Investment Securities

9 Months Ended

Sep. 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:
September 30, 2021
U.S. Government agencies	$	18,557	$	4	$	578	$	17,983
Mortgage-backed		86,254		1,634		746		87,142
Total	$	104,811	$	1,638	$	1,324	$	105,125
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 nine months ended September 30, 2021. 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.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Held-to-maturity securities:
September 30, 2021
U.S. Government agencies	$	67,772	$	26	$	556	$	67,242
Mortgage-backed		169,802		36		2,302		167,536
States and political subdivisions		400		2		—		402
Other debt securities		12,527		133		5		12,655
Total	$	250,501	$	197	$	2,863	$	247,835
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 September 30, 2021 and December 31, 2020 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $(24) thousand for the nine months ended September 30, 2021 and $34 thousand for the nine months ended September 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 September 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
September 30, 2021
Available-for-sale securities:
U.S. Government agencies	$	2,886	$	113	$	14,746	$	465	$	17,632	$	578
Mortgage-backed		37,837		723		3,947		23		41,784		746
Total	$	40,723	$	836	$	18,693	$	488	$	59,416	$	1,324
Held-to-maturity securities:
U.S. Government agencies	$	61,371	$	556	$	—	$	—	$	61,371	$	556
Mortgage-backed		155,548		2,302		—		—		155,548		2,302
Other debt securities		495		5		—		—		495		5
Total	$	217,414	$	2,863	$	—	$	—	$	217,414	$	2,863

	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 nineteen available-for-sale securities and forty-six held-to-maturity securities in an unrealized loss position at September 30, 2021.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 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	$	—	$	—	$	2,921	$	2,954
Due after one year through five years		799		825		9,982		9,959
Due after five years through ten years		51,665		52,410		55,874		55,560
Due after ten years		52,347		51,890		181,724		179,362
Total	$	104,811	$	105,125	$	250,501	$	247,835

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