2.SECURITIES

SECURITIES AVAILABLE FOR SALE

Period-end securities are as follows:

(in thousands)


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Available for Sale
March 31, 2020
U.S. treasury notes	$	9,142	$	194	$	—	$	9,336
U.S. government agencies		17,732		202		(14)		17,920
States and political subdivisions		28,286		602		(12)		28,876
Mortgage-backed - residential		106,857		3,133		—		109,990
Mortgage-backed - commercial		48,436		320		(513)		48,243
Asset-backed		35,396		37		(2,611)		32,822
Total	$	245,849	$	4,488	$	(3,150)	$	247,187

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

The amortized cost and fair value of securities as of March 31, 2020 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. Further discussion concerning Fair Value Measurements can be found in Note 7.


	Amortized		Fair
	Cost		Value
Due in one year or less	$	8,314	$	8,391
Due after one year through five years		17,129		17,389
Due after five years through ten years		14,040		14,298
Due after ten years		15,677		16,054
		55,160		56,132
Mortgage-backed - residential		106,857		109,990
Mortgage-backed - commercial		48,436		48,243
Asset-backed		35,396		32,822
Total	$	245,849	$	247,187

Proceeds from the sale of available for sale securities for the first three months of 2020 and 2019 were $2.1 million and $16.3 million. Gross gains of $118 thousand and $109 thousand and gross losses of $6 thousand and $15 were realized on those sales, respectively. The tax provision related to these realized net gains was $23 thousand and $20 thousand, respectively.

Securities with unrealized losses at March 31, 2020 and at December 31, 2019 not recognized in income are as follows:

March 31, 2020


	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	$	—	$	—	$	1,295	$	(14)	$	1,295	$	(14)
States and political subdivisions		1,208		(12)		—		—		1,208		(12)
Mortgage-backed - commercial		23,420		(463)		6,237		(50)		29,657		(513)
Asset-backed		23,785		(1,895)		6,336		(716)		30,121		(2,611)
Total temporarily impaired	$	48,413	$	(2,370)	$	13,868	$	(780)	$	62,281	$	(3,150)

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)

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, we may consider many factors including, (1) whether the securities are issued by the federal government or its agencies, (2) whether downgrades by bond rating agencies have occurred, (3) the results of reviews of the issuer’s financial condition and near-term prospects, (4) the length of time and the extent to which the fair value has been less than cost, and (5) whether we intend to sell the investment security or more likely than not will be required to sell the investment security before its anticipated recovery.

Unrealized losses on securities included in the tables above have not been recognized into income because (1) all rated securities are investment grade and are of high credit quality, (2) management does not intend to sell and it is more likely than not that management would not be required to sell the securities prior to their anticipated recovery, (3) management believes the decline in fair value is largely due to changes in interest rates and (4) management believes the declines in fair value are temporary. The Company believes the fair value will recover as the securities approach maturity.