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Investment Securities
 6 Months Ended
Jun. 30, 2023
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, 2023 
   Amortized   Gross Unrealized   Fair 
(dollars in thousands)  Cost   Gains   Losses   Value 
Available for sale                    
Corporate bonds  $2,160    -    286    1,874 
US treasuries    999    -    124    875 
US government agencies   13,009    -    2,199    10,810 
State and political subdivisions   22,774    -    3,435    19,339 
Asset-backed securities   5,697    -    129    5,568 
Mortgage-backed securities                    
FHLMC    23,628    -    3,730    19,898 
FNMA    34,028    -    5,417    28,611 
GNMA    5,341    -    768    4,573 
Total mortgage-backed securities   62,997    -    9,915    53,082 
Total investment securities available for sale  $107,636    -    16,088    91,548 

 

   December 31, 2022 
   Amortized   Gross Unrealized   Fair 
   Cost   Gains   Losses   Value 
Available for sale                    
Corporate bonds  $2,172    -    289    1,883 
US treasuries   999    -    128    871 
US government agencies   13,007    -    2,390    10,617 
State and political subdivisions   22,910    -    4,004    18,906 
Asset-backed securities   6,435    -    206    6,229 
Mortgage-backed securities                    
FHLMC   24,086    -    3,745    20,341 
FNMA   35,141    -    5,520    29,621 
GNMA   5,573    -    694    4,879 
Total mortgage-backed securities   64,800    -    9,959    54,841 
Total investment securities available for sale  $110,323    -    16,976    93,347 

Contractual maturities and yields on the Company’s investment securities at June 30, 2023 and December 31, 2022 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.

 

                                                  
                     
               June 30, 2023 
   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   $-    -   $-    -   $1,874    2.00%  $-    -   $1,874    2.00%
US treasuries    -    -    875    1.27%   -    -    -    -    875    1.27%
US government agencies    -    -    3,253    0.85%   7,557    1.55%   -    -    10,810    1.34%
State and political subdivisions    -    -    885    1.95%   5,079    1.81%   13,375    2.17%   19,339    2.06%
Asset-backed securities    -    -    -    -    392    5.74%   5,176    6.23%   5,568    6.20%
Mortgage-backed securities    -    -    4,780    1.17%   5,320    1.59%   42,982    1.97%   53,082    1.86%
Total investment securities   $-    -   $9,793    1.14%  $20,222    1.75%  $61,533    2.37%  $91,548    2.10%

 

               December 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   $-    -   $-    -   $1,883    2.00%  $-    -   $1,883    2.00%
US treasuries    -    -    -    -    871    1.27%   -    -    871    1.27%
US government agencies    -    -    3,223    0.85%   7,394    1.55%   -    -    10,617    1.34%
State and political subdivisions    -    -    460    2.13%   5,382    1.80%   13,064    2.16%   18,906    2.05%
Asset-backed securities    -    -    -    -    554    4.77%   5,675    5.14%   6,229    5.10%
Mortgage-backed securities    -    -    4,594    1.13%   3,959    1.60%   46,288    1.90%   54,841    1.82%
Total investment securities   $-    -   $8,277    1.08%  $20,043    1.75%  $65,027    2.24%  $93,347    2.03%

The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

                                             
             
           June 30, 2023 
   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   $1,874   $286    1   $1,874   $286 
US treasuries   -    -    -    1    875    124    1    875    124 
US government agencies   -    -    -    10    10,810    2,199    10    10,810    2,199 
State and political subdivisions   3    1,216    24    29    18,123    3,411    32    19,339    3,435 
Asset-backed   1    393    1    7    5,175    128    8    5,568    129 
Mortgage-backed securities                                              
FHLMC    2    2,863    62    26    17,035    3,668    28    19,898    3,730 
FNMA    1    5    1    29    28,606    5,416    30    28,611    5,417 
GNMA    -    -    -    7    4,573    768    7    4,573    768 
Total investment securities    7   $4,477   $88    110   $87,071   $16,000    117   $91,548   $16,088 
                                              

 

                                     
                       December 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   $1,883   $289    1   $1,883   $289 
US treasuries   -    -    -    1    871    128    1    871    128 
US government agencies   -    -    -    10    10,617    2,390    10    10,617    2,390 
State and political subdivisions   10    5,101    763    22    13,805    3,241    32    18,906    4,004 
Asset-backed   5    4,291    135    3    1,938    71    8    6,229    206 
Mortgage-backed securities                                             
FHLMC   4    3,712    155    17    16,629    3,590    21    20,341    3,745 
FNMA   9    2,208    201    28    27,413    5,319    37    29,621    5,520 
GNMA   1    103    7    6    4,776    687    7    4,879    694 
Total investment securities   29   $15,415   $1,261    88   $77,932   $15,715    117   $93,347   $16,976 

At June 30, 2023 the Company had 117 individual investments that were in an unrealized loss position. 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. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. As such, there is no allowance for credit losses on available for sale securities recognized as of June 30, 2023.

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

        
         
(dollars in thousands)  June 30, 2023   December 31, 2022 
Federal Home Loan Bank stock  $9,890    9,250 
Other nonmarketable investments   2,257    1,180 
Investment in Trust Preferred subsidiaries   403    403 
Total other investments  $12,550    10,833 

The Company has evaluated other investments for impairment and determined that the other investments are not impaired as of June 30, 2023 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.