
	September 30, 2020								December 31, 2019
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale:
U.S. Treasuries	$	43,700	$	—	$	—	$	43,700	$	—	$	—	$	—	$	—
U.S. Government Agencies	—		—		—		—		16,380		15		(2)		16,393
Corporate debt securities	186,515		9,458		(723)		195,250		94,561		1,110		(302)		95,369
Municipal bonds	30,863		1,651		(3)		32,511		30,297		1,870		(14)		32,153
Collateralized mortgage obligations	5,428		136		(4)		5,560		16,400		40		(43)		16,397
Mortgage-backed securities	135,338		3,963		(3)		139,298		179,546		317		(238)		179,625
Total available for sale securities	$	401,844	$	15,208	$	(733)	$	416,319	$	337,184	$	3,352	$	(599)	$	339,937

Held to maturity:
U.S. Government Agencies	$	—	$	—	$	—	$	—	$	18,175	$	—	$	(32)	$	18,143
Municipal bonds	—		—		—		—		5,107		182		—		5,289
Mortgage-backed securities	—		—		—		—		63,297		200		(112)		63,385
Total held to maturity securities	$	—	$	—	$	—	$	—	$	86,579	$	382	$	(144)	$	86,817

First Guaranty sold securities in the held to maturity portfolio in the first quarter of 2020 in order to manage its interest rate and liquidity risk due to changes in economic conditions. First Guaranty sold $18.2 million in U.S. Government agency securities, $13.5 million in mortgage-backed securities and $0.2 million in municipal securities. The total gain on the sale of these securities was $0.1 million. First Guaranty terminated its held to maturity portfolio after these sales.

The scheduled maturities of securities at September 30, 2020, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to calls or prepayments. Mortgage-backed securities are not due at a single maturity because of amortization and potential prepayment of the underlying mortgages. For this reason they are presented separately in the maturity table below.


	At September 30, 2020
(in thousands)	Amortized Cost		Fair Value
Available for sale:
Due in one year or less	$	61,441	$	61,631
Due after one year through five years	78,391		82,244
Due after five years through 10 years	106,088		111,699
Over 10 years	15,158		15,887
Subtotal	261,078		271,461
Collateralized mortgage obligations	5,428		5,560
Mortgage-backed securities	135,338		139,298
Total available for sale securities	$	401,844	$	416,319

Held to maturity:
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through 10 years	—		—
Over 10 years	—		—
Subtotal	—		—
Mortgage-backed securities	—		—
Total held to maturity securities	$	—	$	—

At September 30, 2020, $206.7 million of First Guaranty's securities were pledged to secure public funds deposits and borrowings. The pledged securities had a market value of $206.7 million as of September 30, 2020.


						At September 30, 2020
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	3	$	43,700	$	—	—	$	—	$	—	3	$	43,700	$	—
U.S. Government Agencies	—	—		—		—	—		—		—	—		—
Corporate debt securities	28	13,741		(514)		7	1,693		(209)		35	15,434		(723)
Municipal bonds	3	198		(3)		—	—		—		3	198		(3)
Collateralized mortgage obligations	3	741		(4)		—	—		—		3	741		(4)
Mortgage-backed securities	9	185		(3)		—	—		—		9	185		(3)
Total available for sale securities	46	$	58,565	$	(524)	7	$	1,693	$	(209)	53	$	60,258	$	(733)

Held to maturity:
U.S. Government Agencies	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
Municipal bonds	—	—		—		—	—		—		—	—		—
Mortgage-backed securities	—	—		—		—	—		—		—	—		—
Total held to maturity securities	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—


						At December 31, 2019
	Less Than 12 Months					12 Months or More					Total
(in thousands)	Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses		Number of Securities	Fair Value		Gross Unrealized Losses
Available for sale:
U.S. Treasuries	—	$	—	$	—	—	$	—	$	—	—	$	—	$	—
U.S. Government Agencies	1	4,398		(1)		1	149		(1)		2	4,547		(2)
Corporate debt securities	42	21,269		(174)		12	3,184		(128)		54	24,453		(302)
Municipal bonds	9	4,285		(14)		—	—		—		9	4,285		(14)
Collateralized mortgage obligations	12	10,022		(43)		—	—		—		12	10,022		(43)
Mortgage-backed securities	57	91,753		(186)		9	12,121		(52)		66	103,874		(238)
Total available for sale securities	121	$	131,727	$	(418)	22	$	15,454	$	(181)	143	$	147,181	$	(599)

Held to maturity:
U.S. Government Agencies	2	$	2,177	$	(2)	8	$	15,965	$	(30)	10	$	18,142	$	(32)
Municipal bonds	—	—		—		1	50		—		1	50		—
Mortgage-backed securities	7	8,880		(58)		10	11,343		(54)		17	20,223		(112)
Total held to maturity securities	9	$	11,057	$	(60)	19	$	27,358	$	(84)	28	$	38,415	$	(144)

As of September 30, 2020, 53 of First Guaranty's debt securities had unrealized losses totaling 1.2% of the individual securities' amortized cost basis and 0.2% of First Guaranty's total amortized cost basis of the investment securities portfolio. Seven of the 53 securities had been in a continuous loss position for over 12 months at such date. The seven securities had an aggregate amortized cost basis of $1.9 million and an unrealized loss of $0.2 million at September 30, 2020. Management has the intent and ability to hold these debt securities until maturity or until anticipated recovery.

Securities are evaluated for other-than-temporary impairment at least quarterly and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) the recovery of contractual principal and interest and (iv) the intent and ability of First Guaranty to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Investment securities issued by the U.S. Government and Government sponsored enterprises with unrealized losses and the amount of unrealized losses on those investment securities that are the result of changes in market interest rates will not be other-than-temporarily impaired. First Guaranty has the ability and intent to hold these securities until recovery, which may not be until maturity.

Corporate debt securities in a loss position consist primarily of corporate bonds issued by businesses in the financial, insurance, utility, manufacturing, industrial, consumer products and oil and gas industries. There was one security with an other-than-temporary impairment loss at September 30, 2020. First Guaranty believes that the remaining issuers will be able to fulfill the obligations of these securities based on evaluations described above. First Guaranty has the ability and intent to hold these securities until they recover, which could be at their maturity dates.

There was one other-than-temporary impairment loss of $100,000 recognized on securities during the nine months ended September 30, 2020. The security had an original book balance of $0.1 million and was in default. First Guaranty's analysis of the company and the current market value of the security resulted in the determination that a write down was warranted.

The following table presents a roll-forward of the amount of credit losses on debt securities held by First Guaranty for which a portion of OTTI was recognized in other comprehensive income for the nine months ended September 30, 2020 and 2019:


(in thousands)	Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019
Beginning balance of credit losses at end of prior year	$	—	$	60
Other-than-temporary impairment credit losses on securities not previously OTTI	100		—
Increases for additional credit losses on securities previously determined to be OTTI	—		—
Reduction for increases in cash flows	—		—
Reduction due to credit impaired securities sold or fully settled	—		(60)
Ending balance of cumulative credit losses recognized in earnings at end of period	$	100	$	—

In the first nine months of 2020 there was no other-than-temporary impairment credit losses on securities for which we had previously recognized OTTI. For securities that have indications of credit related impairment, management analyzes future expected cash flows to determine if any credit related impairment is evident. Estimated cash flows are determined using management's best estimate of future cash flows based on specific assumptions. The assumptions used to determine the cash flows were based on estimates of loss severity and credit default probabilities. Management reviews reports from credit rating agencies and public filings of issuers.


	At September 30, 2020
(in thousands)	Amortized Cost		Fair Value
U.S. Government Treasuries (U.S.)	$	43,700	$	43,700
Federal Home Loan Bank (FHLB)	—		—
Federal Home Loan Mortgage Corporation (Freddie Mac-FHLMC)	58,043		59,741
Federal National Mortgage Association (Fannie Mae-FNMA)	75,198		77,407
Federal Farm Credit Bank (FFCB)	—		—
Total	$	176,941	$	180,848