Investment Securities

12 Months Ended

Dec. 31, 2020

Investment Securities [Abstract]

INVESTMENT SECURITIES

NOTE 2. INVESTMENT SECURITIES

The following table provides information on the amortized cost and estimated fair values of investment securities at December 31, 2020 and 2019.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
2020
U.S. Government agencies	$	23,600	$	20	$	83	$	23,537
Mortgage-backed		113,865		2,234		68		116,031
Total	$	137,465	$	2,254	$	151	$	139,568
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 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 2019.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Held-to-maturity securities:
2020
U.S. Government agencies	$	18,893	$	38	$	43	$	18,888
Mortgage-backed		27,347		7		18		27,336
States and political subdivisions		400		1		—		401
Other debt securities		19,066		139		2		19,203
Total	$	65,706	$	185	$	63	$	65,828
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 December 31, 2020 and $1.3 million at December 31, 2019 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $28 thousand for 2020 and $42 thousand for 2019, respectively.

The following table provides 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 December 31, 2020 and 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
2020
Available-for-sale securities:
U.S. Government agencies	$	14,919	$	82	$	236	$	1	$	15,155	$	83
Mortgage-backed		11,869		68		—		—		11,869		68
Total	$	26,788	$	150	$	236	$	1	$	27,024	$	151
Held-to-maturity securities:
U.S. Government agencies	$	6,646	$	43	$	—	$	—	$	6,646	$	43
Mortgage-backed		5,093		18		—		—		5,093		18
Other debt securities		498		2		—		—		498		2
Total	$	12,237	$	63	$	—	$	—	$	12,237	$	63

	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
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 and are not related to credit concerns. 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 seven available-for-sale securities in an unrealized loss position at December 31, 2020, of which four were mortgage-backed and three were U.S. Government agencies.

There were four held-to-maturity securities in an unrealized loss position at December 31, 2020, of which two were U.S. Government agency bonds, one corporate bond and one mortgage-backed security.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at December 31, 2020.

	Available for sale				Held to maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	4,999	$	5,015	$	—	$	—
Due after one year through five years		1,393		1,431		2,944		2,957
Due after five years through ten years		57,061		58,419		27,728		27,818
Due after ten years		74,012		74,703		35,034		35,053
Total	$	137,465	$	139,568	$	65,706	$	65,828

The maturity dates for debt securities are determined using contractual maturity dates.

The following table sets forth the amortized cost and estimated fair values of securities which have been pledged as collateral for obligations to federal, state and local government agencies, and other purposes as required or permitted by law, or sold under agreements to repurchase at December 31, 2020 and 2019. All pledged securities are in the available-for-sale investment portfolio.

	2020				2019
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Pledged available-for-sale securities	$	60,600	$	61,094	$	66,904	$	67,142

There were no obligations of states or political subdivisions with carrying values, as to any issuer, exceeding 10% of stockholders’ equity at December 31, 2020 or 2019.