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INVESTMENT SECURITIES | 12 Months Ended
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Dec. 31, 2021
INVESTMENT SECURITIES |
INVESTMENT SECURITIES | 5. INVESTMENT SECURITIES The cost basis and fair values of investment securities are summarized as follows: Investment securities available for sale: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | DECEMBER 31, 2021
​ | ​ | ​ | ​ | ​ | GROSS | ​ | GROSS | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | UNREALIZED | ​ | UNREALIZED | ​ | FAIR
​ |  | COST BASIS |  | GAINS |  | LOSSES |  | VALUE
​ | ​ | (IN THOUSANDS)
U.S. Agency | ​ | $ | 7,371 | ​ | $ | 86 | ​ | $ | (70) | ​ | $ | 7,387
U.S. Agency mortgage-backed securities | ​ |  | 80,136 | ​ |  | 1,202 | ​ |  | (1,171) | ​ |  | 80,167
Municipal | ​ |  | 20,066 | ​ |  | 851 | ​ |  | (25) | ​ |  | 20,892
Corporate bonds | ​ |  | 53,843 | ​ |  | 1,028 | ​ |  | (146) | ​ |  | 54,725
Total | ​ | $ | 161,416 | ​ | $ | 3,167 | ​ | $ | (1,412) | ​ | $ | 163,171
​ Investment securities held to maturity: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | DECEMBER 31, 2021
​ | ​ | ​ | ​ | ​ | GROSS | ​ | GROSS | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | UNREALIZED | ​ | UNREALIZED | ​ | FAIR
​ |  | COST BASIS |  | GAINS |  | LOSSES |  | VALUE
​ | ​ | (IN THOUSANDS)
U.S. Agency | ​ | $ | 2,500 | ​ | $ | — | ​ | $ | (11) | ​ | $ | 2,489
U.S. Agency mortgage-backed securities | ​ | ​ | 10,556 | ​ | ​ | 203 | ​ | ​ | (115) | ​ | ​ | 10,644
Municipal | ​ |  | 33,188 | ​ |  | 1,734 | ​ |  | (103) | ​ |  | 34,819
Corporate bonds and other securities | ​ |  | 7,507 | ​ |  | 64 | ​ |  | (7) | ​ |  | 7,564
Total | ​ | $ | 53,751 | ​ | $ | 2,001 | ​ | $ | (236) | ​ | $ | 55,516
​ Investment securities available for sale: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | DECEMBER 31, 2020
​ | ​ | ​ | ​ | ​ | GROSS | ​ | GROSS | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | UNREALIZED | ​ | UNREALIZED | ​ | FAIR
​ |  | COST BASIS |  | GAINS |  | LOSSES |  | VALUE
​ | ​ | (IN THOUSANDS)
U.S. Agency | ​ | $ | 2,971 | ​ | $ | 181 | ​ | $ | — | ​ | $ | 3,152
U.S. Agency mortgage-backed securities | ​ |  | 65,398 | ​ |  | 2,533 | ​ |  | (18) | ​ |  | 67,913
Municipal | ​ |  | 19,000 | ​ |  | 1,348 | ​ |  | — | ​ |  | 20,348
Corporate bonds | ​ |  | 52,315 | ​ |  | 666 | ​ |  | (229) | ​ |  | 52,752
Total | ​ | $ | 139,684 | ​ | $ | 4,728 | ​ | $ | (247) | ​ | $ | 144,165
​ Investment securities held to maturity: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | DECEMBER 31, 2020
​ | ​ | ​ | ​ | ​ | GROSS | ​ | GROSS | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | UNREALIZED | ​ | UNREALIZED | ​ | FAIR
​ | ​ | COST BASIS |  | GAINS |  | LOSSES |  | VALUE
​ | ​ | (IN THOUSANDS)
U.S. Agency mortgage-backed securities |  | $ | 8,119 | ​ | $ | 369 | ​ | $ | — | ​ | $ | 8,488
Municipal | ​ |  | 30,076 | ​ |  | 2,455 | ​ |  | (49) | ​ |  | 32,482
Corporate bonds and other securities | ​ |  | 6,027 | ​ |  | 113 | ​ |  | (4) | ​ |  | 6,136
Total | ​ | $ | 44,222 | ​ | $ | 2,937 | ​ | $ | (53) | ​ | $ | 47,106
​ Maintaining investment quality is a primary objective of the Company’s investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s Investors Service or Standard & Poor’s rating of A. At December 31, 2021, 47.1% of the portfolio was rated AAA as compared to 42.2% at December 31, 2020. Approximately 14.7% and 15.2% of the portfolio was rated below A or unrated on December 31, 2021 and 2020, respectively. The Company and its subsidiaries, collectively, did not hold securities of any single issuer, excluding U.S. agencies, that exceeded 10% of shareholders’ equity at December 31, 2021. The book value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $122,574,000 at December 31, 2021 and $111,694,000 at December 31, 2020. The Company realized $84,000 of gross investment security gains in 2021, sold no investment securities during 2020, and realized $118,000 of gross investment security gains in 2019. On a net basis, the realized gain for 2021 was $66,000 after factoring in tax expense of $18,000 and the realized gain for 2019 was $93,000 after factoring in tax expense of $25,000. Proceeds from sales of investment securities available for sale were $960,000 for 2021 and $3.4 million for 2019. The Company’s consolidated investment securities portfolio had an effective duration of approximately 3.46 years. The weighted average expected maturity for available for sale securities at December 31, 2021 for U.S. agency, U.S. agency mortgage-backed, corporate bond, and municipal securities was 8.50, 5.29, 4.83, and 4.63 years, respectively. The weighted average expected maturity for held to maturity securities at December 31, 2021 for U.S. agency, U.S. agency mortgage-backed, corporate bond/other securities, and municipal securities was 8.40, 5.33, 4.19, and 6.05 years, respectively. The following table sets forth the contractual maturity distribution of the investment securities, cost basis and fair market values as of December 31, 2021. Investment securities available for sale: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | AT DECEMBER 31, 2021
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | TOTAL
​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | U.S. AGENCY | ​ | INVESTMENT
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | MORTGAGE- | ​ | SECURITIES
​ | ​ | ​ | ​ | ​ | ​ | CORPORATE | ​ | BACKED | ​ | AVAILABLE
​ | ​ | U. S. AGENCY | ​ | MUNICIPAL | ​ | BONDS | ​ | SECURITIES | ​ | FOR SALE
​ | ​ | (IN THOUSANDS)
COST BASIS |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Within 1 year | ​ | $ | — |  | $ | 700 |  | $ | 3,002 |  | $ | 22 | ​ | $ | 3,724
After 1 year but within 5 years | ​ |  | — |  |  | 11,099 |  |  | 22,648 |  |  | 2,034 | ​ |  | 35,781
After 5 years but within 10 years | ​ |  | 5,497 |  |  | 8,267 |  |  | 27,543 |  |  | 6,657 | ​ |  | 47,964
Over 10 years | ​ |  | 1,874 |  |  | — |  |  | 650 |  |  | 71,423 | ​ |  | 73,947
Total | ​ | $ | 7,371 |  | $ | 20,066 |  | $ | 53,843 |  | $ | 80,136 | ​ | $ | 161,416
FAIR VALUE | ​ |  |  |  |  |  |  |  |  |  |  |  |  |  |
Within 1 year | ​ | $ | — |  | $ | 708 |  | $ | 3,014 | ​ | $ | 23 | ​ | $ | 3,745
After 1 year but within 5 years | ​ |  | — |  |  | 11,647 |  |  | 22,797 | ​ |  | 2,133 | ​ |  | 36,577
After 5 years but within 10 years | ​ |  | 5,438 |  |  | 8,537 |  |  | 28,250 | ​ |  | 6,910 | ​ |  | 49,135
Over 10 years | ​ |  | 1,949 |  |  | — |  |  | 664 | ​ |  | 71,101 | ​ |  | 73,714
Total | ​ | $ | 7,387 |  | $ | 20,892 |  | $ | 54,725 | ​ | $ | 80,167 | ​ | $ | 163,171
​ Investment securities held to maturity:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | AT DECEMBER 31, 2021
​ |  | ​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​ | TOTAL
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | U.S. AGENCY | ​ | INVESTMENT
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | CORPORATE | ​ | MORTGAGE- | ​ | SECURITIES
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | BONDS AND | ​ | BACKED | ​ | HELD TO
​ | ​ | U.S. AGENCY | ​ | MUNICIPAL | ​ | OTHER | ​ | SECURITIES | ​ | MATURITY
​ | ​ | (IN THOUSANDS)
COST BASIS |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ | ​
Within 1 year | ​ | $ | — |  | $ | 200 |  | $ | — |  | $ | — |  | $ | 200
After 1 year but within 5 years | ​ |  | — | ​ |  | 5,130 | ​ |  | 6,021 | ​ |  | 1,037 | ​ |  | 12,188
After 5 years but within 10 years | ​ |  | 2,500 | ​ |  | 21,287 | ​ |  | 500 | ​ |  | 457 | ​ |  | 24,744
Over 10 years | ​ |  | — | ​ |  | 6,571 | ​ |  | 986 | ​ |  | 9,062 | ​ |  | 16,619
Total | ​ | $ | 2,500 | ​ | $ | 33,188 | ​ | $ | 7,507 | ​ | $ | 10,556 | ​ | $ | 53,751
FAIR VALUE | ​ |  |  |  |  |  |  |  |  |  |  |  |  |  |
Within 1 year | ​ | $ | — |  | $ | 205 |  | $ | — |  | $ | — |  | $ | 205
After 1 year but within 5 years | ​ |  | — | ​ |  | 5,431 | ​ |  | 6,078 | ​ |  | 1,064 | ​ |  | 12,573
After 5 years but within 10 years | ​ |  | 2,489 | ​ |  | 22,540 | ​ |  | 500 | ​ |  | 485 | ​ |  | 26,014
Over 10 years | ​ |  | — | ​ |  | 6,643 | ​ |  | 986 | ​ |  | 9,095 | ​ |  | 16,724
Total | ​ | $ | 2,489 | ​ | $ | 34,819 | ​ | $ | 7,564 | ​ | $ | 10,644 | ​ | $ | 55,516
​ The following table presents information concerning investments with unrealized losses as of December 31, 2021 (in thousands): ​ Total investment securities: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | DECEMBER 31, 2021
​ | ​ | LESS THAN 12 MONTHS | ​ | 12 MONTHS OR LONGER | ​ | TOTAL
​ | ​ | FAIR | ​ | UNREALIZED | ​ | FAIR | ​ | UNREALIZED | ​ | FAIR | ​ | UNREALIZED
​ |  | VALUE |  | LOSSES |  | VALUE |  | LOSSES |  | VALUE |  | LOSSES
U.S. Agency | ​ | $ | 7,419 | ​ | $ | (81) | ​ | $ | — | ​ | $ | — | ​ | $ | 7,419 | ​ | $ | (81)
U.S. Agency mortgage-backed securities | ​ | ​ | 45,422 | ​ | ​ | (972) | ​ | ​ | 6,691 | ​ | ​ | (314) | ​ | ​ | 52,113 | ​ | ​ | (1,286)
Municipal | ​ |  | 7,832 | ​ | ​ | (128) | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 7,832 | ​ | ​ | (128)
Corporate bonds and other securities | ​ |  | 14,558 | ​ | ​ | (92) | ​ | ​ | 2,439 | ​ | ​ | (61) | ​ | ​ | 16,997 | ​ | ​ | (153)
Total | ​ | $ | 75,231 | ​ | $ | (1,273) | ​ | $ | 9,130 | ​ | $ | (375) | ​ | $ | 84,361 | ​ | $ | (1,648)
​ The following table presents information concerning investments with unrealized losses as of December 31, 2020 (in thousands): ​ Total investment securities: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | DECEMBER 31, 2020
​ | ​ | LESS THAN 12 MONTHS | ​ | 12 MONTHS OR LONGER | ​ | TOTAL
​ | ​ | FAIR | ​ | UNREALIZED | ​ | FAIR | ​ | UNREALIZED | ​ | FAIR | ​ | UNREALIZED
​ |  | VALUE |  | LOSSES |  | VALUE |  | LOSSES |  | VALUE |  | LOSSES
U.S. Agency mortgage-backed securities | ​ | $ | 6,394 | ​ | $ | (17) | ​ | $ | 123 | ​ | $ | (1) | ​ | $ | 6,517 | ​ | $ | (18)
Municipal | ​ |  | — | ​ | ​ | — | ​ | ​ | 751 | ​ | ​ | (49) | ​ | ​ | 751 | ​ | ​ | (49)
Corporate bonds and other securities | ​ |  | 13,083 | ​ | ​ | (162) | ​ | ​ | 7,929 | ​ | ​ | (71) | ​ | ​ | 21,012 | ​ | ​ | (233)
Total | ​ | $ | 19,477 | ​ | $ | (179) | ​ | $ | 8,803 | ​ | $ | (121) | ​ | $ | 28,280 | ​ | $ | (300)
​ The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 89 positions that are considered temporarily impaired at December 31, 2021. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value or mature. The interest rate environment and market yields can also have a significant impact on the yield earned on mortgage-backed securities (MBS). Prepayment speed assumptions are an important factor to consider when evaluating the returns on an MBS. Generally, as interest rates decline, borrowers have more incentive to refinance into a lower rate, so prepayments will rise. Conversely, as interest rates increase, prepayments will decline. When an MBS is purchased at a premium, the yield will decrease as prepayments increase and the yield will increase as prepayments decrease. As of December 31, 2021, the Company had low premium risk as the book value of our mortgage-backed securities purchased at a premium was only 101.0% of the par value. As of December 31, 2021 and 2020, the Company reported $526,000 and $443,000, respectively, of equity securities within other assets on the Consolidated Balance Sheets. These equity securities are held within a nonqualified deferred compensation plan in which a select group of executives of the Company can participate. An eligible executive can defer a certain percentage of their current salary to be placed into the plan and held within a rabbi trust. The assets of the rabbi trust are invested in various publicly listed mutual funds. The gain or loss on the equity securities (both realized and unrealized) is reported within other income on the Consolidated Statements of Operations. The realized gain on equity securities was $36,000 and $2,000 during 2021 and 2020, respectively. The unrealized gain was $7,000 and $3,000 in 2021 and 2020, respectively. Additionally, the Company has recognized a deferred compensation liability, which is equal to the balance of the equity securities and is reported within other liabilities on the Consolidated Balance Sheets.

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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 http://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 http://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 http://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 http://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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