INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2019

Investment securities activity:

INVESTMENT SECURITIES

NOTE 5 INVESTMENT SECURITIES 

The amortized cost and estimated fair value of securities (all available-for-sale) as of December 31, 2019 and December 31, 2018 are as follows:

					Gross		Gross		Approximate
		Amortized			Unrealized		Unrealized		Fair
(Dollars are in thousands)		Cost			Gains		Losses		Value
December 31, 2019
U.S. Government Agencies	$	15,703		$	57	$	127	$	15,633
Taxable municipals			4,389		54		1		4,442
Corporate bonds			5,408		115		-		5,523
Mortgage backed securities			25,077		111		137		25,051
Total Securities available for sale	$	50,577		$	337	$	265	$	50,649
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 available for sale	$	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 December 31, 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
December 31, 2019
U.S. Government Agencies	$	6,788	$	46	$	4,516	$	81	$	11,304	$	127
Taxable municipals		1,049		1		-		-		1,049		1
Corporate bonds		-		-		-		-		-		-
Mtg. backed securities		1,586		4		12,002		133		13,588		137
Total Securities AFS	$	9,423	$	51	$	16,518	$	214	$	25,941	$	265
December 31, 2018
U.S. Government Agencies	$	5,013	$	68	$	11,585	$	324	$	16,598	$	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	$	53,193	$	1,648

At December 31, 2019, the available-for-sale portfolio included 100 investments for which the fair market value was less than amortized cost. At December 31, 2018, the available-for-sale portfolio included 137 investments for which the fair market value was less than amortized cost. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s analysis, the Company concluded that no securities had an other-than-temporary impairment at December 31, 2019 or December 31, 2018.

Investment securities with a carrying value of $6.9 million and $8.0 million at December 31, 2019 and 2018, respectively, were pledged to secure public deposits and for other purposes required by law.

No investment securities were sold during 2019 or 2018. 

The amortized cost and fair value of investment securities at December 31, 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. Also, actual maturities may differ from scheduled maturities on amortizing securities, such as mortgage-back securities and collateralized mortgage obligations, because the underlying collateral on these types of securities may be repaid prior to the scheduled maturity date.

						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	4,710		4,752		2.53%
Due after five years through ten years		13,211		13,295		3.39%
Due after ten years		32,656		32,602		2.42%
Total	$	50,577	$	50,649		2.68%

The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank of Atlanta (FHLB), 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 December 31, 2019 and 2018, respectively. The stock has no quoted market value and no ready market exists.