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INVESTMENT SECURITIES | 9 Months Ended
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Sep. 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 September 30, 2024 and December 31, 2023, respectively, were as follows:
Available for sale securities | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
September 30, 2024 |  |  |  |  |  |  |
U.S. government agency obligations | $ | 14,497 |  |  | $ | 55 |  |  | $ | 95 |  |  | $ | 14,457 |
Mortgage-backed securities | 89,439 |  |  | — |  |  | 15,419 |  |  | 74,020 |
Corporate debt securities | 44,925 |  |  | 66 |  |  | 3,940 |  |  | 41,051 |
Asset-backed securities | 20,021 |  |  | 38 |  |  | 155 |  |  | 19,904 |
Total available for sale securities | $ | 168,882 |  |  | $ | 159 |  |  | $ | 19,609 |  |  | $ | 149,432 |
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 September 30, 2024 and December 31, 2023, respectively, were as follows:
Held to maturity securities | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Estimated Fair Value
September 30, 2024 |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 500 |  |  | $ | — |  |  | $ | 19 |  |  | $ | 481 |
Mortgage-backed securities | 86,533 |  |  | 8 |  |  | 15,976 |  |  | 70,565 |
Total held to maturity securities | $ | 87,033 |  |  | $ | 8 |  |  | $ | 15,995 |  |  | $ | 71,046 |
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 September 30, 2024, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $34,700 as collateral to secure a line of credit with the Federal Reserve Bank. As of September 30, 2024, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of September 30, 2024, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $353 and mortgage-backed securities with a carrying value of $1,811 as collateral against specific municipal deposits. As of September 30, 2024, the Bank also has mortgage-backed securities with a carrying value of $103 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 nine month periods ended September 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 the recognition of $168 of unrealized losses on available-for-sale securities, previously included in other comprehensive income, as well as an additional $270 loss, for a total loss of $438. This total loss of $438 was recognized on the June 30, 2024, consolidated statement of operations as net losses on equity securities. For the three month period ended September 30, 2023, there were no sales of available for sale securities. For the nine month period ended September 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 losses on the sale of available for sale securities were $0. The estimated fair value of securities at September 30, 2024 and December 31, 2023, by contractual maturity, is shown below.
| September 30, 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 | 10,857 |  |  | 10,837 |  |  | 13,986 |  |  | 13,703 |
Due after five years through ten years | 41,875 |  |  | 37,952 |  |  | 45,549 |  |  | 39,701 |
Due after ten years | 24,211 |  |  | 24,132 |  |  | 29,118 |  |  | 28,859 |
Total securities with contractual maturities | 79,443 |  |  | 75,412 |  |  | 88,653 |  |  | 82,263 |
Mortgage-backed securities | 89,439 |  |  | 74,020 |  |  | 91,091 |  |  | 73,480 |
Total available for sale securities | $ | 168,882 |  |  | $ | 149,432 |  |  | $ | 179,744 |  |  | $ | 155,743 |
| September 30, 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 |  |  | $ | 99 |  |  | $ | 100 |  |  | $ | 100 |
Due after one year through five years | 400 |  |  | 382 |  |  | 500 |  |  | 465 |
Due after five years through ten years | — |  |  | — |  |  | — |  |  | — |
Total securities with contractual maturities | 500 |  |  | 481 |  |  | 600 |  |  | 565 |
Mortgage-backed securities | 86,533 |  |  | 70,565 |  |  | 90,629 |  |  | 72,697 |
Total held to maturity securities | $ | 87,033 |  |  | $ | 71,046 |  |  | $ | 91,229 |  |  | $ | 73,262 |
Securities with unrealized losses at September 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 Months |  | 12 Months or More |  | Total
Available for sale securities |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency obligations |  | $ | 4,750 |  |  | $ | 11 |  |  | $ | 3,382 |  |  | $ | 84 |  |  | $ | 8,132 |  |  | $ | 95 |
Mortgage-backed securities |  | 2,815 |  |  | 39 |  |  | 71,205 |  |  | 15,380 |  |  | 74,020 |  |  | 15,419 |
Corporate debt securities |  | — |  |  | — |  |  | 36,204 |  |  | 3,940 |  |  | 36,204 |  |  | 3,940 |
Asset-backed securities |  | 1,344 |  |  | 2 |  |  | 12,783 |  |  | 153 |  |  | 14,127 |  |  | 155 |
Total |  | $ | 8,909 |  |  | $ | 52 |  |  | $ | 123,574 |  |  | $ | 19,557 |  |  | $ | 132,483 |  |  | $ | 19,609 |
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 September 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 September 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.

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