XML 21 R12.htm IDEA: XBRL DOCUMENT

INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

NOTE 4 – INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale at the dates indicated are summarized as follows:


					Gross			Gross
		Amortized			unrealized			unrealized			Estimated
		cost			gains			losses			fair value
September 30, 2023
U.S. Government Agencies		$	1,501		$	—		$	—		$	1,501
Municipal securities			20,302			2			(2,119)			18,185
Mortgage-backed securities			33,489			11			(5,074)			28,426
Collateralized mortgage obligations			28,782			—			(3,139)			25,643
SBA securities			5,632			59			(98)			5,593
Corporate bonds			80,373			10			(13,886)			66,497
Total		$	170,079		$	82		$	(24,316)		$	145,845


					Gross			Gross
		Amortized			unrealized			unrealized			Estimated
		cost			gains			losses			fair value
December 31, 2022 (As Restated)
U.S. Government Agencies		$	1,505		$	—		$	—		$	1,505
Municipal securities			21,099			2			(1,544)			19,557
Mortgage-backed securities			37,199			23			(4,212)			33,010
Collateralized mortgage obligations			28,153			—			(2,729)			25,424
SBA securities			4,381			19			(95)			4,305
Corporate bonds			77,900			156			(7,853)			70,203
Total		$	170,237		$	200		$	(16,433)		$	154,004

Amortized cost and fair values exclude accrued interest receivable of $1.4 million and $1.2 million at September 30, 2023 and December 31, 2022, respectively, which is included in interest receivable and other assets in the condensed consolidated balance sheets.

During both the three and nine months ended September 30, 2023, the Company sold no securities available-for-sale. During the three and nine months ended September 30, 2022, the Company sold no securities available-for-sale and one security available-for-sale for a minimal realized gain, respectively.

The estimated fair value and gross unrealized losses for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position at the dates indicated are as follows:


		Less than 12 months						12 months or more						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		fair value			loss			fair value			loss			fair value			loss
September 30, 2023
Municipal securities		$	1,441		$	(16)		$	15,178		$	(2,103)		$	16,619		$	(2,119)
Mortgage-backed securities			—			—			27,653			(5,074)			27,653			(5,074)
Collateralized mortgage obligations			3,147			(28)			22,496			(3,111)			25,643			(3,139)
SBA securities			—			—			1,604			(98)			1,604			(98)
Corporate bonds			—			—			62,514			(13,886)			62,514			(13,886)
Total		$	4,588		$	(44)		$	129,445		$	(24,272)		$	134,033		$	(24,316)


		Less than 12 months						12 months or more						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		fair value			loss			fair value			loss			fair value			loss
December 31, 2022 (As Restated)
Municipal securities		$	1,147		$	(8)		$	16,843		$	(1,536)		$	17,990		$	(1,544)
Mortgage-backed securities			—			—			31,291			(4,212)			31,291			(4,212)
Collateralized mortgage obligations			2,284			(26)			23,140			(2,703)			25,424			(2,729)
SBA securities			—			—			1,416			(95)			1,416			(95)
Corporate bonds			—			—			64,797			(7,853)			64,797			(7,853)
Total		$	3,431		$	(34)		$	137,487		$	(16,399)		$	140,918		$	(16,433)

At September 30, 2023, the Company held 324 securities available-for-sale, of which 293 were in an unrealized loss position for more than twelve months and 22 were in an unrealized loss position for less than twelve months.

The securities that were in an unrealized loss position as of September 30, 2023, were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. In making this assessment, management considers the length of time and the extent to which fair value is less than amortized cost, the nature of the security, the underlying collateral, and the financial condition and prospects of the issuer, among other factors. This assessment also includes a determination of whether the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses.

As of September 30, 2023, the Company expects to recover the amortized cost basis of its securities, has no present intent to sell any investment securities with unrealized losses, it is more likely than not that we will not be required to sell securities with unrealized losses before recovery of their amortized cost and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The issuers of these securities continue to make timely principal and interest payments. No allowances for credit losses have been recognized on investment securities available-for-sale in an unrealized loss position, as management does not believe any of the securities are impaired due to reasons of credit quality at September 30, 2023.

The amortized cost and estimated fair value of securities available-for-sale at the dates indicated by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


		September 30, 2023						December 31, 2022
		Amortized			Estimated			Amortized			Estimated
		cost			fair value			cost			fair value
								(As Restated)			(As Restated)
Available-for-sale
Due in one year or less		$	7,127		$	7,094		$	4,994		$	4,960
Due after one through five years			17,483			16,111			18,892			17,925
Due after five years through ten years			100,031			83,665			95,071			85,482
Due after ten years			45,438			38,975			51,280			45,637
Total		$	170,079		$	145,845		$	170,237		$	154,004

Equity Securities – The Company recognized a net loss on equity securities of $274,000 and $2.1 million for the three and nine months ended September 30, 2023, and recognized a net loss on equity securities of $362,000 and $4.0 million for the three and nine months ended September 30, 2022, respectively, due to a decrease in fair value of the equity securities. Equity securities were $11.6 million and $13.8 million as of September 30, 2023 and December 31, 2022, respectively.