| Investment Securities |
Note 3 - Investment Securities
The amortized cost and fair values of investment securities at the date indicated are as follows:
|
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
|
|
(dollars in thousands) |
|
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
19,990 |
|
|
$ |
53 |
|
|
$ |
(1 |
) |
|
$ |
20,042 |
|
|
U.S. Agency collateralized mortgage obligations |
|
|
118 |
|
|
|
5 |
|
|
|
- |
|
|
|
123 |
|
|
U.S. Agency residential mortgage-backed securities |
|
|
21 |
|
|
|
- |
|
|
|
- |
|
|
|
21 |
|
|
Municipal bonds |
|
|
255 |
|
|
|
7 |
|
|
|
- |
|
|
|
262 |
|
|
Total available-for-sale securities |
|
|
20,384 |
|
|
|
65 |
|
|
|
(1 |
) |
|
|
20,448 |
|
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency residential mortgage-backed securities |
|
|
3,870 |
|
|
|
121 |
|
|
|
- |
|
|
|
3,991 |
|
|
Total investment securities |
|
$ |
24,254 |
|
|
$ |
186 |
|
|
$ |
(1 |
) |
|
$ |
24,439 |
|
|
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
|
|
(dollars in thousands) |
|
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
24,988 |
|
|
$ |
1 |
|
|
$ |
(44 |
) |
|
$ |
24,945 |
|
|
U.S. Government agencies |
|
|
3,000 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
2,999 |
|
|
U.S. Agency collateralized mortgage obligations |
|
|
129 |
|
|
|
- |
|
|
|
- |
|
|
|
129 |
|
|
U.S. Agency residential mortgage-backed securities |
|
|
27 |
|
|
|
- |
|
|
|
- |
|
|
|
27 |
|
|
Municipal bonds |
|
|
257 |
|
|
|
3 |
|
|
|
- |
|
|
|
260 |
|
|
Total available-for-sale securities |
|
|
28,401 |
|
|
|
4 |
|
|
|
(45 |
) |
|
|
28,360 |
|
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency residential mortgage-backed securities |
|
|
4,350 |
|
|
|
- |
|
|
|
(21 |
) |
|
|
4,329 |
|
|
Total investment securities |
|
$ |
32,751 |
|
|
$ |
4 |
|
|
$ |
(66 |
) |
|
$ |
32,689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The amortized cost and fair value of debt securities at June 30, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers or the underlying borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are shown separately, since they are not due at a single maturity date.
|
|
|
Available-for-Sale |
|
|
Held-to-Maturity |
|
|
|
|
Amortized
Cost |
|
|
Fair
Value |
|
|
Amortized
Cost |
|
|
Fair
Value |
|
|
|
|
(dollars in thousands) |
|
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts maturing in |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One year or less |
|
$ |
14,991 |
|
|
$ |
14,991 |
|
|
$ |
- |
|
|
$ |
- |
|
|
After one year through five years |
|
|
5,254 |
|
|
|
5,313 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
20,245 |
|
|
|
20,304 |
|
|
|
- |
|
|
|
- |
|
|
U.S. Agency residential mortgage-backed securities and
collateralized mortgage obligations |
|
|
139 |
|
|
|
144 |
|
|
|
3,870 |
|
|
|
3,991 |
|
|
|
|
$ |
20,384 |
|
|
$ |
20,448 |
|
|
$ |
3,870 |
|
|
$ |
3,991 |
|
Investment securities with carrying values of $19,480,000 and $16,843,000 at June 30, 2020 and December 31, 2019 respectively, were pledged to secure public deposits and for other purposes as required or permitted by law.
There were no sales of securities available for sale during the three or six months ended June 30, 2020 and 2019.
Information pertaining to securities with gross unrealized losses at the dates indicated, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
|
|
|
Less Than 12 Months |
|
|
12 Months or Greater |
|
|
Total |
|
|
|
|
Fair
Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
Gross
Unrealized
Losses |
|
|
|
|
(dollars in thousands) |
|
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
14,991 |
|
|
$ |
(1 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
Total investment securities |
|
$ |
14,991 |
|
|
$ |
(1 |
) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
9,994 |
|
|
$ |
(3 |
) |
|
$ |
4,956 |
|
|
$ |
(41 |
) |
|
$ |
14,950 |
|
|
$ |
(44 |
) |
|
U.S. Government agencies |
|
|
- |
|
|
|
- |
|
|
|
2,999 |
|
|
|
(1 |
) |
|
|
2,999 |
|
|
|
(1 |
) |
|
Total available-for-sale securities |
|
|
9,994 |
|
|
|
(3 |
) |
|
|
7,955 |
|
|
|
(42 |
) |
|
|
17,949 |
|
|
|
(45 |
) |
|
Held-to-maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Agency residential mortgage-backed
securities |
|
|
3,140 |
|
|
|
(14 |
) |
|
|
1,189 |
|
|
|
(7 |
) |
|
|
4,329 |
|
|
|
(21 |
) |
|
Total investment securities |
|
$ |
13,134 |
|
|
$ |
(17 |
) |
|
$ |
9,144 |
|
|
$ |
(49 |
) |
|
$ |
22,278 |
|
|
$ |
(66 |
) |
At June 30, 2020 and December 31, 2019, there were two and six securities in an unrealized loss position, respectively. Unrealized losses have not been recognized into income because management does not intend to sell and does not expect that it will be required to sell the investments. The decline is largely due to changes in market conditions and interest rates, rather than credit quality. The fair value is expected to recover as the underlying securities in the portfolio approach maturity date and market conditions improve. The Company does not consider these securities to be other than temporarily impaired at June 30, 2020 and December 31, 2019.
|