Securities

12 Months Ended

Dec. 31, 2022

Note 4 - Securities

A summary of the amortized cost and fair value of securities, with gross unrealized gains and losses, follows:


	December 31, 2022
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Held-to-maturity
U.S. agency obligations	$	3,639	$	—	$	(504)	$	3,135

Available-for-sale
U.S. Treasuries	$	4,912	$	—	$	(171)	$	4,741
U.S. agency obligations		68,833		—		(9,560)		59,273
Mortgage-backed securities		78,955		—		(11,113)		67,842
Municipals		49,951		—		(12,096)		37,855
Corporates		17,037		—		(961)		16,076

	$	219,688	$	—	$	(33,901)	$	185,787


	December 31, 2021
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Held-to-maturity
U.S. agency obligations	$	3,655	$	351	$	—	$	4,006

Available-for-sale
U.S. Treasuries	$	2,000	$	2	$	—	$	2,002
U.S. 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

Temporarily Impaired Securities

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 December 31, 2022 and 2021:

‎

Note 4 –Securities (continued)


December 31, 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	$	3,135	$	504	$	—	$	—	$	3,135	$	504

Available-for-sale
U.S. Treasuries		4,741		171		—		—		4,741		171
U.S. agency obligations		27,708		2,838		31,565		6,722		59,273		9,560
Mortgage-backed securities		42,024		5,656		25,818		5,457		67,842		11,113
Municipals		10,847		2,245		27,008		9,851		37,855		12,096
Corporates		6,568		469		1,508		492		8,076		961

Total temporarily impaired securities	$	95,023	$	11,883	$	85,899	$	22,522	$	180,922	$	34,405


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

U.S. Treasuries and agency obligations. The unrealized losses on the 33 investments in U.S. agency obligations at December 31, 2022 were caused by an increase in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is likely that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2022. Each of these 33 investments carries an S&P investment grade rating of AA or better.

Mortgage-backed securities. The unrealized losses on the 23 investments in U.S. government agency mortgage-backed securities at December 31, 2022 were caused by an increase in interest rates. The contractual terms of those investments does not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Bank does not intend to sell the investments and it is likely

Note 4 –Securities (continued)

that the Bank will not be required to sell the investments before recovery of the amortized cost basis, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2022. Each of these 23 investments carries an S&P investment grade rating of AAA.

Municipals. The unrealized losses on the 52 investments in municipal obligations at December 31, 2022 were caused by an increase in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is likely that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2022. Each of these 52 investments carries an S&P investment grade rating of AA or above.

Corporates. The unrealized losses on 10 investments in domestic corporate issued securities at December 31, 2022 were caused by an increase in interest rates. The contractual terms of those investments do not permit the issuers to settle the securities at a price less than the amortized cost basis of the investments. Because the Bank does not intend to sell the investments and it is likely that the Bank will not be required to sell the investments before recovery of the amortized cost basis, which may be maturity, the Bank does not consider these investments to be other-than-temporarily impaired at December 31, 2022. Each of these 10 investments carries an S&P investment grade rating of BBB or above.

The amortized costs and fair values of securities at December 31, 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.


	Held-to-Maturity				Available-for-Sale
	Amortized		Fair		Amortized		Fair
	Cost		Values		Cost		Values
Due in one year or less	$	—	$	—	$	2,339	$	2,312
Due after one year through five years		—		—		44,918		41,061
Due after five years through ten years		2,425		2,131		69,531		59,777
Due after ten years		1,214		1,004		102,900		82,637

	$	3,639	$	3,135	$	219,688	$	185,787

The Bank received $7,681 and $0 in proceeds from sales of securities available-for-sale in 2022 and 2021, respectively. Gross realized gains amounted to $0 in 2022 and 2021, respectively. Gross realized losses amounted to $3 and $0 in 2022 and 2021, respectively.

At December 31, 2022 and 2021, securities with a carrying value of $35,879 and $32,159, respectively, were pledged as collateral for public deposits and for other purposes as required or permitted by law.