NOTE 3 - SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost and fair value of the securities at December 31, 2019 and 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available for Sale
December 31, 2019
U.S. treasury notes	$	9,165	$	3	$	—	$	9,168
U.S. government agencies		23,716		60		(41)		23,735
States and political subdivisions		31,950		661		(22)		32,589
Mortgage-backed - residential		113,629		634		(272)		113,991
Mortgage-backed - commercial		50,092		406		(147)		50,351
Asset-backed		35,682		55		(241)		35,496
Total	$	264,234	$	1,819	$	(723)	$	265,330

December 31, 2018
U.S. treasury notes	$	4,032	$	—	$	(57)	$	3,975
U.S. government agencies		41,122		515		(459)		41,178
States and political subdivisions		64,196		503		(495)		64,204
Mortgage-backed - residential		150,704		159		(3,614)		147,249
Mortgage-backed - commercial		49,484		—		(921)		48,563
Asset-backed		10,234		56		(90)		10,200
Total	$	319,772	$	1,233	$	(5,636)	$	315,369

The amortized cost and fair value of securities at December 31, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately.


	Amortized		Fair
	Cost		Value
Due in one year or less	$	12,350	$	12,369
Due after one year through five years		18,624		18,638
Due after five years through ten years		17,902		18,186
Due after ten years		15,955		16,299
		64,831		65,492
Mortgage-backed - residential		113,629		113,991
Mortgage-backed - commercial		50,092		50,351
Asset-backed		35,682		35,496
Total	$	264,234	$	265,330

Proceeds from sales of securities during 2019 and 2018 were $79.6 million and $26.7 million. Gross gains of $896 thousand and $82 thousand and gross losses of $39 thousand and $147 thousand, were realized on those sales, respectively. The tax provision related to these realized gains and losses was $180 thousand and $(14) thousand, respectively.

Securities with an approximate carrying value of $190.7 million and $264.1 million at December 31, 2019 and 2018, were pledged to secure public deposits, trust funds, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

Securities with unrealized losses at year end 2019 and 2018 not recognized in income are as follows:

December 31, 2019


	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Description of Securities	Value		Loss		Value		Loss		Value		Loss
U.S. government agencies	$	6,171	$	(18)	$	4,396	$	(23)	$	10,567	$	(41)
States and political subdivisions		859		(3)		1,199		(19)		2,058		(22)
Mortgage-backed - residential		32,718		(129)		14,583		(143)		47,301		(272)
Mortgage-backed - commercial		5,760		(25)		10,625		(122)		16,385		(147)
Asset-backed		21,786		(150)		6,962		(91)		28,748		(241)
Total temporarily impaired	$	67,294	$	(325)	$	37,765	$	(398)	$	105,059	$	(723)

December 31, 2018


	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Description of Securities	Value		Loss		Value		Loss		Value		Loss
U.S. treasury notes	$	—	$	—	$	3,975	$	(57)	$	3,975	$	(57)
U.S. government agencies		—		—		21,102		(459)		21,102		(459)
States and political subdivisions		8,007		(125)		25,540		(370)		33,547		(495)
Mortgage-backed - residential		19,250		(144)		112,369		(3,470)		131,619		(3,614)
Mortgage-backed - commercial		—		—		45,949		(921)		45,949		(921)
Asset-backed		1,920		(90)		—		—		1,920		(90)
Total temporarily impaired	$	29,177	$	(359)	$	208,935	$	(5,277)	$	238,112	$	(5,636)

The Company evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

Unrealized losses on securities have not been recognized into income because the issues are of high credit quality, management does not intend to sell and it is more likely than not that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the securities approach maturity.

At December 31, 2019, eight U.S. government agency securities have unrealized losses of 0.5% from their amortized cost, eight commercial mortgage backed securities have unrealized losses of 0.9% from their amortized cost basis, thirty-two residential mortgage backed securities have unrealized losses of 0.6% from their amortized cost basis, five states and municipals have unrealized losses of 1.1% from their amortized cost basis and thirteen asset-backed securities which has an unrealized loss of 0.8%. Management believes the declines in fair value from these and other securities are largely due to changes in interest rates. The Company believes there is no other-than-temporary impairment and does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.