XML 22 R9.htm IDEA: XBRL DOCUMENT
v3.20.2

Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 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:
|  | June 30, 2020
|  | Amortized |  |  | Gross Unrealized |  |  | Fair
(dollars in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 500 |  |  |  | - |  |  |  | 2 |  |  |  | 498
SBA securities |  |  | 514 |  |  |  | - |  |  |  | 20 |  |  |  | 494
State and political subdivisions |  |  | 10,404 |  |  |  | 548 |  |  |  | 6 |  |  |  | 10,946
Asset-backed securities |  |  | 12,509 |  |  |  | - |  |  |  | 450 |  |  |  | 12,059
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLMC |  |  | 9,035 |  |  |  | 275 |  |  |  | - |  |  |  | 9,310
FNMA |  |  | 31,055 |  |  |  | 645 |  |  |  | 29 |  |  |  | 31,671
GNMA |  |  | 5,963 |  |  |  | 65 |  |  |  | 9 |  |  |  | 6,019
Total mortgage-backed securities |  |  | 46,053 |  |  |  | 985 |  |  |  | 38 |  |  |  | 47,000
Total investment securities available for sale |  | $ | 69,980 |  |  |  | 1,533 |  |  |  | 516 |  |  |  | 70,997
|  | 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 June 30, 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. 11
|  | June 30, 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 |  | $ | - |  |  | - |  |  | 498 |  |  | 0.43 | % |  | - |  |  | - |  |  | - |  |  | - |  |  | 498 |  |  | 0.43 | %
SBA securities |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 494 |  |  | 0.97 | % |  | 494 |  |  | 0.97 | %
State and political subdivisions |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,985 |  |  | 2.99 | % |  | 8,961 |  |  | 2.71 | % |  | 10,946 |  |  | 2.76 | %
Asset-backed securities |  |  | - |  |  | - |  |  | - |  |  | - |  |  | 1,304 |  |  | 0.84 | % |  | 10,755 |  |  | 1.05 | % |  | 12,059 |  |  | 1.02 | %
Mortgage-backed securities |  |  | - |  |  | - |  |  | 3,039 |  |  | 1.81 | % |  | 9,354 |  |  | 2.04 | % |  | 34,607 |  |  | 1.71 | % |  | 47,000 |  |  | 1.78 | %
Total |  | $ | - |  |  | - |  |  | 3,537 |  |  | 1.62 | % |  | 12,643 |  |  | 2.06 | % |  | 54,817 |  |  | 1.73 | % |  | 70,997 |  |  | 1.77 | %
|  | 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 June 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
|  | June 30, 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 |  | $ | 498 |  | $ | 2 |  |  | - |  | $ | - |  | $ | - |  |  | 1 |  | $ | 498 |  | $ | 2
SBA securities |  |  | - |  |  | - |  |  | - |  |  | 1 |  |  | 494 |  |  | 20 |  |  | 1 |  |  | 494 |  |  | 20
State and political subdivisions |  |  | 1 |  |  | 1,078 |  |  | 6 |  |  | - |  |  | - |  |  | - |  |  | 1 |  |  | 1,078 |  |  | 6
Asset-backed securities |  |  | 5 |  |  | 5,501 |  |  | 220 |  |  | 5 |  |  | 6,559 |  |  | 230 |  |  | 10 |  |  | 12,060 |  |  | 450
Mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FNMA |  |  | 3 |  |  | 1,336 |  |  | 6 |  |  | 3 |  |  | 2,317 |  |  | 23 |  |  | 6 |  |  | 3,653 |  |  | 29
GNMA |  |  | 1 |  |  | 2,483 |  |  | 9 |  |  | - |  |  | - |  |  | - |  |  | 1 |  |  | 2,483 |  |  | 9
Total |  |  | 11 |  | $ | 10,896 |  | $ | 243 |  |  | 9 |  | $ | 9,370 |  | $ | 273 |  |  | 20 |  | $ | 20,266 |  | $ | 516
|  | 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 June 30, 2020, the Company had 11 individual investments with a fair market value of $10.9 million that were in an unrealized loss position for less than 12 months and nine individual investments with a fair market value of $9.4 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. 12 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) |  | June 30, 2020 |  |  | December 31, 2019
Federal Home Loan Bank stock |  | $ | 2,041 |  |  |  | 6,386
Other investments |  |  | 166 |  |  |  | 159
Investment in Trust Preferred securities |  |  | 403 |  |  |  | 403
Total other investments |  | $ | 2,610 |  |  |  | 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 June 30, 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.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration