Investment Securities

9 Months Ended

Sep. 30, 2019

Investments Debt And Equity Securities [Abstract]

4.	INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity as of September 30, 2019 and December 31, 2018 were as follows:

	Available-for-Sale
	September 30, 2019
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	47,107	$	321	$	(320	)	$	47,108
Commercial		45,496		46		(485	)		45,057
Obligations of states and political subdivisions		4,199		106		—			4,305
U.S. Treasury securities		80		—		—			80
Total	$	96,882	$	473	$	(805	)	$	96,550

	Held-to-Maturity
	September 30, 2019
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	9,722	$	1	$	(83	)	$	9,640
Obligations of U.S. government-sponsored agencies		6,410		—		(29	)		6,381
Obligations of states and political subdivisions		1,627		13		—			1,640
Total	$	17,759	$	14	$	(112	)	$	17,661

	Available-for-Sale
	December 31, 2018
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	73,859	$	113	$	(1,517	)	$	72,455
Commercial		56,101		10		(1,822	)		54,289
Obligations of states and political subdivisions		5,617		51		(4	)		5,664
U.S. Treasury securities		79		—		—			79
Total	$	135,656	$	174	$	(3,343	)	$	132,487

	Held-to-Maturity
	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	11,716	$	—	$	(349	)	$	11,367
Obligations of U.S. government-sponsored agencies		8,026		—		(244	)		7,782
Obligations of states and political subdivisions		1,720		—		(17	)		1,703
Total	$	21,462	$	—	$	(610	)	$	20,852

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of September 30, 2019 are presented in the following table:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Maturing within one year	$	102	$	103	$	—	$	—
Maturing after one to five years		20,916		20,843		3,359		3,365
Maturing after five to ten years		43,510		43,446		7,250		7,194
Maturing after ten years		32,354		32,158		7,150		7,102
Total	$	96,882	$	96,550	$	17,759	$	17,661

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following table reflects gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of September 30, 2019 and December 31, 2018.

	Available-for-Sale
	September 30, 2019
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	16,466	$	(135	)	$	11,030	$	(185	)
Commercial		4,140		(10	)		32,825		(475	)
U.S. Treasury securities		80		—			—		—
Total	$	20,686	$	(145	)	$	43,855	$	(660	)

	Held-to-Maturity
	September 30, 2019
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	1,522	$	(9	)	$	7,902	$	(74	)
Obligations of U.S. government-sponsored agencies		1,403		(8	)		4,979		(21	)
Obligations of states and political subdivisions		—		—			503		—
Total	$	2,925	$	(17	)	$	13,384	$	(95	)

	Available-for-Sale
	December 31, 2018
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	9,417	$	(87	)	$	53,507	$	(1,430	)
Commercial		461		(3	)		53,430		(1,819	)
Obligations of states and political subdivisions		879		(2	)		420		(2	)
U.S. Treasury securities		79		—			—		—
Total	$	10,836	$	(92	)	$	107,357	$	(3,251	)

	Held-to-Maturity
	December 31, 2018
	Less than 12 Months				12 Months or More
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	—	$	—	$	11,367	$	(349	)
Obligations of U.S. government-sponsored agencies		—		—		7,782		(244	)
Obligations of states and political subdivisions		770		—		933		(17	)
Total	$	770	$	—	$	20,082	$	(610	)

Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: (i) the length of time and the extent to which fair value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether the Company intends to sell the securities; and (iv) whether it is more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases.

As of September 30, 2019, 74 debt securities had been in a loss position for more than 12 months, and 39 debt securities had been in a loss position for less than 12 months. As of December 31, 2018, 153 debt securities had been in a loss position for more than 12 months, and 21 debt securities had been in a loss position for less than 12 months. As of both September 30, 2019 and December 31, 2018, the losses for all securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. Most of the securities in an unrealized loss position are residential or commercial mortgage-backed securities that are either direct obligations of the U.S. government or government-sponsored entities and, accordingly, have little associated credit risk. Further, the Company has the current intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments as of September 30, 2019 or December 31, 2018.

Investment securities with a carrying value of $55.4 million and $46.7 million as of September 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits and for other purposes.