INVESTMENT SECURITIES

12 Months Ended

Dec. 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 December 31, 2023 and 2022 are as follows:

Schedule of securities amortized cost and estimated fair value 

				Gross		Gross		Approximate
		Amortized		Unrealized		Unrealized		Fair
(Dollars are in thousands)		Cost		Gains		Losses		Value
December 31, 2023
U.S. Treasuries	$	11,643	$	-	$	658	$	10,985
U.S. Government Agencies		9,412		23		624		8,811
Taxable municipals		22,973		-		5,114		17,859
Corporate bonds		3,002		1		315		2,688
Mortgage backed securities		57,526		-		8,064		49,462
Total Securities available for sale	$	104,556	$	24	$	14,775	$	89,805
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. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2023 and 2022.

 Schedule of fair value and gross unrealized losses on investment securities

		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, 2023
U.S. Treasuries	$	-	$	-	$	10,985	$	658	$	10,985	$	658
U.S. Government Agencies		42		-		8,123		624		8,165		624
Taxable municipals		485		16		17,374		5,098		17,859		5,114
Corporate bonds		-		-		2,187		315		2,187		315
Mortgage backed securities		-		-		49,413		8,064		49,413		8,064
Total	$	527	$	16	$	88,082	$	14,759	$	88,609	$	14,775
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	$	28,088	$	2,603	$	67,717	$	15,049	$	95,805	$	17,652

As of December 31, 2023, the available-for-sale portfolio included 209 investments for which the fair market value was less than amortized cost. As of December 31, 2022, the available-for-sale portfolio included 221 investments for which the fair market value was less than amortized cost. 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 plan 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 are past due as

to principal or interest payments and a number of these securities 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 $36.8 million and $27.3 million as of December 31, 2023 and 2022, respectively, were pledged 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 years ended December 31, 2023 and 2022.

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

Schedule of amortized cost and fair value of investment securities contractual maturity

						Weighted
(Dollars are in thousands)		Amortized		Fair		Average
Securities Available for Sale		Cost		Value		Yield
Due in one year or less	$	5,263	$	5,149		1.87%
Due after one year through five years	12,966		12,205		2.10%
Due after five years through ten years		16,805		14,849		2.34%
Due after ten years		69,522		57,602		1.90%
Total	$	104,556	$	89,805		2.00%

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, which are included in other assets on the consolidated balance sheet, are restricted from trading and are recorded at a cost of $2.7 million and $2.1 million as of December 31, 2023 and 2022, respectively. The stock has no quoted market value and no ready market exists.