Investment Securities

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities

2. INVESTMENT SECURITIES

The following table summarizes the amortized cost and estimated fair value of securities available for sale at March 31, 2020 and December 31, 2019.

(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
At March 31, 2020:
Residential mortgage backed and government securities	$	23,763	$	760	$	—		$	24,523
Government agencies		2,987		4		—			2,991
Corporate bonds		7,009		—		(179	)		6,830
Total available for sale securities	$	33,759	$	764	$	(179	)	$	34,344
At December 31, 2019:
Residential mortgage backed and government securities	$	20,291	$	436	$	(5	)	$	20,722
Government agencies		7,824		9		—			7,833
Corporate bonds		—		—		—			—
Total available for sale securities	$	28,115	$	445	$	(5	)	$	28,555

Net unrealized gains on available for sale investment securities totaling $585,000 and $440,000 were recorded, net of deferred tax assets, as accumulated other comprehensive income within shareholders’ equity at March 31, 2020 and December 31, 2019, respectively.

The Company purchased 3 securities for $15.1 million and sold 6 securities for total proceeds of $7.7 million during the three months ended March 31, 2020. The Company did not purchase or sell available for sale investment securities during the three months ended March 31, 2019.

The following table summarizes securities with unrealized losses at March 31, 2020 and December 31, 2019 aggregated by major security type and length of time in a continuous unrealized loss position.

	Less Than 12 Months				More Than 12 Months					Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At March 31, 2020:
Residential mortgage backed and government securities	$	—	$	—	$	—	$	—		$	—	$	—
Government agencies		—		—		—		—			—		—
Corporate bonds		—		—		6,830		(179	)		6,830		(179	)
Total available for sale securities	$	—	$	—	$	6,830	$	(179	)	$	6,830	$	(179	)
At December 31, 2019:
Residential mortgage backed and government securities	$	481	$	5	$	—	$	—		$	481	$	5
Government agencies		1,598		—		—		—			1,598		—
Corporate bonds		—		—		—		—			—		—
Total available for sale securities	$	2,079	$	5	$	—	$	—		$	2,079	$	5

At March 31 2020, the Company’s investment security portfolio consisted of 18 securities, two of which were in an unrealized loss position at quarter end. Both securities were corporate securities and investment grade ratings. Management believes that changes in the market value since purchase are primarily attributable to changes in interest rates and relative illiquidity. Because the Company does not intend to sell and unlikely to be required to sell until a recovery of fair value, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at March 31, 2020.

At December 31, 2019, the Company’s investment security portfolio consisted of 21 securities, two of which were in an unrealized loss position at year end. One security was a government agency by the Small Business Administration. One security was Mortgage-Backed-Securities. Management believes that changes in the market value of its Mortgage-Backed-Securities since purchase are primarily attributable to changes in interest rates and relative illiquidity and not credit quality. Because the Company does not intend to sell and is unlikely to be required to sell until a recovery of fair value, which may be at maturity, the Company did not consider those investments to be other-than-temporarily impaired at December 31, 2019.