INVESTMENT SECURITIES

9 Months Ended

Sep. 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
September 30, 2021
U.S. Government Agencies	$	1,949	$	1	$	—	$	1,950
Preferred equity securities		14,438		393		—		14,831
Municipal securities		13,491		500		—		13,991
Mortgage-backed securities		32,855		1,539		(198)		34,196
Collateralized mortgage obligations		23,385		626		(71)		23,940
SBA securities		6,539		78		(22)		6,595
Corporate bonds		46,158		780		(126)		46,812
Total	$	138,815	$	3,917	$	(417)	$	142,315

			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 nine months ended September 30, 2021, the Company sold six securities available-for-sale for gross realized gains of $22,000 and did not sell any securities available-for-sale for the three and nine months ended September 30, 2020.

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
September 30, 2021
Mortgage-backed securities	$	4,836	$	(191)	$	200	$	(7)	$	5,036	$	(198)
Collateralized mortgage obligations		3,796		(64)		704		(7)		4,500		(71)
SBA securities		—		—		1,116		(22)		1,116		(22)
Corporate bonds		14,380		(120)		1,501		(6)		15,881		(126)
Total	$	23,012	$	(375)	$	3,521	$	(42)	$	26,533	$	(417)

	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 September 30, 2021, the Company held 324 investment securities, of which 18 were in an unrealized loss position for more than twelve months and 19 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.

	September 30, 2021				December 31, 2020
	Amortized		Estimated		Amortized		Estimated
	cost		fair value		cost		fair value
Available-for-sale
Due in one year or less	$	1,283	$	1,289	$	7,273	$	7,342
Due after one through five years		35,962		37,230		19,424		20,322
Due after five years through ten years		56,640		57,597		34,165		34,898
Due after ten years		44,930		46,199		50,947		53,028
Total	$	138,815	$	142,315	$	111,809	$	115,590