Investment Securities

6 Months Ended

Jun. 30, 2022

(4) Investment Securities

The following summarizes the amortized cost of investment securities classified as available-for-sale and their approximate fair values at June 30, 2022 and December 31, 2021:



	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(In thousands)	Basis		Gains		Losses		Value
June 30, 2022
State and municipal securities	$	11,948	$	12	$	621	$	11,339
Asset-backed securities		7,603		—		674		6,929
Government mortgage-backed securities		13,766		—		866		12,900
Total debt securities available-for-sale	$	33,317	$	12	$	2,161	$	31,168
December 31, 2021
State and municipal securities	$	12,002	$	625	$	36	$	12,591
Asset-backed securities		8,141		118		4		8,255
Government mortgage-backed securities		15,842		208		59		15,991
Total debt securities available-for-sale	$	35,985	$	951	$	99	$	36,837

The scheduled maturities of debt securities at June 30, 2022 are summarized in the table below. Actual maturities of asset and mortgage-backed securities may differ from contractual maturities because the assets and mortgages underlying the securities may be repaid without any penalties. Because asset- and mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary.



	Available-for-Sale
	Amortized		Fair
(In thousands)	Cost		Value
Due after one year through five years	$	576	$	569
Due after five years through ten years		1,171		1,173
Due after ten years		10,201		9,597
Government mortgage-backed securities		13,766		12,900
Asset-backed securities		7,603		6,929
	$	33,317	$	31,168

There were no realized gains or losses on sales and calls during the six months ended June 30, 2022 or June 30, 2021.

Securities with carrying amounts of $11.5 million and $14.4 million were pledged to secure available borrowings with the Federal Home Loan Bank at June 30, 2022 and December 31, 2021, respectively.

Other-than-temporary impairment assessment: Management assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other-than-temporary.

The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or longer are as follows at June 30, 2022 and December 31, 2021:



	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Losses		Value		Losses		Value		Losses
June 30, 2022
Temporarily impaired securities:
State and municipal	$	8,722	$	621	$	—	$	—	$	8,722	$	621
Asset-backed securities		6,930		674		—		—		6,930		674
Government mortgage-backed securities		12,815		856		85		10		12,900		866
Total temporarily impaired debt securities	$	28,467	$	2,151	$	85	$	10	$	28,552	$	2,161

December 31, 2021
Temporarily impaired securities:
State and municipal	$	2,950	$	36	$	—	$	—	$	2,950	$	36
Asset-backed securities		4,797		4		—		—		4,797		4
Government mortgage-backed securities		5,022		54		113		5		5,135		59
Total temporarily impaired debt securities	$	12,769	$	94	$	113	$	5	$	12,882	$	99

The gross unrealized losses were primarily attributable to changes in interest rates since the time of purchase. Management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired June 30, 2022.