NOTE 2 – SECURITIES

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2021
Available for Sale
U.S. Treasury and federal agency securities	$	62,993	$	196	$	(1,337	)	$	61,852
U.S. Agency MBS and CMOs		63,386		977		(600	)		63,763
Tax-exempt state and municipal bonds		41,915		1,581		(1	)		43,495
Taxable state and municipal bonds		59,108		1,357		(385	)		60,080
Corporate bonds and other debt securities		4,326		156		—			4,482
	$	231,728	$	4,267	$	(2,323	)	$	233,672
Held to Maturity
Tax-exempt state and municipal bonds	$	89,170	$	3,089	$	(120	)	$	92,139

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2020
Available for Sale
U.S. Treasury and federal agency securities	$	63,993	$	287	$	(170	)	$	64,110
U.S. Agency MBS and CMOs		63,652		1,376		(45	)		64,983
Tax-exempt state and municipal bonds		43,739		1,903		—			45,642
Taxable state and municipal bonds		55,383		1,801		(7	)		57,177
Corporate bonds and other debt securities		4,731		189		—			4,920
	$	231,498	$	5,556	$	(222	)	$	236,832
Held to Maturity
Tax-exempt state and municipal bonds	$	79,468	$	3,778	$	—		$	83,246

There were no sales of securities in the three month periods ended March 31, 2021 and 2020.

Contractual maturities of debt securities at March 31, 2021 were as follows (dollars in thousands):

	Held–to-Maturity Securities				Available-for-Sale Securities
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	24,515	$	24,632	$	25,807	$	25,992
Due from one to five years		31,050		32,008		60,710		62,555
Due from five to ten years		16,025		17,155		84,052		83,682
Due after ten years		17,580		18,344		61,159		61,443
	$	89,170	$	92,139	$	231,728	$	233,672

Securities with unrealized losses at March 31, 2021 and December 31, 2020, 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):

	Less than 12 Months					12 Months or More				Total
March 31, 2021	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for Sale
U.S. Treasury and federal agency securities	$	41,062	$	(1,337	)	$	—	$	—	$	41,062	$	(1,337	)
U.S. Agency MBS and CMOs		29,553		(600	)		—		—		29,553		(600	)
Tax-exempt state and municipal bonds		450		(1	)		—		—		450		(1	)
Taxable state and municipal bonds		16,583		(385	)		—		—		16,583		(385	)
Corporate bonds and other debt securities		—		—			—		—		—		—
Total	$	87,648	$	(2,323	)	$	—	$	—	$	87,648	$	(2,323	)

Held to Maturity
Tax-exempt state and municipal bonds	$	15,588	$	(120	)	$	—	$	—	$	15,588	$	(120	)

	Less than 12 Months					12 Months or More				Total
December 31, 2020	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for Sale
U.S. Treasury and federal agency securities	$	22,830	$	(170	)	$	—	$	—	$	22,830	$	(170	)
U.S. Agency MBS and CMOs		9,299		(45	)		—		—		9,299		(45	)
Tax-exempt state and municipal bonds		—		—			—		—		—		—
Taxable state and municipal bonds		2,336		(7	)		—		—		2,336		(7	)
Corporate bonds and other debt securities		—		—			—		—		—		—
Total	$	34,465	$	(222	)	$	—	$	—	$	34,465	$	(222	)

Held to Maturity
Tax-exempt state and municipal bonds	$	—	$	—		$	—	$	—	$	—	$	—

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 March 31, 2021, 70 securities available for sale with fair values totaling $87.7 million had unrealized losses totaling approximately $2.3 million. At March 31, 2021, seven securities held to maturity with fair value totaling $15.6 million had unrealized losses totaling approximately $120,000. 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 month periods ended March 31, 2021 and 2020 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 $6.1 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2021 and December 31, 2020, respectively.