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v3.19.1

Investment Securities | 3 Months Ended
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Mar. 31, 2019
Investment Securities [Abstract] |
Investment Securities | NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows:
|  | March 31, 2019
|  | Amortized | Gross Unrealized |  | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 8,970 |  | 1 |  | 75 |  | 8,896
SBA securities |  |  | 3,441 |  | - |  | 52 |  | 3,389
State and political subdivisions |  |  | 8,061 |  | 127 |  | 13 |  | 8,175
Asset-backed securities |  |  | 9,504 |  | - |  | 78 |  | 9,426
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FHLMC |  |  | 11,873 |  | 147 |  | 135 |  | 11,885
FNMA |  |  | 27,777 |  | 45 |  | 364 |  | 27,458
GNMA |  |  | 4,154 |  | 3 |  | 86 |  | 4,071
Total mortgage-backed securities |  |  | 43,804 |  | 195 |  | 585 |  | 43,414
Total investment securities available for sale |  | $ | 73,780 |  | 323 |  | 803 |  | 73,300
|  | December 31, 2018
|  |  | Amortized | Gross Unrealized |  | Fair
|  |  | Cost |  | Gains |  | Losses |  | Value
Available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 8,975 |  | 1 |  | 194 |  | 8,782
SBA securities |  |  | 3,628 |  | - |  | 103 |  | 3,525
State and political subdivisions |  |  | 8,371 |  | 48 |  | 63 |  | 8,356
Asset-backed securities |  |  | 9,595 |  | 12 |  | 49 |  | 9,558
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FHLMC |  |  | 12,258 |  | 87 |  | 242 |  | 12,103
FNMA |  |  | 29,068 |  | 25 |  | 551 |  | 28,542
GNMA |  |  | 4,170 |  | 1 |  | 132 |  | 4,039
Total mortgage-backed securities |  |  | 45,496 |  | 113 |  | 925 |  | 44,684
Total |  | $ | 76,065 |  | 174 |  | 1,334 |  | 74,905
Contractual maturities and yields on the Company’s investment securities at March 31, 2019 and December 31, 2018 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | March 31, 2019
|  | Less than one year |  | One to five years |  | Five to ten years |  | Over ten years |  |  |  | Total
(dollars in thousands) |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | $ | - |  | - |  | 3,418 |  | 2.06% |  | 5,478 |  | 2.90% |  | - |  | - |  | 8,896 |  | 2.58%
SBA securities |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 3,389 |  | 2.78% |  | 3,389 |  | 2.78%
State and political subdivisions |  |  | - |  | - |  | 1,130 |  | 2.96% |  | 4,145 |  | 6.74% |  | 2,900 |  | 2.87% |  | 8,175 |  | 4.84%
Asset-backed securities |  |  | - |  | - |  | - |  | - |  | 1,776 |  | 3.21% |  | 7,651 |  | 3.26% |  | 9,426 |  | 3.25%
Mortgage-backed securities |  |  | - |  | - |  | 4,864 |  | 1.92% |  | 9,396 |  | 2.22% |  | 29,153 |  | 2.78% |  | 43,414 |  | 2.61%
Total |  | $ | - |  | - |  | 9,412 |  | 2.10% |  | 20,795 |  | 3.11% |  | 43,093 |  | 2.92% |  | 73,300 |  | 2.94%
|  | December 31, 2018
|  | Less than one year |  | One to five years |  | Five to ten years |  | Over ten years |  |  |  | Total
(dollars in thousands) |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | $ | - |  | - |  | 2,665 |  | 2.12% |  | 6,117 |  | 2.77% |  | - |  | - |  | 8,782 |  | 2.57%
SBA securities |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 3,525 |  | 2.72% |  | 3,525 |  | 2.72%
State and political subdivisions |  |  | - |  | - |  | 819 |  | 2.60% |  | 4,637 |  | 3.04% |  | 2,900 |  | 2.88% |  | 8,356 |  | 2.94%
Asset-backed securities |  |  | - |  | - |  | - |  | - |  | 1,862 |  | 3.22% |  | 7,696 |  | 3.29% |  | 9,558 |  | 3.27%
Mortgage-backed securities |  |  | - |  | - |  | 5,094 |  | 1.89% |  | 9,763 |  | 2.22% |  | 29,827 |  | 2.70% |  | 44,684 |  | 2.50%
Total |  | $ | - |  | - |  | 8,578 |  | 2.03% |  | 22,379 |  | 2.62% |  | 43,948 |  | 2.81% |  | 74,905 |  | 2.67%
The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at March 31, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
|  | March 31, 2019
|  | Less than 12 months |  | 12 months or longer |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
(dollars in thousands) |  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | 1 |  | $ | 499 |  | $ | 1 |  | 8 |  | $ | 7,147 |  | $ | 74 |  | 9 |  | $ | 7,646 |  | $ | 75
SBA securities |  | - |  |  | - |  |  | - |  | 2 |  |  | 3,389 |  |  | 52 |  | 2 |  |  | 3,389 |  |  | 52
State and political subdivisions |  | - |  |  | - |  |  | - |  | 4 |  |  | 1,561 |  |  | 13 |  | 4 |  |  | 1,561 |  |  | 13
Asset-backed securities |  | 5 |  |  | 7,651 |  |  | 70 |  | 1 |  |  | 1,775 |  |  | 8 |  | 6 |  |  | 9,426 |  |  | 78
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLMC |  | - |  |  | - |  |  | - |  | 10 |  |  | 7,218 |  |  | 135 |  | 10 |  |  | 7,218 |  |  | 135
FNMA |  | 1 |  |  | 887 |  |  | 7 |  | 22 |  |  | 20,143 |  |  | 357 |  | 23 |  |  | 21,030 |  |  | 364
GNMA |  | - |  |  | - |  |  | - |  | 3 |  |  | 2,947 |  |  | 86 |  | 3 |  |  | 2,947 |  |  | 86
Total |  | 7 |  | $ | 9,037 |  | $ | 78 |  | 50 |  | $ | 44,180 |  | $ | 725 |  | 57 |  | $ | 53,217 |  | $ | 803
|  | December 31, 2018
|  | Less than 12 months |  | 12 months or longer |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
(dollars in thousands) |  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | 1 |  | $ | 1,246 |  | $ | 3 |  | 8 |  | $ | 7,035 |  | $ | 191 |  | 9 |  | $ | 8,281 |  | $ | 194
SBA securities |  | - |  |  | - |  |  | - |  | 2 |  |  | 3,525 |  |  | 103 |  | 2 |  |  | 3,525 |  |  | 103
State and political subdivisions |  | - |  |  | - |  |  | - |  | 7 |  |  | 2,829 |  |  | 63 |  | 7 |  |  | 2,829 |  |  | 63
Asset-backed securities |  | 4 |  |  | 6,707 |  |  | 49 |  | - |  |  | - |  |  | - |  | 4 |  |  | 6,707 |  |  | 49
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLMC |  | - |  |  | - |  |  | - |  | 10 |  |  | 7,402 |  |  | 242 |  | 10 |  |  | 7,402 |  |  | 242
FNMA |  | 2 |  |  | 2,689 |  |  | 6 |  | 23 |  |  | 22,814 |  |  | 545 |  | 25 |  |  | 25,503 |  |  | 551
GNMA |  | 1 |  |  | 1,104 |  |  | 6 |  | 3 |  |  | 2,919 |  |  | 126 |  | 4 |  |  | 4,023 |  |  | 132
Total |  | 8 |  | $ | 11,746 |  | $ | 64 |  | 53 |  | $ | 46,524 |  | $ | 1,270 |  | 61 |  | $ | 58,270 |  | $ | 1,334
At March 31, 2019, the Company had seven individual investments with a fair market value of $9.0 million that were in an unrealized loss position for less than 12 months and 50 individual investments with a fair market value of $44.2 million that were in an unrealized loss position for 12 months or longer. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers the length of time and extent to which the fair value of available-for-sale debt securities have been less than cost to conclude that such securities are not other-than-temporarily impaired. The Company also considers other factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. As the Company has no intent to sell securities with unrealized losses and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of amortized cost, the Company has concluded that these securities are not impaired on an other-than-temporary basis. Other investments are comprised of the following and are recorded at cost which approximates fair value.
(dollars in thousands) |  | March 31, 2019 |  | December 31, 2018
Federal Home Loan Bank stock |  | $ | 2,774 |  | 3,587
Other investments |  |  | 132 |  | 131
Investment in Trust Preferred securities |  |  | 403 |  | 403
Total other investments |  | $ | 3,309 |  | 4,121
The Company has evaluated the Federal Home Loan Bank (“FHLB”) stock for impairment and determined that the investment in the FHLB stock is not other than temporarily impaired as of March 31, 2019 and that ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB.

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