NOTE 2 – SECURITIES

 

The amortized cost and fair value of securities at period-end were as follows (dollars in thousands):

There were no sales of securities in the three and six month periods ended June 30, 2020 and 2019.

Contractual maturities of debt securities at June 30, 2020 were as follows (dollars in thousands):

Securities with unrealized losses 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, were as follows (dollars in thousands):

Other-Than-Temporary-Impairment

 

Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. At June 30, 2020, 8 securities available for sale with fair values totaling $7.7 million had unrealized losses totaling $42,000.  At June 30, 2020, there were no securities held to maturity which had unrealized losses.  Management has the intent and ability to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities.  In addition, management believes it is more likely than not that the Company will not be required to sell any of its investment securities before a recovery of cost.  Management determined that the unrealized losses for the three and six month periods ended June 30, 2020 and 2019 were attributable to changes in interest rates and not due to credit quality.  As such, no OTTI charges were necessary during each period.

 

Securities with a carrying value of approximately $5.1 million and $3.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at June 30, 2020 and December 31, 2019, respectively.