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Securities
 6 Months Ended
Jun. 30, 2021
Securities [Abstract]  
Securities

Note 2. Securities



Amortized costs and fair values, with gross unrealized gains and losses, of securities available-for-sale as of the dates indicated are as follows:


   
June 30, 2021
  
  
(Dollars in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
(Losses)
    
Fair
Value
  
U.S. Treasury securities
  
$
9,052
    
$
-
    
$
(62
)
  
$
8,990
  
Obligations of U.S. Government agencies
    
38,636
      
226
      
(45
)
    
38,817
  
Obligations of state and political subdivisions
    
51,224
      
2,224
      
(176
)
    
53,272
  
Mortgage-backed securities
    
83,475
      
1,943
      
(393
)
    
85,025
  
Money market investments
    
3,893
      
-
      
-
      
3,893
  
Corporate bonds and other securities
    
23,043
      
219
      
(48
)
    
23,214
  
   
$
209,323
    
$
4,612
    
$
(724
)
  
$
213,211
  


   
December 31, 2020
  
  
(Dollars in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
(Losses)
    
Fair
Value
  
U.S. Treasury securities
  
$
6,980
    
$
63
    
$
-
    
$
7,043
  
Obligations of U.S. Government agencies
    
36,858
      
35
      
(197
)
    
36,696
  
Obligations of state and political subdivisions
    
43,517
      
2,478
      
-
      
45,995
  
Mortgage-backed securities
    
70,866
      
2,759
      
(124
)
    
73,501
  
Money market investments
    
4,743
      
-
      
-
      
4,743
  
Corporate bonds and other securities
    
18,295
      
158
      
(22
)
    
18,431
  
   
$
181,259
    
$
5,493
    
$
(343
)
  
$
186,409
  



The Company has a process in place to identify debt securities that could potentially have a credit or interest-rate related impairment that is other-than-temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues. On a quarterly basis, management reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. Management considers relevant facts and circumstances in evaluating whether a credit or interest-rate related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (a) the extent and length of time the fair value has been below cost; (b) the reasons for the decline in value; (c) the financial position and access to capital of the issuer, including the current and future impact of any specific events; and (d) for fixed maturity securities, the Company’s intent to sell a security or whether it is more-likely-than-not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.


The Company has not recorded impairment charges through income on securities for the six months ended June 30, 2021 or 2020.



The amortized cost and fair value of securities by contractual maturity are shown below:
   
June 30, 2021
 
 
(Dollars in thousands)
  
Amortized
Cost
    
Fair
Value
  
Due in one year or less
  
$
300
    
$
302
  
Due after one year through five years
    
9,929
      
10,073
  
Due after five through ten years
    
56,897
      
58,317
  
Due after ten years
    
138,304
      
140,626
  
Other securities, restricted
    
3,893
      
3,893
  
   
$
209,323
    
$
213,211
  



The following table summarizes the net realized gains and losses on the sale of investment securities duing the periods indicated:


    
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
(Dollars in thousands)
  
2021
    
2020
    
2021
    
2020
  
Securities Available-for-sale
                        
Realized gains on sales of securities
  
$
-
    
$
185
    
$
-
    
$
185
  
Realized losses on sales of securities
    
-
      
(1
)
    
-
      
(1
)
Net realized gain
  
$
-
    
$
184
    
$
-
    
$
184
  



The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:


   
June 30, 2021
  
   
Less than 12 months
    
12 months or more
    
Total
  
  
(Dollars in thousands)
  
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
  
U.S. Treasury securities
  
$
62
    
$
8,990
    
$
-
    
$
-
    
$
62
    
$
8,990
  
Obligations of U.S. Government agencies
    
10
      
3,908
      
35
      
5,674
      
45
      
9,582
  
Obligations of state and political subdivisions
    
176
      
10,181
      
-
      
-
      
176
      
10,181
  
Mortgage-backed securities
    
334
      
17,669
      
59
      
4,481
      
393
      
22,150
  
Corporate bonds and other securities
    
48
      
7,202
      
-
      
-
      
48
      
7,202
  
Total securities available-for-sale
  
$
630
    
$
47,950
    
$
94
    
$
10,155
    
$
724
    
$
58,105
  


   
December 31, 2020
  
   
Less than 12 months
    
12 months or more
    
Total
  
  
(Dollars in thousands)
  
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
    
Gross
Unrealized
Losses
    
Fair
Value
  
Obligations of U.S. Government agencies
  
$
8
    
$
2,810
    
$
189
    
$
17,191
    
$
197
    
$
20,001
  
Mortgage-backed securities
    
118
      
14,291
      
6
      
1,285
      
124
      
15,576
  
Corporate bonds and other securities
    
22
      
5,977
      
-
      
-
      
22
      
5,977
  
Total securities available-for-sale
  
$
148
    
$
23,078
    
$
195
    
$
18,476
    
$
343
    
$
41,554
  



The number of investments in an unrealized loss position as of June 30, 2021 and December 31, 2020 were 37 and 29, respectively. Certain investments within the Company’s portfolio had unrealized losses for more than twelve months at June 30, 2021 and December 31, 2020, as shown in the tables above. The unrealized losses were caused by changes in market interest rates and not a result of credit deterioration. Because the Company does not intend to sell the investments and management believes it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at June 30, 2021 or December 31, 2020.



Restricted Securities

The restricted security category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB), the Federal Reserve Bank (FRB), and Community Bankers’ Bank (CBB). These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB, FRB, and CBB stock are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered.