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v3.22.2.2

Investment Securities | 6 Months Ended
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Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Note 4: Investment Securities The amortized cost and estimated fair value of investment securities are summarized as follows:
|  | June 30, 2022 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | 36,827 |  |  | $ | 40 |  |  | $ | (2,618 | ) |  | $ | 34,249 |
State and political subdivisions |  |  | 47,559 |  |  |  | 77 |  |  |  | (3,315 | ) |  |  | 44,321 |
Corporate |  |  | 14,604 |  |  |  | 752 |  |  |  | (447 | ) |  |  | 14,909 |
Asset backed securities |  |  | 17,172 |  |  |  | - |  |  |  | (645 | ) |  |  | 16,527 |
Residential mortgage-backed - US agency |  |  | 21,667 |  |  |  | 19 |  |  |  | (1,278 | ) |  |  | 20,408 |
Collateralized mortgage obligations - US agency |  |  | 10,314 |  |  |  | - |  |  |  | (914 | ) |  |  | 9,400 |
Collateralized mortgage obligations - Private label |  |  | 66,219 |  |  |  | - |  |  |  | (3,072 | ) |  |  | 63,147 |
Total |  |  | 214,362 |  |  |  | 888 |  |  |  | (12,289 | ) |  |  | 202,961 |
Equity investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Common stock - financial services industry |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Total |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Total available-for-sale |  | $ | 214,568 |  |  | $ | 888 |  |  | $ | (12,289 | ) |  | $ | 203,167 |
Held-to-Maturity Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | 3,872 |  |  | $ | - |  |  | $ | (87 | ) |  | $ | 3,785 |
State and political subdivisions |  |  | 15,240 |  |  |  | 1 |  |  |  | (1,720 | ) |  |  | 13,521 |
Corporate |  |  | 48,048 |  |  |  | 38 |  |  |  | (1,159 | ) |  |  | 46,927 |
Asset backed securities |  |  | 15,257 |  |  |  | 21 |  |  |  | (620 | ) |  |  | 14,658 |
Residential mortgage-backed - US agency |  |  | 7,764 |  |  |  | 17 |  |  |  | (417 | ) |  |  | 7,364 |
Collateralized mortgage obligations - US agency |  |  | 15,775 |  |  |  | 5 |  |  |  | (648 | ) |  |  | 15,132 |
Collateralized mortgage obligations - Private label |  |  | 75,576 |  |  |  | 7 |  |  |  | (2,412 | ) |  |  | 73,171 |
Total held-to-maturity |  | $ | 181,532 |  |  | $ | 89 |  |  | $ | (7,063 | ) |  | $ | 174,558 |
|  | December 31, 2021 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(In thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | 32,669 |  |  | $ | 17 |  |  | $ | (413 | ) |  | $ | 32,273 |
State and political subdivisions |  |  | 37,860 |  |  |  | 1,383 |  |  |  | (44 | ) |  |  | 39,199 |
Corporate |  |  | 13,603 |  |  |  | 562 |  |  |  | (38 | ) |  |  | 14,127 |
Asset backed securities |  |  | 13,693 |  |  |  | 9 |  |  |  | (89 | ) |  |  | 13,613 |
Residential mortgage-backed - US agency |  |  | 22,482 |  |  |  | 148 |  |  |  | (466 | ) |  |  | 22,164 |
Collateralized mortgage obligations - US agency |  |  | 12,658 |  |  |  | 30 |  |  |  | (403 | ) |  |  | 12,285 |
Collateralized mortgage obligations - Private label |  |  | 56,848 |  |  |  | 285 |  |  |  | (402 | ) |  |  | 56,731 |
Total |  |  | 189,813 |  |  |  | 2,434 |  |  |  | (1,855 | ) |  |  | 190,392 |
Equity investment securities: |  |  |  |  |  |  |  |  |  |  |  |
Common stock - financial services industry |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Total |  |  | 206 |  |  |  | - |  |  |  | - |  |  |  | 206 |
Total available-for-sale |  | $ | 190,019 |  |  | $ | 2,434 |  |  | $ | (1,855 | ) |  | $ | 190,598 |
Held-to-Maturity Portfolio |  |  |  |  |  |  |  |  |  |  |  |
Debt investment securities: |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSEs |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
State and political subdivisions |  |  | 14,790 |  |  |  | 416 |  |  |  | (140 | ) |  |  | 15,066 |
Corporate |  |  | 46,290 |  |  |  | 1,252 |  |  |  | (102 | ) |  |  | 47,440 |
Asset backed securities |  |  | 14,636 |  |  |  | 67 |  |  |  | (188 | ) |  |  | 14,515 |
Residential mortgage-backed - US agency |  |  | 9,740 |  |  |  | 277 |  |  |  | (18 | ) |  |  | 9,999 |
Collateralized mortgage obligations - US agency |  |  | 11,362 |  |  |  | 367 |  |  |  | (9 | ) |  |  | 11,720 |
Collateralized mortgage obligations - Private label |  |  | 64,105 |  |  |  | 222 |  |  |  | (262 | ) |  |  | 64,065 |
Total held-to-maturity |  | $ | 160,923 |  |  | $ | 2,601 |  |  | $ | (719 | ) |  | $ | 162,805 |
The amortized cost and estimated fair value of debt investments at June 30, 2022 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.
|  | Available-for-Sale |  |  | Held-to-Maturity |
|  | Amortized |  |  | Estimated |  |  | Amortized |  |  | Estimated |
(In thousands) |  | Cost |  |  | Fair Value |  |  | Cost |  |  | Fair Value |
Due in one year or less |  | $ | 4,576 |  |  | $ | 5,309 |  |  | $ | 2,825 |  |  | $ | 2,826 |
Due after one year through five years |  |  | 9,068 |  |  |  | 8,811 |  |  |  | 11,012 |  |  |  | 10,842 |
Due after five years through ten years |  |  | 37,654 |  |  |  | 34,856 |  |  |  | 43,401 |  |  |  | 42,090 |
Due after ten years |  |  | 64,864 |  |  |  | 61,030 |  |  |  | 25,179 |  |  |  | 23,133 |
Sub-total |  |  | 116,162 |  |  |  | 110,006 |  |  |  | 82,417 |  |  |  | 78,891 |
Residential mortgage-backed - US agency |  |  | 21,667 |  |  |  | 20,408 |  |  |  | 7,764 |  |  |  | 7,364 |
Collateralized mortgage obligations - US agency |  |  | 10,314 |  |  |  | 9,400 |  |  |  | 15,775 |  |  |  | 15,132 |
Collateralized mortgage obligations - Private label |  |  | 66,219 |  |  |  | 63,147 |  |  |  | 75,576 |  |  |  | 73,171 |
Totals |  | $ | 214,362 |  |  | $ | 202,961 |  |  | $ | 181,532 |  |  | $ | 174,558 |
The Company’s investment securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:
|  | June 30, 2022 |
|  | Less than Twelve Months |  |  | Twelve Months or More |  |  | Total |
|  | Number of |  |  |  |  |  |  |  |  | Number of |  |  |  |  |  |  |  |  | Number of |  |  |  |  |  |  |
|  | Individual |  |  | Unrealized |  |  | Fair |  |  | Individual |  |  | Unrealized |  |  | Fair |  |  | Individual |  |  | Unrealized |  |  | Fair |
(Dollars in thousands) |  | Securities |  |  | Losses |  |  | Value |  |  | Securities |  |  | Losses |  |  | Value |  |  | Securities |  |  | Losses |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSE's |  |  | 1 |  |  | $ | (36 | ) |  | $ | 2,959 |  |  |  | 3 |  |  | $ | (2,582 | ) |  | $ | 27,626 |  |  |  | 4 |  |  | $ | (2,618 | ) |  | $ | 30,585 |
State and political subdivisions |  |  | 30 |  |  |  | (3,126 | ) |  |  | 39,848 |  |  |  | 1 |  |  |  | (189 | ) |  |  | 2,021 |  |  |  | 31 |  |  |  | (3,315 | ) |  |  | 41,869 |
Corporate |  |  | 9 |  |  |  | (308 | ) |  |  | 8,169 |  |  |  | 1 |  |  |  | (139 | ) |  |  | 616 |  |  |  | 10 |  |  |  | (447 | ) |  |  | 8,785 |
Asset backed securities |  |  | 10 |  |  |  | (499 | ) |  |  | 13,671 |  |  |  | 1 |  |  |  | (146 | ) |  |  | 2,857 |  |  |  | 11 |  |  |  | (645 | ) |  |  | 16,528 |
Residential mortgage-backed - US agency |  |  | 14 |  |  |  | (767 | ) |  |  | 10,846 |  |  |  | 2 |  |  |  | (511 | ) |  |  | 8,363 |  |  |  | 16 |  |  |  | (1,278 | ) |  |  | 19,209 |
Collateralized mortgage obligations - US agency |  |  | 10 |  |  |  | (325 | ) |  |  | 5,106 |  |  |  | 3 |  |  |  | (589 | ) |  |  | 4,294 |  |  |  | 13 |  |  |  | (914 | ) |  |  | 9,400 |
Collateralized mortgage obligations - Private label |  |  | 33 |  |  |  | (2,895 | ) |  |  | 57,719 |  |  |  | 3 |  |  |  | (177 | ) |  |  | 3,779 |  |  |  | 36 |  |  |  | (3,072 | ) |  |  | 61,498 |
Totals |  |  | 107 |  |  | $ | (7,956 | ) |  | $ | 138,318 |  |  |  | 14 |  |  | $ | (4,333 | ) |  | $ | 49,556 |  |  |  | 121 |  |  | $ | (12,289 | ) |  | $ | 187,874 |
Held-to-Maturity Portfolio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSE's |  |  | 2 |  |  | $ | (87 | ) |  | $ | 3,784 |  |  |  | - |  |  | $ | - |  |  | $ | - |  |  |  | 2 |  |  | $ | (87 | ) |  | $ | 3,784 |
State and political subdivisions |  |  | 11 |  |  |  | (650 | ) |  |  | 8,803 |  |  |  | 3 |  |  |  | (1,070 | ) |  |  | 4,198 |  |  |  | 14 |  |  |  | (1,720 | ) |  |  | 13,001 |
Corporate |  |  | 32 |  |  |  | (1,133 | ) |  |  | 30,843 |  |  |  | 1 |  |  |  | (26 | ) |  |  | 724 |  |  |  | 33 |  |  |  | (1,159 | ) |  |  | 31,567 |
Asset backed securities |  |  | 5 |  |  |  | (502 | ) |  |  | 7,727 |  |  |  | 1 |  |  |  | (118 | ) |  |  | 921 |  |  |  | 6 |  |  |  | (620 | ) |  |  | 8,648 |
Residential mortgage-backed - US agency |  |  | 9 |  |  |  | (417 | ) |  |  | 5,658 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9 |  |  |  | (417 | ) |  |  | 5,658 |
Collateralized mortgage obligations - US agency |  |  | 9 |  |  |  | (632 | ) |  |  | 12,794 |  |  |  | 1 |  |  |  | (16 | ) |  |  | 963 |  |  |  | 10 |  |  |  | (648 | ) |  |  | 13,757 |
Collateralized mortgage obligations - Private label |  |  | 30 |  |  |  | (2,078 | ) |  |  | 46,003 |  |  |  | 2 |  |  |  | (334 | ) |  |  | 3,285 |  |  |  | 32 |  |  |  | (2,412 | ) |  |  | 49,288 |
Totals |  |  | 98 |  |  | $ | (5,499 | ) |  | $ | 115,612 |  |  |  | 8 |  |  | $ | (1,564 | ) |  | $ | 10,091 |  |  |  | 106 |  |  | $ | (7,063 | ) |  | $ | 125,703 |
|  | December 31, 2021 |
|  | Less than Twelve Months |  |  | Twelve Months or More |  |  | Total |
|  | Number of |  |  |  |  |  |  |  |  | Number of |  |  |  |  |  |  |  |  | Number of |  |  |  |  |  |  |
|  | Individual |  |  | Unrealized |  |  | Fair |  |  | Individual |  |  | Unrealized |  |  | Fair |  |  | Individual |  |  | Unrealized |  |  | Fair |
(Dollars in thousands) |  | Securities |  |  | Losses |  |  | Value |  |  | Securities |  |  | Losses |  |  | Value |  |  | Securities |  |  | Losses |  |  | Value |
Available-for-Sale Portfolio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US Treasury, agencies and GSE's |  |  | 3 |  |  | $ | (413 | ) |  | $ | 31,195 |  |  |  | - |  |  | $ | - |  |  | $ | - |  |  |  | 3 |  |  | $ | (413 | ) |  | $ | 31,195 |
State and political subdivisions |  |  | 3 |  |  |  | (44 | ) |  |  | 4,847 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | (44 | ) |  |  | 4,847 |
Corporate |  |  | 2 |  |  |  | (5 | ) |  |  | 1,162 |  |  |  | 1 |  |  |  | (33 | ) |  |  | 722 |  |  |  | 3 |  |  |  | (38 | ) |  |  | 1,884 |
Asset backed securities |  |  | 5 |  |  |  | (89 | ) |  |  | 11,206 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5 |  |  |  | (89 | ) |  |  | 11,206 |
Residential mortgage-backed - US agency |  |  | 3 |  |  |  | (466 | ) |  |  | 13,090 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | (466 | ) |  |  | 13,090 |
Collateralized mortgage obligations - US agency |  |  | 3 |  |  |  | (126 | ) |  |  | 6,504 |  |  |  | 2 |  |  |  | (277 | ) |  |  | 2,204 |  |  |  | 5 |  |  |  | (403 | ) |  |  | 8,708 |
Collateralized mortgage obligations - Private label |  |  | 18 |  |  |  | (388 | ) |  |  | 38,816 |  |  |  | 2 |  |  |  | (14 | ) |  |  | 1,539 |  |  |  | 20 |  |  |  | (402 | ) |  |  | 40,355 |
Totals |  |  | 37 |  |  | $ | (1,531 | ) |  | $ | 106,820 |  |  |  | 5 |  |  | $ | (324 | ) |  | $ | 4,465 |  |  |  | 42 |  |  | $ | (1,855 | ) |  | $ | 111,285 |
Held-to-Maturity Portfolio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions |  |  | 4 |  |  | $ | (28 | ) |  | $ | 2,013 |  |  |  | 2 |  |  | $ | (112 | ) |  | $ | 3,988 |  |  |  | 6 |  |  | $ | (140 | ) |  | $ | 6,001 |
Corporate |  |  | 9 |  |  |  | (102 | ) |  |  | 7,636 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9 |  |  |  | (102 | ) |  |  | 7,636 |
Asset backed securities |  |  | 2 |  |  |  | (130 | ) |  |  | 2,974 |  |  |  | 2 |  |  |  | (58 | ) |  |  | 1,610 |  |  |  | 4 |  |  |  | (188 | ) |  |  | 4,584 |
Residential mortgage-backed - US agency |  |  | 1 |  |  |  | (18 | ) |  |  | 1,941 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | (18 | ) |  |  | 1,941 |
Collateralized mortgage obligations - US agency |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | (9 | ) |  |  | 1,109 |  |  |  | 1 |  |  |  | (9 | ) |  |  | 1,109 |
Collateralized mortgage obligations - Private label |  |  | 6 |  |  |  | (163 | ) |  |  | 13,070 |  |  |  | 3 |  |  |  | (99 | ) |  |  | 3,820 |  |  |  | 9 |  |  |  | (262 | ) |  |  | 16,890 |
Totals |  |  | 22 |  |  | $ | (441 | ) |  | $ | 27,634 |  |  |  | 8 |  |  | $ | (278 | ) |  | $ | 10,527 |  |  |  | 30 |  |  | $ | (719 | ) |  | $ | 38,161 |
Excluding the effects of changes in the characteristics of individual debt securities that potentially give rise to other-than-temporary impairment (“OTTI”), as described below, the fair market value of a debt security as of a particular measurement date is highly dependent upon prevailing market and economic environmental factors at the measurement date relative to the prevailing market and economic environmental factors present at the time the debt security was acquired. The most significant market and environmental factors include, but are not limited to (1) the general level of interest rates, (2) the relationship between shorter-term interest rates and longer-term interest rates (referred to as the “slope” of the interest rate yield curve), (3) general bond market liquidity, (4) the recent and expected near-term volume of new issuances of similar debt securities, and (5) changes in the market values of individual loan collateral underlying mortgage-backed an asset-backed debt securities. Changes in interest rates affect the fair market values of debt securities by influencing the discount rate applied to the securities’ future expected cash flows. The higher the discount rate, the lower the resultant security fair value at the measurement date. Conversely, the lower the discount rate, the higher the resultant security fair value at the measurement date. In addition, the cumulative amount and timing of undiscounted cash flows of debt securities may also be affected by changes in interest rates. For any given level of movement in the general market and economic environmental factors described above, the magnitude of any particular debt security’s price changes will also depend heavily upon security-specific factors such as (1) the duration of the security, (2) imbedded optionality contractually granted to the issuer of the security with respect to principal prepayments, and (3) changes in the level of market premiums demanded by investors for securities with imbedded credit risk (where applicable). The available-for-sale investment securities portfolio, with an aggregate amortized historical cost of $189.8 million, had an aggregate fair value that exceeded its aggregate amortized historical cost by $579,000, or 0.31%, at December 31, 2021. The available-for-sale investment securities portfolio, with an aggregate amortized historical cost of $214.4 million, had an aggregate fair value that was less than its aggregate amortized historical cost by $11.4 million, or 5.32%, at June 30, 2022. The resultant $12.0 million total decline in the fair value of the available-for-sale investment portfolio's aggregate fair value relative to its aggregate amortized historical cost, in the six months ended June 30, 2022, was primarily due to the significant increase in general interest rates that occurred in that period and did not represent any other-than-temporary impairment within the portfolio at June 30, 2022. The Company conducts a formal review of investment securities on a quarterly basis for the presence of OTTI. The Company assesses whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the statement of condition date. Under these circumstances, OTTI is considered to have occurred (1) if we intend to sell the security; (2) if it is “more likely than not” we will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not anticipated to be sufficient to recover the entire amortized cost basis. The guidance requires that credit-related OTTI is recognized in earnings while non-credit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (“OCI”). Non-credit-related OTTI is based on other factors, including illiquidity and changes in the general interest rate environment. Presentation of OTTI is made in the consolidated statement of income on a gross basis, including both the portion recognized in earnings as well as the portion recorded in OCI. The gross OTTI would then be offset by the amount of non-credit-related OTTI, showing the net as the impact on earnings. Management does not believe any individual unrealized loss in investment securities within the portfolio as of June 30, 2022 represents OTTI. There were a total of 14 securities classified as available-for-sale (aggregate amortized historical cost of $53.9 million, unrealized aggregate loss of $4.3 million, or -8.0%) and eight securities classified as held-to-maturity (aggregate amortized historical cost of $11.7 million, unrealized aggregate loss of $1.6 million, or -13.4%) that were in an unrealized loss position for 12 months or longer at June 30, 2022. In total, therefore, at June 30, 2022 there were 22 securities with an aggregate book value of $65.5 million and an aggregate fair value of $59.6 million, representing a loss of $5.9 million, or -9.0%, that were in an unrealized loss position for 12 months or more on that date. Each security which has been in an unrealized loss position for 12 months or more has been analyzed and is not considered to be impaired. These securities have unrealized losses primarily due to increases in general interest rates (therefore increasing the discount rate used to determine the security's fair value on the measurement date) or changes in expected prepayments. In all cases, price improvement in future periods will be substantially realized as the issuances approach maturity. Of the total of 22 securities in an unrealized loss position for 12 months or more at June 30, 2022, ten securities, with aggregate amortized cost balances of $47.9 million and representing 73.8% of the aggregate amortized cost of all securities in an unrealized loss position for 12 months or more, are issued by the United States government or GSEs. The ultimate collection of contractual principal and interest is assured for these securities and therefore no existing or potential credit impairment exists. In addition to these nine securities, the Company held the following 13 non-government-issued/backed securities that were in an unrealized loss position for 12 or more months at June 30, 2022: • One municipal bond, categorized as available for sale, with an amortized historical cost of $2.2 million (unrealized loss of $189,000, or -8.57%). This security maintains a credit rating established by one or more NRSRO above the minimum level required to be considered as investment grade and therefore, no credit-related OTTI is deemed to be present. • One corporate bond, categorized as available for sale, with an amortized historical cost of $754,000 (unrealized loss of $139,000, or -18.44%). This security maintains a credit rating established by one or more NRSRO above the minimum level required to be considered as investment grade and therefore, no credit-related OTTI is deemed to be present. • One privately-issued asset-backed security, categorized as available-for-sale, and collateralized, to a substantial degree, by government guaranteed student loans, with an aggregate amortized historical cost of $3.0 million (unrealized aggregate loss of $146,000, or -4.88%). This security maintains a credit rating established by one or more NRSRO above the minimum level required to be considered as investment grade and therefore, no credit-related OTTI is deemed to be present. • Three privately-issued mortgage-backed securities, categorized as available-for-sale, and collateralized by various forms of residential and commercial mortgages, with an aggregate amortized historical cost of $4.0 million (unrealized aggregate loss of $177,000, or -4.50%). These securities were not rated at the time of their issuances by any NRSRO but each remains significantly collateralized through subordination and other credit enhancements. Therefore, no credit-related OTTI is deemed to be present. • Three securities, categorized as issued by unrelated state and/or political subdivisions (generally referred to as “municipal’ securities), categorized as held-to-maturity, with an aggregate amortized historical cost of $5.3 million (unrealized loss of $1.1 million, or -20.31%). These securities each maintain a credit rating established by one or more NRSRO above the minimum level required to be considered as investment grade and therefore, no credit-related OTTI is deemed to be present. • One corporate bond, categorized as held-to-maturity, with an amortized historical cost of $750,000 (unrealized loss of $26,000, or -3.47%). This security is issued by a well-capitalized financial institution and was unrated at issuance. Management monitors the financial position of the institution and believes that the ultimate collection of all contractually-due principal and interest is assured. Therefore, no credit-related OTTI is deemed to be present. • One privately-issued asset-backed security, categorized as available-for-sale, with an amortized historical cost of $1.0 million (unrealized loss of $118,000, or -11.39%). This security is backed by real estate lease contracts and maintains a credit rating established by one or more NRSRO above the minimum level required to be considered as investment grade and therefore, no credit-related OTTI is deemed to be present. • Two privately-issued mortgage-backed securities, categorized as held-to-maturity, and collateralized by various forms of commercial loans, with an aggregate amortized historical cost of $3.6 million (unrealized aggregate loss of $334,000, or -9.22%). These securities each maintain a credit rating established by one or more NRSRO above the minimum level required to be considered as investment grade and therefore, no credit-related OTTI is deemed to be present. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to the recovery of the amortized cost. Gross realized gains (losses) on sales and redemptions of securities for the indicated periods are detailed below:
|  | For the three months | For the six months |
|  | ended June 30, | ended June 30, |
(In thousands) |  | 2022 |  |  | 2021 |  |  |  | 2022 |  |  | 2021 |
Realized gains on investments |  | $ | 36 |  |  | $ | 51 |  |  |  | $ | 36 |  |  | $ | 58 |
Realized losses on investments |  |  | - |  |  |  | - |  |  |  |  | (6 | ) |  |  | (7 | )
|  | $ | 36 |  |  | $ | 51 |  |  |  | $ | 30 |  |  | $ | 51 |
As of June 30, 2022 and December 31, 2021, securities with a fair value of $83.9 million and $103.2 million, respectively, were pledged to collateralize certain municipal deposit relationships. As of the same dates, securities with a fair value of $7.0 million and $9.4 million, respectively, were pledged against certain borrowing arrangements. Management has reviewed its loan and mortgage-backed securities portfolios and determined that, to the best of its knowledge, only minimal exposure exists to sub-prime or other high-risk residential mortgages. With limited exceptions in the Company’s investment portfolio involving the most senior tranches of securitized bonds, the Company is not in the practice of investing in, or originating, these types of investments or loans.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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