Investment Securities

9 Months Ended

Sep. 30, 2020

Investment Securities

Note 2. Investment Securities

Note 2. Investment Securities

Investment securities available for sale are carried in the consolidated balance sheets at their approximate fair value.  Investment securities held to maturity are carried in the consolidated balance sheets at their amortized cost at September 30, 2020 and December 31, 2019 are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
September 30, 2020
U. S. Treasuries	$	125	$	-	$	-	$	125
December 31, 2019
U. S. Treasuries	$	124	$	-	$	-	$	124

The amortized cost and fair value of securities available for sale are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2020
U. S. Government sponsored enterprises	$	6,000	$	7	$	-		$	6,007
Securities issued by States and political subdivisions in the U.S.		17,194		397		(58	)		17,533
Mortgage-backed obligations of federal agencies		76,889		261		(437	)		76,713
Corporate debt security		6,789		235		(194	)		6,830
Total Securities Available for Sale	$	106,872	$	900	$	(689	)	$	107,083
December 31, 2019
U. S. Government sponsored enterprises	$	2,000	$	-	$	(11	)	$	1,989
Mortgage-backed obligations of federal agencies		317		2		-			319
Corporate debt security		2,059		-		(1	)		2,058
Total Securities Available for Sale	$	4,376	$	2	$	(12	)	$	4,366

The amortized cost and fair value of securities at September 30, 2020, by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Held to Maturity				Securities Available for Sale
	Amortized		Fair		Amortized		Fair
(dollars in thousands)	Cost		Value		Cost		Value
Due in one year or less	$	125	$	125	$	-	$	-
Due after one year through five years		-		-		70,733		70,611
Due after five years		-		-		28,042		28,140
Due after ten years		-		-		8,098		8,332
Total	$	125	$	125	$	106,873	$	107,083

There were no sales of available for sale securities in 2020 or 2019. Securities held that are U.S. Agency and Government Sponsored Entities and Agency MBS which carry an implicit government guarantee and are not subject to other than temporary impairment evaluation. One Security issued by States and political subdivisions in the U.S. was in an unrealized loss position for less than 12 months with minimal loss. Therefore, no securities were determined to be other than temporarily impaired.

A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of September 30, 2020 and December 31, 2019 were as follows:

	Less than 12 Months					More than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2020
Securities issued by States and political subdivisions in the U.S.	$	17,533	$	(58	)	$	-	$	-	$	17,533	$	(58	)
Mortgage-backed obligations of federal agencies		76,713		(437	)		-		-		76,713		(437	)
Corporate debt security		6,830		(194	)		-		-		6,830		(194	)
Total	$	101,076	$	(689	)	$	-	$	-	$	101,076	$	(689	)
	Less than 12 Months					More than 12 Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2019
U. S. Government sponsored enterprises	$	1,989	$	(11	)	$	-	$	-	$	1,989	$	(11	)
Corporate debt security		2,058		(1	)		-		-		2,058		(1	)
Total	$	4,047	$	(12	)	$	-	$	-	$	4,047	$	(12	)

As of September 30, 2020, other investments consist of investments in fifteen low-income housing and historic equity partnerships (carrying basis of $7,859), stock in the Federal Home Loan Bank (carrying basis $1,342) and various other investments (carrying basis $2,479).The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted as to sales. The fair values of these securities are estimated to approximate their carrying value as of September 30, 2020. At September 30, 2020, the Company was committed to invest an additional $2,351in six low-income housing limited partnerships. These funds will be paid as requested by the general partner to complete the projects. This additional investment has been reflected in the above carrying basis and in other liabilities on the consolidated balance sheet. The Company does not have any pledged securities.