Debt Securities Held-to-Maturity

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

The following is a summary of mortgage-backed securities held-to-maturity at June 30, 2022 and December 31, 2021 (in thousands):


	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	5,201	$	—	$	(224)	$	4,977
Total securities held-to-maturity	$	5,201	$	—	$	(224)	$	4,977


	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	5,283	$	192	$	—	$	5,475
Total securities held-to-maturity	$	5,283	$	192	$	—	$	5,475

Contractual maturities for mortgage-backed securities are not presented, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. There were no sales of held-to-maturity securities for the six months ended June 30, 2022 or June 30, 2021.

At both June 30, 2022 and December 31, 2021, debt securities held-to-maturity with a carrying value of $2.1 million were pledged to secure borrowings and deposits.

Gross unrealized losses on mortgage-backed securities held-to-maturity, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2022 were as follows (in thousands):


	June 30, 2022
	Less than 12 months				12 months or more				Total
	Unrealized		Estimated		Unrealized		Estimated		Unrealized		Estimated
	losses		fair value		losses		fair value		losses		fair value
Mortgage-backed securities:
Pass-through certificates:
GSE	$	(224)	$	4,977	$	—	$	—	$	(224)	$	4,977

Total	$	(224)	$	4,977	$	—	$	—	$	(224)	$	4,977

The Company held six pass-through mortgage-backed debt securities held-to-maturity issued or guaranteed by GSEs that were in an unrealized loss position of less than twelve months at June 30, 2022 and no held-to-maturity securities in an unrealized loss position of greater than twelve months at June 30, 2022. There were no held-to-maturity securities in an unrealized loss position at December 31, 2021.

The Company's held-to-maturity securities are residential mortgage-backed securities issued by Ginnie Mae, Freddie Mac and Fannie Mae, and it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. Government. Accordingly, no allowance for credit losses has been recorded for these securities.

The Company has made the accounting policy election to exclude accrued interest receivable on held-to-maturity securities from the estimate of credit losses. Accrued interest receivable associated with held-to-maturity securities totaling $16,000 and $15,000, respectively, at June 30, 2022 and December 31, 2021 was reported in accrued interest receivable on the consolidated balance sheets.