INVESTMENT SECURITIES

9 Months Ended

Sep. 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 September 30, 2022 and December 31, 2021 is as follows:

				Gross		Gross		Approximate
		Amortized		Unrealized		Unrealized		Fair
(Dollars are in thousands)		Cost		Gains		Losses		Value
September 30, 2022
U.S. Treasuries	$	12,639	$	-	$	993	$	11,646
U.S. Government Agencies		10,451		4		695		9,760
Taxable municipals		23,338	-		5,560		17,778
Corporate bonds		3,515	-		340		3,175
Mortgage backed securities		66,301	-		9,815		56,486
Total Securities available for sale	$	116,244	$	4	$	17,403	$	98,845
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 September 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
September 30, 2022
U.S. Treasuries	$	5,115	$	283	$	5,564	$	710	$	10,679	$	993
U.S. Government Agencies		5,450		362		3,120		333		8,570		695
Taxable municipals		7,009		2,131		9,969		3,429		16,978		5,560
Corporate bonds		2,288		228		388		112		2,676		340
Mortgage backed securities		14,463		1,759		39,512		8,056		53,975		9,815
Total Securities available for sale	$	34,325	$	4,763	$	58,553	$	12,640	$	92,878	$	17,403
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 September 30, 2022, there were 216 securities in a loss position, of which 100 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 $28.3 million and $12.1 million at September 30, 2022 and December 31, 2021, 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 nine months-ended September 30,

(Dollars are in thousands)	2022		2021
Proceeds	$	—	$	7,686
Gains		—		322
Losses		—		—
Tax provision (benefit)		—		68

The amortized cost and fair value of investment securities at September 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	$	1,777	$	1,776		4.30	%
Due after one year through five years		16,829		15,805		2.09	%
Due after five years through ten years		14,663		12,832		1.98	%
Due after ten years		82,975		68,432		1.82	%
Total	$	116,244	$	98,845		1.92	%

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 $3.0 million and $2.0 million at September 30, 2022 and December 31, 2021, respectively. The stock has no quoted market value and no ready market exists.