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v3.23.1

Investment Securities | 3 Months Ended
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Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | 3. INVESTMENT SECURITIES Details of investment securities available-for-sale and held-to-maturity as of March 31, 2023 and December 31, 2022 were as follows:
|  | Available-for-Sale |
|  | March 31, 2023 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 45,498 |  |  | $ | 2 |  |  | $ | (3,546 | ) |  | $ | 41,954 |
Commercial |  |  | 11,476 |  |  |  | 5 |  |  |  | (499 | ) |  |  | 10,982 |
Obligations of U.S. government-sponsored agencies |  |  | 5,114 |  |  |  | — |  |  |  | (739 | ) |  |  | 4,375 |
Obligations of states and political subdivisions |  |  | 1,655 |  |  |  | — |  |  |  | (81 | ) |  |  | 1,574 |
Corporate notes |  |  | 17,803 |  |  |  | — |  |  |  | (3,149 | ) |  |  | 14,654 |
U.S. Treasury securities |  |  | 56,967 |  |  |  | — |  |  |  | (3,499 | ) |  |  | 53,468 |
Total |  | $ | 138,513 |  |  | $ | 7 |  |  | $ | (11,513 | ) |  | $ | 127,007 |
|  | Held-to-Maturity |
|  | March 31, 2023 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 1,003 |  |  | $ | — |  |  | $ | (31 | ) |  | $ | 972 |
Obligations of U.S. government-sponsored agencies |  |  | 601 |  |  |  | — |  |  |  | (42 | ) |  |  | 559 |
Obligations of states and political subdivisions |  |  | 78 |  |  |  | — |  |  |  | (10 | ) |  |  | 68 |
Total |  | $ | 1,682 |  |  | $ | — |  |  | $ | (83 | ) |  | $ | 1,599 |
|  | Available-for-Sale |
|  | December 31, 2022 |
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 47,659 |  |  | $ | 2 |  |  | $ | (3,704 | ) |  | $ | 43,957 |
Commercial |  |  | 12,169 |  |  |  | 4 |  |  |  | (480 | ) |  |  | 11,693 |
Obligations of U.S. government-sponsored agencies |  |  | 5,116 |  |  |  | — |  |  |  | (846 | ) |  |  | 4,270 |
Obligations of states and political subdivisions |  |  | 2,166 |  |  |  | — |  |  |  | (94 | ) |  |  | 2,072 |
Corporate notes |  |  | 17,817 |  |  |  | 2 |  |  |  | (1,898 | ) |  |  | 15,921 |
U.S. Treasury securities |  |  | 56,956 |  |  |  | — |  |  |  | (4,074 | ) |  |  | 52,882 |
Total |  | $ | 141,883 |  |  | $ | 8 |  |  | $ | (11,096 | ) |  | $ | 130,795 |
|  | Held-to-Maturity |
|  | December 31, 2022 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 1,167 |  |  | $ | — |  |  | $ | (41 | ) |  | $ | 1,126 |
Obligations of U.S. government-sponsored agencies |  |  | 610 |  |  |  | — |  |  |  | (40 | ) |  |  | 570 |
Obligations of states and political subdivisions |  |  | 85 |  |  |  | — |  |  |  | (12 | ) |  |  | 73 |
Total |  | $ | 1,862 |  |  | $ | — |  |  | $ | (93 | ) |  | $ | 1,769 |
The scheduled maturities of investment securities available-for-sale and held-to-maturity as of March 31, 2023 are presented in the following table:
|  | Available-for-Sale |  |  | Held-to-Maturity |
|  | Amortized Cost |  |  | Estimated Fair Value |  |  | Amortized Cost |  |  | Estimated Fair Value |
|  | (Dollars in Thousands) |
Maturing within one year |  | $ | 12,979 |  |  | $ | 12,696 |  |  | $ | — |  |  | $ | — |
Maturing after one to five years |  |  | 49,855 |  |  |  | 46,675 |  |  |  | — |  |  |  | — |
Maturing after five to ten years |  |  | 65,318 |  |  |  | 58,009 |  |  |  | 1,443 |  |  |  | 1,380 |
Maturing after ten years |  |  | 10,361 |  |  |  | 9,627 |  |  |  | 239 |  |  |  | 219 |
Total |  | $ | 138,513 |  |  | $ | 127,007 |  |  | $ | 1,682 |  |  | $ | 1,599 |
For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments. The following tables reflect gross unrealized losses and fair value for securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of March 31, 2023 and December 31, 2022.
|  | Available-for-Sale |
|  | March 31, 2023 |
|  | Less than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 9,554 |  |  | $ | (407 | ) |  | $ | 32,233 |  |  | $ | (3,139 | )
Commercial |  |  | 4,026 |  |  |  | (135 | ) |  |  | 6,257 |  |  |  | (364 | )
Obligations of U.S. government-sponsored agencies |  |  | — |  |  |  | — |  |  |  | 4,375 |  |  |  | (739 | )
Obligations of states and political subdivisions |  |  | — |  |  |  | — |  |  |  | 1,574 |  |  |  | (81 | )
Corporate notes |  |  | 2,565 |  |  |  | (435 | ) |  |  | 12,089 |  |  |  | (2,714 | )
U.S. Treasury securities |  |  | — |  |  |  | — |  |  |  | 53,468 |  |  |  | (3,499 | )
Total |  | $ | 16,145 |  |  | $ | (977 | ) |  | $ | 109,996 |  |  | $ | (10,536 | )
|  | Held-to-Maturity |
|  | March 31, 2023 |
|  | Less than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | — |  |  | $ | — |  |  | $ | 972 |  |  | $ | (31 | )
Obligations of U.S. government-sponsored agencies |  |  | — |  |  |  | — |  |  |  | 559 |  |  |  | (42 | )
Obligations of states and political subdivisions |  |  | — |  |  |  | — |  |  |  | 68 |  |  |  | (10 | )
Total |  | $ | — |  |  | $ | — |  |  | $ | 1,599 |  |  | $ | (83 | )
|  | Available-for-Sale |
|  | December 31, 2022 |
|  | Less than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | $ | 19,876 |  |  | $ | (952 | ) |  | $ | 23,903 |  |  | $ | (2,752 | )
Commercial |  |  | 9,720 |  |  |  | (357 | ) |  |  | 1,247 |  |  |  | (123 | )
Obligations of U.S. government-sponsored agencies |  |  | — |  |  |  | — |  |  |  | 4,270 |  |  |  | (846 | )
Obligations of states and political subdivisions |  |  | 1,559 |  |  |  | (41 | ) |  |  | 513 |  |  |  | (53 | )
Corporate notes |  |  | 6,845 |  |  |  | (898 | ) |  |  | 8,075 |  |  |  | (1,000 | )
U.S. Treasury securities |  |  | 21,240 |  |  |  | (698 | ) |  |  | 31,642 |  |  |  | (3,376 | )
Total |  | $ | 59,240 |  |  | $ | (2,946 | ) |  | $ | 69,650 |  |  | $ | (8,150 | )
|  | Held-to-Maturity |
|  | December 31, 2022 |
|  | Less than 12 Months |  |  | 12 Months or More |
|  | Fair Value |  |  | Unrealized Losses |  |  | Fair Value |  |  | Unrealized Losses |
|  | (Dollars in Thousands) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 1,126 |  |  | $ | (41 | ) |  | $ | — |  |  | $ | — |
Obligations of U.S. government-sponsored agencies |  | $ | 214 |  |  | $ | (7 | ) |  | $ | 356 |  |  | $ | (33 | )
Obligations of states and political subdivisions |  | $ | 73 |  |  | $ | (12 | ) |  | $ | — |  |  | $ | — |
Total |  | $ | 1,413 |  |  | $ | (60 | ) |  | $ | 356 |  |  | $ | (33 | )
Available-for-Sale Considerations For any securities classified as available-for-sale that are in an unrealized loss position as of the balance sheet date, the Company assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income. As of March 31, 2023, 91 available-for-sale debt securities had been in a loss position for more than 12 months, and 21 available-for-sale debt securities had been in a loss position for less than 12 months. As of December 31, 2022, 37 available-for-sale debt securities had been in a loss position for more than 12 months, and 75 available-for-sale debt securities had been in a loss position for less than 12 months. The increase in the number of debt securities in a loss position for greater than 12 months was due to the sustained higher interest rate environment during the three months ended March 31, 2023. As of March 31, 2023, the Company had the current intent and ability to retain its investments for a period of time that management believes to be sufficient to allow for any anticipated recovery of fair value. As of March 31, 2023, the losses for all available-for-sale securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. Accordingly, no allowance for credit losses was considered necessary related to available-for-sale securities as of March 31, 2023. Held-to-Maturity Considerations Effective January 1, 2023, the Company adopted the CECL accounting model to evaluate credit losses in the held-to-maturity investment portfolio. Each quarter, management evaluates the portfolio on a collective basis by major security type to determine whether an allowance for credit losses is needed. Qualitative factors are used in the Company’s credit loss assessments, including current and forecasted economic conditions, the characteristics of the debt issuer, and the historic ability of the issuer to make contractual principal and interest payments. Based on these evaluations, no allowance for credit losses was recorded by the Company for the held-to-maturity investment portfolio upon adoption of the CECL accounting model or as of March 31, 2023. Pledged Securities Investment securities with a carrying value of $51.9 million and $54.7 million as of March 31, 2023 and December 31, 2022, respectively, were pledged to secure public deposits and for other purposes.

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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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