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v3.22.2.2

Securities | 9 Months Ended
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Sep. 30, 2022
Securities [Abstract] |
Securities | Note 6 – Securities The following tables summarize the Bank’s holdings for both securities held-to-maturity and securities available-for-sale as of September 30, 2022 and December 31, 2021 (amounts in thousands):
| September 30, 2022
| Amortized |  | Gross Unrealized |  |  |
| Costs |  | Gains |  | (Losses) |  | Fair Value
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |
US agency obligations | $ | 3,643 |  | $ | - |  | $ | (451) |  | $ | 3,192
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |
US Treasuries |  | 4,894 |  |  | - |  |  | (173) |  |  | 4,721
US agency obligations |  | 71,713 |  |  | - |  |  | (9,574) |  |  | 62,139
Mortgage-backed securities |  | 81,782 |  |  | - |  |  | (11,388) |  |  | 70,394
Municipals |  | 49,984 |  |  | - |  |  | (12,185) |  |  | 37,799
Corporates |  | 17,041 |  |  | - |  |  | (963) |  |  | 16,078
| $ | 225,414 |  | $ | - |  | $ | (34,283) |  | $ | 191,131
| December 31, 2021
| Amortized |  | Gross Unrealized |  |  |
| Costs |  | Gains |  | (Losses) |  | Fair Value
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |
US agency obligations | $ | 3,655 |  | $ | 351 |  | $ | — |  | $ | 4,006
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |
US Treasuries |  | 2,000 |  |  | 2 |  |  | — |  |  | 2,002
US agency obligations |  | 59,144 |  |  | 575 |  |  | (1,249) |  |  | 58,470
Mortgage-backed securities |  | 38,017 |  |  | 75 |  |  | (654) |  |  | 37,438
Municipals |  | 50,806 |  |  | 368 |  |  | (970) |  |  | 50,204
Corporates |  | 13,053 |  |  | 169 |  |  | (69) |  |  | 13,153
| $ | 163,020 |  | $ | 1,189 |  | $ | (2,942) |  | $ | 161,267
‎ Note 6 – Securities (continued) The following tables show the gross unrealized losses and fair value of the Bank’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2022 and December 31, 2021 (amounts in thousands):
September 30, 2022 | Less than 12 months |  | More than 12 months |  | Total
| Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
| Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
Held-to-maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency obligations | $ | 3,192 |  | $ | 451 |  | $ | — |  | $ | — |  | $ | 3,192 |  | $ | 451
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasuries |  | 4,721 |  |  | 173 |  |  | — |  |  | — |  |  | 4,721 |  |  | 173
U.S. agency obligations |  | 31,238 |  |  | 3,149 |  |  | 30,901 |  |  | 6,425 |  |  | 62,139 |  |  | 9,574
Mortgage-backed securities |  | 48,384 |  |  | 6,405 |  |  | 22,010 |  |  | 4,983 |  |  | 70,394 |  |  | 11,388
Municipals |  | 13,642 |  |  | 3,226 |  |  | 24,157 |  |  | 8,959 |  |  | 37,799 |  |  | 12,185
Corporates |  | 6,600 |  |  | 441 |  |  | 1,478 |  |  | 522 |  |  | 8,078 |  |  | 963
Total temporarily impaired securities | $ | 107,777 |  | $ | 13,845 |  | $ | 78,546 |  | $ | 20,889 |  | $ | 186,323 |  | $ | 34,734
December 31, 2021 | Less than 12 months |  | More than 12 months |  | Total
| Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
| Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
Held-to-maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency obligations | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | —
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasuries |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
U.S. agency obligations |  | 21,893 |  |  | 379 |  |  | 15,233 |  |  | 870 |  |  | 37,126 |  |  | 1,249
Mortgage-backed securities |  | 28,019 |  |  | 402 |  |  | 6,382 |  |  | 252 |  |  | 34,401 |  |  | 654
Municipals |  | 28,028 |  |  | 635 |  |  | 7,952 |  |  | 335 |  |  | 35,980 |  |  | 970
Corporates |  | 1,931 |  |  | 69 |  |  | — |  |  | — |  |  | 1,931 |  |  | 69
Total temporarily impaired securities | $ | 79,871 |  | $ | 1,485 |  | $ | 29,567 |  | $ | 1,457 |  | $ | 109,438 |  | $ | 2,942
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and may do so more frequently when economic or market concerns 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, (3) the intent of Financial, if any, to sell the security; (4) whether Financial more likely than not will be required to sell the security before recovering its cost; and (5) whether Financial does not expect to recover the security’s entire amortized cost basis (even if Financial does not intend to sell the security). At September 30, 2022 the Company did not consider the unrealized losses as other-than-temporary losses due to the nature of the securities involved. As of September 30, 2022, the Bank owned 120 securities in an unrealized loss position that were being evaluated for other than temporary impairment. Of the securities, 48 were S&P rated AAA, 64 were rated AA, six were rated A, one was rated BBB, and one was non-rated. As of September 30, 2022, 52 of these securities were municipal issues, 58 were backed by the US government, and 10 were issues of publicly traded domestic corporations. Based on the analysis performed by management as mandated by the Bank’s investment policy, management believes the default risk to be minimal. Because management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to change in interest rates and other market conditions, no declines currently are deemed to be other-than-temporary. There were no sales of available-for-sale securities during the three and nine months ended September 30, 2022 and 2021. Note 6 – Securities (continued) The amortized costs and fair values of securities at September 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 call or prepayment penalties.
| September 30, 2022
| Amortized |  |
| Costs |  | Fair Value
Available-for-sale: |  |  |
Due in one year or less | $ 2,372 |  | $ 2,335
Due after one year through five years | 42,150 |  | 38,817
Due after five years through ten years | 76,278 |  | 65,888
Due after ten years | 104,614 |  | 84,091
Total securities Available-for-sale | $ 225,414 |  | $ 191,131
| Amortized |  |
| Costs |  | Fair Value
Held-to-maturity: |  |  |
Due in one year or less | $ - |  | $ -
Due after one year through five years | - |  | -
Due after five years through ten years | 2,425 |  | 2,166
Due after ten years | 1,218 |  | 1,026
Total securities Held-to-maturity | $ 3,643 |  | $ 3,192

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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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