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Securities

12 Months Ended

Dec. 31, 2022

2. Securities

This table provides the major components of debt securities available for sale (“AFS”), held to maturity (“HTM”) and equity securities with readily determinable fair values ("equity securities") at amortized cost and estimated fair value at December 31, 2022 and December 31, 2021:


	December 31, 2022								December 31, 2021
			Gross		Gross						Gross		Gross
	Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated
(In thousands)	cost		gains		losses		fair value		cost		gains		losses		fair value
Available for sale:
U.S. Government sponsored entities	$	16,961	$	—	$	(656)	$	16,305	$	—	$	—	$	—	$	—
State and political subdivisions		635		—		(22)		613		996		6		(8)		994
Residential mortgage-backed securities		17,097		32		(1,654)		15,475		9,485		277		(13)		9,749
Corporate and other securities		66,495		106		(3,601)		63,000		45,961		164		(388)		45,737
Total debt securities available for sale	$	101,188	$	138	$	(5,933)	$	95,393	$	56,442	$	447	$	(409)	$	56,480
Held to maturity:
U.S. Government sponsored entities	$	28,000	$	—	$	(5,310)	$	22,690	$	10,000	$	—	$	(67)	$	9,933
State and political subdivisions		1,115		67		—		1,182		—		—		—		—
Residential mortgage-backed securities		6,645		—		(1,939)		4,706		4,276		28		(8)		4,296
Total debt securities held to maturity	$	35,760	$	67	$	(7,249)	$	28,578	$	14,276	$	28	$	(75)	$	14,229
Equity securities:
Total equity securities	$	10,703	$	356	$	(1,266)	$	9,793	$	8,163	$	486	$	(83)	$	8,566

This table provides the remaining contractual maturities within the investment portfolios. The carrying value of securities at December 31, 2022 is distributed by contractual maturity. Mortgage-backed securities and other securities, which may have principal prepayment provisions, are distributed based on contractual maturity. Expected maturities will differ materially from contractual maturities as a result of early prepayments and calls.


				After one through		After five through				Total carrying
		Within one year		five years		ten years		After ten years		value
(In thousands)	Amount		Amount		Amount		Amount		Amount
Available for sale at fair value:
U.S. Government sponsored entities	$	488	$	15,817	$	—	$	—	$	16,305
State and political subdivisions		200		160		—		253		613
Residential mortgage-backed securities		4		408		1,031		14,032		15,475
Corporate and other securities		—		12,432		13,871		36,697		63,000
Total debt securities available for sale	$	692	$	28,817	$	14,902	$	50,982	$	95,393
Held to maturity at cost
U.S. Government sponsored entities	$	—	$	—	$	3,000	$	25,000	$	28,000
State and political subdivisions		—		—		—		1,115		1,115
Residential mortgage-backed securities		—		—		—		6,645		6,645
Total debt securities held for maturity	$	—	$	—	$	3,000	$	32,760	$	35,760
Equity Securities at fair value:
Total equity securities	$	—	$	—	$	—	$	9,793	$	9,793

The fair value of securities with unrealized losses by length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2022 and December 31, 2021 are as follows:

December 31, 2022

Less than 12 months

12 months and greater

Total

Estimated

Unrealized

Estimated

Unrealized

Estimated

Unrealized

(In thousands)

fair value

loss

fair value

loss

fair value

loss

Available for sale:

U.S. Government sponsored entities

15,817

(622)

1,432

(34)

17,249

(656)

State and political subdivisions

160

(5)

253

(17)

413

(22)

Residential mortgage-backed securities

14,023

(1,448)

1,311

(206)

15,334

(1,654)

Corporate and other securities

23,445

(966)

31,948

(2,635)

55,393

(3,601)

Total temporarily impaired securities

53,445

(3,041)

34,944

(2,892)

88,389

(5,933)

Held to maturity:

U.S. Government sponsored entities

15,659

(2,341)

7,031

(2,969)

22,690

(5,310)

Residential mortgage-backed securities

4,707

(1,939)

—

4,707

(1,939)

Total temporarily impaired securities

20,366

(4,280)

7,031

(2,969)

27,397

(7,249)


	December 31, 2021
		Less than 12 months				12 months and greater				Total

		Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)		fair value		loss		fair value		loss		fair value		loss
Available for sale:
State and political subdivisions		$	370	$	(8)	$	—	$	—	$	370	$	(8)
Residential mortgage-backed securities			1,821		(13)		—		—		1,821		(13)
Corporate and other securities			17,281		(19)		8,394		(369)		25,675		(388)
Total temporarily impaired securities		$	19,472	$	(40)	$	8,394	$	(369)	$	27,866	$	(409)
Held to maturity:
U.S. Government sponsored entities		$	9,933	$	(67)	$	—	$	—	$	9,933	$	(67)
Residential mortgage-backed securities			823		(8)		—		—		823		(8)
Total temporarily impaired securities		$	10,756	$	(75)	$	—	$	—	$	10,756	$	(75)

Unrealized losses in each of the categories presented in the tables above were primarily driven by market interest rate fluctuations.

Realized Gains and Losses

Gross realized gains and losses on debt securities for the years ended December 31, 2022 and 2021 are detailed below.

There were no available for sale or held to maturity gross realized gains in 2022, compared to $42 thousand of gross realized gains in 2021 and $317 thousand of gross realized gains in 2020. There were no gross realized losses in 2022, 2021 or 2020.

Equity Securities

Included in this category are Community Reinvestment Act ("CRA") investments and the Company’s current other equity holdings of financial institutions. Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interests in entities at fixed or determinable prices.

The following is a summary of the gains and losses recognized in net income on equity securities for the past three years:


	For the year ended December 31,
(In thousands)	2022		2021		2020
Net unrealized (losses) gains recognized during the period on equity securities	$	(1,313)	$	561	$	(229)
Net gains recognized during the period on equity securities sold during the period		—		4		5
Unrealized (losses) gains recognized during the reporting period on equity securities still held at the reporting date	$	(1,313)	$	565	$	(224)