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Available-for-Sale Securities
 6 Months Ended
Jun. 30, 2024
Investments [Abstract]  
Available-for-Sale Securities Available-for-Sale Securities
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of available-for-sale securities at June 30, 2024 and December 31, 2023 are as follows:
(In thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
June 30, 2024:
U. S. Government agency and mortgage-backed securities$79,854 $— $(15,567)$64,287 
Corporate bonds17,996 — (4,113)13,883 
Subordinated notes5,000 — (673)4,327 
SBA loan pools4,733 — (1,030)3,703 
Municipal bonds558 — (91)467 
Total available-for-sale securities$108,141 $— $(21,474)$86,667 
December 31, 2023:
U. S. Government agency and mortgage-backed securities$80,500 $— $(14,829)$65,671 
Corporate bonds17,995 — (4,229)13,766 
Subordinated notes5,000 — (773)4,227 
SBA loan pools6,002 — (965)5,037 
Municipal bonds559 — (73)486 
Total available-for-sale securities$110,056 $— $(20,869)$89,187 
The following table presents the available-for-sale securities’ gross unrealized losses and fair value, aggregated by the length of time the individual securities have been in a continuous loss position as of June 30, 2024 and December 31, 2023:
(In thousands)Less than 12 Months12 Months or MoreTotal
Fair Value Unrealized (Loss) Fair Value Unrealized (Loss) Fair Value Unrealized (Loss)
June 30, 2024:
U. S. Government agency and mortgage-backed securities$4,236 $(132)$60,051 $(15,435)$64,287 $(15,567)
Corporate bonds— — 13,883 (4,113)13,883 (4,113)
Subordinated notes— — 4,327 (673)4,327 (673)
SBA loan pools— — 3,703 (1,030)3,703 (1,030)
Municipal bonds— — 467 (91)467 (91)
Total available-for-sale securities$4,236 $(132)$82,431 $(21,342)$86,667 $(21,474)
      
December 31, 2023:      
U. S. Government agency and mortgage-backed securities$9,984 $(286)$55,687 $(14,543)$65,671 $(14,829)
Corporate bonds— — 13,766 (4,229)13,766 (4,229)
Subordinated notes— — 4,227 (773)4,227 (773)
SBA loan pools— — 5,037 (965)5,037 (965)
Municipal bonds— — 486 (73)486 (73)
Total available-for-sale securities$9,984 $(286)$79,203 $(20,583)$89,187 $(20,869)

As of June 30, 2024 and December 31, 2023, forty-nine of forty-nine and fifty of fifty available-for-sale securities had unrealized losses with an aggregate decline of (19.9)% and (19.0)% from the amortized cost of those securities, respectively.
At June 30, 2024, no allowance for credit losses has been recognized on available for sale debt securities in an unrealized loss position as the Company does not believe any of the debt securities are credit impaired. This is based on the Company’s analysis of the risk characteristics, including credit ratings, and other qualitative factors related to available for sale debt securities. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities. The Company does not intend to sell these debt securities and it is more likely than not that the Company will not be required to sell the debt securities before recovery of their amortized cost, which may be at maturity. The unrealized losses are due to increases in market interest rates over the yields available at the time the debt securities were purchased.
With regard to U.S. mortgage-backed securities and municipal bonds issued by the U.S. government, or agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost basis of the securities as such securities are backed by the full faith and credit of and/or guaranteed by the U.S. government. Accordingly, no allowance for credit losses has been recorded for these securities.
With regard to corporate bonds, management considers (i) issuer bond ratings, (ii) historical loss rates for given bond ratings, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, and (iv) internal forecasts. Securities under the U.S. Small Business Administration (“SBA”) government guaranteed loan pools program were purchased at a premium and the impairment was attributable primarily to increased prepayment speeds. The timely payment of principal and interest on these securities is guaranteed by the U.S. Government agency. The contractual terms of the subordinated notes do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Furthermore, as of June 30, 2024, there were no past due principal or interest payments associated with these securities. Based upon (i) the issuer’s strong bond ratings and (ii) a zero historical loss rate, no allowance for credit losses has been recorded for available-for-sale securities at June 30, 2024. All debt securities in an unrealized loss position as of June 30, 2024 continue to perform as scheduled and the Company does not believe there is a possible credit loss or that an allowance for credit loss on these debt securities is necessary.
As of June 30, 2024 and December 31, 2023, available-for-sale securities of $63.9 million and $68.5 million, respectively, were pledged to the Federal Home Loan Bank ("FHLB") and Federal Reserve Bank (“FRB”). The securities were pledged primarily to secure borrowings from the FHLB and FRB.
The following summarizes, by class and contractual maturity, the amortized cost and estimated fair value of available-for-sale debt securities held as of June 30, 2024 and December 31, 2023. The mortgages underlying the mortgage-backed securities are not due at a single maturity date. Additionally, these mortgages often are and generally may be pre-paid without penalty, creating a degree of uncertainty that such investments can be held until maturity. For convenience, mortgage-backed securities have been included in the summary as a separate line item.
(In thousands)Amortized CostFair Value
Due
Within
5 years		 Due After
5 years
through
10 years		 Due
After
10 years		TotalDue
Within
5 years		 Due After
5 years
through
10 years		 Due
After
10 years		Total
June 30, 2024:
Corporate bonds$2,000  $15,996  $— $17,996 $1,957  $11,926  $— $13,883 
Subordinated notes3,000  2,000  — 5,000 2,550  1,777  — 4,327 
SBA loan pools—  —  4,733 4,733 —  —  3,703 3,703 
Municipal bonds153  405  — 558 136  331  — 467 
Available-for-sale securities with stated maturity dates5,153  18,401  4,733 28,287 4,643  14,034  3,703 22,380 
U. S. Government agency and mortgage-backed securities—  5,184  74,670 79,854 —  4,109  60,178 64,287 
Total available-for-sale securities$5,153  $23,585  $79,403 $108,141 $4,643  $18,143  $63,881 $86,667 
December 31, 2023:
Corporate bonds$2,000  $15,995  $— $17,995 $1,947  $11,819  $— $13,766 
Subordinated notes3,000  2,000  — 5,000 2,527  1,700  — 4,227 
SBA loan pools—  1,096  4,906 6,002 —  1,084  3,953 5,037 
Municipal bonds153  406  — 559 140  346  — 486 
Available-for-sale securities with stated maturity dates5,153  19,497  4,906 29,556 4,614  14,949  3,953 23,516 
U. S. Government agency and mortgage-backed securities—  5,222  75,278 80,500 —  4,237  61,434 65,671 
Total available-for-sale securities$5,153  $24,719  $80,184 $110,056 $4,614  $19,186  $65,387 $89,187