Investment Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities

NOTE 2 – Investment Securities

The amortized costs and fair value of investment securities are as follows: 

	December 31, 2022
	Amortized		Gross Unrealized				Fair
(dollars in thousands)	Cost		Gains		Losses		Value
Available for sale
Corporate bonds	$	2,172		-		289	1,883
US treasuries		999		-		128	871
US government agencies		13,007		-		2,390	10,617
State and political subdivisions		22,910		-		4,004	18,906
Asset-backed securities		6,435		-		206	6,229
Mortgage-backed securities
FHLMC		24,086		-		3,745	20,341
FNMA		35,141		-		5,520	29,621
GNMA		5,573		-		694	4,879
Total mortgage-backed securities		64,800		-		9,959	54,841
Total	$	110,323		-		16,976	93,347

	December 31, 2021
	Amortized		Gross Unrealized				Fair
(dollars in thousands)	Cost		Gains		Losses		Value
Available for sale
Corporate bonds	$	2,198		-		10	2,188
US treasuries		999		-		7	992
US government agencies		14,504		1		336	14,169
SBA securities		429		9		-	438
State and political subdivisions		24,887		549		260	25,176
Asset-backed securities		10,136		45		17	10,164
Mortgage-backed securities
FHLMC		23,057		102		494	22,665
FNMA		40,924		235		660	40,499
GNMA		4,084		3		97	3,990
Total mortgage-backed securities		68,065		340		1,251	67,154
Total	$	121,218		944		1,881	120,281

During 2022, approximately $12.6 million of investment securities were either sold or called, subsequently resulting in a gross gain on sale of investment securities of $83,000 and a gross loss on sale of investment securities of $71,000. During 2021, approximately $770,000 of investment securities were either sold or called, resulting in a gross gain on sale of investment securities of $6,000 and a gross loss on sale of investment securities of $9,000. During 2020, approximately $2.0 million of investment securities were either sold or called, resulting in a gross gain on sale of investment securities of $4,000 and a gross loss on sale of investment securities of $1,000.

The amortized costs and fair values of investment securities available for sale at December 31, 2022 and 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to prepay the obligations.

	December 31, 2022				December 31, 2021
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Available for sale
Due within one year	$	-		-	$	384		387
Due after one through five years		9,398		8,277		7,429		7,363
Due after five through ten years		24,436		20,043		27,298		26,953
Due after ten years		76,489		65,027		86,107		85,578
	$	110,323		93,347	$	121,218		120,281

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021.

			December 31, 2022
	Less than 12 months							12 months or longer						Total
(dollars in thousands)	#			Fair value		Unrealized losses		#		Fair value		Unrealized losses		#		Fair value		Unrealized losses
As of December 31, 2022
Available for sale
Corporate bonds		0		$	-	$	-		1	$	1,883	$	289		1	$	1,883	$	289
US treasuries		0			-		-		1		871		128		1		871		128
US government agencies		0			-		-		10		10,617		2,390		10		10,617		2,390
State and political subdivisions		10			5,101		763		22		13,805		3,241		32		18,906		4,004
Asset-backed		5			4,291		135		3		1,938		71		8		6,229		206
Mortgage-backed
FHLMC		4			3,712		155		17		16,629		3,590		21		20,341		3,745
FNMA		9			2,208		201		28		27,413		5,319		37		29,621		5,520
GNMA		1			103		7		6		4,776		687		7		4,879		694
		29		$	15,415	$	1,261		88	$	77,932	$	15,715		117	$	93,347	$	16,976

	December 31, 2021
	Less than 12 months						12 months or longer						Total
(dollars in thousands)	#		Fair value		Unrealized losses		#		Fair value		Unrealized losses		#		Fair value		Unrealized losses
As of December 31, 2021
Available for sale
Corporate bonds		1	$	2,188	$	10		-	$	-	$	-		1	$	2,188	$	10
US treasuries		1		992		7		-		-		-		1		992		7
US government agencies		7		9,831		173		4		3,837		163		11		13,668		336
State and political subdivisions		9		7,821		193		6		2,909		67		15		10,730		260
Asset-backed		2		1,751		9		2		1,717		7		4		3,468		16
Mortgage-backed
FHLMC		10		13,705		303		4		4,644		192		14		18,349		495
FNMA		11		16,098		296		9		11,264		364		20		27,362		660
GNMA		2		655		4		3		3,215		93		5		3,870		97
		43	$	53,041	$	995		28	$	27,586	$	886		71	$	80,627	$	1,881

At December 31, 2022, the Company had 117 individual investments that were in an unrealized loss position. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost.

Other investments are comprised of the following and are recorded at cost which approximates fair value:

	December 31,
(dollars in thousands)	2022		2021
Federal Home Loan Bank stock	$	9,250	$	1,241
Other nonmarketable investments		1,180		2,377
Investment in Trust Preferred subsidiaries		403		403
Total other investments	$	10,833	$	4,021

The Company has evaluated other investments for impairment and determined that the other investments are not other than temporarily impaired as of December 31, 2022 and ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB.

At December 31, 2022 and 2021, there were no securities pledged as collateral for repurchase agreements from brokers.