Debt Securities

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Debt securities available for sale consist of the following at the dates indicated:


	March 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

MBS, residential	$	115,128	$	945	$	(2,892)	$	113,181
Municipal bonds	3,478		—		(89)		3,389
Corporate bonds	5,000		—		(763)		4,237

Total	$	123,606	$	945	$	(3,744)	$	120,807


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

MBS, residential	$	105,477	$	1,194	$	(2,172)	$	104,499
Municipal bonds	3,487		—		(78)		3,409
Corporate bonds	20,000		—		(958)		19,042

Total	$	128,964	$	1,194	$	(3,208)	$	126,950

Debt securities available for sale by contractual maturity at March 31, 2024 and December 31, 2023 are shown below. MBS are not included in the maturity categories because the borrowers in the underlying pools may prepay without penalty; therefore, it is unlikely that the securities will pay at their stated maturity schedule.



	March 31, 2024
	Amortized Cost		Estimated Fair Value
Due within one year	$	1,531	$	1,514
Due after one year through five years	1,947		1,875
Due after five years through ten years	5,000		4,237
Due after ten years	—		—
MBS, residential	115,128		113,181
Total	$	123,606	$	120,807



	December 31, 2023
	Amortized Cost		Estimated Fair Value
Due within one year	$	15,000	$	14,848
Due after one year through five years	3,487		3,409
Due after five years through ten years	5,000		4,194
Due after ten years	—		—
MBS, residential	105,477		104,499
Total	$	128,964	$	126,950

The Company had no sales of debt securities available for sale and no gross realized gains or losses were recognized during the three months ended March 31, 2024 and 2023.

Debt securities available for sale with amortized costs totaling $57,692 and $43,846 and market values of $57,794 and $42,329 at March 31, 2024 and December 31, 2023, respectively, were pledged as collateral to secure various public deposits and other borrowings.

The gross unrealized losses and the fair value for debt securities available for sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2024 and December 31, 2023 were as follows:


	March 31, 2024
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

MBS, residential	$	46,099	$	(799)	$	47,559	$	(2,093)	$	93,658	$	(2,892)
Municipal bonds	—		—		3,389		(89)		3,389		(89)
Corporate bonds	619		(131)		2,868		(632)		3,487		(763)
Total	$	46,718	$	(930)	$	53,816	$	(2,814)	$	100,534	$	(3,744)


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

MBS, residential	$	46,978	$	(393)	$	35,200	$	(1,779)	$	82,178	$	(2,172)
Municipal bonds	—		—		3,409		(78)		3,409		(78)
Corporate bonds	618		(132)		17,674		(826)		18,292		(958)
Total	$	47,596	$	(525)	$	56,283	$	(2,683)	$	103,879	$	(3,208)

The total number of securities with unrealized losses at March 31, 2024 and December 31, 2023 were 186 and 187, respectively.

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. All debt securities available for sale in an unrealized loss position as of March 31, 2024 continue to perform as scheduled and management does not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of management's evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, management considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. Management does not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that securities will be required to be sold. See "Note 1 – Summary of Significant Accounting Policies" in our 2023 Form 10-KT for further discussion.

Management continues to monitor all of its securities with a high degree of scrutiny. There can be no assurance that management will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods.

Management excludes the accrued interest receivable balance from the amortized cost basis in measuring ECL on investment securities and does not record an ACL on accrued interest receivable. As of March 31, 2024 and December 31, 2023, accrued interest receivable for debt securities available for sale was $425 and $469, respectively.