Securities

12 Months Ended

Dec. 31, 2022

Note 4- Securities

Equity Securities

Equity securities are reported at fair value on the Company’s Consolidated Statements of Financial Condition. The Company’s portfolio of equity securities had an estimated fair value of $17.7 million and $25.2 million as of December 31, 2022 and December 31, 2021, respectively. Included in this category are equity holdings of financial institutions. 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.

Note 4- Securities (continued)

Equity securities are generally required to be measured at fair value with market value adjustments being reflected in net income.

The following table presents the disaggregated net losses on equity securities reported in the Consolidated Statements of Operations (In Thousands):


		For the Twelve Months Ended December 31, 2022		For the Twelve Months Ended December 31, 2021
Net gains (losses) recognized during the period on equity securities	$	(6,269)	$	147
Less: Net gains (losses) recognized during the period on equity securities sold during the period		(59)		-
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	(6,210)	$	147

Debt Securities Available for Sale

The following table sets forth information regarding the amortized cost, estimated fair values, and unrealized gains and losses for the Bank’s debt securities portfolio at December 31, 2022 by final contractual maturity. The following table does not take into consideration the effects of scheduled repayments or the effects of possible prepayments. Certain securities have interest rates that are adjustable and will reprice annually within the various maturity ranges. The effect of these repricings are not reflected in the table below.


	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In Thousands)
Residential Mortgage-backed securities:
More than five to ten years	$	5,445	$	-	$	350	$	5,095
More than ten years		23,210		-		3,435		19,775
Sub-total:		28,655		-		3,785		24,870

Corporate Debt Securities:
Due within one year		7,321				91		7,230
More than five to ten years		59,629		-		4,005		55,624
Sub-total:		66,950		-		4,096		62,854

Municipal obligations:
Due after ten years		3,997		-		6		3,991
Sub-total:		3,997		-		6		3,991

Total Debt Securities Available-for-Sale	$	99,602	$	-	$	7,887	$	91,715


	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-for-Sale	$	82,746	$	3,027	$	587	$	85,186

Note 4- 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:


	Less than 12 Months				More than 12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In Thousands)
December 31, 2022
Residential mortgage-backed securities	$	17,362	$	2,022	$	7,508	$	1,763	$	24,870	$	3,785
Corporate Debt Securities		51,607		3,199		9,948		897		61,555		4,096
Muni Bond		3,991		6						3,991		6
	$	72,960	$	5,227	$	17,456	$	2,660	$	90,416	$	7,887

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 December 31, 2022 and 2021, management performed an assessment for possible OTTI of the Company’s residential mortgage-backed securities, corporate debt securities, and municipal obligations 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 depended 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 December 31, 2022 and 2021 to be temporary.