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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 March 31, 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: 000-55983
(Exact name of registrant as specified in its charter)
| | | | | |
Pennsylvania | 83-1561918 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
9 Old Lincoln Highway, Malvern, Pennsylvania 19355
(Address of principal executive offices) (Zip Code)
(484) 568-5000
(Registrant’s telephone number, including area code)
| | | | | | | | |
Title of class | Trading Symbol | Name of exchange on which registered |
Common Stock, $1 par value | MRBK | The NASDAQ Stock Market |
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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of May 9, 2022 there were 6,114,424 outstanding shares of the issuer’s common stock, par value $1.00 per share.
TABLE OF CONTENTS
MERIDIAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | | | | |
(dollars in thousands, except per share data) | March 31, 2022 | | December 31, 2021 |
Cash and due from banks | $ | 56,022 | | | $ | 23,480 | |
Federal funds sold | 12,866 | | | — | |
Cash and cash equivalents | 68,888 | | | 23,480 | |
Securities available-for-sale (amortized cost of $136,745 and $158,387 as of March 31, 2022 and December 31, 2021) | 130,653 | | | 159,302 | |
Securities held-to-maturity (fair value of $33,556 and $6,591 as of March 31, 2022 and December 31, 2021) | 34,977 | | | 6,372 | |
Equity investments | 2,240 | | | 2,354 | |
Mortgage loans held for sale (amortized cost of $81,502 and $80,002 as of March 31, 2022 and December 31, 2021), at fair value | 81,258 | | | 80,882 | |
Loans, net of fees and costs (includes $17,375 and $17,558 of loans at fair value, amortized cost of $17,375 and $17,106 as of March 31, 2022 and December 31, 2021) | 1,431,906 | | | 1,386,457 | |
Allowance for loan and lease losses | (18,826) | | | (18,758) | |
Loans, net of the allowance for loan and lease losses | 1,413,080 | | | 1,367,699 | |
Restricted investment in bank stock | 4,330 | | | 5,117 | |
Bank premises and equipment, net | 11,883 | | | 11,806 | |
Bank owned life insurance | 22,641 | | | 22,503 | |
Accrued interest receivable | 4,848 | | | 5,009 | |
Deferred income taxes | 3,190 | | | 1,413 | |
Servicing assets | 13,396 | | | 12,765 | |
Goodwill | 899 | | | 899 | |
Intangible assets | 3,328 | | | 3,379 | |
Other assets | 35,978 | | | 10,463 | |
Total assets | $ | 1,831,589 | | | 1,713,443 | |
Liabilities: | | | |
Deposits: | | | |
Non-interest bearing | $ | 291,379 | | | 274,528 | |
Interest bearing | 1,273,472 | | | 1,171,885 | |
Total deposits | 1,564,851 | | | 1,446,413 | |
Short-term borrowings | 36,136 | | | 41,344 | |
Subordinated debentures | 40,538 | | | 40,508 | |
Accrued interest payable | 575 | | | 31 | |
Other liabilities | 31,805 | | | 19,787 | |
Total liabilities | 1,673,905 | | | 1,548,083 | |
Stockholders’ equity: | | | |
Common stock, $1 par value. Authorized 25,000,000 shares as of March 31, 2022 and December 31, 2021; issued 6,555,909 and 6,534,587 as of March 31, 2022 and December 31, 2021 | 6,556 | | | 6,535 | |
Surplus | 84,177 | | | 83,663 | |
Treasury stock - 426,693 shares at March 31, 2022 and December 31, 2021 | (8,860) | | | (8,860) | |
Unearned common stock held by employee stock ownership plan | (1,602) | | | (1,602) | |
Retained earnings | 83,104 | | | 84,916 | |
Accumulated other comprehensive (loss) income | (5,691) | | | 708 | |
Total stockholders’ equity | 157,684 | | | 165,360 | |
Total liabilities and stockholders’ equity | $ | 1,831,589 | | | 1,713,443 | |
See accompanying notes to the unaudited consolidated financial statements.
MERIDIAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | | | | | | | | | | | | | | |
| Three months ended March 31, | | |
(dollars in thousands, except per share data) | 2022 | | 2021 | | | | |
Interest income: | | | | | | | |
Loans, including fees | 17,219 | | | 16,822 | | | | | |
Securities: | | | | | | | |
Taxable | 336 | | | 273 | | | | | |
Tax-exempt | 396 | | | 353 | | | | | |
Cash and cash equivalents | 13 | | | 3 | | | | | |
Total interest income | 17,964 | | | 17,451 | | | | | |
Interest expense: | | | | | | | |
Deposits | 1,289 | | | 1,566 | | | | | |
Borrowings | 640 | | | 765 | | | | | |
Total interest expense | 1,929 | | | 2,331 | | | | | |
Net interest income | 16,035 | | | 15,120 | | | | | |
Provision for loan losses | 615 | | | 599 | | | | | |
Net interest income after provision for loan losses | 15,420 | | | 14,521 | | | | | |
Non-interest income: | | | | | | | |
Mortgage banking income | 7,096 | | | 24,100 | | | | | |
Wealth management income | 1,304 | | | 1,136 | | | | | |
SBA loan income | 2,520 | | | 1,245 | | | | | |
Earnings on investment in life insurance | 138 | | | 66 | | | | | |
Net change in the fair value of derivative instruments | (166) | | | (944) | | | | | |
Net change in the fair value of loans held-for-sale | (1,124) | | | (3,867) | | | | | |
Net change in the fair value of loans held-for-investment | (778) | | | (102) | | | | | |
Net gain on hedging activity | 2,827 | | | 4,261 | | | | | |
Net gain on sale of investment securities available-for-sale | — | | | 48 | | | | | |
Service charges | 27 | | | 32 | | | | | |
Other | 1,258 | | | 1,073 | | | | | |
Total non-interest income | 13,102 | | | 27,048 | | | | | |
Non-interest expenses: | | | | | | | |
Salaries and employee benefits | 15,298 | | | 22,139 | | | | | |
Occupancy and equipment | 1,252 | | | 1,152 | | | | | |
Professional fees | 848 | | | 940 | | | | | |
Advertising and promotion | 986 | | | 785 | | | | | |
Data processing | 479 | | | 616 | | | | | |
Information technology | 710 | | | 425 | | | | | |
Pennsylvania bank shares tax | 199 | | | 163 | | | | | |
Other | 1,661 | | | 2,043 | | | | | |
Total non-interest expenses | 21,433 | | | 28,263 | | | | | |
Income before income taxes | 7,089 | | | 13,306 | | | | | |
Income tax expense | 1,554 | | | 3,136 | | | | | |
Net income | $ | 5,535 | | | 10,170 | | | | | |
Basic earnings per common share | $ | 0.92 | | | 1.70 | | | | | |
Diluted earnings per common share | $ | 0.88 | | | 1.65 | | | | | |
See accompanying notes to the unaudited consolidated financial statements.
MERIDIAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited)
| | | | | | | | | | | | | | | |
| Three months ended March 31, | | |
(dollars in thousands) | 2022 | | 2021 | | | | |
Net income: | $ | 5,535 | | | 10,170 | | | | | |
| | | | | | | |
Other comprehensive (loss) income: | | | | | | | |
Net change in unrealized gains on investment securities available for sale: | | | | | | | |
Net unrealized losses arising during the period, net of tax benefit of $1,626, and $592, respectively | (5,369) | | | (1,883) | | | | | |
Less: reclassification adjustment for net gains realized in net income, net of tax expense of $3, and $12, respectively | (9) | | | (36) | | | | | |
Reclassification adjustment for securities transferred from available-for-sale to held-to-maturity, net of tax benefit of $308, and $0, respectively | (1,021) | | | — | | | | | |
Unrealized investment losses, net of tax benefit of $1,936, and $604, respectively | (6,399) | | | (1,919) | | | | | |
Total other comprehensive loss | (6,399) | | | (1,919) | | | | | |
Total comprehensive (loss) income | $ | (864) | | | 8,251 | | | | | |
See accompanying notes to the unaudited consolidated financial statements.
MERIDIAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | Common Stock | | Surplus | | Treasury Stock | | Unearned Common Stock ESOP | | Retained Earnings | | Accumulated Other Comprehensive (Loss) Income | | Total |
Balance, January 1, 2021 | $ | 6,456 | | | 81,196 | | | (5,828) | | | (1,768) | | | 59,010 | | | 2,556 | | | 141,622 | |
Comprehensive income: | | | | | | | | | | | | | |
Net income | | | | | | | | | 10,170 | | | | | 10,170 | |
Net change in unrealized investment losses, net of tax | | | | | | | | | | | (1,919) | | | (1,919) | |
Total comprehensive income | | | | | | | | | | | | | 8,251 | |
Dividends declared, $1.125 per share | | | | | | | | | (6,931) | | | | | (6,931) | |
Common stock issued through share-based awards and exercises | 32 | | | 302 | | | | | | | | | | | 334 | |
Stock based compensation | | | 229 | | | | | | | | | | | 229 | |
Balance, March 31, 2021 | $ | 6,488 | | | 81,727 | | | (5,828) | | | (1,768) | | | 62,249 | | | 637 | | | 143,505 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | Common Stock | | Surplus | | Treasury Stock | | Unearned Common Stock ESOP | | Retained Earnings | | Accumulated Other Comprehensive (Loss) Income | | Total |
Balance, January 1, 2022 | $ | 6,535 | | | 83,663 | | | (8,860) | | | (1,602) | | | 84,916 | | | 708 | | | 165,360 | |
Comprehensive income: | | | | | | | | | | | | | |
Net income | | | | | | | | | 5,535 | | | | | 5,535 | |
Net change in unrealized investment losses, net of tax | | | | | | | | | | | (6,399) | | | (6,399) | |
Total comprehensive loss | | | | | | | | | | | | | (864) | |
Dividends declared, $1.20 per share | | | | | | | | | (7,347) | | | | | (7,347) | |
Common stock issued through share-based awards and exercises | 21 | | | 254 | | | | | | | | | | | 275 | |
Stock based compensation | | | 260 | | | | | | | | | | | 260 | |
Balance, March 31, 2022 | $ | 6,556 | | | 84,177 | | | (8,860) | | | (1,602) | | | 83,104 | | | (5,691) | | | 157,684 | |
See accompanying notes to the unaudited consolidated financial statements.
MERIDIAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | | | | | | | | | | |
| Three months ended March 31, |
(dollars in thousands) | 2022 | | 2021 |
Net income | $ | 5,535 | | | 10,170 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | | | |
Gain on sale of investment securities | — | | | (48) | |
Net amortization of investment premiums and discounts and change in fair value of equity securities | (27) | | | 331 | |
Depreciation and amortization, net | 50 | | | (1,709) | |
Provision for loan losses | 615 | | | 599 | |
Amortization of issuance costs on subordinated debt | 30 | | | 30 | |
Stock based compensation | 260 | | | 229 | |
Net change in fair value of derivative instruments | 166 | | | 944 | |
Net change in fair value of loans held for sale | 1,124 | | | 3,867 | |
Net change in fair value of loans held for investment | 778 | | | 102 | |
Amortization and net impairment of servicing rights | 494 | | | (2,661) | |
SBA loan income | (2,520) | | | (1,245) | |
Proceeds from sale of loans | 319,610 | | | 803,858 | |
Loans originated for sale | (313,485) | | | (724,675) | |
Mortgage banking income | (7,096) | | | (24,100) | |
Decrease (increase) in accrued interest receivable | 161 | | | (85) | |
Increase in other assets | (9,962) | | | (5,246) | |
Earnings from investment in life insurance | (138) | | | (66) | |
Increase (decrease) in deferred income tax | 159 | | | (1,865) | |
Increase (decrease) in accrued interest payable | 544 | | | (411) | |
Increase in other liabilities | 10,156 | | | 4,745 | |
Net cash provided by operating activities | 6,454 | | | 62,764 | |
Cash flows from investing activities: | | | |
Activity in available-for-sale securities: | | | |
Maturities, repayments and calls | 3,843 | | | 2,343 | |
Sales | — | | | 13,639 | |
Purchases | (9,885) | | | (28,151) | |
Activity in held-to-maturity securities: | | | |
Maturities, repayments and calls | 390 | | | — | |
Purchases | (2,500) | | | — | |
Decrease in restricted stock | 787 | | | 2,747 | |
Net increase in loans | (59,762) | | | (70,915) | |
Purchases of premises and equipment | (77) | | | (677) | |
Net cash used in investing activities | (67,204) | | | (81,014) | |
Cash flows from financing activities: | | | |
Net increase in deposits | 118,438 | | | 142,255 | |
Decrease in short-term borrowings | (5,208) | | | (5,465) | |
Decrease in short-term borrowings with original maturity > 90 days | — | | | (75,021) | |
| | | |
(Repayment) proceeds from long-term debt, net | — | | | (42,662) | |
| | | |
| | | |
Dividends paid | (7,347) | | | (6,931) | |
Share based awards and exercises | 275 | | | 334 | |
Net cash provided by financing activities | 106,158 | | | 12,510 | |
Net change in cash and cash equivalents | 45,408 | | | (5,740) | |
Cash and cash equivalents at beginning of period | 23,480 | | | 36,744 | |
Cash and cash equivalents at end of period | $ | 68,888 | | | 31,004 | |
Supplemental disclosure of cash flow information: | | | |
Cash paid during the period for: | | | |
Interest | $ | 1,386 | | | 2,742 | |
| | | |
| | | |
Supplemental disclosure of cash flow information: | | | |
Transfers from loans held for sale to loans held for investment | 1,653 | | | 2,390 | |
Net loans sold, not settled | (13,857) | | | (4,432) | |
Investment security purchases, not settled | (2,761) | | | (1,188) | |
Transfer of securities from AFS to HTM | 23,522 | | | — | |
Lease liabilities arising from obtaining right-of-use assets | 10,995 | | | — | |
See accompanying notes to the unaudited consolidated financial statements.
MERIDIAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
(1) Basis of Presentation
The Corporation’s unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position and the results of operations for the interim periods presented have been included.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 from those estimates. Amounts subject to significant estimates are items such as the allowance for loan losses and lending related commitments, the fair value of financial instruments, other-than-temporary impairments of investment securities, and the valuations of goodwill and intangible assets, and servicing assets.
These unaudited consolidated financial statements should be read in conjunction with the Corporation’s filings with the Securities and Exchange Commission (including our Annual Report on Form 10-K for the year ended December 31, 2021) and, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if any.
Certain prior period amounts have been reclassified to conform with current period presentation. Reclassifications had no effect on net income or stockholders’ equity. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results for the year ending December 31, 2022 or for any other period.
(2) Earnings per Common Share
Basic earnings per common share excludes dilution and is computed by dividing income available to common shareholders by the weighted-average common shares outstanding during the period reduced by unearned ESOP Plan shares and treasury shares. Diluted earnings per common share takes into account the potential dilution computed pursuant to the treasury stock method that could occur if stock options were exercised and converted into common stock and if restricted stock awards were vested, and SERP plan liabilities were satisfied with common shares. The effects of stock options are excluded from the computation of diluted earnings per share in periods in which the effect would be anti-dilutive.
| | | | | | | | | | | | | | | |
| Three Months Ended March 31, | | |
(dollars in thousands, except per share data) | 2022 | | 2021 | | | | |
Numerator: | | | | | | | |
Net income available to common stockholders | $ | 5,535 | | | 10,170 | | | | | |
Denominator for basic earnings per share | | | | | | | |
Weighted average shares outstanding | 6,128 | | | 6,119 | | | | | |
Average unearned ESOP shares | (105) | | | (119) | | | | | |
Basic weighted averages shares outstanding | 6,023 | | | 6,000 | | | | | |
Dilutive effects of assumed exercises of stock options | 173 | | | 93 | | | | | |
Dilutive effects of SERP shares | 66 | | | 53 | | | | | |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 6,262 | | | 6,146 | | | | | |
Basic earnings per share | $ | 0.92 | | | 1.70 | | | | | |
Diluted earnings per share | $ | 0.88 | | | 1.65 | | | | | |
Antidilutive shares excluded from computation of average dilutive earnings per share | 21 | | | 22 | | | | | |
(3) Securities
The amortized cost and fair value of securities as of March 31, 2022 and December 31, 2021 are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2022 |
(dollars in thousands) | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair value | | # of Securities in unrealized loss position |
Securities available-for-sale: | | | | | | | | | |
U.S. asset backed securities | $ | 14,664 | | | 35 | | | (177) | | | 14,522 | | | 10 | |
U.S. government agency mortgage-backed securities | 9,352 | | | 2 | | | (221) | | | 9,133 | | | 8 | |
U.S. government agency collateralized mortgage obligations | 22,037 | | | 30 | | | (871) | | | 21,196 | | | 21 | |
State and municipal securities | 45,385 | | | 107 | | | (2,832) | | | 42,660 | | | 31 | |
U.S. Treasuries | 32,978 | | | — | | | (1,881) | | | 31,097 | | | 25 | |
Non-U.S. government agency collateralized mortgage obligations | 5,879 | | | — | | | (165) | | | 5,714 | | | 5 | |
Corporate bonds | 6,450 | | | 24 | | | (143) | | | 6,331 | | | 9 | |
Total securities available-for-sale | $ | 136,745 | | | 198 | | | (6,290) | | | 130,653 | | | 109 | |
| | | | | | | | | |
| March 31, 2022 |
| Amortized cost | | Gross unrecognized gains | | Gross unrecognized losses | | Fair value | | # of Securities in unrecognized loss position |
Securities held-to-maturity: | | | | | | | | | |
State and municipal securities | 34,977 | | | 25 | | | (1,446) | | | 33,556 | | | 15 | |
Total securities held-to-maturity | $ | 34,977 | | | 25 | | | (1,446) | | | 33,556 | | | 15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2021 |
(dollars in thousands) | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair value | | # of Securities in unrealized loss position |
Securities available-for-sale: | | | | | | | | | |
U.S. asset backed securities | $ | 16,850 | | | 55 | | | (68) | | | 16,837 | | | 10 | |
U.S. government agency mortgage-backed securities | 9,749 | | | 124 | | | (60) | | | 9,813 | | | 3 | |
U.S. government agency collateralized mortgage obligations | 22,276 | | | 358 | | | (253) | | | 22,381 | | | 10 | |
State and municipal securities | 72,099 | | | 1,379 | | | (496) | | | 72,982 | | | 12 | |
U.S. Treasuries | 29,973 | | | 1 | | | (246) | | | 29,728 | | | 21 | |
Non-U.S. government agency collateralized mortgage obligations | 990 | | | — | | | (15) | | | 975 | | | 1 | |
Corporate bonds | 6,450 | | | 154 | | | (18) | | | 6,586 | | | 5 | |
Total securities available-for-sale | $ | 158,387 | | | 2,071 | | | (1,156) | | | 159,302 | | | 62 | |
Securities held-to-maturity: | | | | | | | | | |
State and municipal securities | 6,372 | | | 219 | | | — | | | 6,591 | | | — | |
Total securities held-to-maturity | $ | 6,372 | | | 219 | | | — | | | 6,591 | | | — | |
Although the Corporation’s investment portfolio overall is in a net unrealized loss position at March 31, 2022, the temporary impairment in the above noted securities is primarily the result of changes in market interest rates subsequent to purchase and it is more likely than not that the Corporation will not be required to sell these securities prior to recovery to satisfy liquidity needs, and therefore, no securities are deemed to be other-than-temporarily impaired.
During the quarter-ended March 31, 2022, $27.7 million of municipal securities, previously classified as available-for-sale on the balance sheet, were transferred to the held-to-maturity portfolio at fair value. After transfer, $1.3 million of unrealized losses remain in accumulated other comprehensive income. No gain or loss was recognized as a result of the transfer.
As of March 31, 2022 and December 31, 2021, securities having a fair value of $83.6 million and $92.2 million, respectively, were specifically pledged as collateral for public funds, the FRB discount window program, FHLB borrowings and other purposes. The FHLB has a blanket lien on non-pledged, mortgage-related loans and securities as part of the Corporation’s borrowing agreement with the FHLB.
The following table shows the Corporation’s investment gross unrealized losses and fair value aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at March 31, 2022 and December 31, 2021:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| March 31, 2022 |
| Less than 12 Months | | 12 Months or more | | Total |
(dollars in thousands) | Fair value | | Unrealized losses | | Fair value | | Unrealized losses | | Fair value | | Unrealized losses |
Securities available-for-sale: | | | | | | | | | | | |
U.S. asset backed securities | $ | 10,458 | | | (177) | | | — | | | — | | | 10,458 | | | (177) | |
U.S. government agency mortgage-backed securities | 8,979 | | | (221) | | | — | | | — | | | 8,979 | | | (221) | |
U.S. government agency collateralized mortgage obligations | 13,740 | | | (513) | | | 4,196 | | | (358) | | | 17,936 | | | (871) | |
State and municipal securities | 37,982 | | | (2,794) | | | 535 | | | (38) | | | 38,517 | | | (2,832) | |
U.S. Treasuries | 31,097 | | | (1,881) | | | — | | | — | | | 31,097 | | | (1,881) | |
Non-U.S. government agency collateralized mortgage obligations | 4,741 | | | (165) | | | — | | | — | | | 4,741 | | | (165) | |
Corporate bonds | 4,807 | | — | | (143) | | | — | | | — | | | 4,807 | | | (143) | |
Total securities available-for-sale | $ | 111,804 | | | (5,894) | | | 4,731 | | | (396) | | | 116,535 | | | (6,290) | |
| | | | | | | | | | | |
| March 31, 2022 |
| Less than 12 Months | | 12 Months or more | | Total |
| Fair value | | Unrecognized losses | | Fair value | | Unrecognized losses | | Fair value | | Unrecognized losses |
Securities held-to-maturity: | | | | | | | | | | | |
State and municipal securities | — | | | — | | | 24,955 | | | (1,446) | | | 24,955 | | | (1,446) | |
Total securities held-to-maturity | $ | — | | | — | | | 24,955 | | | (1,446) | | | 24,955 | | | (1,446) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2021 |
| Less than 12 Months | | 12 Months or more | | Total |
(dollars in thousands) | Fair value | | Unrealized losses | | Fair value | | Unrealized losses | | Fair value | | Unrealized losses |
Securities available-for-sale: | | | | | | | | | | | |
U.S. asset backed securities | $ | 12,330 | | | (68) | | | — | | | — | | | 12,330 | | | (68) | |
U.S. government agency mortgage-backed securities | 3,852 | | | (60) | | | — | | | — | | | 3,852 | | | (60) | |
U.S. government agency collateralized mortgage obligations | 8,836 | | | (187) | | | 1,657 | | | (66) | | | 10,493 | | | (253) | |
State and municipal securities | 14,994 | | | (427) | | | 2,019 | | | (69) | | | 17,013 | | | (496) | |
U.S. Treasuries | 28,750 | | | (246) | | | — | | | — | | | 28,750 | | | (246) | |
Non-U.S. government agency collateralized mortgage obligations | 975 | | | (15) | | | — | | | — | | | 975 | | | (15) | |
Corporate bonds | 2,232 | | | (18) | | | — | | | — | | | |