INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2022

  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, 2022 and December 31, 2021 is as follows:

			Gross		Gross		Approximate
	Amortized		Unrealized		Unrealized		Fair
(Dollars are in thousands)	Cost		Gains		Losses		Value
June 30, 2022
U.S. Treasuries	$	11,680	$	3	$	729	$	10,954
U.S. Government Agencies		10,142		6		455		9,693
Taxable municipals		23,350		2		4,508		18,844
Corporate bonds		3,019		4		257		2,766
Mortgage backed securities		66,211		—		7,852		58,359
Total Securities available for sale	$	114,402	$	15	$	13,801	$	100,616
December 31, 2021
U.S. Treasuries	$	7,791	$	2	$	122	$	7,671
U.S. Government Agencies		9,098		77		86		9,089
Taxable municipals		23,075		159		254		22,980
Corporate bonds		2,014		23		18		2,019
Mortgage backed securities		66,410		143		954		65,599
Total Securities available for sale	$	108,388	$	404	$	1,434	$	107,358

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, 2022 and December 31, 2021.

	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, 2022
U. S. Treasuries	$	10,496	$	729	$	—	$	—	$	10,496	$	729
U.S. Government Agencies		5,464		300		2,755		155		8,219		455
Taxable municipals		17,363		4,325		678		183		18,041		4,508
Corporate bonds		2,252		257		500		—		2,752		257
Mortgage backed securities		40,768		5,152		17,592		2,700		58,360		7,852
Total Securities available for sale	$	76,343	$	10,763	$	21,525	$	3,038	$	97,868	$	13,801
December 31, 2021
U.S. Treasuries	$	6,200	$	122	$	—	$	—	$	6,200	$	122
U.S. Government Agencies		977		10		3,434		76		4,411		86
Taxable municipals		13,040		237		387		17		13,427		254
Corporate bonds		1,482		18		—		—		1,482		18
Mortgage backed securities		52,180		758		6,282		196		58,462		954
Total Securities available for sale	$	73,879	$	1,145	$	10,103	$	289	$	83,982	$	1,434

At June 30, 2022, there were 215 securities in a loss position, of which 47 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 are not 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 $29.7 million and $12.1 million at June 30, 2022 and December 31, 2021, respectively, were pledged as collateral to secure public deposits and for other purposes required by law.

No AFS debt securities were sold during the three and six months ended June 30, 2022 and 2022.

The amortized cost and fair value of investment securities at June 30, 2022, 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	$	300	$	302		3.46	%
Due after one year through five years		16,021		15,339		2.04	%
Due after five years through ten years		13,547		12,202		1.83	%
Due after ten years		84,534		72,773		1.71	%
Total	$	114,402	$	100,616		1.77	%

The Bank, as a member bank of the Federal Reserve Bank of Richmond (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, which are included in Other Assets on the consolidated balance sheet, are restricted from trading and are recorded at a cost of $4.3 million and $2.0 million at June 30, 2022 and December 31, 2021, respectively. The stock has no quoted market value and no ready market exists.