Investment Securities

9 Months Ended

Sep. 30, 2020

Investment Securities [Abstract]

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.