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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended March 31, 2022

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number 0-24047

GLEN BURNIE BANCORP

(Exact name of registrant as specified in its charter)

Maryland

    

52-1782444

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

101 Crain Highway, S.E.

Glen Burnie, Maryland

21061

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (410) 766-3300

Inapplicable

(Former name, former address and former fiscal year if changed from last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  No

Indicate by check mark if the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-Accelerated Filer

Smaller Reporting Company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

GLBZ

The NASDAQ Stock Market LLC

The number of shares of the registrant’s common stock outstanding as of May 9, 2022, was 2,858,635.

GLEN BURNIE BANCORP AND SUBSIDIARY

TABLE OF CONTENTS

Page

Part I.

FINANCIAL INFORMATION

Item 1.

Financial Statements:

Consolidated Balance Sheets: As of March 31, 2022 (unaudited) and December 31, 2021 (audited)

3

Consolidated Statements of Income: Three Months Ended March 31, 2022 and 2021 (unaudited)

4

Consolidated Statements of Comprehensive Income (Loss): Three Months Ended March 31, 2022 and 2021 (unaudited)

5

Consolidated Statements of Changes in Stockholders’ Equity: Three Months Ended March 31, 2022 and 2021 (unaudited)

6

Consolidated Statements of Cash Flows: Three Months Ended March 31, 2022 and 2021 (unaudited)

7

Notes to Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

28

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

40

Item 4.

Controls and Procedures

40

Part II.

OTHER INFORMATION

40

Item 1.

Legal Proceedings

40

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

40

Item 3.

Defaults Upon Senior Securities

40

Item 4.

Mine Safety Disclosures

40

Item 5.

Other Information

41

Item 6.

Exhibits

42

SIGNATURES

43

- 2 -

PART I – FINANCIAL INFORMATION

ITEM 1.     CONSOLIDATED FINANCIAL STATEMENTS

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)

March 31, 

December 31, 

2022

2021

(unaudited)

(audited)

ASSETS

Cash and due from banks

$

2,071

$

2,111

Interest-bearing deposits in other financial institutions

 

66,769

 

60,070

Cash and Cash Equivalents

 

68,840

 

62,181

Investment securities available for sale, at fair value

 

147,371

 

155,927

Restricted equity securities, at cost

1,074

1,062

Loans, net of deferred fees and costs

 

204,252

 

210,392

Less: Allowance for credit losses(1)

(2,380)

(2,470)

Loans, net

201,872

207,922

Premises and equipment, net

 

3,492

 

3,564

Bank owned life insurance

 

8,375

 

8,338

Deferred tax assets, net

4,148

956

Accrued interest receivable

 

1,124

 

1,085

Accrued taxes receivable

 

280

 

301

Prepaid expenses

 

513

 

347

Other assets

 

356

 

383

Total Assets

$

437,445

$

442,066

LIABILITIES

Noninterest-bearing deposits

$

155,027

$

155,624

Interest-bearing deposits

 

232,747

 

227,623

Total Deposits

 

387,774

 

383,247

Short-term borrowings

 

10,000

 

10,000

Long-term borrowings

10,000

10,000

Defined pension liability

311

304

Accrued expenses and other liabilities

 

2,080

 

2,799

Total Liabilities

410,165

406,350

STOCKHOLDERS' EQUITY

Common stock, par value $1, authorized 15,000,000 shares, issued and outstanding 2,856,257 and 2,853,880 shares as of March 31, 2022 and December 31, 2021, respectively.

 

2,856

 

2,854

Additional paid-in capital

 

10,784

 

10,759

Retained earnings

 

22,922

 

22,977

Accumulated other comprehensive loss

 

(9,282)

(874)

Total Stockholders' Equity

27,280

35,716

Total Liabilities and Stockholders' Equity

$

437,445

$

442,066

(1)Effective January 1, 2021, the Company applied ASU 2016-13, Financial Instruments – Credit Losses (“ASC 326”), such that the allowance calculation is based on current expected credit loss methodology (“CECL”). Prior to January 1, 2021, the calculation was based on incurred loss methodology. See Note 5 “Loans Receivable and Allowance for Losses on Loans” for details.

See accompanying notes to unaudited consolidated financial statements.

- 3 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts)

(unaudited)

    

Three Months Ended March 31, 

    

2022

    

2021

    

INTEREST INCOME

 

  

 

  

 

Interest and fees on loans

$

2,168

$

2,637

Interest and dividends on securities

698

505

Interest on deposits with banks and
federal funds sold

 

50

 

19

Total Interest Income

 

2,916

 

3,161

INTEREST EXPENSE

 

  

 

  

Interest on deposits

 

124

 

168

Interest on short-term borrowings

 

102

 

116

Interest on long-term borrowings

 

8

 

Total Interest Expense

 

234

 

284

Net Interest Income

 

2,682

 

2,877

Release for credit losses

 

(100)

 

(404)

Net interest income after release

 

2,782

 

3,281

NONINTEREST INCOME

 

  

 

  

Service charges on deposit accounts

 

42

 

40

Other fees and commissions

 

174

 

169

Income on life insurance

 

38

 

38

Total Noninterest Income

 

254

 

247

NONINTEREST EXPENSE

 

  

 

  

Salary and benefits

 

1,620

 

1,630

Occupancy and equipment expenses

331

302

Legal, accounting and other professional fees

324

213

Data processing and item processing services

226

257

FDIC insurance costs

26

42

Advertising and marketing related expenses

22

22

Loan collection costs

(75)

6

Telephone costs

 

44

 

77

Other expenses

 

266

 

279

Total Noninterest Expenses

 

2,784

 

2,828

Income before income taxes

 

252

 

700

Income tax expense

 

21

 

106

NET INCOME

$

231

$

594

Basic and diluted net income per share of common stock

$

0.08

$

0.21

See accompanying notes to unaudited consolidated financial statements.

- 4 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

Three Months Ended

March 31, 

    

2022

    

2021

    

Net income

$

231

$

594

Other comprehensive income (loss):

 

  

 

  

Net unrealized loss on securities available for sale:

 

Net unrealized loss on securities during the period

(11,937)

(3,574)

Income tax benefit relating to item above

 

3,285

 

983

Net effect on other comprehensive loss

 

(8,652)

 

(2,591)

Net unrealized gain on interest rate swaps:

Net unrealized gain on interest rate swap during the period

337

140

Income tax expense relating to item above

(93)

(38)

Net effect on other comprehensive income

244

102

Other comprehensive loss

(8,408)

(2,489)

Comprehensive loss

$

(8,177)

$

(1,895)

See accompanying notes to unaudited consolidated financial statements.

- 5 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(dollars in thousands)

(unaudited)

    

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

Stock

Capital

Earnings

Income (Loss)

Total

Balance, December 31, 2020

 

$

2,842

$

10,640

$

23,071

$

540

$

37,093

Net income

 

 

 

 

594

 

 

594

Cash dividends, $0.10 per share

 

 

 

 

(284)

 

 

(284)

Dividends reinvested under

dividend reinvestment plan

 

 

3

 

30

 

 

 

33

Transition adjustment pursuant to adoption

of ASU 2016-13

(1,472)

(1,472)

Other comprehensive loss

 

 

 

 

 

(2,489)

 

(2,489)

Balance, March 31, 2021

 

$

2,845

$

10,670

$

21,909

$

(1,949)

$

33,475

Accumulated

Additional

Other

Common

Paid-in

Retained

Comprehensive

Stock

Capital

Earnings

Loss

Total

Balance, December 31, 2021

 

$

2,854

$

10,759

$

22,977

$

(874)

$

35,716

Net income

 

 

 

 

231

 

 

231

Cash dividends, $0.10 per share

 

 

 

 

(286)

 

 

(286)

Dividends reinvested under

dividend reinvestment plan

 

 

2

 

25

 

 

 

27

Other comprehensive loss

 

 

 

 

 

(8,408)

 

(8,408)

Balance, March 31, 2022

 

$

2,856

$

10,784

$

22,922

$

(9,282)

$

27,280

See accompanying notes to unaudited consolidated financial statements.

- 6 -

GLEN BURNIE BANCORP AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)

    

    

Three Months Ended March 31, 

    

2022

    

2021

Cash flows from operating activities:

 

  

 

  

 

Net income

$

231

$

594

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

 

  

 

Depreciation, amortization, and accretion of premises and equipment

 

107

 

104

Amortization, and accretion of investment securities available for sale

91

107

Release for credit losses

 

(100)

 

(404)

Increase in cash surrender value of bank owned life insurance

 

(38)

 

(38)

(Decrease) increase in accrued interest receivable

 

(39)

 

25

Net increase in other assets

 

(118)

 

(54)

Net increase in accrued expenses and other liabilities

 

(364)

 

(51)

Net cash (used in) provided by operating activities

 

(230)

 

283

Cash flows from investing activities:

 

  

 

  

Redemptions and maturities of investment securities available for sale

 

3,527

 

4,938

Purchases of investment securities available for sale

 

(7,000)

 

(29,467)

Net (sale) purchase of Federal Home Loan Bank stock

 

(11)

 

137

Net decrease in loans

 

6,151

 

7,194

Purchases of premises and equipment

(47)

(88)

Net cash provided by (used in) investing activities

 

2,620

 

(17,286)

Cash flows from financing activities:

 

  

 

  

Net increase in deposits

 

4,528

 

19,303

Increase in short term borrowings

1,332

Cash dividends paid

 

(286)

 

(284)

Common stock dividends reinvested

 

27

 

33

Net cash provided by financing activities

 

4,269

 

20,384

Net increase in cash and cash equivalents

 

6,659

 

3,381

Cash and cash equivalents at beginning of period

 

62,181

 

37,093

Cash and cash equivalents at end of period

$

68,840

$

40,474

Supplemental Disclosures of Cash Flow Information:

 

  

 

  

Interest paid on deposits and borrowings

$

228

$

282

Net income taxes paid

65

Net increase in unrealized depreciation on available for sale securities

 

(11,937)

 

(3,574)

Net decrease in unrealized depreciation on swaps

337

140

See accompanying notes to unaudited consolidated financial statements.

- 7 -

GLEN BURNIE BANCORP AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – ORGANIZATIONAL

Nature of Business

Glen Burnie Bancorp (the “Company”) is a bank holding company organized in 1990 under the laws of the State of Maryland. The Company owns all the outstanding shares of capital stock of The Bank of Glen Burnie (the “Bank”), a commercial bank organized in 1949 under the laws of the State of Maryland (the “State”). The Bank provides financial services to individuals and corporate customers located in Anne Arundel County and surrounding areas of Central Maryland, and is subject to competition from other financial institutions. The Bank is also subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

NOTE 2 – BASIS OF PRESENTATION

In management’s opinion, the accompanying unaudited consolidated financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim period reporting, reflect all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the financial position at March 31, 2022 and December 31, 2021, the results of operations for the three-month period ended March 31, 2022 and 2021, and the statements of cash flows for the three-month period ended March 31, 2022 and 2021. The operating results for the three-month period ended March 31, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022 or any future interim period. The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2022. The unaudited consolidated financial statements for March 31, 2022 and 2021, the consolidated balance sheet at December 31, 2021, and accompanying notes should be read in conjunction with the Company’s audited consolidated financial statements and the accompanying notes thereto that are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Summary of Significant Accounting Policies

The significant accounting policies used in preparation of the Company's consolidated financial statements are disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021. There have not been any significant changes in the Company's significant accounting policies.

Allowance for Credit Losses – Loans Receivable

Effective January 1, 2021, the Company applied ASU 2016-13, Financial Instruments - Credit Losses ("ASC 326"), such that the allowance calculation is based on CECL methodology. Prior to January 1, 2021, the calculation was based on incurred loss methodology. See Note 7 "Recent Accounting Pronouncements" and Note 5 "Loans Receivable and Allowance for Credit Losses" for details. The Company maintains an allowance for credit losses (“ACL”) for the expected credit losses of the loan portfolio as well as unfunded loan commitments. The amount of ACL is based on ongoing, quarterly assessments by management. The CECL methodology requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures) and replaces the incurred loss methodology’s threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred.

The ACL consists of the allowance for credit losses and the reserve for unfunded commitments. The estimate of expected credit losses under the CECL methodology is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period that historical experience was based for each loan type. Finally, we consider forecasts about future economic conditions or changes in collateral values that are reasonable and supportable.

- 8 -

Portfolio segment is defined as the level at which the Company develops and documents a systematic methodology to determine its ACL. The Company has designated three loan portfolio segments: loans secured by real estate, commercial and industrial loans, and consumer loans. These loan portfolio segments are further disaggregated into classes, which represent loans of similar type, risk characteristics, and methods for monitoring and assessing credit risk. The loans secured by real estate portfolio segment is disaggregated into five classes: construction and land, farmland, single-family residential, multi-family, and commercial. The commercial and industrial loan portfolio segment is disaggregated into two classes: commercial and industrial, and SBA guaranty. The risk of loss for the commercial and industrial loan portfolio segment is generally most indicated by the credit risk rating assigned to each borrower. Commercial and industrial loan risk ratings are determined by experienced senior credit officers based on specific facts and circumstances and are subject to periodic review by an independent internal team of credit specialists. The consumer loan portfolio segment is disaggregated into two classes: consumer and automobile. The risk of loss for the consumer loan portfolio segment is generally most indicated by delinquency status and general economic factors. Each of the three loan portfolio segments may also be further segmented based on risk characteristics.

For most of our loan portfolio classes, the historical loss experience is determined using the Average Charge-Off Method. This method pools loans into groups (“cohorts”) sharing similar risk characteristics and tracks each cohort’s net charge-offs over the lives of the loans. The Average Charge-Off Method uses historical values by period (20-year look-back) to calculate losses and then applies the historical average to future balances over the life of the account. The historical loss rates for each cohort are then averaged to calculate an overall historical loss rate which is applied to the current loan balance to arrive at the quantitative baseline portion of the allowance for credit losses for the respective loan portfolio class. For certain loan portfolio classes, the Company determined there was not sufficient historical loss information to calculate a meaningful historical loss rate using the average charge-off methodology. For any such loan portfolio class, peer group history contributes to the Company’s weighted average loss history. The peer group data is included in the weighted average loss history that is developed for each loan pool.

The Company also considers qualitative adjustments to the historical loss rate for each loan portfolio class. The qualitative adjustments for each loan class consider the conditions over the 20-year look-back period from which historical loss experience was based and are split into two components: 1) asset or class specific risk characteristics or current conditions at the reporting date related to portfolio credit quality, remaining payments, volume and nature, credit culture and management, business environment or other management factors; and 2) reasonable and supportable forecast of future economic conditions and collateral values.

The Company performs a quarterly asset quality review which includes a review of forecasted gross charge-offs and recoveries, nonperforming assets, criticized loans, risk rating migration, delinquencies, etc. The asset quality review is performed by management and the results are used to consider a qualitative overlay to the quantitative baseline.

When management deems it to be appropriate, the Company establishes a specific reserve for individually evaluated loans that do not share similar risk characteristics with the loans included in each respective loan pool. These individually evaluated loans are removed from their respective pools and typically represent collateral dependent loans but may also include other non-performing loans or troubled debt restructurings (“TDRs”).

Allowance for Credit Losses – Held-to-Maturity Debt Securities

For held-to-maturity (“HTM”) debt securities, the Company is required to utilize a CECL methodology to estimate expected credit losses. The Company does not own any HTM debt securities. Therefore, the Company did not record an allowance for credit losses for these types of securities.

Allowance for Credit Losses – Available-for-Sale Debt Securities

The impairment model for available-for-sale (“AFS”) debt securities differs from the CECL methodology applied for HTM debt securities because AFS debt securities are measured at fair value rather than amortized cost. Although ASC 326 replaced the legacy other-than-temporary impairment (“OTTI”) model with a credit loss model, it retained the fundamental nature of the legacy OTTI model. For AFS debt securities in an unrealized loss position, the Company first

- 9 -

assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either criteria is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities where neither of the criteria are met, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited to the amount that the fair value is less than the amortized cost basis. Any remaining discount that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Under the new guidance, an entity may no longer consider the length of time fair value has been less than amortized cost. Changes in the allowance for credit losses are recorded as a provision (or release) for credit losses. Losses are charged against the allowance when management believes the collectability of an AFS security is considered below the amortized cost basis of the security. As of December 31, 2021 and March 31, 2022, the Company determined that the unrealized loss positions in AFS securities were not the result of credit losses, and therefore, an allowance for credit losses was not recorded.

Off-Balance-Sheet Credit Exposures

The only material off-balance-sheet credit exposures are unfunded loan commitments, which had a combined balance of $28.1 million on March 31, 2022. The reserve for unfunded commitments is recognized as a liability (other liabilities in the consolidated statements of financial condition), with adjustments to the reserve recognized through provision for credit losses in the consolidated statements of income. The reserve for unfunded commitments represents the expected lifetime credit losses on off-balance sheet obligations such as commitments to extend credit and standby letters of credit. However, a liability is not recognized for commitments that are unconditionally cancellable by the Company. The reserve for unfunded commitments is determined by estimating future draws, including the effects of risk mitigation actions, and applying the expected loss rates on those draws. Loss rates are estimated by utilizing the same loss rates calculated for the allowance for credit losses related to the respective loan portfolio class.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, The Bank of Glen Burnie. Consolidation resulted in the elimination of all intercompany accounts and transactions.

Cash Flow Presentation

In the statements of cash flows, cash and cash equivalents include cash on hand, amounts due from banks, Federal Home Loan Bank of Atlanta (“FHLB Atlanta”) overnight deposits, and federal funds sold. Generally, federal funds are sold for one-day periods.

Reclassifications

Certain items in the fiscal year 2021 consolidated financial statements have been reclassified to conform to the fiscal year 2022 classifications. The reclassifications had no effect on previously reported results of operations or retained earnings.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the ACL; the fair value of financial instruments, such as loans and investment securities; benefit plan obligations and expenses; and the valuation of deferred tax assets and liabilities.

- 10 -

NOTE 3 – EARNINGS PER SHARE

Basic earnings per common share (“EPS”) is computed by dividing net income available to common shareholders by the weighted average common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average common shares outstanding, plus the effect of common stock equivalents (for example, stock options computed using the treasury stock method).

Three Months Ended

March 31, 

    

2022

    

2021

    

Basic and diluted earnings per share:

Net income

$

230,733

$

593,993

Weighted average common shares outstanding

 

2,855,253

 

2,843,775

Basic and dilutive net income per share

$

0.08

$

0.21

Diluted earnings per share calculations were not required for the three-month period ended March 31, 2022 and 2021, as there were no stock options outstanding.

NOTE 4 – INVESTMENT SECURITIES

Investment securities are accounted for according to their purpose and holding period. Trading securities are those that are bought and held principally for the purpose of selling them in the near term. The Company held no trading securities at March 31, 2022 or December 31, 2021. Available-for-sale investment securities, comprised of debt and mortgage-backed securities, are those that may be sold before maturity due to changes in the Company's interest rate risk profile or funding needs, and are reported at fair value with unrealized gains and losses, net of taxes, reported as a component of other comprehensive income. Held-to-maturity investment securities are those that management has the positive intent and ability to hold to maturity and are reported at amortized cost. The Company held no held-to-maturity securities at March 31, 2022 or December 31, 2021.

Realized gains and losses are recorded in noninterest income and are determined on a trade date basis using the specific identification method. Interest and dividends on investment securities are recognized in interest income on an accrual basis. Premiums and discounts are amortized or accreted into interest income using the interest method over the expected lives of the individual securities.

The following table summarizes the amortized cost and estimated fair value of the Company’s investment securities portfolio at March 31, 2022 and December 31, 2021:

    

At March 31, 2022

    

Gross

    

Gross

    

Amortized

Unrealized

Unrealized

Fair

(dollars in thousands)

Cost

Gains

Losses

Value

Collateralized mortgage obligations

$

20,455

$

71

$

(809)

$

19,717

Agency mortgage-backed securities

53,985

9

(2,884)

51,110

Municipal securities

44,560

88

(4,970)

39,678

Corporate Securities

1,500

(78)

1,422

U.S. Government agency securities

32,583

3

(4,117)

28,469

U.S. Treasury securities

 

6,990

 

(15)

 

6,975

Total securities available for sale

$

160,073

$

171

$

(12,873)

$

147,371

- 11 -

    

At December 31, 2021

    

Gross

    

Gross

    

Amortized

Unrealized

Unrealized

Fair

(dollars in thousands)

Cost

Gains

Losses

Value

Collateralized mortgage obligations

$

21,730

$

169

$

(211)

$

21,688

Agency mortgage-backed securities

56,252

 

356

 

(419)

 

56,189

Municipal securities

44,594

811

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