Investment securities available for sale

12 Months Ended

Dec. 31, 2021

Investment securities available for sale

Investment securities available for sale

Note 2. Investment Securities Available for Sale

The amortized cost and fair value of investment securities available for sale as of December 31, 2021 and 2020 are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
December 31, 2021
U.S. Government agency obligations	$	41,513	$	22	$	(536)	$	40,999
Mortgage-backed securities		40,806		302		(613)		40,495
Municipals		2,271		—		(62)		2,209
Subordinated debt		11,016		90		(110)		10,996
	$	95,606	$	414	$	(1,321)	$	94,699
December 31, 2020
U.S. Government agency obligations	$	8,048	$	94	$	—	$	8,142
Mortgage-backed securities		23,412		645		(51)		24,006
Subordinated debt		8,795		37		(136)		8,696
	$	40,255	$	776	$	(187)	$	40,844

At December 31, 2021 and December 31, 2020, the Company had no investment securities pledged to secure borrowings from the Federal Home Loan Bank of Atlanta (“FHLB”).

Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the years ended December 31, 2021 and 2020 (in thousands):

	Year Ended
	December 31,
	2021		2020
Gross realized gains	$	—	$	54
Gross realized losses		—		(42)
	$	—	$	12

The Company sold approximately $8,000,000 of investment securities available for sale at a gain of $12,000 in 2020. The sales of these securities, which had fixed interest rates, allowed the Company to decrease its exposure to upward movement in interest rates that would result in unrealized losses being recognized in shareholders’ equity.

Investment securities available for sale that had an unrealized loss position at December 31, 2021 and December 31, 2020 are detailed below (in thousands):

	Securities in a loss				Securities in a loss
	position for less than				position for more than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
December 31, 2021
U.S. Government agency obligations	$	39,617	$	(536)	$	—	$	—	$	39,617	$	(536)
Mortgage-backed securities		21,911		(448)		4,518		(165)		26,429		(613)
Municipals		2,208		(62)		—		—		2,208		(62)
Subordinated debt		919		(80)		470		(30)		1,389		(110)
	$	64,655	$	(1,126)	$	4,988	$	(195)	$	69,643	$	(1,321)
December 31, 2020
Mortgage-backed securities		5,475		(51)		—		—		5,475		(51)
Subordinated debt		1,747		(11)		2,807		(125)		4,554		(136)
	$	7,222	$	(62)	$	2,807	$	(125)	$	10,029	$	(187)

As of December 31, 2021, there were $5.0 million, or five issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $195,000 and consisted of Mortgage-backed securities and subordinated debt.

As of December 31, 2020, there were $2.8 million, or five issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months.  These securities had an unrealized loss of $125,000 and consisted of subordinated debt.

All of the unrealized losses are attributable to increases in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that the Company will be able to collect all amounts due according to the contractual terms of the investments. Because the declines in fair value are attributable to changes in interest rates and not to credit quality, and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other than temporarily impaired at December 31, 2021.

The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2021, by contractual maturity, are as follows (in thousands):

	Amortized
	Cost		Fair Value
One to five years	$	40,787	$	40,267
Five to ten years		16,062		16,226
More than ten years		38,757		38,206
Total	$	95,606	$	94,699