Investment Securities

6 Months Ended

Jun. 30, 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 June 30, 2020 and December 31, 2019.

			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Dollars in thousands)
At June 30, 2020:
Mortgage backed securities	$	28,977	$	1,009	$	—		$	29,986
Government agencies		2,470		—		(4	)		2,466
Corporate bonds		7,021		250		—			7,271
Total available for sale securities	$	38,468	$	1,259	$	(4	)	$	39,723
At December 31, 2019:
Mortgage backed 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 $1.3 million and $440,000 were recorded, net of deferred tax assets, as accumulated other comprehensive income within shareholders’ equity at June 30, 2020 and December 31, 2019, respectively.

The Company purchased 4 securities for $21.7 million and sold 6 securities for total proceeds of $7.7 million during the six months ended June 30, 2020. The Company did not purchase or sell available for sale investment securities during the six months ended June 30, 2019.

The following table summarizes securities with unrealized losses at June 30, 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
			Unrealized					Unrealized				Unrealized
(Dollars in thousands)	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
At June 30, 2020:
Mortgage backed securities	$	—	$	—		$	—	$	—	$	—	$	—
Government agencies		2,466		(4	)		—		—		2,466		(4	)
Corporate bonds		—		—			—		—		—		—
Total available for sale securities	$	2,466	$	(4	)	$	—	$	—	$	2,466	$	(4	)
At December 31, 2019:
Mortgage backed 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 June 30, 2020 the Company’s investment security portfolio consisted of 18 securities, one of which (a government agency security issued by the Small Business Administration) was in an unrealized loss position at quarter end. 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 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 June 30, 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 security issued by the Small Business Administration. One security was a Mortgage-Backed-Security. 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 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.