INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2019

Investment Securities

INVESTMENT SECURITIES

NOTE 5 INVESTMENT SECURITIES:

The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows:

				Gross		Gross		Approximate
		Amortized		Unrealized		Unrealized		Fair
(Dollars are in thousands)		Cost		Gains		Losses		Value
June 30, 2019
U.S. Government Agencies	$	17,738	$	87	$	(108)	$	17,717
Taxable municipals		4,409		52		-		4,461
Corporate bonds		5,415		104		-		5,519
Mortgage backed securities		28,911		67		(277)		28,701
Total Securities AFS	$	56,473	$	310	$	(385)	$	56,398
December 31, 2018
U.S. Government Agencies	$	19,755	$	26	$	(392)	$	19,389
Taxable municipals		4,428		-		(115)		4,313
Corporate bonds		5,422		47		(149)		5,320
Mortgage backed securities		31,366		11		(992)		30,385
Total Securities AFS	$	60,971	$	84	$	(1,648)	$	59,407

The following table details unrealized losses and related fair values in the available-for-sale portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2019 and December 31, 2018.

		Less than 12 Months				12 Months or More					Total
		Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars are in thousands)		Value		Losses		Value		Losses		Value		Losses
June 30, 2019
U.S. Government Agencies	$	1,267	$	(1)	$	9,508	$	(107)	$	10,775	$	(108)
Taxable municipals		-		-		518		-		518		-
Corporate bonds		-		-		-		-		-		-
Mtg. backed securities		2		-		24,429		(277)		24,431		(277)
Total Securities AFS	$	1,269	$	(1)	$	34,455	$	(384)	$	35,724	$	(385)
December 31, 2018
U.S. Government Agencies	$	5,013	$	(68)	$	11,585	$	(324)	$	16,599	$	(392)
Taxable municipals		-		-		4,049		(115)		4,049		(115)
Corporate bonds		1,713		(43)		1,423		(106)		3,136		(149)
Mtg. backed securities		165		(2)		29,245		(990)		29,410		(992)
Total Securities AFS	$	6,891	$	(113)	$	46,302	$	(1,535)	$	53,194	$	(1,648)

At June 30, 2019, there were 119 securities in a loss position, of which 114 have been in a loss position for twelve months or more. Management believes that all unrealized losses have resulted from temporary changes in the interest rates and current market conditions and not as a result of credit deterioration. Management does not intend to sell, and it is not likely that the Bank will be required to sell any of the securities referenced in the table above before recovery of their amortized cost.

Investment securities with a carrying value of $7.6 million and $8.0 million at June 30, 2019 and December 31, 2018, respectively, were pledged as collateral to secure public deposits and for other purposes required by law.

There were no sales of investment securities during the six months ended June 30, 2019 or June 30, 2018.

The amortized cost and fair value of investment securities at June 30, 2019, by contractual maturity, are shown in the following schedule. 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.

						Weighted
(Dollars are in thousands)		Amortized		Fair		Average
Securities Available-for-Sale		Cost		Value		Yield
Due in one year or less	$	2	$	2	-		%
Due after one year through five years		5,643		5,685	2.60%
Due after five years through ten years		14,326		14,402	3.39%
Due after ten years		36,502		36,309		2.45%
Total	$	56,473	$	56,398	2.70%

The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.6 million and $2.5 million as of June 30, 2019 and December 31, 2018, respectively.