Investment Securities

6 Months Ended

Jun. 30, 2020

Investment Securities [Abstract]

Investment Securities

Note 4 – Investment Securities

The following tables provide information on the amortized cost and estimated fair values of debt securities.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
June 30, 2020
U.S. Government agencies	$	9,710	$	82	$	3	$	9,789
Mortgage-backed		73,551		2,681		1		76,231
Total	$	83,261	$	2,763	$	4	$	86,020
December 31, 2019
U.S. Government agencies	$	23,854	$	3	$	31	$	23,826
Mortgage-backed		98,638		574		247		98,965
Total	$	122,492	$	577	$	278	$	122,791

During the three and six months ended, the Company sold available for sale securities for proceeds of $13.0 million and recognized gross gains of $347 thousand. No available for sale securities were sold during the three and six months ended June 30, 2019.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Held-to-maturity securities:
June 30, 2020
U.S. Government agencies	$	1,292	$	35	$	—	$	1,327
States and political subdivisions		400		1		—		401
Other debt securities		10,018		12		43		9,987
Total	$	11,710	$	48	$	43	$	11,715
December 31, 2019
U.S. Government agencies	$	1,386	$	—	$	5	$	1,381
States and political subdivisions		400		1		—		401
Other debt securities		7,000		—		128		6,872
Total	$	8,786	$	1	$	133	$	8,654

Equity securities with an aggregate fair value of $1.4 million at June 30, 2020 and $1.3 million at December 31, 2019 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $32 thousand for the six months ended June 30, 2020 and $41 thousand for the six months ended June 30, 2019, respectively.

The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019.

	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
June 30, 2020
Available-for-sale securities:
U.S. Government agencies	$	—	$	—	$	402	$	3	$	402	$	3
Mortgage-backed		—		—		1,936		1		1,936		1
Total	$	—	$	—	$	2,338	$	4	$	2,338	$	4
Held-to-maturity securities:
Other debt securities	$	3,990	$	10	$	2,967	$	33	$	6,957	$	43
Total	$	3,990	$	10	$	2,967	$	33	$	6,957	$	43

	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
December 31, 2019
Available-for-sale securities:
U.S. Government agencies	$	4,995	$	5	$	18,516	$	26	$	23,511	$	31
Mortgage-backed		12,180		27		22,282		220		34,462		247
Total	$	17,175	$	32	$	40,798	$	246	$	57,973	$	278
Held-to-maturity securities:
U.S. Government agencies	$	1,381	$	5	$	—	$	—	$	1,381	$	5
Other debt securities		3,905		95		2,967		33		6,872		128
Total	$	5,286	$	100	$	2,967	$	33	$	8,253	$	133

All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these securities and it is not more

likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary. There were three available-for-sale securities and two held-to-maturity security in an unrealized loss position at June 30, 2020.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at June 30, 2020.

	Available for sale				Held to maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	9,002	$	9,080	$	—	$	—
Due after one year through five years		1,916		1,977		400		401
Due after five years through ten years		42,964		44,744		10,018		9,987
Due after ten years		29,379		30,219		1,292		1,327
Total	$	83,261	$	86,020	$	11,710	$	11,715

The maturity dates for debt securities are determined using contractual maturity dates.