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Securities | 12 Months Ended
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Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of AFS debt securities as of December 31, 2021 and 2020:
|  | December 31, 2021
($ in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 37,555 |  |  | $ | 178 |  |  | $ | (321) |  |  | $ | 37,412 |
Residential collateralized mortgage obligations |  | 114,588 |  |  | 253 |  |  | (1,809) |  |  | 113,032 |
Total AFS debt securities |  | $ | 152,143 |  |  | $ | 431 |  |  | $ | (2,130) |  |  | $ | 150,444 |
|  | December 31, 2020
($ in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
U.S. Government-sponsored agency securities |  | $ | 1,000 |  |  | $ | 5 |  |  | $ | — |  |  | $ | 1,005 |
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | 19,281 |  |  | 430 |  |  | (7) |  |  | 19,704 |
Residential collateralized mortgage obligations |  | 70,318 |  |  | 814 |  |  | (50) |  |  | 71,082 |
Total AFS debt securities |  | $ | 90,599 |  |  | $ | 1,249 |  |  | $ | (57) |  |  | $ | 91,791 |
There were no sales of AFS debt securities during the years ended December 31, 2021 and 2020. The amortized cost and estimated fair value of AFS debt securities at December 31, 2021, by contractual maturity, are shown below:
($ in thousands) |  | Amortized Cost |  | Fair Value
After one year through five years |  | $ | 1,122 |  |  | $ | 1,159 |
After five years through ten years |  | 3,143 |  |  | 3,221 |
After ten years |  | 147,878 |  |  | 146,064 |
Total AFS debt securities |  | $ | 152,143 |  |  | $ | 150,444 |
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. At December 31, 2021 and 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity. The following table presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss at December 31, 2021 and 2020:
|  | December 31, 2021
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 31,120 |  |  | $ | (321) |  |  | $ | — |  |  | $ | — |  |  | $ | 31,120 |  |  | $ | (321) |
Residential collateralized mortgage obligations |  | 93,607 |  |  | (1,578) |  |  | 7,212 |  |  | (231) |  |  | 100,819 |  |  | (1,809) |
Total AFS debt securities |  | $ | 124,727 |  |  | $ | (1,899) |  |  | $ | 7,212 |  |  | $ | (231) |  |  | $ | 131,939 |  |  | $ | (2,130) |
|  | December 31, 2020
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
($ in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. Government agencies or sponsored agency securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 3,089 |  |  | $ | (7) |  |  | $ | — |  |  | $ | — |  |  | $ | 3,089 |  |  | $ | (7) |
Residential collateralized mortgage obligations |  | 13,593 |  |  | (50) |  |  | — |  |  | — |  |  | 13,593 |  |  | (50) |
Total AFS debt securities |  | $ | 16,682 |  |  | $ | (57) |  |  | $ | — |  |  | $ | — |  |  | $ | 16,682 |  |  | $ | (57) |
Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, along with the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or whether it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components, as follows: (i) OTTI related to credit loss, which must be recognized in the income statement, and (ii) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The unrealized losses were primarily attributable to interest rate movement, not credit quality. These securities (Fannie Mae, Ginnie Mae, and Freddie Mac) are guaranteed or sponsored by agencies of the U.S. government, and the issuers of the securities are of high credit quality. The Company believes that the gross unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects full collection of the carrying amount of these securities, does not intend to sell the securities in an unrealized loss position, and it was more-likely-than-not the Company will not have to sell these securities prior to recovery of amortized cost. Accordingly, the Company does not consider these securities to be OTTI as of December 31, 2021. As of December 31, 2021 or 2020, there were no pledged securities to secure public deposits, borrowing and letters of credit from FHLB and the Board of Governors of the Federal Reserve System (“FRB”), and for other purposes required or permitted by law. The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheets as of December 31, 2021 and 2020:
($ in thousands) |  | December 31, 2021 |  | December 31, 2020
FHLB stock |  | $ | 7,006 |  |  | $ | 6,043 |
PCBB stock |  | 190 |  |  | 190 |
Mutual fund - CRA qualified |  | 3,708 |  |  | 3,773 |
Time deposits placed in other banks |  | 95 |  |  | 95 |
Total other investments |  | $ | 10,999 |  |  | $ | 10,101 |
The Company has equity investment in a mutual fund with readily determinable fair value of $3.7 million and $3.8 million, as of December 31, 2021 or 2020, respectively, which is measured at fair value with changes in fair value recorded in net income. The Company invested in the mutual fund for CRA purposes. For the mutual fund, the Company recorded a $108 thousand unrealized loss and a $79 thousand unrealized gain for the years ended December 31, 2021 and 2020, respectively. The unrealized gains (losses) of the mutual fund are included in Other income in the statements of income.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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