Investment Securities

12 Months Ended

Dec. 31, 2020

Investments Debt And Equity Securities [Abstract]

3.	INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity as of December 31, 2020 and 2019 were as follows:

	Available-for-Sale
	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	24,680	$	865	$	(8	)	$	25,537
Commercial		40,849		780		(142	)		41,487
Obligations of states and political subdivisions		4,971		137		—			5,108
Corporate notes		2,711		73		—			2,784
U.S. Treasury securities		10,078		—		(1	)		10,077
Total	$	83,289	$	1,855	$	(151	)	$	84,993

	Held-to-Maturity
	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	4,302	$	75	$	—	$	4,377
Obligations of U.S. government-sponsored agencies		1,120		34		—		1,154
Obligations of states and political subdivisions		1,007		21		—		1,028
Total	$	6,429	$	130	$	—	$	6,559

	Available-for-Sale
	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	46,182	$	372	$	(209	)	$	46,345
Commercial		43,686		73		(386	)		43,373
Obligations of states and political subdivisions		4,123		95		—			4,218
U.S. Treasury securities		80		—		—			80
Total	$	94,071	$	540	$	(595	)	$	94,016

	Held-to-Maturity
	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	8,923	$	2	$	(46	)	$	8,879
Obligations of U.S. government-sponsored agencies		4,324		5		(10	)		4,319
Obligations of states and political subdivisions		1,093		15		—			1,108
Total	$	14,340	$	22	$	(56	)	$	14,306

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of December 31, 2020 are presented in the following table:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Maturing within one year	$	11,324	$	11,330	$	—	$	—
Maturing after one to five years		4,216		4,372		763		777
Maturing after five to ten years		39,030		40,211		2,716		2,770
Maturing after ten years		28,719		29,080		2,950		3,012
Total	$	83,289	$	84,993	$	6,429	$	6,559

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following table reflects gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2020 and 2019.

	Available-for-Sale
	December 31, 2020
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	2,334	$	(1	)	$	1,019	$	(7	)
Commercial		2,630		(1	)		3,327		(141	)
U.S. Treasury securities		10,077		(1	)		—		—
Total	$	15,041	$	(3	)	$	4,346	$	(148	)

	Held-to-Maturity
	December 31, 2020
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	412	$	—	$	—	$	—
Total	$	412	$	—	$	—	$	—

	Available-for-Sale
	December 31, 2019
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	17,340	$	(66	)	$	10,094	$	(143	)
Commercial		3,794		(25	)		29,754		(361	)
U.S. Treasury securities		80		—			—		—
Total	$	21,214	$	(91	)	$	39,848	$	(504	)

	Held-to-Maturity
	December 31, 2019
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	685	$	—		$	6,405	$	(46	)
Obligations of U.S. government-sponsored agencies		846		(4	)		2,994		(6	)
Total	$	1,531	$	(4	)	$	9,399	$	(52	)

Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: (i) the length of time and the extent to which fair value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether the Company intends to sell the securities; and (iv) whether it is more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases.

As of December 31, 2020, nine debt securities had been in a loss position for more than 12 months, and 11 debt securities had been in a loss position for less than 12 months. As of December 31, 2019, 69 debt securities had been in a loss position for more than 12 months, and 35 debt securities had been in a loss position for less than 12 months. As of both December 31, 2020 and 2019, the losses for all securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. There was a substantial decrease in interest rates during the year ended December 31, 2020, including a 150-basis point reduction in the federal funds rate in March 2020. This resulted in significant increases in the fair value of debt securities and a corresponding decline in the number of securities in a loss position as of December 31, 2020 compared to December 31, 2019. Most of the securities in an unrealized loss position as of both December 31, 2020 and 2019 were residential or commercial mortgage-backed securities that are either direct obligations of the U.S. government or government-sponsored entities and, accordingly, have little associated credit risk. Further, the Company has the current intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments as of December 31, 2020 and 2019.

Investment securities with a carrying value of $72.9 million and $51.7 million as of December 31, 2020 and 2019, respectively, were pledged to secure public deposits and for other purposes.