Investment Securities

6 Months Ended

Jun. 30, 2021

Investment Securities [Abstract]

Investment Securities

Note 3 – 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:
June 30, 2021
U.S. Government agencies	$	18,574	$	5	$	592	$	17,987
Mortgage-backed		94,549		1,908		487		95,970
Total	$	113,123	$	1,913	$	1,079	$	113,957
December 31, 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

No available for sale securities were sold during the three and six months ended June 30, 2021. During the three and six months ended June 30, 2020, the Company sold available for sale securities for proceeds of $13.0 million and recognized gross gains of $347 thousand.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Held-to-maturity securities:
June 30, 2021
U.S. Government agencies	$	63,139	$	41	$	430	$	62,750
Mortgage-backed		116,305		157		869		115,593
States and political subdivisions		400		1		—		401
Other debt securities		19,040		222		15		19,247
Total	$	198,884	$	421	$	1,314	$	197,991
December 31, 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

Equity securities with an aggregate fair value of $1.4 million at June 30, 2021 and December 31, 2020 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $(20) thousand for the six months ended June 30, 2021 and $32 thousand for the six months ended June 30, 2020, 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 June 30, 2021 and December 31, 2020.

	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
June 30, 2021
Available-for-sale securities:
U.S. Government agencies	$	17,409	$	591	$	221	$	1	$	17,630	$	592
Mortgage-backed		45,318		487		—		—		45,318		487
Total	$	62,727	$	1,078	$	221	$	1	$	62,948	$	1,079
Held-to-maturity securities:
U.S. Government agencies	$	36,696	$	430	$	—	$	—	$	36,696	$	430
Mortgage-backed		65,359		869		—		—		65,359		869
Other debt securities		3,985		15		—		—		3,985		15
Total	$	106,040	$	1,314	$	—	$	—	$	106,040	$	1,314

	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, 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

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 basis, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary.

There were eighteen available-for-sale securities and twenty-four held-to-maturity securities in an unrealized loss position at June 30, 2021.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at June 30, 2021.

	Available for sale				Held to maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	—	$	—	$	2,529	$	2,574
Due after one year through five years		975		1,009		10,381		10,392
Due after five years through ten years		54,955		55,891		57,481		57,456
Due after ten years		57,193		57,057		128,493		127,569
Total	$	113,123	$	113,957	$	198,884	$	197,991

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