XML 30 R10.htm IDEA: XBRL DOCUMENT v3.24.2.u1
INVESTMENT SECURITIES
 6 Months Ended
Jun. 30, 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 June 30, 2024 and December 31, 2023, respectively, were as follows:
Available for sale securitiesAmortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
June 30, 2024
U.S. government agency obligations$15,180 $72 $154 $15,098 
Mortgage-backed securities88,199 — 19,115 69,084 
Corporate debt securities44,919 1 4,788 40,132 
Asset-backed securities22,196 45 117 22,124 
Total available for sale securities$170,494 $118 $24,174 $146,438 
December 31, 2023
U.S. government agency obligations$16,655 $77 $156 $16,576 
Mortgage-backed securities91,091 — 17,611 73,480 
Corporate debt securities47,158 6 5,990 41,174 
Asset-backed securities24,840 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 June 30, 2024 and December 31, 2023, respectively, were as follows:
Held to maturity securitiesAmortized
Cost		Gross
Unrecognized
Gains		Gross
Unrecognized
Losses		Estimated
Fair Value
June 30, 2024
Obligations of states and political subdivisions$500 $— $31 $469 
Mortgage-backed securities88,105 4 19,551 68,558 
Total held to maturity securities$88,605 $4 $19,582 $69,027 
December 31, 2023
Obligations of states and political subdivisions$600 $— $35 $565 
Mortgage-backed securities90,629 6 17,938 72,697 
Total held to maturity securities$91,229 $6 $17,973 $73,262 
At June 30, 2024, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $28,454 as collateral to secure a line of credit with the Federal Reserve Bank. As of June 30, 2024, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of June 30, 2024, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $383 and mortgage-backed securities with a carrying value of $1,802 as collateral against specific municipal deposits. As of June 30, 2024, the Bank also has mortgage-backed securities with a carrying value of $125 and U.S. Government Agencies with a carrying value of $449 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 and six month periods ended June 30, 2024, there were no sales of available for sale securities. In June 2024, senior debt of a community development financial institution, classified as available-for-sale securities with a carrying value of $2,082, was exchanged for preferred equity of the financial institution’s operating subsidiary. The exchange resulted in $168 of unrealized losses on available-for-sale securities, previously included in other comprehensive income, being recognized on the June 30, 2024, consolidated statement of operations as loss on investment securities. For the three and six month periods ended June 30, 2023, gross sales of available for sale securities were $5,105, gross gains on the sale of available for sale securities were $12, and gross loss on the sale of available for sale securities were $0.
The estimated fair value of securities at June 30, 2024 and December 31, 2023, by contractual maturity, is shown below.
June 30, 2024December 31, 2023
Available for sale securitiesAmortized
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 years11,024 10,823 13,986 13,703 
Due after five years through ten years42,638 37,923 45,549 39,701 
Due after ten years26,133 26,117 29,118 28,859 
Total securities with contractual maturities82,295 77,354 88,653 82,263 
Mortgage-backed securities88,199 69,084 91,091 73,480 
Total available for sale securities$170,494 $146,438 $179,744 $155,743 

June 30, 2024December 31, 2023
Held to maturity securitiesAmortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in one year or less$100 $98 $100 $100 
Due after one year through five years400 371 500 465 
Due after five years through ten years— — — — 
Total securities with contractual maturities500 469 600 565 
Mortgage-backed securities88,105 68,558 90,629 72,697 
Total held to maturity securities$88,605 $69,027 $91,229 $73,262 

Securities with unrealized losses at June 30, 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 Months12 Months or MoreTotal
Available for sale securitiesFair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss
June 30, 2024
U.S. government agency obligations$3,429 $4 $3,491 $150 $6,920 $154 
Mortgage-backed securities— — 69,084 19,115 69,084 19,115 
Corporate debt securities— — 38,212 4,788 38,212 4,788 
Asset-backed securities— — 14,291 117 14,291 117 
Total$3,429 $4 $125,078 $24,170 $128,507 $24,174 
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 securities3,350 $76 $35,916 $5,914 $39,266 $5,990 
Asset-backed securities3,348 $22 $20,008 $317 $23,356 $339 
Total $10,474 $103 $133,027 $23,993 $143,501 $24,096 
 
 
At June 30, 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 June 30, 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.

All of our available for sale and held to maturity investment securities are investment grade securities.