INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2023

  Investment securities activity

INVESTMENT SECURITIES

NOTE 5 INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities (all available-for-sale) as of March 31, 2023 and December 31, 2022 are as follows:

			Gross		Gross		Approximate
	Amortized		Unrealized		Unrealized		Fair
(Dollars are in thousands)	Cost		Gains		Losses		Value
March 31, 2023
U.S. Treasuries	$	12,645	$	—	$	743	$	11,902
U.S. Government Agencies		9,678		4		569		9,113
Taxable municipals		23,011		—		5,192		17,819
Corporate bonds		3,508		—		346		3,162
Mortgage backed securities		62,822		2		8,098		54,726
Total securities available for sale	$	111,664	$	6	$	14,948	$	96,722
December 31, 2022
U.S. Treasuries	$	12,642	$	—	$	957	$	11,685
U.S. Government Agencies		10,129		4		734		9,399
Taxable municipals		23,022		—		6,207		16,815
Corporate bonds		3,512		—		376		3,136
Mortgage backed securities		64,419		—		9,378		55,041
Total securities available for sale	$	113,724	$	4	$	17,652	$	96,076

The following table details unrealized losses and related fair values in the available-for-sale portfolio, for which no allowance for credit loss is recorded. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2023 and December 31, 2022.

	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
March 31, 2023
U.S. Treasuries	$	1,442	$	9	$	10,460	$	734	$	11,902	$	743
U.S. Government Agencies		3,552		85		5,398		484		8,950		569
Taxable municipals		—		—		17,319		5,192		17,319		5,192
Corporate bonds		997		5		2,165		341		3,162		346
Mortgage backed securities		2,392		28		52,247		8,070		54,639		8,098
Total securities available for sale	$	8,383	$	127	$	87,589	$	14,821	$	95,972	$	14,948
December 31, 2022
U.S. Treasuries	$	4,761	$	145	$	6,922	$	812	$	11,683	$	957
U.S. Government Agencies		5,925		348		3,295		386		9,220		734
Taxable municipals		3,689		1,113		13,127		5,094		16,816		6,207
Corporate bonds		2,375		136		761		240		3,136		376
Mortgage backed securities		11,338		861		43,612		8,517		54,950		9,378
Total securities available for sale	$	28,088	$	2,603	$	67,717	$	15,049	$	95,805	$	17,652

As of March 31, 2023, there were 218 securities in a loss position, of which 200 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. None of the individual securities held are past due as to principal or interest payments and a number of these securities held have explicit or implicit payment guarantees. The remaining securities have credit ratings at or above that necessary to be considered “bank qualified”.

Investment securities with a carrying value of $37.9 million and $27.3 million as of March 31, 2023 and December 31, 2022, respectively, were pledged as collateral to secure public deposits and for other purposes required or permitted by law.

There were no sales of available for sale investment securities during the three months ended March 31, 2023 and 2022.

The amortized cost and fair value of investment securities as of March 31, 2023, 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	$	2,488	$	2,454		3.31	%
Due after one year through five years		15,775		15,032		2.18	%
Due after five years through ten years		17,139		15,225		2.09	%
Due after ten years		76,262		64,011		1.91	%
Total	$	111,664	$	96,722		2.01	%

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 $2.0 million and $2.1 million at March 31, 2023 and December 31, 2022, respectively. The stock has no quoted market value and no ready market exists.