INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2021

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE 4 – INVESTMENT SECURITIES

The amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale at the dates indicated are summarized as follows:

			Gross		Gross
	Amortized		unrealized		unrealized		Estimated
	cost		gains		losses		fair value
June 30, 2021
U.S. Government Agencies	$	1,980	$	5	$	—	$	1,985
Preferred equity securities		14,478		506		—		14,984
Municipal securities		13,533		563		—		14,096
Mortgage-backed securities		32,508		1,826		(82)		34,252
Collateralized mortgage obligations		23,984		769		(43)		24,710
SBA securities		6,992		92		(24)		7,060
Corporate bonds		39,659		770		(53)		40,376
Total	$	133,134	$	4,531	$	(202)	$	137,463

			Gross		Gross
	Amortized		unrealized		unrealized		Estimated
	cost		gains		losses		fair value
December 31, 2020
U.S. Government Agencies	$	5,523	$	25	$	(4)	$	5,544
Municipal securities		15,992		695		—		16,687
Mortgage-backed securities		34,567		2,033		(22)		36,578
Collateralized mortgage obligations		26,649		1,054		(8)		27,695
SBA securities		7,661		52		(46)		7,667
Corporate bonds		21,417		85		(83)		21,419
Total	$	111,809	$	3,944	$	(163)	$	115,590

During the three and six months ended June 30, 2021 and 2020, the Company did not sell any securities available-for-sale.

The estimated fair value and gross unrealized losses for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position at the dates indicated are as follows:

	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	fair value		loss		fair value		loss		fair value		loss
June 30, 2021
Mortgage-backed securities	$	2,920	$	(74)	$	249	$	(8)	$	3,169	$	(82)
Collateralized mortgage obligations		3,332		(37)		741		(6)		4,073		(43)
SBA securities		137		(1)		1,137		(23)		1,274		(24)
Corporate bonds		4,457		(53)		—		—		4,457		(53)
Total	$	10,846	$	(165)	$	2,127	$	(37)	$	12,973	$	(202)

	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	fair value		loss		fair value		loss		fair value		loss
December 31, 2020
U.S. Government Agencies	$	1,511	$	(4)	$	—	$	—	$	1,511	$	(4)
Municipal securities		502		—		—		—		502		—
Mortgage-backed securities		2,164		(10)		478		(12)		2,642		(22)
Collateralized mortgage obligations		1,742		(3)		797		(5)		2,539		(8)
SBA securities		562		(1)		3,705		(45)		4,267		(46)
Corporate bonds		10,432		(81)		1,001		(2)		11,433		(83)
Total	$	16,913	$	(99)	$	5,981	$	(64)	$	22,894	$	(163)

At June 30, 2021, the Company held 314 investment securities, of which 18 were in an unrealized loss position for more than twelve months and 13 were in an unrealized loss position for less than twelve months. These temporary unrealized losses relate principally to current interest rates for similar types of securities. The Company anticipates full recovery of amortized cost with respect to these securities at maturity or sooner in the event of a more favorable market interest rate environment. Deterioration in market and economic conditions related to the COVID-19 pandemic may, however, have an adverse impact on credit quality in the future and result in other-than-temporary impairment charges.

The amortized cost and estimated fair value of securities available-for-sale at the dates indicated by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	June 30, 2021				December 31, 2020
	Amortized		Estimated		Amortized		Estimated
	cost		fair value		cost		fair value
Available-for-sale
Due in one year or less	$	1,270	$	1,281	$	7,273	$	7,342
Due after one through five years		32,949		34,249		19,424		20,322
Due after five years through ten years		54,050		55,351		34,165		34,898
Due after ten years		44,865		46,582		50,947		53,028
Total	$	133,134	$	137,463	$	111,809	$	115,590