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INVESTMENT SECURITIES | 3 Months Ended
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Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The amortized cost and fair value of securities available for sale and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income as of March 31, 2024 and December 31, 2023, respectively, were as follows:
Available for sale securities | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
March 31, 2024 |  |  |  |  |  |  |
U.S. government agency obligations | $ | 15,835 |  |  | $ | 62 |  |  | $ | 169 |  |  | $ | 15,728 |
Mortgage-backed securities | 89,933 |  |  | — |  |  | 19,254 |  |  | 70,679 |
Corporate debt securities | 47,164 |  |  | 29 |  |  | 5,415 |  |  | 41,778 |
Asset-backed securities | 23,632 |  |  | 31 |  |  | 176 |  |  | 23,487 |
Total available for sale securities | $ | 176,564 |  |  | $ | 122 |  |  | $ | 25,014 |  |  | $ | 151,672 |
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 |
The amortized cost and fair value of securities held to maturity and the corresponding amounts of gross unrecognized gains and losses as of March 31, 2024 and December 31, 2023, respectively, were as follows:
Held to maturity securities | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Estimated Fair Value
March 31, 2024 |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 500 |  |  | $ | — |  |  | $ | 34 |  |  | $ | 466 |
Mortgage-backed securities | 89,442 |  |  | 4 |  |  | 19,642 |  |  | 69,804 |
Total held to maturity securities | $ | 89,942 |  |  | $ | 4 |  |  | $ | 19,676 |  |  | $ | 70,270 |
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 |
At March 31, 2024, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $28,865 as collateral to secure a line of credit with the Federal Reserve Bank. As of March 31, 2024, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of March 31, 2024, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $442 and mortgage-backed securities with a carrying value of $1,863 as collateral against specific municipal deposits. As of March 31, 2024, the Bank also has mortgage-backed securities with a carrying value of $151 and U.S. Government Agencies with a carrying value of $396 pledged as collateral to the Federal Home Loan Bank of Des Moines. At December 31, 2023, the Bank had 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 had 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 had 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. For the three month periods ended March 31, 2024, and March 31, 2023, there were no sales of available for sale securities. The estimated fair value of securities at March 31, 2024 and December 31, 2023, 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.
| March 31, 2024 |  | December 31, 2023
Available for sale securities | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due in one year or less | $ | 2,500 |  |  | $ | 2,491 |  |  | $ | — |  |  | $ | — |
Due after one year through five years | 11,166 |  |  | 10,920 |  |  | 13,986 |  |  | 13,703 |
Due after five years through ten years | 44,977 |  |  | 39,687 |  |  | 45,549 |  |  | 39,701 |
Due after ten years | 27,988 |  |  | 27,895 |  |  | 29,118 |  |  | 28,859 |
Total securities with contractual maturities | 86,631 |  |  | 80,993 |  |  | 88,653 |  |  | 82,263 |
Mortgage-backed securities | 89,933 |  |  | 70,679 |  |  | 91,091 |  |  | 73,480 |
Total available for sale securities | $ | 176,564 |  |  | $ | 151,672 |  |  | $ | 179,744 |  |  | $ | 155,743 |
| March 31, 2024 |  | December 31, 2023
Held to maturity securities | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due in one year or less | $ | 100 |  |  | $ | 97 |  |  | $ | 100 |  |  | $ | 100 |
Due after one year through five years | 400 |  |  | 369 |  |  | 500 |  |  | 465 |
Due after five years through ten years | — |  |  | — |  |  | — |  |  | — |
Total securities with contractual maturities | 500 |  |  | 466 |  |  | 600 |  |  | 565 |
Mortgage-backed securities | 89,442 |  |  | 69,804 |  |  | 90,629 |  |  | 72,697 |
Total held to maturity securities | $ | 89,942 |  |  | $ | 70,270 |  |  | $ | 91,229 |  |  | $ | 73,262 |
Securities with unrealized losses at March 31, 2024 and December 31, 2023, 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
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency obligations |  | $ | 3,592 |  |  | $ | 9 |  |  | $ | 3,511 |  |  | $ | 160 |  |  | $ | 7,103 |  |  | $ | 169 |
Mortgage-backed securities |  | 2 |  |  | — |  |  | 70,677 |  |  | 19,254 |  |  | 70,679 |  |  | 19,254 |
Corporate debt securities |  | — |  |  | — |  |  | 39,838 |  |  | 5,415 |  |  | 39,838 |  |  | 5,415 |
Asset-backed securities |  | — |  |  | — |  |  | 18,676 |  |  | 176 |  |  | 18,676 |  |  | 176 |
Total |  | $ | 3,594 |  |  | $ | 9 |  |  | $ | 132,702 |  |  | $ | 25,005 |  |  | $ | 136,296 |  |  | $ | 25,014 |
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 |
At March 31, 2024 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. At March 31, 2024, there were no past due held to maturity securities.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. The composition of our available for sale portfolios by credit rating as of the dates indicated below was as follows:
| March 31, 2024 |  | December 31, 2023
Available for sale securities | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
U.S. government agency | $ | 97,305 |  |  | $ | 78,026 |  |  | $ | 98,977 |  |  | $ | 81,351 |
AAA | 12,386 |  |  | 12,256 |  |  | 9,695 |  |  | 9,508 |
AA | 19,709 |  |  | 19,613 |  |  | 23,913 |  |  | 23,709 |
A | 8,200 |  |  | 7,465 |  |  | 8,200 |  |  | 7,292 |
BBB | 38,964 |  |  | 34,312 |  |  | 38,959 |  |  | 33,883 |
Non-rated | — |  |  | — |  |  | — |  |  | — |
Total available for sale securities | $ | 176,564 |  |  | $ | 151,672 |  |  | $ | 179,744 |  |  | $ | 155,743 |
The composition of our held to maturity portfolio by credit rating as of the dates indicated was as follows:
| March 31, 2024 |  | December 31, 2023
Held to maturity securities | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
U.S. government agency | $ | 89,442 |  |  | $ | 69,804 |  |  | $ | 90,629 |  |  | $ | 72,697 |
AAA | — |  |  | — |  |  | — |  |  | — |
AA | — |  |  | — |  |  | — |  |  | — |
A | 500 |  |  | 466 |  |  | 600 |  |  | 565 |
Total | $ | 89,942 |  |  | $ | 70,270 |  |  | $ | 91,229 |  |  | $ | 73,262 |

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