Securities

9 Months Ended

Sep. 30, 2022

Note 6 - Securities

Equity Securities

Equity securities are defined to include (a) preferred, common and other ownership interests in entities including partnerships, joint ventures and limited liability companies and (b) rights to acquire or dispose of ownership interest in entities at fixed or determinable prices.

The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and nine months ended September 30, 2022 and 2021:


	For the three months ended September 30,				For the nine months ended September 30,
(In Thousands)	2022		2021		2022		2021
Net (losses) gains recognized during the period on equity securities held at the reporting date	$	(559)	$	(307)	$	(5,487)	$	(4)
Net losses recognized during the period on equity securities sold during the period		-		-		(59)		-
Realized and unrealized losses on equity investments during the reporting period	$	(559)	$	(307)	$	(5,546)	$	(4)

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Note 6 - Securities (continued)

Debt Securities Available for Sale

The following tables present by maturity the amortized cost, gross unrealized gains and losses on, and fair value of, securities available for sale as of September 30, 2022 and December 31, 2021:




	September 30, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
Less than one year	$	-	$	-	$	-	$	-
More than one to five years		-		-		-		-
More than five to ten years		5,754		-		401		5,353
More than ten years		23,708		-		3,620		20,088
Sub-total:		29,462		-		4,021		25,441

Corporate Debt securities:
More than five to ten years		66,499		-		3,199		63,300
Sub-total:		66,499		-		3,199		63,300

Municipal obligations:
More than ten years		4,025		-		15		4,010
Sub-total:		4,025		-		15		4,010

Total securities	$	99,986	$	-	$	7,235	$	92,751



	December 31, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
Due within one year	$	2,952	$	-	$	114	$	2,838
More than one to five years		53		-		-		53
More than five to ten years		6,317		165		27		6,455
More than ten years		21,555		298		287		21,566
Sub-total:		30,877		463		428		30,912

Corporate Debt securities:
More than five to ten years		47,765		2,465		159		50,071
Sub-total:		47,765		2,465		159		50,071

Municipal obligations:
Due after ten years		4,104		99		-		4,203
Sub-total:		4,104		99		-		4,203

Total Debt Securities Available	$	82,746	$	3,027	$	587	$	85,186

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Note 6 - Securities (continued)

The unrealized losses, categorized by the length of time of continuous loss position, and fair value of related securities available for sale were as follows:



	12 Months or Less				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
September 30, 2022
Residential mortgage-backed securities	$	19,430	$	2,441	$	6,012	$	1,580	$	25,442	$	4,021
Corporate Debt securities		56,521		3,079		5,978		120		62,499		3,199
Municipal bond		4,010		15						4,010		15
	$	79,961	$	5,535	$	11,990	$	1,700	$	91,951	$	7,235

December 31, 2021
Residential mortgage-backed securities	$	7,801	$	159	$	4,681	$	269	$	12,482	$	428
Corporate Debt Securities		12,324		159		-		-		12,324		159
	$	20,125	$	318	$	4,681	$	269	$	24,806	$	587

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Company intends to sell the security or more likely than not will be required to sell the security before its anticipated recovery. At September 30, 2022 and December 31, 2021, management performed an assessment for possible OTTI of the Company’s residential mortgage-backed securities and corporate debt on an issue-by-issue basis, relying on information obtained from various sources, including publicly available financial data, ratings by external agencies, brokers and other sources. The extent of individual analysis applied to each security depends on the size of the Company’s investment, as well as management’s perception of the credit risk associated with each security. Based on the results of the assessment, management believes impairment of these securities, at September 30, 2022 and December 31, 2021, to be temporary.