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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 June 30, 2023

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

For transition period from to

Commission File Number 001-40607

CULLMAN BANCORP, INC.

(Exact Name of Registrant as Specified in Charter)


Maryland		61-1990996
(State or Other Jurisdiction of Incorporation)		(I.R.S. Employer Identification No.)


316 Second Avenue, SW, Cullman, Alabama		35055
(Address of Principal Executive Offices)		(Zip Code)

(256) 734-1740

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and formal fiscal year, if changed since last report)

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



Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, per value $0.01 per share	CULL	The Nasdaq Stock Market, LLC

Indicate by check mark whether the registrant 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), 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 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, 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: 7,382,539 shares of Common Stock, par value $0.01 per share, were issued and outstanding as of August 14, 2023.

Table of Contents

CULLMAN BANCORP, INC.

Form 10-Q Quarterly Report

Table of Contents


PART I

ITEM 1.	FINANCIAL STATEMENTS	2
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	39
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	48
ITEM 4.	CONTROLS AND PROCEDURES	48

PART II

ITEM 1.	LEGAL PROCEEDINGS	50
ITEM 1A.	RISK FACTORS	50
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES	50
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	50
ITEM 4.	MINE SAFETY DISCLOSURES	50
ITEM 5.	OTHER INFORMATION	50
ITEM 6.	EXHIBITS	51

SIGNATURES		52

Table of Contents

PART I

ITEM 1. FINANCIAL STATEMENTS

CULLMAN BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

June 30, 2023 and December 31, 2022

(All amounts in thousands, except share and per share data)


	June 30, 2023 (Unaudited)			December 31, 2022
ASSETS
Interest bearing cash and cash equivalents	$	173		$	434
Non-interest bearing cash and cash equivalents		3,660			5,986
Federal funds sold		22,350			30,225
Total cash and cash equivalents		26,183			36,645
Securities available for sale		29,368			29,796
Equity securities		—			479
Loans, net of allowance of $3,112 and $2,841 respectively		334,273			329,943
Premises and equipment, net		11,483			10,851
Foreclosed real estate		—			50
Accrued interest receivable		1,203			1,162
Restricted equity securities		2,507			2,033
Bank owned life insurance		9,097			8,964
Deferred tax asset, net		2,445			2,194
Other assets		1,331			1,112
Total assets	$	417,890		$	423,229

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits
Non-interest bearing	$	14,016		$	16,281
Interest bearing		261,136			276,668
Total deposits		275,152			292,949

Federal Home Loan Bank advances		35,000			25,000
Accrued interest payable		204			155
Other liabilities		5,791			4,943
Total liabilities		316,147			323,047

Shareholders' equity
Common stock, $0.01 par value; 50,000,000 shares authorized; 7,382,539 shares and 7,394,615 shares outstanding at June 30, 2023 and December 31, 2022 respectively		74			74
Additional paid-in capital		50,302			50,161
Retained earnings		57,434			56,561
Accumulated other comprehensive income (loss)		(3,085	)		(3,558	)
Unearned ESOP shares, at cost		(2,982	)		(3,056	)
Total shareholders' equity		101,743			100,182
Total liabilities and shareholders' equity	$	417,890		$	423,229

See accompanying notes to consolidated financial statements.

Table of Contents

CULLMAN BANCORP, INC.

CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited)

Three and six months ended June 30, 2023 and 2022

(All amounts in thousands, except share and per share data)


	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2023			2022		2023		2022
Interest and dividend income:
Loans, including fees	$	4,221		$	3,811	$	8,354	$	7,218
Non taxable securities		232			194		473		318
Taxable securities		8			8		16		16
FHLB dividends		20			3		38		15
Federal funds sold and other		283			74		535		92
Total interest income		4,764			4,090		9,416		7,659
Interest expense:
Deposits		656			216		1,132		434
Federal Home Loan Bank advances and other borrowings		377			—		660		21
Total interest expense		1,033			216		1,792		455
Net interest income		3,731			3,874		7,624		7,204
Provision for credit losses on loans		17			115		23		155
Provision for unfunded commitments		(44	)		—		24		—
Net interest income after provision for credit losses		3,758			3,759		7,577		7,049
Noninterest income:
Service charges on deposit accounts		283			256		540		481
Income on bank owned life insurance		66			56		133		93
Gain on sales of mortgage loans		9			39		15		62
Net gain on sale of foreclosed real estate		—			44		—		46
Gain on prepayment of Federal Home Loan Bank advances		127			—		127		91
Other		37			39		79		81
Total noninterest income		522			434		894		854
Noninterest expense:
Salaries and employee benefits		2,048			1,759		3,971		3,370
Occupancy and equipment		244			215		500		426
Data processing		242			208		469		411
Professional and supervisory fees		205			169		420		352
Office expense		33			47		77		98
Advertising		25			44		49		64
FDIC deposit insurance		56			15		82		34
Loss on prepayment of Federal Home Loan Bank advances		—			—		—		4
Other		108			109		227		207
Total noninterest expense		2,961			2,566		5,795		4,966
Income before income taxes		1,319			1,627		2,676		2,937
Income tax expense		291			315		633		615
Net income	$	1,028		$	1,312	$	2,043	$	2,322
Earnings per share:
Basic	$	0.15		$	0.19	$	0.29	$	0.33
Dilutive	$	0.14		$	0.19	$	0.29	$	0.33

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CULLMAN BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

Three and six months ended June 30, 2023 and 2022

(All amounts in thousands, except share and per share data)


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023		2022
Net Income	$	1,028		$	1,312		$	2,043	$	2,322

Other comprehensive income (loss), net of tax
Unrealized gain (loss) on securities available for sale		(51	)		(1,752	)		384		(3,574	)
Income tax effect		12			368			89		751
Other comprehensive income (loss)		(39	)		(1,384	)		473		(2,823	)

Comprehensive income (loss)	$	989		$	(72	)	$	2,516	$	(501	)

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CULLMAN BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

Three and six months ended June 30, 2023 and 2022

(All amounts in thousands, except share and per share data)


	Shares			Common Stock		Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Unearned ESOP Shares			Total
Balance at April 1, 2023		7,382,772		$	74	$	50,165		$	56,406		$	(3,046	)	$	(3,019	)	$	100,580
Net income		—			—		—			1,028			—			—			1,028
Other comprehensive loss		—			—		—			—			(39	)		—			(39	)
Share repurchase		(233	)		—		(2	)		—			—			—			(2	)
ESOP shares earned		—			—		—			—			—			37			37
Stock-based compensation expense		—			—		139			—			—			—			139
Balance at June 30, 2023		7,382,539		$	74	$	50,302		$	57,434		$	(3,085	)	$	(2,982	)	$	101,743

Balance at January 1, 2023		7,394,615		$	74	$	50,161		$	56,561		$	(3,558	)	$	(3,056	)	$	100,182
Cumulative change in accounting principle (Note 1)		—			—		—			(284	)		—			—			(284	)
Balance at January 1, 2023 (as adjusted for change in accounting principal)		7,394,615			74		50,161			56,277			(3,558	)		(3,056	)		99,898
Net income		—			—		—			2,043			—			—			2,043
Other comprehensive gain		—			—		—			—			473			—			473
Share repurchase		(12,076	)		—		(137	)		—			—			—			(137	)
ESOP shares earned		—			—		—			—			—			74			74
Dividend paid		—			—		—			(886	)		—			—			(886	)
Stock-based compensation expense		—			—		278			—			—			—			278
Balance at June 30, 2023		7,382,539		$	74	$	50,302		$	57,434		$	(3,085	)	$	(2,982	)	$	101,743

Balance at April 1, 2022		7,405,893		$	74	$	49,813		$	53,388		$	(1,162	)	$	(3,521	)	$	98,592
Net income		—			—		—			1,312			—			—			1,312
Other comprehensive loss		—			—		—			—			(1,384	)		—			(1,384	)
ESOP shares earned		—			—		—			—			—			37			37
Stock-based compensation expense		—			—		139			—			—			—			139
Balance at June 30, 2022		7,405,893		$	74	$	49,952		$	54,700		$	(2,546	)	$	(3,484	)	$	98,696

Balance at January 1, 2022		7,405,893		$	74	$	49,674		$	53,267		$	277		$	(3,558	)	$	99,734
Net income		—			—		—			2,322			—			—			2,322
Other comprehensive loss		—			—		—			—			(2,823	)		—			(2,823	)
ESOP shares earned		—			—		—			—			—			74			74
Dividend paid		—			—		—			(889	)		—			—			(889	)
Stock-based compensation expense		—			—		278			—			—			—			278
Balance at June 30, 2022		7,405,893		$	74	$	49,952		$	54,700		$	(2,546	)	$	(3,484	)	$	98,696

Table of Contents

CULLMAN BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended June 30, 2023 and 2022

(All amounts in thousands, except share and per share data)


	2023			2022
Cash flows from operating activities
Net income	$	2,043		$	2,322
Adjustment to reconcile net income to net cash provided from operating activities:
Provision for credit losses		47			155
Depreciation and amortization, net		232			228
Deferred income taxes		(67	)		(81	)
Net gains from sales and impairment of foreclosed real estate		(12	)		(46	)
Net gain on extinguishment of debt		(127	)		(87	)
Gains from change in fair value of equity securities		(18	)		(5	)
Losses on disposals of fixed assets		12			—
Gains on sales of repossessions		4			—
Income on bank owned life insurance		(133	)		(93	)
Gains on sale of mortgage loans		(15	)		(62	)
Mortgage loans originated for sale		(454	)		(1,912	)
Mortgage loans sold		469			1,974
ESOP compensation expense		74			74
Stock based compensation expense		278			278
Net change in operating assets and liabilities
Increase in Accrued interest receivable		(41	)		(238	)
Increase/(decrease) in Accrued interest payable		49			(37	)
Increase other assets		(237	)		(44	)
Increase other liabilities		848			658
Net cash provided by operating activities		2,952			3,084
Cash flows from investing activities
Net purchases of premises and equipment		(900	)		(565	)
Purchases of securities- available for sale		—			(10,634	)
Redemptions (purchases) of securities- equity		497			(1,000	)
Proceeds from maturities, prepayments and calls of securities		836			773
Proceeds from sales of foreclosed real estate		76			453
(Purchases)/redemption of restricted equity securities		(474	)		683
Purchases of bank owned life insurance		—			(3,000	)
Loan originations and payments, net		(4,756	)		(55,854	)
Net cash used in investing activities		(4,721	)		(69,144	)
Cash flows from financing activities
Net increase/(decrease) in deposits		(17,797	)		48,208
Proceeds from Federal Home Loan Bank advances		25,000			—
Repayment of Federal Home Loan Bank advances		(14,873	)		(18,413	)
Cash payment of dividends		(886	)		(889	)
Payments from share repurchases		(137	)		—
Net cash (used for)/provided by financing activities		(8,693	)		28,906
Net change in cash and cash equivalents		(10,462	)		(37,154	)
Cash and cash equivalents at the beginning of period		36,645			61,938
Cash and cash equivalents at end of the period	$	26,183		$	24,784
Supplemental cash flow information
Interest expense	$	1,743		$	492
Income taxes paid		361			375
Supplemental noncash disclosures
Day 1 impact of adoption of Current Expected Credit Losses methodology		(379	)		—

Table of Contents

CULLMAN BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All amounts in thousands, except share and per share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations and Principles of Consolidation: The consolidated financial statements of Cullman Bancorp, Inc. (“the Bancorp”) include the accounts of its wholly owned subsidiary, Cullman Savings Bank (“the Bank”), together referred to as “the Company”.

The Company provides financial services through its offices in Cullman County, Alabama. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flows from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customers' ability to repay their loans is dependent on the real estate and general economic conditions in the area.

Risk and Uncertainties: Ongoing economic challenges, including issues such as rising inflation and global supply chain disruption have impacted global financial markets. Additionally, the Company faces increased public and regulatory scrutiny resulting from the financial market crisis resulting from recent bank failures. Because of the significant uncertainties related to the economy and its potential effects on customers and prospects, there can be no assurances as to how the crisis may ultimately affect the Company. It is unknown how long the adverse conditions associated with the ongoing issues will last and what the complete financial effect will be to the Company. It is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including expected credit losses on loans and off-balance sheet credit exposures.

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CULLMAN BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All amounts in thousands, except share and per share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

As an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”), the Company is permitted an extended transition period for complying with new or revised accounting standards affecting public companies. We will remain an emerging growth company until the earliest of (i) the end of the fiscal year during which we have total annual gross revenues of $1.235 billion or more, (ii) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering (December 31, 2026), (iii) the date on which we have, during the previous three year period, issued more than $1.0 billion in non-convertible debt and (iv) the end of the fiscal year in which the market value of our equity securities that are held by non-affiliates exceeds $700 million as of June 30 of that year. We have elected to take advantage of this extended transition period, which means that the financial statements included herein, as well as any financial statements that we file in the future, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as we remain an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period under the JOBS Act. If we do so, we will prominently disclose this decision in the first periodic report following our decision, and such decision is irrevocable. As a filer under the JOBS Act, we will implement new accounting standards subject to the effective dates required for non-public entities.

ADOPTION OF NEW ACCOUNTING STANDARDS:

FASB ASU 2016-13 (Topic 326), “Measurement of Credit Losses on Financial Instruments”

On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13 Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, ASC 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities. Management does not intend to sell or believes that it is more likely than not they will be required to sell.

(Continued)

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CULLMAN BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All amounts in thousands, except share and per share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The Company adopted Accounting Standards Codification (ASC) 326 using the modified retrospective method for all financial assets measured at amortized cost, and off-balance sheet credit exposures. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable generally accepted accounting principles (GAAP). The Company recorded a net decrease to retained earnings of $284, an increase to deferred tax asset of $95, and an increase to the allowance for credit losses of $379 as of January 1, 2023 for the cumulative effect of adopting ASC 326.

The following table illustrates the impact of ASC 326.


	January 1, 2023
Assets:	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
Allowance for credit losses on loans:
One-to-Four Family	$	1,827	$	1,710	$	117
Multi-Family		18		17		1
Commercial Real Estate		784		654		130
Construction		124		145		(21	)
Commercial		129		204		(75	)
Consumer		205		111		94
Allowance for credit losses on loans		3,087		2,841		246
Liabilities:
Allowance for credit losses on OBS(1) credit exposures		133		—		133
Totals:	$	3,220	$	2,841	$	379

(1) Off Balance Sheet

Allowance for Credit Losses- Available-For-Sale Securities: For available-for-sale debt securities in an unrealized loss position, the Company first 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 of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, 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 rating of the security by a rating agency, and the adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exist, the present value of cash flows expected to be collected from the security are 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 by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

(Continued)

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CULLMAN BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All amounts in thousands, except share and per share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Changes in the allowance for credit losses are recorded as credit loss expense (or reversal). Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Allowance for Credit Losses- Loans: The allowance for credit losses (ACL) is a valuation account that is deducted from (or added to) the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in unemployment rates, property values, or other relevant factors.

The allowance for credit losses is measured on a collective pool basis when similar risk characteristics exist. The company has identified the following portfolio segments:

• One-to-four family

• Multi-family

• Commercial real estate

• Construction

• Commercial

• Home equity loans and line of credit

• Consumer loans

The Company uses call code and loan level information in a profitability of default/loss given default model. The model incorporates life-of-loan requirements and considers assumptions that effect the contractual life. There is one set of financial models for all interest rate risk, liquidity risk and credit risk modeling, in addition to loan origination and pricing process.

(Continued)

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CULLMAN BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All amounts in thousands, except share and per share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not also included in the collective evaluation. When management determines that foreclosure is probable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on off-balance sheet credit exposures is adjusted through the unfunded commitments provision. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

FASB ASU 2022-02 (Topic 326), “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures”

On January 1, 2023, the Company prospectively adopted ASU 2022-02 “Financial Instruments- Credit Losses: Troubled Debt Restructurings and Vintage Disclosures” related to troubled debt restructurings and vintage disclosures for financing receivables. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan modifications and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivable by year or origination in the vintage disclosures. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, with early adoption permitted.

(Continued)

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CULLMAN BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All amounts in thousands, except share and per share data)

NOTE 2 – SECURITIES AVAILABLE FOR SALE

Debt Securities

The fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income at June 30, 2023 and December 31, 2022 were as follows:


June 30, 2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S Government sponsored entities	$	5,988	$	—	$	(740	)	$	5,248
Municipal – taxable		14,401		14		(2,548	)		11,867
Municipal – tax exempt		1,365		—		(45	)		1,320
Residential mortgage-backed		10,187		—		(732	)		9,455
Commercial mortgage-backed		988		—		(25	)		963
SBA(1) guaranteed debenture		558		—		(43	)		515
Total	$	33,487	$	14	$	(4,133	)	$	29,368

December 31, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S Government sponsored entities	$	5,987	$	—	$	(734	)	$	5,253
Municipal – taxable		14,421		14		(2,924	)		11,511
Municipal – tax exempt		1,365		—		(50	)		1,315
Residential mortgage-backed		10,871		—		(729	)		10,142
Commercial mortgage-backed

Cullman Bancorp, Inc. /MD/ 10-Q