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Investment Securities
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

NOTE 2 – Investment Securities

The amortized costs and fair value of investment securities are as follows:

     
March 31, 2020
Amortized       Gross Unrealized Fair
(dollars in thousands)       Cost Gains       Losses       Value
Available for sale
US government agencies $      500 - 1 499
SBA securities 519 - 18 501
State and political subdivisions 9,385 295 1 9,679
Asset-backed securities 12,929 - 643 12,286
Mortgage-backed securities
FHLMC 10,034 270 4 10,300
FNMA 33,057 702 135 33,624
GNMA 3,565 53 - 3,618
Total mortgage-backed securities 46,656 1,025 139 47,542
Total investment securities available for sale $ 69,989 1,320 802 70,507
 
December 31, 2019
Amortized Gross Unrealized Fair
      Cost       Gains          Losses       Value
Available for sale
US government agencies $      500 - 1 499
SBA securities 550 - 19 531
State and political subdivisions 4,205 3 24 4,184
Asset-backed securities 13,351 - 184 13,167
Mortgage-backed securities
FHLMC 10,609 14 15 10,608
FNMA 35,275 34 169 35,140
GNMA 3,581 5 21 3,565
Total mortgage-backed securities 49,465 53 205 49,313
Total $ 68,071 56 433 67,694

Contractual maturities and yields on the Company’s investment securities at March 31, 2020 and December 31, 2019 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, 2020
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 $      - - 499 1.11% - - - - 499 1.11%
SBA securities - - - - - - 501 2.39% 501 2.39%
State and political subdivisions - - - - 972 2.65% 8,707 2.86% 9,679 2.84%
Asset-backed securities - - - - 1,402 2.22% 10,884 2.45% 12,286 2.43%
Mortgage-backed securities - - 3,224 1.80% 8,263 2.05% 36,055 2.34% 47,542 2.25%
Total $ - - 3,723 1.71% 10,637 2.13% 56,147 2.44% 70,507 2.36%
 
December 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 $ - - 499 1.97% - - - - 499 1.97%
SBA securities - - - - - - 531 2.62% 531 2.62%
State and political subdivisions - - 808 2.81% 1,283 2.96% 2,093 2.67% 4,184 2.79%
Asset-backed securities - - - - 1,493 2.34% 11,674 2.61% 13,167 2.58%
Mortgage-backed securities - - 3,368 1.78% 7,638 2.00% 38,307 2.24% 49,313 2.17%
Total $ - - 4,675 1.98% 10,414 2.17% 52,605 2.34% 67,694 2.29%

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

     
March 31, 2020
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 - $      - $      - 1 $      499 $      1
SBA securities - - - 1 501 18 1 501 18
State and political subdivisions 1 505 1 - - - 1 505 1
Asset-backed securities 5 5,489 365 5 6,797 278 10 12,286 643
Mortgage-backed securities
FHLMC 1 258 4 - - - 1 258 4
FNMA - - - 4 2,778 135 4 2,778 135
Total 8 $ 6,751 $ 371 10 $ 10,076 $ 431 18 $ 16,827 $ 802
 
December 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 - $ - $ - 1 $ 499 $ 1
SBA securities - - - 1 531 19 1 531 19
State and political subdivisions 2 2,093 24 - - - 2 2,093 24
Asset-backed securities 5 5,921 68 5 7,246 116 10 13,167 184
Mortgage-backed securities
FHLMC 4 3,842 2 4 2,323 13 8 6,165 15
FNMA 14 15,500 67 11 9,462 102 25 24,962 169
GNMA 2 2,240 6 1 734 15 3 2,974 21
Total 28 $ 30,095 $ 168 22 $ 20,296 $ 265 50 $ 50,391 $ 433

At March 31, 2020, the Company had eight individual investments with a fair market value of $6.8 million that were in an unrealized loss position for less than 12 months and ten individual investments with a fair market value of $10.1 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, 2020       December 31, 2019
Federal Home Loan Bank stock $      4,803 6,386
Other investments 135 159
Investment in Trust Preferred securities 403 403
Total other investments $ 5,341 6,948

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, 2020 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.