Investment Securities

3 Months Ended

Mar. 31, 2024

Note 2.

Investment Securities

The amortized cost and estimated fair values of investment securities available-for-sale at March 31, 2024 and December 31, 2023 are as follows (in thousands):

March 31, 2024

Gross

Estimated

Amortized

Unrealized

Fair

March 31, 2024

Cost

Gains

Losses

Value

U.S. Government Agencies

1,500

—

(40)

1,460

Mortgage-Backed Securities

59,138

(8,350)

50,796

Collateralized Mortgage Obligations

1,658

—

(140)

1,518

Total

62,296

(8,530)

53,774


	December 31, 2023
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
December 31, 2023	Cost		Gains		Losses		Value
U.S. Government Agencies	$	1,000	$	—	$	(34)	$	966
Mortgage-Backed Securities		74,072		15		(8,759)		65,328
Collateralized Mortgage Obligations		1,733		—		(126)		1,607

Total	$	76,805	$	15	$	(8,919)	$	67,901

The following tables show the gross unrealized losses and estimated fair value of investment securities available-for-sale for which an allowance for credit losses has not been recorded by category and length of time that securities have been in a continuous unrealized loss position at March 31, 2024, and December 31, 2023 (in thousands):

Securities

With Losses Under

With Losses Over

12 Months

Total

Gross

Fair

Unrealized

Fair

Unrealized

Fair

Unrealized

March 31, 2024

Value

Loss

Value

Loss

Value

Loss

U.S. Government Agencies

—

1,460

(40)

1,460

(40)

Mortgage-Backed Securities

5,253

(33)

42,991

(8,317)

48,244

(8,350)

Collateralized Mortgage Obligations

—

1,518

(140)

1,518

(140)

Total

5,253

(33)

45,969

(8,497)

51,222

(8,530)


	Securities				Securities
	With Losses Under				With Losses Over
	12 Months				12 Months				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2023	Value		Loss		Value		Loss		Value		Loss
U.S. Government Agencies	$	—	$	—	$	966	$	(34)	$	966	$	(34)
Mortgage-Backed Securities		498		(2)		63,384		(8,757)		63,882		(8,759)
Collateralized Mortgage Obligations		—		—		1,607		(126)		1,607		(126)

Total	$	498	$	(2)	$	65,957	$	(8,917)	$	66,455	$	(8,919)

At March 31, 2024, 63 of the Bank’s available-for-sale securities had unrealized losses totaling 14.3% of the individual securities’ amortized cost basis and 13.7% of the Bank’s total amortized cost basis of the investment securities portfolio. At March 31, 2024, 60 of the 63 securities had been in a continuous loss position for over 12 months. The unrealized losses of these securities are believed to be caused by interest rate increases and changing market conditions and the Bank does not intend to sell the securities, and it is not likely to be required to sell these securities prior to maturity. Management has determined that the declines in the fair value of these securities are not attributable to credit losses.

All of the mortgage-backed securities and collateralized mortgage obligations in an unrealized loss position are issued or guaranteed by government-sponsored enterprises.

No allowance for credit losses was recorded for available-for-sale securities at March 31, 2024, and December 31, 2023.

The amortized cost and estimated fair value of securities classified as available-for-sale at March 31, 2024, by contractual maturity, are shown in the table below (in thousands). Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. The expected maturity of a security may differ from its contractual maturity because of the exercise of call options and potential paydowns. Accordingly actual maturities may differ from contractual maturities.


	Amortized		Fair
	Cost		Value
Available-for-Sale
Due in 1 Year or Less	$	—	$	—
Due after 1 Year through 5 Years		690		677
Due after 5 Years through 10 Years		—		—
Due after 10 Years		61,606		53,097

Total	$	62,296	$	53,774

The bank sold $18,685,000 of securities available-for-sale and recorded a loss of $1,144,000 during the three months ended March 31, 2024. There were no sales of available-for-sale securities during the three months ended March 31, 2023.