Securities

3 Months Ended

Mar. 31, 2022

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:

	March 31, 2022
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Treasury securities	$	19,182	$	-	$	(1,287	)	$	17,895
Obligations of U.S. Government agencies		37,941		17		(711	)		37,247
Obligations of state and political subdivisions		72,566		249		(5,059	)		67,756
Mortgage-backed securities		90,968		101		(4,494	)		86,575
Money market investments		1,147		-		-			1,147
Corporate bonds and other securities		28,191		25		(813	)		27,403
	$	249,995	$	392	$	(12,364	)	$	238,023

	December 31, 2021
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Treasury securities	$	15,052	$	-	$	(148	)	$	14,904
Obligations of U.S. Government agencies		38,651		75		(168	)		38,558
Obligations of state and political subdivisions		64,132		1,948		(277	)		65,803
Mortgage-backed securities		88,511		1,348		(801	)		89,058
Money market investments		2,413		-		-			2,413
Corporate bonds and other securities		23,441		261		(117	)		23,585
	$	232,200	$	3,632	$	(1,511	)	$	234,321

The amortized cost and fair value of securities by contractual maturity are shown below.

	March 31, 2022
(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	200	$	197
Due after one year through five years		16,646		16,333
Due after five through ten years		77,566		73,703
Due after ten years		154,436		146,643
Other securities, restricted		1,147		1,147
	$	249,995	$	238,023

The Company did not realize any gains or losses on the sale of investment securities during the three months ended March 31, 2022 and 2021, respectively.

The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired as of March 31, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:

	March 31, 2022
	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	$	1,287	$	17,895	$	-	$	-	$	1,287	$	17,895
Obligations of U.S. Government agencies		643		28,149		68		4,668		711		32,817
Obligations of state and political subdivisions		4,628		52,989		431		3,820		5,059		56,809
Mortgage-backed securities		3,733		62,853		761		7,408		4,494		70,261
Corporate bonds and other securities		761		18,189		52		948		813		19,137
Total securities available-for-sale	$	11,052	$	180,075	$	1,312	$	16,844	$	12,364	$	196,919

	December 31, 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	$	148	$	14,904	$	-	$	-	$	148	$	14,904
Obligations of U.S. Government agencies		131		19,181		37		5,042		168		24,223
Obligations of state and policitcal subdivisions		277		20,673		-		-		277		20,673
Mortgage-backed securities		608		35,882		193		6,450		801		42,332
Corporate bonds and other securities		117		9,833		-		-		117		9,833
Total securities available-for-sale	$	1,281	$	100,473	$	230	$	11,492	$	1,511	$	111,965

The number of investments in an unrealized loss position as of March 31, 2022 and December 31, 2021 were 139 and 72, respectively. Certain investments within the Company’s portfolio had unrealized losses for more than twelve months at March 31, 2022 and December 31, 2021, as shown in the tables above. The primary cause of the temporary impairments in the Company’s investment security portfolio was increases in market interest rates. The Company concluded that no other-than-temporary impairment existed in its securities portfolio at March 31, 2022, and no other-than-temporary impairment loss has been recognized in net income during the first quarter of 2022, based primarily on the following: (i) changes in fair value were caused primarily by fluctuations in interest rates, (ii) there were no securities with unrealized losses that were significant relative to their carrying amounts, (iii) securities with unrealized losses had generally high credit quality, (iv) the Company intends to hold these investments until recovery of its investment and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and (v) issuers have continued to make timely payments of principal and interest.

Restricted Stock

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.