Securities

9 Months Ended

Sep. 30, 2024

NOTE 3 – SECURITIES

The following tables summarize the amortized cost and fair value of the Company’s available-for-sale securities portfolio at September 30, 2024 and December 31, 2023 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2024 (unaudited)
Corporate debt	$	9,982	$	-	$	2,482	$	7,500
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		1,189		1		-		1,190
Total	$	11,171	$	1	$	2,482	$	8,690


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2023
Corporate debt	$	9,980	$	-	$	2,880	$	7,100
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		1,007		-		19		988
Mortgage-backed securities - residential ⁽¹⁾		4		-		-		4
Total	$	10,991	$	-	$	2,899	$	8,092

⁽¹⁾Unrealized loss is less than $1 resulting in rounding to zero.

There was no impairment recognized in accumulated other comprehensive loss for securities available for sale at September 30, 2024 or September 30, 2023.

There were no sales of securities during the three and nine months ended September 30, 2024 and 2023.

The amortized cost and fair value of debt securities at September 30, 2024 and December 31, 2023 are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.



	September 30, 2024					December 31, 2023
	(unaudited)
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	1,189	$	1,190	$	1,007	$	988
Due from five to ten years		9,982		7,500		9,980		7,100
Mortgage-backed securities - residential		-		-		4		4
Total	$	11,171	$	8,690	$	10,991	$	8,092

Fair value of securities pledged as collateral was as follows:


	September 30, 2024		December 31, 2023
	(unaudited)
Pledged as collateral for:
FHLB advances	$	-	$	497
Public deposits		645		492
Total	$	645	$	989

At September 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity.

The following table summarizes securities with unrealized losses at September 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position.



September 30, 2024 (unaudited)	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Corporate debt	$	-	$	-	$	7,500	$	2,482	$	7,500	$	2,482
Total impaired	$	-	$	-	$	7,500	$	2,482	$	7,500	$	2,482




December 31, 2023	Less than 12 Months				12 Months or More				Total
Description of Securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Corporate debt	$	-	$	-	$	7,100	$	2,880	$	7,100	$	2,880
Issued by U.S. government-sponsored entities and agencies:
U.S. Treasury		-		-	$	988		19		988		19
Mortgage-backed securities - residential ⁽¹⁾		1		-		3		-		4		-
Total impaired	$	1	$	-	$	8,091	$	2,899	$	8,092	$	2,899

⁽¹⁾Unrealized loss is less than $1 resulting in rounding to zero.

At September 30, 2024, 86.3% of the Company’s available for sale securities were reported at less than historical cost. At December 31, 2023, 100% of the Company's available for sale securities were reported at less than historical cost.

The unrealized losses at September 30, 2024 were related to one Corporate debt security. The unrealized losses at December 31, 2023 were related to one Corporate debt security, one Mortgage-backed security and two U.S. Treasuries. Because the decline in fair value was attributable to changes in market conditions, and not credit quality, and because the Company did not have the intent to sell these securities and it was likely that it would not be required to sell these securities before their anticipated recovery, the Company did not record an allowance for credit losses at September 30, 2024 and December 31, 2023.