INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2024

  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, 2024 and December 31, 2023 are as follows:

			Gross		Gross		Approximate
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
June 30, 2024
U.S. Treasuries	$	10,631	$	—	$	597	$	10,034
U.S. Government Agencies		9,484		19		637		8,866
Taxable municipals		22,950		—		5,172		17,778
Corporate bonds		2,499		—		273		2,226
Mortgage backed securities		61,727		20		8,382		53,365
Total securities available-for-sale	$	107,291	$	39	$	15,061	$	92,269
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

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, 2024 and December 31, 2023.

	Less than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2024
U.S. Treasuries	$	—	$	—	$	10,034	$	597	$	10,034	$	597
U.S. Government Agencies		90		1		7,488		636		7,578		637
Taxable municipals		—		—		17,778		5,172		17,778		5,172
Corporate bonds		493		6		1,733		267		2,226		273
Mortgage backed securities		3,949		31		45,839		8,351		49,788		8,382
Total securities available-for-sale	$	4,532	$	38	$	82,872	$	15,023	$	87,404	$	15,061
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 securities available-for-sale	$	527	$	16	$	88,082	$	14,759	$	88,609	$	14,775

As of June 30, 2024, there were 211 securities in a loss position, of which 201 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 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 $35.4 million and $36.8 million as of June 30, 2024 and December 31, 2023, 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 and six months ended June 30, 2024 and 2023.

The amortized cost and fair value of investment securities as of June 30, 2024, 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 in thousands)	Amortized		Fair		Average
Securities Available-for-Sale	Cost		Value		Yield
Due in one year or less	$	5,526	$	5,434		2.13	%
Due after one year through five years		11,291		10,550		1.99	%
Due after five years through ten years		22,116		20,151		3.06	%
Due after ten years		68,358		56,134		2.02	%
Total	$	107,291	$	92,269		2.24	%

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 $2.7 million and $2.7 million as of June 30, 2024 and December 31, 2023, respectively. The stock has no quoted market value and no ready market exists. When evaluating these securities for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Equity securities are viewed as long-term investments and management believes the Company has the ability and the intent to hold these securities until their value is recovered.