Investment Securities

9 Months Ended

Sep. 30, 2021

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, 2021 and December 31, 2020 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
September 30, 2021
U. S. Treasuries	$	125	$	-	$	-	$	125
December 31, 2020
U. S. Treasuries	$	125	$	-	$	-	$	125

The amortized cost and fair value of securities available for sale are as follows (dollars in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2021
U. S. Treasuries	$	29,771	$	2	$	279	$	29,494
U. S. Government sponsored enterprises		55,243		-		269		54,974
Securities issued by States and political subdivisions in the U.S.		29,854		452		12		30,294
Mortgage-backed obligations of federal agencies		139,176		628		722		139,082
Corporate debt security		17,512		410		321		17,601
Total Securities Available for Sale	$	271,556	$	1,492	$	1,603	$	271,445
December 31, 2020
U. S. Government sponsored enterprises	$	6,000	$	47	$	-	$	6,047
Securities issued by States and political subdivisions of the U.S.		17,177		515		-		17,692
Mortgage-backed obligations of federal agencies		73,422		502		153		73,771
Corporate debt securities		9,282		121		14		9,389
Total Securities Available for Sale	$	105,881	$	1,185	$	167	$	106,899

The amortized cost and fair value of securities at September 30, 2021, by contractual maturity are shown below (dollars in thousands).  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
	Cost		Value		Cost		Value
Due in one year or less	$	125	$	125	$	10,304	$	10,358
Due after one year through five years		-		-		115,175		114,816
Due after five years		-		-		131,309		131,184
Due after ten years		-		-		14,768		15,087
Total	$	125	$	125	$	271,556	$	271,445

There were no sales of available for sale securities in the first three quarters of 2021 or 2020.  Securities held that are U.S. Agency and Government Sponsored Entities and Agency MBS carry an implicit government guarantee and are not subject to other than temporary impairment evaluation.  Other securities were reviewed for impairment. The majority of the securities that are in an unrealized loss positions are U.S. Government sponsored enterprises or mortgage-backed obligations of federal agencies.  Three securities issued by States and political subdivisions in the U.S. were in an unrealized loss position for less than 12 months with minimal loss. Seven bank subordinated debt offerings were in a loss position for less than 7 months and totaled $321 thousand. The pricing services tend to not be exact on these offerings because of the marketability of the offering. The Company reviews the relevant ratios on each subordinated debt holding quarterly. 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, 2021 and December 31, 2020 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, 2021
U. S. Government treasuries	$	24,496	$	279	$	-	$	-	$	24,496	$	279
U. S. Government sponsored enterprises		54,973		269		-		-		54,973		269
Securities issued by States and political subdivisions in the U.S.		4,988		12		-		-		4,988		12
Mortgage-backed obligations of federal agencies		68,183		623		8,718		99		76,901		722
Corporate debt security		5,979		321		-		-		5,979		321
Total	$	158,619	$	1,504	$	8,718	$	99	$	167,337	$	1,603

	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2020
U. S. Government sponsored enterprises	$	73,771	$	153	$	-	$	-	$	73,771	$	153
Corporate debt security		9,389		14		-		-		9,389		14
Total	$	83,160	$	167	$	-	$	-	$	83,160	$	167

As of September 30, 2021, other investments consist of investments in fifteen low-income housing and historic equity partnerships (carrying basis of $6,977), stock in the Federal Home Loan Bank (carrying basis $858) and various other investments (carrying basis $1,591).  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, 2021.  At September 30, 2021, the Company was committed to invest an additional $979 in five 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.