XML 17 R8.htm IDEA: XBRL DOCUMENT
v3.23.3

Investments | 9 Months Ended
--- | ---
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Investments | Investments Investment securities held-to-maturity, at cost The Company's held-to-maturity ("HTM") investment portfolio consists of Agency mortgage-backed securities and Agency collateralized mortgage obligations. The Company reports HTM securities on the Company's Consolidated Balance Sheets at carrying value which is amortized cost. The amortized cost, unrealized gains and losses, and estimated fair values of the Company’s held-to-maturity securities at September 30, 2023 and December 31, 2022, are summarized as follows:
| September 30, 2023
($ in thousands) | Amortized Cost |  | Unrealized Gain |  | Unrealized Loss |  | Estimated Fair Value
Mortgage-backed securities | $ | 7,230 |  |  | $ | — |  |  | $ | (1,042) |  |  | $ | 6,188 |
Collateralized mortgage obligations | 8,610 |  |  | — |  |  | (931) |  |  | 7,679 |
Total securities held-to-maturity | $ | 15,840 |  |  | $ | — |  |  | $ | (1,973) |  |  | $ | 13,867 |
| December 31, 2022
($ in thousands) | Amortized Cost |  | Unrealized Gain |  | Unrealized Loss |  | Estimated Fair Value
Mortgage-backed securities | $ | 8,087 |  |  | $ | 5 |  |  | $ | (825) |  |  | $ | 7,267 |
Collateralized mortgage obligations | 6,205 |  |  | — |  |  | (744) |  |  | 5,461 |
Total securities held-to-maturity | $ | 14,292 |  |  | $ | 5 |  |  | $ | (1,569) |  |  | $ | 12,728 |
Credit Quality Indicators & Allowance for Credit Losses - HTM On January 1, 2023, the Company adopted ASU 2016-13, which replaced the legacy GAAP other-than-temporary impairment ("OTTI") model with a credit loss model. ASU 2016-13 requires an allowance on lifetime expected credit losses on HTM debt securities but retains the concept from the OTTI model that credit losses are recognized once securities become impaired. For HTM securities, the Company evaluates the credit risk of its securities on at least a quarterly basis. The Company estimates expected credit losses on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities is excluded from the estimate of credit losses. At September 30, 2023 and at adoption of CECL on January 1, 2023, there was no ACL related to HTM securities due to the composition of the portfolio which is generally considered not to have credit risk given the government guarantee associated with these agencies. The Company had twenty securities, consisting of eleven collateralized mortgage obligations and nine mortgage-backed securities, in an unrealized loss position at September 30, 2023 and seventeen securities, consisting of eight collateralized mortgage obligations and nine mortgage-backed securities, in an unrealized loss position at December 31, 2022, as summarized in the following tables:
| September 30, 2023
| Less than 12 months |  | 12 Months or More |  | Total
($ in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Mortgage-backed securities | $ | 722 |  |  | $ | (34) |  |  | $ | 5,466 |  |  | $ | (1,008) |  |  | $ | 6,188 |  |  | $ | (1,042) |
Collateralized mortgage obligations | 3,440 |  |  | (98) |  |  | 3,237 |  |  | (833) |  |  | 6,677 |  |  | (931) |
Total securities held-to-maturity | $ | 4,162 |  |  | $ | (132) |  |  | $ | 8,703 |  |  | $ | (1,841) |  |  | $ | 12,865 |  |  | $ | (1,973) |
| December 31, 2022
| Less than 12 months |  | 12 Months or More |  | Total
($ in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Mortgage-backed securities | $ | 2,374 |  |  | $ | (190) |  |  | $ | 3,962 |  |  | $ | (635) |  |  | $ | 6,336 |  |  | $ | (825) |
Collateralized mortgage obligations | 2,752 |  |  | (96) |  |  | 2,709 |  |  | (648) |  |  | 5,461 |  |  | (744) |
Total securities held-to-maturity | $ | 5,126 |  |  | $ | (286) |  |  | $ | 6,671 |  |  | $ | (1,283) |  |  | $ | 11,797 |  |  | $ | (1,569) |
The amortized cost and estimated market value of debt securities at September 30, 2023 and December 31, 2022, by contractual maturity are shown below. Actual 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
($ in thousands) | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Securities held-to-maturity |  |  |  |  |  |  |
Due in one year or less | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Due after one year through five years | — |  |  | — |  |  | — |  |  | — |
Due after five years through ten years | 2,912 |  |  | 2,677 |  |  | 3,388 |  |  | 3,202 |
Due after ten years | 12,928 |  |  | 11,190 |  |  | 10,904 |  |  | 9,526 |
Total Securities held-to-maturity | $ | 15,840 |  |  | $ | 13,867 |  |  | $ | 14,292 |  |  | $ | 12,728 |
At September 30, 2023, held-to-maturity securities in the amount of $14.2 million were pledged as collateral for a credit line held by the Bank. There were no sales or transfers of investment securities and no realized gains or losses on these securities during the three and nine months ended September 30, 2023 or 2022. FHLB stock The Bank is a member of the FHLB system. Members are required to own FHLB stock of at least the greater of 1% of FHLB membership asset value or 2.70% of outstanding FHLB advances. At September 30, 2023 and December 31, 2022, the Bank owned $0.5 million and $0.4 million, respectively, of FHLB stock, which is carried at cost. The Company evaluated the carrying value of its FHLB stock investment at September 30, 2023 and determined that it was not impaired. This evaluation considered the long-term nature of the investment, the current financial and liquidity position of the FHLB, repurchase activity of excess stock by the FHLB at its carrying value, the return on the investment from recurring and special dividends, and the Company’s intent and ability to hold this investment for a period of time sufficient to recover its recorded investment.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration