INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2020

Investment securities activity

INVESTMENT SECURITIES

NOTE 5 INVESTMENT SECURITIES

The amortized cost and estimated fair value of available-for-sale (AFS) securities as of June 30, 2020 and December 31, 2019 is as follows:

			Gross		Gross			Approximate
	Amortized		Unrealized		Unrealized			Fair
(Dollars are in thousands)	Cost		Gains		Losses			Value
June 30, 2020
U.S. Government Agencies	$	14,161	$	304	$	(73	)	$	14,392
Taxable municipals		4,369		174		—			4,543
Corporate bonds		5,400		211		(29	)		5,582
Mortgage backed securities		20,517		504		(12	)		21,009
Total Securities AFS	$	44,447	$	1,193	$	(114	)	$	45,526
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 AFS	$	50,577	$	337	$	(265	)	$	50,649

The following table details unrealized losses and related fair values in the AFS 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, 2020 and December 31, 2019.

	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
June 30, 2020
U.S. Government Agencies	$	447	$	(1	)	$	4,373	$	(72	)	$	4,820	$	(73	)
Taxable municipals		—		—			—		—			—		—
Corporate bonds		1,222		(29	)		—		—			1,222		(29	)
Mortgage backed securities		715		(5	)		1,044		(7	)		1,759		(12	)
Total Securities AFS	$	2,384	$	(35	)	$	5,417	$	(79	)	$	7,081	$	(114	)
December 31, 2019
U.S. Government Agencies	$	6,788	$	(46	)	$	4,516	$	(81	)	$	11,304	$	(127	)
Taxable municipals		1,049		(1	)		—		—			1,049		(1	)
Mortgage backed securities		1,586		(4	)		12,002		(133	)		13,588		(137	)
Total Securities AFS	$	9,423	$	(51	)	$	16,518	$	(214	)	$	25,941	$	(265	)

At June 30, 2020, there were 35 securities in a loss position, of which 27 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 $7.5 million and $6.9 million at June 30, 2020 and December 31, 2019, respectively, were pledged as collateral to secure public deposits and for other purposes required by law.

The following table summarizes sales of AFS debt securities for the six months-ended June 30,

(Dollars are in thousands)	2020			2019
Proceeds	$	1,025		$	—
Gains		7			—
Losses		(3	)		—
Tax benefit		(1	)		—

The amortized cost and fair value of investment securities at June 30, 2020, 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	$	251	$	253		2.85	%
Due after one year through five years		4,418		4,558		2.55	%
Due after five years through ten years		11,701		11,981		3.29	%
Due after ten years		28,077		28,734		2.07	%
Total	$	44,447	$	45,526		2.45	%

The Bank, as a member of the Federal Reserve Bank of Richmond (the Reserve Bank) and the Federal Home Loan Bank (the FHLB) of Atlanta, 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 $2.58 million and $2.56 million at June 30, 2020 and December 31, 2019, respectively.