Investment Securities

12 Months Ended

Dec. 31, 2020

The carrying values and approximate fair values of investment securities at the periods indicated are presented below:


(In Thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
December 31, 2020
Securities available for sale
U.S. Treasury and government sponsored entities	$173,318	$1,330	($47)	$174,601
Municipal securities	820	36	—	856

Corporate bonds	29,951	546	(5)	30,492
Collateralized loan obligations	41,782	44	(142)	41,684
Total securities available for sale	$245,871	$1,956	($194)	$247,633
Securities held to maturity
Corporate bonds	$10,000	$—	$—	$10,000
Total securities held to maturity	$10,000	$—	$—	$10,000
December 31, 2019
Securities available for sale
U.S. Treasury and government sponsored entities	$210,756	$1,133	($37)	$211,852
Municipal securities	3,288	9	—	3,297
Corporate bonds	34,764	302	—	35,066
Collateralized loan obligations	25,980	—	(57)	25,923

Total securities available for sale	$274,788	$1,444	($94)	$276,138

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2020 and 2019, were as follows:


	Less Than 12 Months		More Than 12 Months		Total
(In Thousands)	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
2020
Securities Available for Sale
U.S. Treasury and government sponsored entities	$31,270	($47)	$—	$—	$31,270	($47)
Corporate bonds	3,198	(5)	—	—	3,198	(5)

Collateralized loan obligations	23,670	(118)	2,967	(24)	26,637	(142)


Total	$58,138	($170)	$2,967	($24)	$61,105	($194)
2019
Securities Available for Sale
U.S. Treasury and government sponsored entities	$39,797	($33)	$2,996	($4)	$42,793	($37)



Collateralized loan obligations	14,972	(17)	7,951	(40)	22,923	(57)
Total	$54,769	($50)	$10,947	($44)	$65,716	($94)

The unrealized losses on investments in both periods were caused by changes in interest rates. At December 31, 2020 and 2019, there were 12 and 8 available for sale securities in an unrealized loss position, respectively, that have been in a loss position for less than twelve months. There were 1 and 3 securities with unrealized losses at December 31, 2020 and 2019, respectively, that have been at a loss position for more than twelve months. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. The Company does not intend to sell, nor is it more likely than not that it will be required to sell, securities whose market value is less than carrying value. Because it is more likely than not that the Company will hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired.

At December 31, 2020 and 2019, $77.9 million and $30.6 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and fair values of available for sale and held to maturity debt securities at December 31, 2020, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


(In Thousands)	Amortized Cost	Fair Value	Weighted Average Yield
U.S. Treasury and government sponsored entities
Within 1 year	$44,044	$44,601	2.06	%
1-5 years	129,274	130,000	0.82	%

Total	$173,318	$174,601	1.14	%






Corporate bonds
Within 1 year	$2,241	$2,257	1.23	%
1-5 years	27,710	28,235	1.36	%
5-10 years	10,000	10,000	5.00	%
Total	$39,951	$40,492	2.26	%
Collateralized loan obligations
5-10 years	$8,783	$8,720	1.70	%
Over 10 years	32,999	32,964	1.60	%
Total	$41,782	$41,684	1.62	%
Municipal securities

1-5 years	820	856	2.14	%

Total	$820	$856	2.14	%

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2020, 2019, and 2018, respectively, are as follows:


(In Thousands)	Proceeds	Gross Gains	Gross Losses
2020
Available for sale securities	$—	$—	$—
2019
Available for sale securities	$4,219	$23	$—
2018
Available for sale securities	$—	$—	$—

A summary of interest income for the years ending December 31, 2020, 2019, and 2018 on available for sale investment securities is as follows:


(In Thousands)	2020	2019	2018
U.S. Treasury and government sponsored entities	$3,396	$4,170	$3,682

Other	1,354	2,282	1,532
Total taxable interest income	$4,750	$6,452	$5,214
Municipal securities	$82	$120	$267
Total tax-exempt interest income	$82	$120	$267
Total	$4,832	$6,572	$5,481