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 andreclassified 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.