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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

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

EXCHANGE ACT OF 1934

For the transition period from                to                

Commission File Number: 001-41315

John Marshall Bancorp, Inc.

(Exact name of registrant as specified in its charter)

Virginia

81-5424879

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

1943 Isaac Newton Square

Suite 100

Reston, VA 20190

(Address of Principal Executive Offices)

(703) 584-0840

(Registrant’s telephone number)

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

Title of Each Class

    

Trading symbol

    

Name of Exchange on which registered

Common Stock, $0.01 par value per share

JMSB

The Nasdaq Stock Market LLC

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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth 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  

As of August 5, 2022, there were 14,031,089 shares of the registrant’s common stock outstanding.

TABLE OF CONTENTS

    

    

Page

Part I

Financial Information

Item 1.

Financial Statements

3

Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021 (Unaudited)

3

Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 (Unaudited)

4

Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2022 and 2021 (Unaudited)

5

Consolidated Statements of Shareholders’ Equity for the three months ended June 30, 2022 and 2021 (Unaudited)

6

Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2022 and 2021 (Unaudited)

7

Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (Unaudited)

8

Notes to Consolidated Financial Statements (Unaudited)

9

Item 2.

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

32

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

56

Item 4.

Controls and Procedures

57

Part II

Other Information

Item 1.

Legal Proceedings

58

Item 1A.

Risk Factors

58

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

58

Item 3.

Defaults Upon Senior Securities

58

Item 4.

Mine Safety Disclosures

58

Item 5.

Other Information

58

Item 6.

Exhibits

58

Signatures

2

PART I —FINANCIAL INFORMATION

Item 1. Financial Statements

JOHN MARSHALL BANCORP, INC.

Consolidated Balance Sheets

(In thousands, except share and per share data)

(Unaudited)

    

June 30, 2022

    

December 31, 2021

Assets

 

  

 

  

Cash and due from banks

$

12,915

$

2,920

Interest-bearing deposits in banks

 

107,972

 

102,879

Total cash and cash equivalents

 

120,887

 

105,799

Securities available-for-sale, at fair value

 

365,134

 

239,300

Securities held-to-maturity, fair value of $88,862 and $103,258 as of June 30, 2022 and December 31, 2021, respectively

 

102,265

 

105,509

Restricted securities, at cost

 

4,417

 

4,951

Equity securities, at fair value

 

2,098

 

1,869

Loans, net of unearned income

 

1,692,652

 

1,666,469

Allowance for loan losses

 

(20,031)

 

(20,032)

Net loans

 

1,672,621

 

1,646,437

Bank premises and equipment, net

 

1,443

 

1,620

Accrued interest receivable

 

4,451

 

4,943

Bank owned life insurance

 

21,188

 

20,998

Right of use assets

 

4,281

 

4,913

Other assets

 

17,589

 

12,970

Total assets

$

2,316,374

$

2,149,309

Liabilities and Shareholders’ Equity

 

  

 

  

Liabilities

 

  

 

  

Deposits:

 

  

 

  

Non-interest bearing demand deposits

$

512,284

$

488,838

Interest-bearing demand deposits

 

738,666

 

633,901

Savings deposits

 

112,276

 

101,376

Time deposits

 

680,515

 

657,438

Total deposits

 

2,043,741

 

1,881,553

Federal Home Loan Bank advances

 

 

18,000

Subordinated debt

 

49,560

 

24,728

Accrued interest payable

 

896

 

843

Lease liabilities

 

4,538

 

5,182

Other liabilities

 

10,109

 

10,533

Total liabilities

$

2,108,844

$

1,940,839

Commitments and contingencies

 

  

 

  

Shareholders’ Equity

 

  

 

  

Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued

$

$

Common stock, nonvoting, par value $0.01 per share; authorized 1,000,000 shares; none issued

 

 

Common stock, voting, par value $0.01 per share; authorized 30,000,000 shares; issued and outstanding, 14,026,589 at June 30, 2022, including 58,536 unvested shares, 13,745,598 shares at December 31, 2021, including 75,826 unvested shares

 

140

 

137

Additional paid-in capital

 

93,935

 

91,107

Retained earnings

 

130,383

 

117,626

Accumulated other comprehensive loss

 

(16,928)

 

(400)

Total shareholders’ equity

$

207,530

$

208,470

Total liabilities and shareholders’ equity

$

2,316,374

$

2,149,309

The accompanying notes are an integral part of these consolidated financial statements.

3

JOHN MARSHALL BANCORP, INC.

Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

Three months ended

Six months ended

June 30, 

June 30, 

    

2022

    

2021

    

2022

    

2021

Interest and Dividend Income

 

  

 

  

  

 

  

Interest and fees on loans

$

17,334

$

17,499

$

35,518

$

35,338

Interest on investment securities, taxable

 

1,893

 

993

 

3,273

 

1,762

Interest on investment securities, tax-exempt

 

30

 

30

 

60

 

60

Dividends

 

64

 

66

 

124

 

131

Interest on deposits in banks

 

234

 

39

 

325

 

83

Total interest and dividend income

$

19,555

$

18,627

$

39,300

$

37,374

Interest Expense

 

  

 

  

 

  

 

  

Deposits

$

1,698

$

1,735

$

3,021

$

3,795

Federal Home Loan Bank advances

 

12

 

30

 

42

 

63

Subordinated debt

 

537

 

371

 

1,013

 

743

Total interest expense

$

2,247

$

2,136

$

4,076

$

4,601

Net interest income

$

17,308

$

16,491

$

35,224

$

32,773

Provision for loan losses

 

 

90

 

 

2,455

Net interest income after provision for loan losses

$

17,308

$

16,401

$

35,224

$

30,318

Non-interest Income

 

  

 

  

 

  

 

  

Service charges on deposit accounts

$

84

$

60

$

161

$

118

Bank owned life insurance

 

95

 

100

 

190

 

207

Other service charges and fees

 

157

 

116

 

294

 

220

Gains on securities

 

 

 

 

10

Insurance commissions

 

44

 

22

 

265

 

177

Other operating income (loss)

 

(271)

 

119

 

(387)

 

149

Total non-interest income

$

109

$

417

$

523

$

881

Non-interest Expenses

 

  

 

  

 

  

 

  

Salaries and employee benefits

$

4,655

$

5,680

$

10,682

$

10,669

Occupancy expense of premises

 

482

 

514

 

975

 

1,021

Furniture and equipment expenses

 

341

 

378

 

666

 

700

Other operating expenses

 

2,203

 

2,495

 

4,144

 

4,570

Total non-interest expenses

$

7,681

$

9,067

$

16,467

$

16,960

Income before income taxes

$

9,736

$

7,751

$

19,280

$

14,239

Income tax expense

 

1,854

 

1,672

 

3,724

 

3,086

Net income

$

7,882

$

6,079

$

15,556

$

11,153

Earnings per share, basic

$

0.56

$

0.45

$

1.11

$

0.82

Earnings per share, diluted

$

0.56

$

0.44

$

1.10

$

0.80

The accompanying notes are an integral part of these consolidated financial statements.

4

JOHN MARSHALL BANCORP, INC.

Consolidated Statements of Comprehensive Income (Loss)

(In thousands)

(Unaudited)

Three months ended

Six months ended

June 30, 

June 30, 

    

2022

    

2021

    

2022

    

2021

Net Income

$

7,882

$

6,079

$

15,556

$

11,153

Other comprehensive income (loss):

 

  

 

  

 

  

 

  

Unrealized gain (loss) on available-for-sale securities, net of tax of $(1,582) and $29 for the three months ended June 30, 2022 and June 30, 2021, respectively net of tax of $(4,370) and $(647) for the six months ended June 30, 2022 and June 30, 2021, respectively

 

(5,961)

 

110

 

(16,449)

 

(2,434)

Reclassification adjustment for gains on available-for-sale securities included in net income, net of tax of $(2) for the six months ended June 30, 2021

 

 

 

 

(8)

Amortization of unrealized gains on securities transferred to held-to-maturity, net of tax of $(10) and $(21) for the three and six months ended June 30, 2022, respectively

 

(38)

 

 

(79)

 

Total other comprehensive income (loss)

$

(5,999)

$

110

$

(16,528)

$

(2,442)

Total comprehensive income (loss)

$

1,883

$

6,189

$

(972)

$

8,711

The accompanying notes are an integral part of these consolidated financial statements.

5

JOHN MARSHALL BANCORP, INC.

Consolidated Statements of Shareholders’ Equity

For the Three Months Ended June 30, 2022 and 2021

(In thousands, except share and per share data)

(Unaudited)

    

    

    

    

    

    

Accumulated

    

Other

Total

Additional Paid- In

Retained

Comprehensive

Shareholders’

Shares

Common Stock

Capital

Earnings

Income (Loss)

Equity

Balance, March 31, 2021

 

13,566,379

$

136

$

90,295

$

97,239

$

1,234

$

188,904

Net income

 

 

 

 

6,079

 

 

6,079

Other comprehensive income

 

 

 

 

 

110

 

110

Exercise of stock options

 

3,437

 

 

25

 

 

 

25

Restricted stock vesting, net of 18 shares surrendered

 

8,362

 

 

 

 

 

Share-based compensation

 

 

 

128

 

 

 

128

Balance, June 30, 2021

13,578,178

$

136

$

90,448

$

103,318

$

1,344

$

195,246

Balance, March 31, 2022

 

13,890,204

$

139

$

93,135

$

122,510

$

(10,929)

$

204,855

Net income

 

 

 

 

7,882

 

 

7,882

Other comprehensive loss

 

 

 

 

 

(5,999)

 

(5,999)

Cash dividends attributable to changes in common shares through the record date

 

 

(9)

(9)

Exercise of stock options

 

75,562

 

1

 

670

 

 

 

671

Restricted stock vesting, net of 43 shares surrendered

 

2,287

 

 

 

 

 

Share-based compensation

 

 

 

130

 

 

 

130

Balance, June 30, 2022

 

13,968,053

$

140

$

93,935

$

130,383

$

(16,928)

$

207,530

The accompanying notes are an integral part of these consolidated financial statements.

6

JOHN MARSHALL BANCORP, INC.

Consolidated Statements of Shareholders’ Equity

For the Six Months Ended June 30, 2022 and 2021

(In thousands, except share and per share data)

(Unaudited)

    

    

    

    

    

    

Accumulated

    

Other

Total

Additional Paid- In

Retained

Comprehensive

Shareholders’

Shares

Common Stock

Capital

Earnings

Income (Loss)

Equity

Balance, December 31, 2020

 

13,532,558

$

135

$

89,995

$

92,165

$

3,786

$

186,081

Net income

 

 

 

 

11,153

 

 

11,153

Other comprehensive loss

 

 

 

 

 

(2,442)

 

(2,442)

Exercise of stock options

 

24,687

 

1

 

176

 

 

 

177

Restricted stock vesting, net of 18 shares surrendered

 

20,933

 

 

 

 

 

Share-based compensation

 

 

 

277

 

 

 

277

Balance, June 30, 2021

13,578,178

$

136

$

90,448

$

103,318

$

1,344

$

195,246

Balance, December 31, 2021

 

13,669,772

$

137

$

91,107

$

117,626

$

(400)

$

208,470

Net income

 

 

 

 

15,556

 

 

15,556

Other comprehensive loss

 

 

 

 

 

(16,528)

 

(16,528)

Dividend declared on common stock ($0.20 per share)

 

 

(2,799)

(2,799)

Exercise of stock options

 

282,034

 

3

 

2,559

 

 

 

2,562

Restricted stock vesting, net of 43 shares surrendered

 

16,247

 

 

 

 

 

Share-based compensation

 

 

 

269

 

 

 

269

Balance, June 30, 2022

 

13,968,053

$

140

$

93,935

$

130,383

$

(16,928)

$

207,530

The accompanying notes are an integral part of these consolidated financial statements.

7

JOHN MARSHALL BANCORP, INC.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Six months ended

June 30, 

    

2022

    

2021

Cash Flows from Operating Activities

 

  

 

  

Net income

$

15,556

$

11,153

Adjustment to reconcile net income to net cash provided by operating activities:

 

  

 

  

Depreciation

 

298

 

423

Right of use asset amortization

 

688

 

721

Provision for loan losses

 

 

2,455

Share-based compensation expense

 

269

 

277

Net amortization of securities

 

146

 

200

Fair value adjustment on equity securities

 

391

 

(99)

Amortization of debt issuance costs

 

236

 

25

Gains on sales and calls of available-for-sale securities

 

 

(10)

Deferred tax expense (benefit)

 

375

 

(1,375)

Increase in cash surrender value of life insurance

 

(190)

 

(207)

Changes in assets and liabilities:

 

  

 

  

Decrease in accrued interest receivable

 

492

 

795

Increase in other assets

 

(603)

 

(195)

Increase in accrued interest payable

 

53

 

7

Decrease in other liabilities

 

(1,124)

 

(95)

Net cash provided by operating activities

$

16,587

$

14,075

Cash Flows from Investing Activities

 

  

 

  

Net increase in loans

$

(26,184)

$

(4,679)

Purchase of available-for-sale securities

 

(173,362)

 

(167,907)

Purchase of held-to-maturity securities

 

(1,003)

 

Proceeds from maturities, calls and principal repayments of available-for-sale securities

 

26,601

 

17,041

Proceeds from maturities, calls and principal repayments of held-to-maturity securities

 

4,109

 

Net redemption of restricted securities

 

534

 

737

Purchase of equity securities

 

(620)

 

(540)

Purchases of bank premises and equipment

 

(121)

 

(269)

Net cash (used in) investing activities

$

(170,046)

$

(155,617)

Cash Flows from Financing Activities

 

  

 

  

Net increase in deposits

$

162,188

$

174,912

Net repayment of Federal Home Loan Bank advances

(18,000)

(4,000)

Issuance of subordinated debt

24,596

Cash dividends paid

(2,799)

Issuance of common stock for share options exercised

 

2,562

 

177

Net cash provided by investing activities

$

168,547

$

171,089

Net increase in cash and cash equivalents

$

15,088

$

29,547

Cash and cash equivalents, beginning of period

 

105,799

 

138,457

Cash and cash equivalents, end of period

$

120,887

$

168,004

Supplemental Disclosures of Cash Flow Information

 

  

 

  

Cash payments for:

 

  

 

  

Interest

$

3,787

$

4,569

Income taxes

 

2,360

 

3,867

Supplemental Disclosures of Noncash Transactions

 

  

 

  

Unrealized loss on securities available-for-sale

$

(20,819)

$

(3,091)

Right of use asset obtained in exchange for new operating lease liability

56

385

The accompanying notes are an integral part of these consolidated financial statements.

8

JOHN MARSHALL BANCORP, INC.

Notes to Consolidated Financial Statements

(Dollars in thousands, unless otherwise stated)

(Unaudited)

Note 1— Nature of Business and Summary of Significant Accounting Policies

Nature of Banking Activities

John Marshall Bancorp, Inc. (the “Company”), headquartered in Reston, Virginia, became the registered bank holding company under the Bank Holding Company Act of 1956 for its wholly-owned subsidiary, John Marshall Bank (the “Bank”), on March 1, 2017. This reorganization was completed through a one-for-one share exchange in which the Bank’s shareholders received one share of voting common stock of the Company in exchange for each share of the Bank’s voting common stock. The Company was formed on April 21, 2016 under the laws of the Commonwealth Virginia. The Bank was formed on April 5, 2005 under the laws of the Commonwealth of Virginia and was chartered as a bank on February 9, 2006, by the Virginia Bureau of Financial Institutions. The Bank is a member of the Federal Reserve System and is subject to the rules and regulations of the Virginia Bureau of Financial Institutions, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Federal Deposit Insurance Corporation (“FDIC”). The Bank opened for business on April 17, 2006 and provides banking services to its customers primarily in the Washington, D.C. metropolitan area.

Basis of Presentation

The accounting and reporting policies of John Marshall Bancorp, Inc. conform to generally accepted accounting principles in the United States of America (“GAAP”) and reflect practices of the banking industry. The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). They do not include all of the information and notes required by GAAP for complete financial statements. As such, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2021, included in the Company’s Registration Statement on Form 10 as amended, filed with the SEC on April 18, 2022.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses.

In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for any other interim period or for the full year.  All amounts and disclosures included in this quarterly report as of December 31, 2021, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period financial statements have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or shareholders’ equity.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit

9

deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the U.S. Securities and Exchange Commission (“SEC”) and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. As part of the Company’s implementation efforts, we have reconciled and validated historical loan, charge-off and recovery data, determined segmentation of the loan portfolio for application of the current expected credit losses (“CECL”) calculation, determined the key assumptions to be utilized in the calculation, selected lifetime loss reserve calculation methods and established a methodology framework, updated our qualitative factor framework, performed parallel runs of the CECL calculation, and engaged an external vendor to assist with model validation commencing in the third quarter of 2022. The ultimate impact of CECL on the allowance for credit losses will depend on the size and composition of the loan portfolio, the portfolio’s credit quality and economic conditions at the time of adoption, as well as any refinements to the CECL model, methodology and key assumptions. At adoption, the Company will record a cumulative effect adjustment to retained earnings for incremental change in the allowance for credit losses.

In March 2022, the FASB issued ASU No. 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures.” ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this ASU should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, where an entity has the option to apply a modified retrospective transition method resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. For entities that have not yet adopted ASU 2016-13 (such as the Company), the effective dates for the provisions of ASU 2022-02 are the same as the effective dates in ASU 2016-13. Early adoption is permitted if an entity has adopted ASU 2016-13; however, the Company does not expect to adopt ASU 2016-13 in advance of the required implementation date.  The Company is currently assessing the impact that ASU 2022-02 will have on its consolidated financial statements.

10

Note 2— Investment Securities

The following table summarizes the amortized cost and fair value of securities held-to-maturity and available-for-sale and the corresponding amounts of gross unrealized gains and losses at June 30, 2022 and December 31, 2021.

    

June 30, 2022

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

(Dollars in thousands)

Cost

    

Gains

    

(Losses)

    

Value

Held-to-maturity

 

  

 

  

 

  

 

  

U.S Treasuries

$

6,001

$

$

(651)

$

5,350

U.S. government and federal agencies

 

35,630

 

 

(4,245)

 

31,385

Collateralized mortgage obligations

 

22,930

 

 

(3,020)

 

19,910

Taxable municipal

 

6,081

 

 

(1,010)

 

5,071

Mortgage-backed

 

31,623

 

 

(4,477)

 

27,146

Total Held-to-maturity Securities

$

102,265

$

$

(13,403)

$

88,862

Available-for-sale

 

  

 

  

 

  

 

  

U.S Treasuries

$

63,331

$

22

$

(2,890)

$

60,463

U.S. government and federal agencies

 

37,685

 

2

 

(2,611)

 

35,076

Corporate bonds

 

3,000

 

 

(132)

 

2,868

Collateralized mortgage obligations

 

45,425

 

21

 

(4,143)

 

41,303

Tax-exempt municipal

 

5,000

 

 

(405)

 

4,595

Taxable municipal

 

1,650

 

6

 

(21)

 

1,635

Mortgage-backed

 

230,862

 

99

 

(11,767)

 

219,194

Total Available-for-sale Securities

$

386,953

$

150

$

(21,969)

$

365,134

    

December 31, 2021

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

(Dollars in thousands)

Cost

    

Gains

    

(Losses)

    

Value

Held-to-maturity

 

  

 

  

 

  

 

  

U.S Treasuries

$

6,000

$

$

(150)

$

5,850

U.S. government and federal agencies

 

35,720

 

 

(726)

 

34,994

Collateralized mortgage obligations

 

25,606

 

 

(534)

 

25,072

Taxable municipal

 

6,089

 

 

(194)

 

5,895

Mortgage-backed

 

32,094

 

 

(647)

 

31,447

Total Held-to-maturity Securities

$

105,509

$

$

(2,251)

$

103,258

Available-for-sale

 

  

 

  

 

  

 

  

U.S Treasuries

$

30,954

$

$

(411)

$

30,543

U.S. government and federal agencies

 

34,803

 

258

 

(524)

 

34,537

Corporate bonds

 

1,000

 

31

 

 

1,031

Collateralized mortgage obligations

 

39,596

 

179

 

(726)

 

39,049

Tax-exempt municipal

 

5,007

 

255

 

 

5,262