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Securities
 12 Months Ended
Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]  
Securities

Note 2. Securities

The following table summarizes the amortized cost, fair value, and the corresponding amounts of gross unrealized gains and losses for available for sale securities at December 31, 2019 and December 31, 2018:

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

 

(Dollars in thousands)

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored agency securities

 

$

5,000

 

 

$

2

 

 

$

(1

)

 

$

5,001

 

Mortgage-backed securities: residential

 

 

15,559

 

 

 

94

 

 

 

(12

)

 

 

15,641

 

Collateralized mortgage obligations: residential

 

 

35,723

 

 

 

243

 

 

 

(59

)

 

 

35,907

 

Total available for sale

 

$

56,282

 

 

$

339

 

 

$

(72

)

 

$

56,549

 

 

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

 

(Dollars in thousands)

 

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored agency securities

 

$

6,994

 

 

$

—

 

 

$

(88

)

 

$

6,906

 

Mortgage-backed securities: residential

 

 

14,465

 

 

 

—

 

 

 

(336

)

 

 

14,129

 

Collateralized mortgage obligations: residential

 

 

34,655

 

 

 

156

 

 

 

(510

)

 

 

34,301

 

Total available for sale

 

$

56,114

 

 

$

156

 

 

$

(934

)

 

$

55,336

 

 

There were no sales of securities available for sale during the years ended December 31, 2019 and 2018. The amortized cost and estimated fair value of securities available for sale at December 31, 2019, by contractual maturity, are shown below. Securities without a contractual maturity are shown separately.

 

 

 

 

Amortized

Cost

 

 

Fair

Value

 

 

 

(Dollars in thousands)

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

Available for sale:

 

 

 

 

 

 

 

 

Within one year

 

$

4,000

 

 

$

4,000

 

One to five years

 

 

1,000

 

 

 

1,001

 

Mortgage-backed securities: residential

 

 

15,559

 

 

 

15,641

 

Collateralized mortgage obligations: residential

 

 

35,723

 

 

 

35,907

 

Total available for sale

 

$

56,282

 

 

$

56,549

 

 

 

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

The following table summarizes securities with unrealized losses at December 31, 2019 and December 31, 2018, aggregated by length of time in a continuous unrealized loss position:

 

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

 

(Dollars in thousands)

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored

   agency securities

 

$

—

 

 

$

—

 

 

$

1,999

 

 

$

(1

)

 

$

1,999

 

 

$

(1

)

Mortgage-backed securities:

   residential

 

 

—

 

 

 

—

 

 

 

3,254

 

 

 

(12

)

 

 

3,254

 

 

 

(12

)

Collateralized mortgage obligations:

   residential

 

 

8,878

 

 

 

(29

)

 

 

3,658

 

 

 

(30

)

 

 

12,536

 

 

 

(59

)

Total available for sale

 

$

8,878

 

 

$

(29

)

 

$

8,911

 

 

$

(43

)

 

$

17,789

 

 

$

(72

)

 

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

Fair

Value

 

 

Unrealized

Losses

 

 

 

(Dollars in thousands)

 

As of December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government sponsored

   agency securities

 

$

—

 

 

$

—

 

 

$

6,906

 

 

$

(88

)

 

$

6,906

 

 

$

(88

)

Mortgage-backed securities:

   residential

 

 

3,209

 

 

 

(23

)

 

 

10,920

 

 

 

(313

)

 

 

14,129

 

 

 

(336

)

Collateralized mortgage obligations:

   residential

 

 

3,348

 

 

 

(26

)

 

 

14,544

 

 

 

(484

)

 

 

17,892

 

 

 

(510

)

Total available for sale

 

$

6,557

 

 

$

(49

)

 

$

32,370

 

 

$

(885

)

 

$

38,927

 

 

$

(934

)

 

 

The Company believes that the unrealized losses are temporary, arising mainly from fluctuations in interest rates and do not reflect a deterioration of credit quality of the issuers. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The fair value is expected to recover as the securities approach maturity. Management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery.

There were no securities pledged as collateral at December 31, 2019 or December 31, 2018.

Other investments at December 31, 2019 and December 31, 2018, consisted of the following:

 

 

 

December 31, 2019

 

 

December 31, 2018

 

 

 

(Dollars in thousands)

 

FHLB stock

 

$

5,358

 

 

$

4,582

 

PCBB stock

 

 

190

 

 

 

190

 

Mutual fund - CRA qualified

 

 

3,628

 

 

 

2,488

 

Total other investments

 

$

9,176

 

 

$

7,260

 

 

 

Effective January 2018, the Company adopted ASU 2016-01 and reclassified a $2.5 million of a mutual fund that the Company invested to satisfy the CRA requirements from securities available for sale to other investments, which is reported at fair value. Unrealized holding gains on this investment were $72,000 as of December 31, 2019, and unrealized holding losses on this investment were $87,000 as of December 31, 2018. These gain or loss are included in Other Income in the Statements of Income.