Securities

6 Months Ended

Jun. 30, 2022

Note 2. Securities

Amortized costs and fair values, with gross unrealized gains and losses, of securities available-for-sale as of the dates indicated are as follows:

	June 30, 2022
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Treasury securities	$	19,184	$	-	$	(1,633	)	$	17,551
Obligations of U.S. Government agencies		36,536		-		(1,151	)		35,385
Obligations of state and political subdivisions		78,384		42		(9,553	)		68,873
Mortgage-backed securities		93,961		23		(6,681	)		87,303
Money market investments		1,614		-		-			1,614
Corporate bonds and other securities		29,741		17		(1,128	)		28,630
	$	259,420	$	82	$	(20,146	)	$	239,356

	December 31, 2021
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Treasury securities	$	15,052	$	-	$	(148	)	$	14,904
Obligations of U.S. Government agencies		38,651		75		(168	)		38,558
Obligations of state and political subdivisions		64,132		1,948		(277	)		65,803
Mortgage-backed securities		88,511		1,348		(801	)		89,058
Money market investments		2,413		-		-			2,413
Corporate bonds and other securities		23,441		261		(117	)		23,585
	$	232,200	$	3,632	$	(1,511	)	$	234,321

The amortized cost and fair value of securities by contractual maturity are shown below:

	June 30, 2022
(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	-	$	-
Due after one year through five years		16,290		15,761
Due after five through ten years		81,006		75,206
Due after ten years		160,510		146,775
Other securities, restricted		1,614		1,614
	$	259,420	$	239,356

The Company did not realize any gains or losses on the sale of investment securities during the six months ended June 30, 2022 and 2021, respectively.

The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired as of June 30, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:

	June 30, 2022
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	1,633	$	17,551	$	-	$	-	$	1,633	$	17,551
Obligations of U.S. Government agencies		870		27,351		281		8,034		1,151		35,385
Obligations of state and political subdivisions		8,785		61,930		768		3,465		9,553		65,395
Mortgage-backed securities		4,082		65,392		2,599		18,633		6,681		84,025
Corporate bonds and other securities		1,128		23,122		-		-		1,128		23,122
Total securities available-for-sale	$	16,498	$	195,346	$	3,648	$	30,132	$	20,146	$	225,478

	December 31, 2021
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	148	$	14,904	$	-	$	-	$	148	$	14,904
Obligations of U.S. Government agencies		131		19,181		37		5,042		168		24,223
Obligations of state and policitcal subdivisions		277		20,673		-		-		277		20,673
Mortgage-backed securities		608		35,882		193		6,450		801		42,332
Corporate bonds and other securities		117		9,833		-		-		117		9,833
Total securities available-for-sale	$	1,281	$	100,473	$	230	$	11,492	$	1,511	$	111,965

The number of investments in an unrealized loss position as of June 30, 2022 and December 31, 2021 were 162 and 72, respectively. Certain investments within the Company’s portfolio had unrealized losses for more than twelve months at June 30, 2022 and December 31, 2021, as shown in the tables above. The primary cause of the temporary impairments in the Company’s investment security portfolio was increases in market interest rates. The Company concluded that no other-than-temporary impairment existed in its securities portfolio at June 30, 2022, and no other-than-temporary impairment loss has been recognized in net income during the first six months of 2022, based primarily on the following: (i) changes in fair value were caused primarily by fluctuations in interest rates, (ii) there were no securities with unrealized losses that were significant relative to their carrying amounts, (iii) securities with unrealized losses had generally high credit quality, (iv) the Company intends to hold these investments until recovery of its investment and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and (v) issuers have continued to make timely payments of principal and interest.

Restricted Stock

The restricted security category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB), the Federal Reserve Bank (FRB), and Community Bankers’ Bank (CBB). These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB, FRB, and CBB stock are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered.