled $1 million at March 31, 2023 and was excluded from the estimate of credit losses.

The following tables show gross unrealized losses, fair value, and length of time that individual investments HTM have been in a continuous unrealized loss position at the dates indicated.


	March 31, 2023
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
US Treasury Bonds	$	34,114,375	$	486,165	$	—	$	—	$	34,114,375	$	486,165
FHLB Bond	995,148		4,852		—		—		995,148		4,852
Student Loan Pools	4,790,881		67,488		—		—		4,790,881		67,488
Taxable Municipal Bonds	911,600		42,860		—		—		911,600		42,860
MBS	72,819,297		2,070,120		13,895,073		2,518,304		86,714,370		4,588,424
	$	113,631,301	$	2,671,485	$	13,895,073	$	2,518,304	$	127,526,374	$	5,189,789

	December 31, 2022
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
US Treasury Bonds	$	33,829,651	$	682,198	$	—	$	—	$	33,829,651	$	682,198
FHLB Bond	998,640		1,360		—		—		998,640		1,360
Student Loan Pools	6,520,050		59,090		—		—		6,520,050		59,090
Taxable Municipal Bonds	891,730		60,134		—		—		891,730		60,134
MBS	88,351,096		3,145,166		9,334,438		2,306,013		97,685,534		5,451,179
	$	130,591,167	$	3,947,948	$	9,334,438	$	2,306,013	$	139,925,605	$	6,253,961

At March 31, 2023, the amortized cost and fair value of investments HTM that were pledged as collateral for certain deposit accounts, FHLB advances and other borrowings were $57.1 million and $55.0 million, respectively, compared to an amortized cost and fair value of $25.3 million and $24.5 million, respectively, at December 31, 2022.