INVESTMENT SECURITIES

9 Months Ended

Sep. 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		Approximate					Gross
	Unrealized		Unrealized		Fair			Amortized
(Dollars are in thousands)	Cost		Gains		Losses			Value
September 30, 2019
U.S. Government Agencies	$	16,573	$	104	$	(96	)	$	16,581
Taxable municipals		4,399		92		—			4,491
Corporate bonds		5,411		120		—			5,531
Mortgage backed securities		26,977		90		(192	)		26,875
Total Securities AFS	$	53,360	$	406	$	(288	)	$	53,478
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 September 30, 2019 and December 31, 2018.

	Less than 12 Months					12 Months or More					Total
(Dollars are in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2019
U.S. Government Agencies	$	3,734	$	(17	)	$	4,968	$	(79	)	$	8,702	$	(96	)
Taxable municipals		—		—			—		—			—		—
Corporate bonds		—		—			—		—			—		—
Mtg. backed securities		1,871		(4	)		16,518		(188	)		18,389		(192	)
Total Securities AFS	$	5,605	$	(21	)	$	21,486	$	(267	)	$	27,091	$	(288	)
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 September 30, 2019, there were 109 securities in a loss position, of which 90 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 $7.2 million and $8.0 million at September 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 nine months ended September 30, 2019 or September 30, 2018.

The amortized cost and fair value of investment securities at September 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	$	—	$	—		—	%
Due after one year through five years		4,594		4,630		2.55	%
Due after five years through ten years		13,349		13,445		3.39	%
Due after ten years		35,417		35,403		2.47	%
Total	$	53,360	$	53,478		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 September 30, 2019 and December 31, 2018, respectively.