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Investment Securities

3 Months Ended

Mar. 31, 2022

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, 2022
		Amortized				Gross Unrealized								Fair
(dollars in thousands)		Cost				Gains				Losses				Value
Available for sale
Corporate bonds		$	2,191				-				125				2,066
US treasuries			999				-				65				934
US government agencies			13,005				-				1,187				11,818
State and political subdivisions			23,202				26				1,587				21,641
Asset-backed securities			8,423				4				76				8,351
Mortgage-backed securities
FHLMC			22,138				-				1,846				20,292
FNMA			37,907				-				2,816				35,091
GNMA			7,206				-				421				6,785
Total mortgage-backed securities			67,251				-				5,083				62,168
Total investment securities available for sale		$	115,071				30				8,123				106,978

		December 31, 2021
		Amortized				Gross Unrealized								Fair
		Cost				Gains				Losses				Value
Available for sale
Corporate bonds		$	2,198				-				10				2,188
US treasuries			999				-				7				992
US government agencies			14,504				1				336				14,169
SBA securities			429				9				-				438
State and political subdivisions			24,887				549				260				25,176
Asset-backed securities			10,136				45				17				10,164
Mortgage-backed securities
FHLMC			23,057				102				494				22,665
FNMA			40,924				235				660				40,499
GNMA			4,084				3				97				3,990
Total mortgage-backed securities			68,065				340				1,251				67,154
Total investment securities available for sale		$	121,218				944				1,881				120,281

Contractual maturities and yields on the Company’s investment securities at March 31, 2022 and December 31, 2021 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, 2022
		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
Corporate bonds		$	-				-			$	-				-			$	2,066				1.99	%		$	-				-			$	2,066				1.99	%
US treasuries			-				-				-				-				934				1.27	%			-				-				934				1.27	%
US government agencies			-				-				954				0.45	%			8,176				1.31	%			2,688				1.79	%			11,818				1.35	%
State and political subdivisions			-				-				470				2.13	%			4,859				1.62	%			16,312				2.19	%			21,641				2.06	%
Asset-backed securities			-				-				-				-				1,412				2.22	%			6,939				1.08	%			8,351				1.27	%
Mortgage-backed securities			-				-				3,422				1.22	%			5,196				1.43	%			53,550				1.50	%			62,168				1.47	%
Total		$	-				-			$	4,846				1.16	%		$	22,643				1.52	%		$	79,489				1.61	%		$	106,978				1.57	%

		December 31, 2021
		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
Corporate bonds		$	-				-			$	-				-			$	2,188				1.98	%		$	-				-			$	2,188				1.98	%
US treasuries			-				-				-				-				992				1.27	%			-				-				992				1.27	%
US government agencies			-				-				2,481				0.36	%			8,756				1.31	%			2,932				1.79	%			14,169				1.24	%
SBA securities			-				-				-				-				-				-				438				1.01	%			438				1.01	%
State and political subdivisions			-				-				471				2.13	%			4,282				1.61	%			20,423				2.21	%			25,176				2.11	%
Asset-backed securities			-				-				-				-				1,614				1.79	%			8,550				0.97	%			10,164				1.10	%
Mortgage-backed securities			387				2.10	%			4,411				1.29	%			9,121				1.59	%			53,235				1.38	%			67,154				1.40	%
Total		$	387				2.10	%		$	7,363				1.03	%		$	26,953				1.53	%		$	85,578				1.55	%		$	120,281				1.52	%

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at 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.


		March 31, 2022
		Less than 12 months												12 months or longer												Total
(dollars in thousands)		#				Fair value				Unrealized losses				#				Fair value				Unrealized losses				#				Fair value				Unrealized losses
Available for sale
Corporate bonds			1			$	2,066			$	125				-			$	-			$	-				1			$	2,066			$	125
US treasures			1				934				65				-				-				-				1				934				65
US government agencies			4				6,399				612				6				5,420				575				10				11,819				1,187
State and political subdivisions			20				15,206				1,033				8				4,461				554				28				19,667				1,587
Asset-backed			6				5,861				55				2				1,612				21				8				7,473				76
Mortgage-backed securities
FHLMC			14				15,318				1,286				5				4,974				560				19				20,292				1,846
FNMA			26				23,751				1,692				10				11,329				1,124				36				35,080				2,816
GNMA			4				4,107				212				3				2,678				209				7				6,785				421
Total			76			$	73,642			$	5,080				34			$	30,474			$	3,043				110			$	104,116			$	8,123


		December 31, 2021
		Less than 12 months												12 months or longer												Total
(dollars in thousands)		#				Fair value				Unrealized losses				#				Fair value				Unrealized losses				#				Fair value				Unrealized losses
Available for sale
Corporate bonds			1			$	2,188			$	10				-			$	-			$	-				1			$	2,188			$	10
US treasures			1				992				7				-				-				-				1				992				7
US government agencies			7				9,831				173				4				3,837				163				11				13,668				336
State and political subdivisions			9				7,821				193				6				2,909				67				15				10,730				260
Asset-backed			2				1,751				9				2				1,717				7				4				3,468				16
Mortgage-backed securities
FHLMC			10				13,705				303				4				4,644				192				14				18,349				495
FNMA			11				16,098				296				9				11,264				364				20				27,362				660
GNMA			2				655				4				3				3,215				93				5				3,870				97
Total			43			$	53,041			$	995				28			$	27,586			$	886				71			$	80,627			$	1,881

At March 31, 2022 the Company had 76 individual investments with a fair market value of $73.6 million that were in an unrealized loss position for less than 12 months and 34 individual investments with a fair market value of $30.5 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 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. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost.

Other investments are comprised of the following and are recorded at cost which approximates fair value.


(dollars in thousands)		March 31, 2022				December 31, 2021
Federal Home Loan Bank stock		$	1,256				1,241
Other nonmarketable investments			2,445				2,377
Investment in Trust Preferred subsidiaries			403				403
Total other investments		$	4,104				4,021

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of March 31, 2022 and that ultimate recoverability of the par value of the investments is probable. All of the FHLB stock is used to collateralize advances with the FHLB.