Investment Securities |
Note 4 – Investment Securities The following tables provide information on the amortized cost and estimated fair values of debt securities. | | | | | | | | | | | | | | | | | | Gross | | Gross | | Estimated | | | Amortized | | Unrealized | | Unrealized | | Fair | (Dollars in thousands) | | Cost | | Gains | | Losses | | Value | Available-for-sale securities: | | | | | | | | | | | | | September 30, 2020 | | | | | | | | | | | | | U.S. Government agencies | | $ | 24,661 | | $ | 54 | | $ | 83 | | $ | 24,632 | Mortgage-backed | | | 112,068 | | | 2,730 | | | 81 | | | 114,717 | Total | | $ | 136,729 | | $ | 2,784 | | $ | 164 | | $ | 139,349 | | | | | | | | | | | | | | December 31, 2019 | | | | | | | | | | | | | U.S. Government agencies | | $ | 23,854 | | $ | 3 | | $ | 31 | | $ | 23,826 | Mortgage-backed | | | 98,638 | | | 574 | | | 247 | | | 98,965 | Total | | $ | 122,492 | | $ | 577 | | $ | 278 | | $ | 122,791 |
During the three months ended September 30, 2020, no available for sale securities were sold. During the nine months ended September 30, 2020, the Company sold available for sale securities for proceeds of $13.0 million and recognized gross gains of $347 thousand in the second quarter of 2020. No available for sale securities were sold during the three and nine months ended September 30, 2019. | | | | | | | | | | | | | | | | | | Gross | | Gross | | Estimated | | | Amortized | | Unrealized | | Unrealized | | Fair | (Dollars in thousands) | | Cost | | Gains | | Losses | | Value | Held-to-maturity securities: | | | | | | | | | | | | | September 30, 2020 | | | | | | | | | | | | | U.S. Government agencies | | $ | 1,195 | | $ | 40 | | $ | — | | $ | 1,235 | States and political subdivisions | | | 400 | | | 1 | | | — | | | 401 | Other debt securities | | | 18,579 | | | 79 | | | 40 | | | 18,618 | Total | | $ | 20,174 | | $ | 120 | | $ | 40 | | $ | 20,254 | | | | | | | | | | | | | | December 31, 2019 | | | | | | | | | | | | | U.S. Government agencies | | $ | 1,386 | | $ | — | | $ | 5 | | $ | 1,381 | States and political subdivisions | | | 400 | | | 1 | | | — | | | 401 | Other debt securities | | | 7,000 | | | — | | | 128 | | | 6,872 | Total | | $ | 8,786 | | $ | 1 | | $ | 133 | | $ | 8,654 |
Equity securities with an aggregate fair value of $1.4 million at September 30, 2020 and $1.3 million at December 31, 2019 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $34 thousand for the nine months ended September 30, 2020 and $47 thousand for the nine months ended September 30, 2019, respectively. The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019. | | | | | | | | | | | | | | | | | | | | | Less than | | More than | | | | | | | | | 12 Months | | 12 Months | | Total | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | (Dollars in thousands) | | Value | | Losses | | Value | | Losses | | Value | | Losses | September 30, 2020 | | | | | | | | | | | | | | | | | | | Available-for-sale securities: | | | | | | | | | | | | | | | | | | | U.S. Government agencies | | $ | 14,919 | | $ | 81 | | $ | 397 | | $ | 2 | | $ | 15,316 | | $ | 83 | Mortgage-backed | | | 24,734 | | | 81 | | | — | | | — | | | 24,734 | | | 81 | Total | | $ | 39,653 | | $ | 162 | | $ | 397 | | $ | 2 | | $ | 40,050 | | $ | 164 | | | | | | | | | | | | | | | | | | | | Held-to-maturity securities: | | | | | | | | | | | | | | | | | | | Other debt securities | | $ | 6,511 | | $ | 40 | | $ | — | | $ | — | | $ | 6,511 | | $ | 40 | Total | | $ | 6,511 | | $ | 40 | | $ | — | | $ | — | | $ | 6,511 | | $ | 40 |
| | | | | | | | | | | | | | | | | | | | | Less than | | More than | | | | | | | | | 12 Months | | 12 Months | | Total | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | (Dollars in thousands) | | Value | | Losses | | Value | | Losses | | Value | | Losses | December 31, 2019 | | | | | | | | | | | | | | | | | | | Available-for-sale securities: | | | | | | | | | | | | | | | | | | | U.S. Government agencies | | $ | 4,995 | | $ | 5 | | $ | 18,516 | | $ | 26 | | $ | 23,511 | | $ | 31 | Mortgage-backed | | | 12,180 | | | 27 | | | 22,282 | | | 220 | | | 34,462 | | | 247 | Total | | $ | 17,175 | | $ | 32 | | $ | 40,798 | | $ | 246 | | $ | 57,973 | | $ | 278 | | | | | | | | | | | | | | | | | | | | Held-to-maturity securities: | | | | | | | | | | | | | | | | | | | U.S. Government agencies | | $ | 1,381 | | $ | 5 | | $ | — | | $ | — | | $ | 1,381 | | $ | 5 | Other debt securities | | | 3,905 | | | 95 | | | 2,967 | | | 33 | | | 6,872 | | | 128 | Total | | $ | 5,286 | | $ | 100 | | $ | 2,967 | | $ | 33 | | $ | 8,253 | | $ | 133 |
All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary. There were twelve available-for-sale securities and two held-to-maturity securities in an unrealized loss position at September 30, 2020. The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2020. | | | | | | | | | | | | | | | Available for sale | | Held to maturity | | | Amortized | | | | | Amortized | | | | (Dollars in thousands) | | Cost | | Fair Value | | Cost | | Fair Value | Due in one year or less | | $ | 9,000 | | $ | 9,051 | | $ | — | | $ | — | Due after one year through five years | | | 1,610 | | | 1,664 | | | 2,951 | | | 2,927 | Due after five years through ten years | | | 57,727 | | | 59,491 | | | 16,028 | | | 16,092 | Due after ten years | | | 68,392 | | | 69,143 | | | 1,195 | | | 1,235 | Total | | $ | 136,729 | | $ | 139,349 | | $ | 20,174 | | $ | 20,254 |
The maturity dates for debt securities are determined using contractual maturity dates.
|