INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of December 31, 2023 and December 31, 2022, respectively, were as follows:


Available for sale securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2023
U.S. government agency obligations	$	16,655	$	77	$	156	$	16,576

Mortgage-backed securities	91,091		—		17,611		73,480

Corporate debt securities	47,158		6		5,990		41,174
Asset-backed securities	24,840		12		339		24,513

Total available for sale securities	$	179,744	$	95	$	24,096	$	155,743

December 31, 2022
U.S. government agency obligations	$	18,373	$	173	$	233	$	18,313

Mortgage-backed securities	97,458		—		18,848		78,610

Corporate debt securities	44,636		—		4,385		40,251
Asset-backed securities	29,877		—		1,060		28,817

Total available for sale securities	$	190,344	$	173	$	24,526	$	165,991


Held to maturity securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2023
Obligations of states and political subdivisions	$	600	$	—	$	35	$	565
Mortgage-backed securities	90,629		6		17,938		72,697
Total held to maturity securities	$	91,229	$	6	$	17,973	$	73,262
December 31, 2022
Obligations of states and political subdivisions	$	600	$	—	$	54	$	546
Mortgage-backed securities	95,779		7		19,553		76,233
Total held to maturity securities	$	96,379	$	7	$	19,607	$	76,779

At December 31, 2023, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $29,191 as collateral to secure a line of credit with the Federal Reserve Bank. As of December 31, 2023, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of December 31, 2023, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $516 and mortgage-backed securities with a carrying value of $1,928 as collateral against specific municipal deposits. As of December 31, 2023, the Bank also has mortgage-backed securities with a carrying value of $179 and U.S. Government Agencies with a carrying value of $415 pledged as collateral to the Federal Home Loan Bank of Des Moines.

At December 31, 2022, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $5,421 as collateral to secure a line of credit with the Federal Reserve Bank. As of December 31, 2022, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of December 31, 2022, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $2,602 and mortgage-backed securities with a carrying value of $2,219 as collateral against specific municipal deposits. As of December 31, 2022, the Bank also has mortgage-backed securities with a carrying value of $142 pledged as collateral to the Federal Home Loan Bank of Des Moines.

For the twelve-month period ending December 31, 2023, and December 31, 2022, gross sales of available for sale securities were $5,105 and $0 respectively. Gross gains on sale of available for sale securities for the twelve-month period ending December 31, 2023 and December 31, 2022, were $12 and $0 respectively. Gross losses on sale of available for sale securities for the twelve-month period ended December 31, 2023 and December 31, 2022 were both $0.

The estimated fair value of available for sale securities at December 31, 2023 and December 31, 2022, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities on mortgage-backed securities because

borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Expected maturities may differ from contractual maturities on certain agency and securities due to the call feature.


	December 31, 2023				December 31, 2022
Available for sale securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	13,986		13,703		8,525		8,184
Due after five years through ten years	45,549		39,701		45,622		41,427
Due after ten years	29,118		28,859		38,739		37,770
Total securities with contractual maturities	88,653		82,263		92,886		87,381
Mortgage-backed securities	91,091		73,480		97,458		78,610

Total available for sale securities	$	179,744	$	155,743	$	190,344	$	165,991


	December 31, 2023				December 31, 2022
Held to maturity securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	100	$	100	$	—	$	—
Due after one year through five years	500		465		450		415
Due after five years through ten years	—		—		150		131
Total securities with contractual maturities	600		565		600		546
Mortgage-backed securities	90,629		72,697		95,779		76,233
Total held to maturity securities	$	91,229	$	73,262	$	96,379	$	76,779

Securities with unrealized losses at December 31, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


	Less than 12 Months				12 Months or More				Total
Available for sale securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
December 31, 2023
U.S. government agency obligations	$	3,776	$	5	$	3,627	$	151	$	7,403	$	156

Mortgage-backed securities	—		—		73,476		17,611		73,476		17,611

Corporate debt securities	3,350		76		35,916		5,914		39,266		5,990
Asset-backed securities	3,348		22		20,008		317		23,356		339

Total	$	10,474	$	103	$	133,027	$	23,993	$	143,501	$	24,096
December 31, 2022
U.S. government agency obligations	$	3,169	$	138	$	1,138	$	95	$	4,307	$	233

Mortgage-backed securities	9,654		896		68,907		17,952		78,561		18,848
Corporate debt securities	21,547		1,688		18,704		2,697		40,251		4,385
Asset-backed securities	7,955		221		20,862		839		28,817		1,060

Total	$	42,325	$	2,943	$	109,611	$	21,583	$	151,936	$	24,526


	Less than 12 Months				12 Months or More				Total
Held to maturity securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
December 31, 2023
Obligations of states and political subdivisions	$	—	$	—	$	565	$	35	$	565	$	35

Mortgage-backed securities	—		—		72,507		17,938		72,507		17,938
Total	$	—	$	—	$	73,072	$	17,973	$	73,072	$	17,973
December 31, 2022
Obligations of states and political subdivisions	$	—	$	—	$	546	$	54	$	546	$	54
Mortgage-backed securities	16,627		2,416		59,367		17,137		75,994		19,553
Total	$	16,627	$	2,416	$	59,913	$	17,191	$	76,540	$	19,607

At December 31, 2023 no ACL was established for available for sale or held to maturity securities. Substantially all the held to maturity portfolio is made up of agency backed mortgage securities. These securities are guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. Accordingly, the Company does not expect to incur credit losses on these securities. Unrealized losses on available-for-sale investment securities have not been recognized into income because the issuers’ bonds are agency backed securities or other securities that all principal and interest is expected to be received on a timely basis. Furthermore, the Company does not intend to sell, and it is likely that management will not be required to sell, the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The issuers continue to make timely principal and interest payments on their bonds.