Investment Securities

9 Months Ended

Sep. 30, 2021

Investments Debt And Equity Securities [Abstract]

(3) Investment Securities

Investment securities available-for-sale at September 30, 2021 and December 31, 2020 are as follows: (in thousands)


	Amortized		Gross Unrealized		Gross Unrealized			Estimated
September 30, 2021	Cost		Gains		Losses			Fair Value
U.S. Treasury securities	$	4,074	$	13	$	(4	)	$	4,083
Municipal securities - tax exempt		541		—		(8	)		533
Municipal securities - taxable		797		—		(8	)		789
U. S. Government sponsored enterprises		11,837		2		(133	)		11,706
Government agency mortgage-backed securities		20,258		263		(186	)		20,335
Corporate securities		6,717		16		(108	)		6,625
Total	$	44,224	$	294	$	(447	)	$	44,071
December 31, 2020
U. S. Government sponsored enterprises	$	11,870	$	1	$	(12	)	$	11,859
Government agency mortgage-backed securities		9,206		326		—			9,532
Corporate securities		2,715		—		(101	)		2,614
Total	$	23,791	$	327	$	(113	)	$	24,005

There were 23 securities in an unrealized loss position as of September 30, 2021 for less than 12 months. There were two securities in an unrealized loss position for 12 months or greater as of September 30, 2021. The unrealized losses on the debt securities arose due to changing interest rates and market conditions and are considered to be temporary because of acceptable investment grades and are reviewed regularly. Two of the securities are agency bonds and one is a U.S. Treasury bonds, so all of these are direct obligations of the U.S. Government. Twelve of the securities are mortgage backed bonds that have the direct or implied backing of the U.S. Government. Two of the bonds are municipal securities and the remaining eight securities are corporate securities that are either trust preferred securities or subordinated debentures where the Bank performs a credit review regularly and such review has raised no concerns. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis which may be at maturity.

The amortized cost and estimated fair value of investment securities available-for-sale at September 30, 2021, by contractual maturity, are shown below. Maturities of mortgage-backed securities will differ from contractual maturities because borrowers

may have the right to call or prepay certain obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories. (in thousands)


	Amortized		Estimated
	Cost		Fair Value
U.S. Treasury securities
Within 1 year	$	—	$	—
Greater than 1 to 5 years		—		—
Greater than 5 to 10 years		4,074		4,083
Greater than 10 years		—		—
Municipal securities - tax exempt
Within 1 year		—		—
Greater than 1 to 5 years		—		—
Greater than 5 to 10 years		—		—
Greater than 10 years		541		533
Municipal securities - taxable
Within 1 year		—		—
Greater than 1 to 5 years		—		—
Greater than 5 to 10 years		—		—
Greater than 10 years		797		789
Government agency securities
Within 1 year		—		—
Greater than 1 to 5 years		—		—
Greater than 5 to 10 years		—		—
Greater than 10 years		11,837		11,706
Corporate securities
Within 1 year		—		—
Greater than 1 to 5 years		—		—
Greater than 5 to 10 years		6,217		6,200
Greater than 10 years		500		425
		23,966		23,736
Government agency mortgage-backed securities		20,258		20,335
Total	$	44,224	$	44,071

No securities were sold during the three months or nine months ended September 30, 2021. No securities were sold during the three months ended September 30, 2020. During the nine months ended September 30, 2020, the Company sold available-for-sale securities with a book value of $1.7 million at a gain of $20,000.

Securities with a carrying value of approximately $1.5 million and $2.3 million were pledged to secure public deposits at September 30, 2021 and December 31, 2020, respectively.