SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 9 – SUBSEQUENT EVENTS

Late in the third quarter, the Company’s management team performed a review of the maturity duration in its bond portfolio. Based on an assessment of the current interest rate environment coupled with recovering economic conditions, the Company began restructuring its bond portfolio by lowering the overall duration of the bond portfolio. On October 1, 2021 and October 28, 2021, the Company entered into trade agreements to sell government agency securities totaling approximately $28,700,000 and $4,700,000, respectively. These trades resulted in pre-tax losses of approximately $345,300 and $246,000, respectively, which will be reflected in noninterest income (loss) in October 2021 financial results. Each bond sold was issued by government agencies or government sponsored agencies and have

the guarantee or implicit guarantee of the U.S. government. Accordingly, as of September 30, 2021, recovery of the value of these bonds was not in question and no credit impairment allowance was recognized.