Investment Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

The amortized cost and fair values of investment securities at the date indicated are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
December 31, 2022
Available-for-sale
U.S. Treasury securities	$	99,967	$	—	$	(2,952)	$	97,015

U.S. Agency collateralized mortgage obligations	54		—		(3)		51
U.S. Agency residential mortgage-backed securities	1		—		—		1
Municipal bonds	250		—		—		250
Total available-for-sale securities	100,272		—		(2,955)		97,317
Held-to-maturity
U.S. Agency residential mortgage-backed securities	1,036		—		(120)		916
Total investment securities	$	101,308	$	—	$	(3,075)	$	98,233


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(dollars in thousands)
December 31, 2021
Available-for-sale
U.S. Treasury securities	$	34,999	$	—	$	(1)	$	34,998

U.S. Agency collateralized mortgage obligations	68		2		—		70
U.S. Agency residential mortgage-backed securities	3		—		—		3
Municipal bonds	252		4		—		256
Total available-for-sale securities	35,322		6		(1)		35,327
Held-to-maturity
U.S. Agency residential mortgage-backed securities	1,296		52		—		1,348
Total investment securities	$	36,618	$	58	$	(1)	$	36,675

The amortized cost and fair value of debt securities at December 31, 2022, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers in mortgage backed securities or

obligations may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are shown separately, since they are not due at a single maturity date.


	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(dollars in thousands)
December 31, 2022
Amounts maturing in
One year or less	$	250	$	250	$	—	$	—
After one year through five years	99,967		97,016		—		—
	100,217		97,266		—		—
U.S. Agency residential mortgage-backed securities and collateralized mortgage obligations	55		51		1,036		916
	$	100,272	$	97,317	$	1,036	$	916

Investment securities with amortized cost of $37.8 million and $36.0 million at December 31, 2022 and December 31, 2021 respectively, were pledged to secure public deposits and for other purposes as required or permitted by law. During the year ended December 31, 2022, a total of five U.S. Treasury Bills were purchased for a total of $135.0 million, to replace maturing securities and to pledge as security for public deposits, and $70.0 million in U.S. Treasury securities matured during the year ended December 31, 2022.

There were no sales of investments during the year ended December 31, 2022 or December 31, 2021.

Information pertaining to securities with gross unrealized losses at the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:


	Less Than 12 Months				12 Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(dollars in thousands)
December 31, 2022
Available-for-sale
U.S. Treasury securities	$	97,015	$	2,952	$	—	$	—	$	97,015	$	2,952

U.S. Agency collateralized mortgage obligations	50		3		—		—		50		3


Total available-for-sale securities	97,065		2,955		—		—		97,065		2,955
Held-to-maturity
U.S. Agency residential mortgage-backed securities	916		120		—		—		916		120
Total investment securities	$	97,981	$	3,075	$	—	$	—	$	97,981	$	3,075

At December 31, 2022 and December 31, 2021, there were six and four securities, respectively, in an unrealized loss position. Unrealized losses have not been recognized into income because management does not intend to sell and does not expect it will be required to sell the investments. The decline is largely due to changes in market conditions and interest rates, rather than credit quality. The fair value is expected to recover as the underlying securities in the portfolio approach maturity date and market conditions improve. The Company does not consider these securities to be other than temporarily impaired at December 31, 2022.