SECURITIES

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at March 31, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss).



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2020
U.S. government sponsored entities & agencies	$	9,624	$	151	$	—		$	9,775
State and political subdivision	122,446		5,699		(465		)	127,680
Mortgage-backed securities: residential	10,047		247		—			10,294
Mortgage-backed securities: commercial	8,527		607		(1		)	9,133
Collateralized mortgage obligations: residential	7,929		171		(44		)	8,056
Collateralized mortgage obligations: commercial	28,960		1,107		(6		)	30,061
U.S. Treasury	1,000		10		—			1,010
SBA	20,609		80		(127		)	20,562
Asset backed securities	10,394		—		(781		)	9,613
Corporate bonds	4,483		27		(23		)	4,487
Total available-for-sale	$	224,019	$	8,099	$	(1,447	)	$	230,671
December 31, 2019
State and political subdivision	89,304		4,463		(20		)	93,747
Mortgage-backed securities: residential	10,609		82		(126		)	10,565
Mortgage-backed securities: commercial	8,567		224		(12		)	8,779
Collateralized mortgage obligations: residential	8,541		39		(51		)	8,529
Collateralized mortgage obligations: commercial	22,891		300		(10		)	23,181
U.S. Treasury	1,976		23		—			1,999
SBA	22,051		87		(154		)	21,984
Asset backed securities	10,390		—		(306		)	10,084
Corporate bonds	2,030		20		(13		)	2,037
Total available-for-sale	$	176,359	$	5,238	$	(692	)	$	180,905

The proceeds from sales of securities and the associated gains and losses for the periods below are as follows:



	For the three months ended March 31,
(Dollars in thousands)	2020			2019
Proceeds	$	27,581		$	6,000
Gross gains	538			64
Gross losses	(9		)	(71		)

The amortized cost and fair value of securities are shown in the table below by contractual maturity. Actual timing may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.



	March 31, 2020
(Dollars in thousands)	Amortized Cost		Fair Value
Within one year	$	8,114	$	8,129
One to five years	32,389		33,124
Five to ten years	49,829		51,617
Beyond ten years	133,687		137,801
Total	$	224,019	$	230,671

Securities pledged at March 31, 2020 and December 31, 2019 had a carrying amount of $52.0 million and $27.3 million, respectively, and were pledged to secure Federal Home Loan Bank ("FHLB") advances, a Federal Reserve Bank line of credit, repurchase agreements, deposits and mortgage derivatives.

As of March 31, 2020, the Bank held 72 tax-exempt state and local municipal securities totaling $52.7 million backed by the Michigan School Bond Loan Fund. Other than the aforementioned investments, at March 31, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders' equity.

The following table summarizes securities with unrealized losses at March 31, 2020 and December 31, 2019 aggregated by security type and length of time in a continuous unrealized loss position:



	Less than 12 Months					12 Months or Longer					Total
(Dollars in thousands)	Fair value		Unrealized Losses			Fair value		Unrealized Losses			Fair value		Unrealized Losses
March 31, 2020
Available-for-sale
State and political subdivision	$	15,489	$	(465	)	$	—	$	—		$	15,489	$	(465	)
Mortgage-backed securities: commercial	—		—			427		(1		)	427		(1		)
Collateralized mortgage obligations: residential	—		—			2,708		(44		)	2,708		(44		)
Collateralized mortgage obligations: commercial	871		(6		)	—		—			871		(6		)
SBA	3,846		(11		)	10,467		(116		)	14,313		(127		)
Asset backed securities	3,396		(168		)	6,217		(613		)	9,613		(781		)
Corporate bonds	1,499		(23		)	—		—			1,499		(23		)
Total available-for-sale	$	25,101	$	(673	)	$	19,819	$	(774	)	$	44,920	$	(1,447	)
December 31, 2019
Available-for-sale
State and political subdivision	$	5,109	$	(20	)	$	305	$	—		$	5,414	$	(20	)
Mortgage-backed securities: residential	4,022		(39		)	3,982		(87		)	8,004		(126		)
Mortgage-backed securities: commercial	1,769		(11		)	430		(1		)	2,199		(12		)
Collateralized mortgage obligations: residential	770		(1		)	4,631		(50		)	5,401		(51		)
Collateralized mortgage obligations: commercial	—		—			1,716		(10		)	1,716		(10		)
SBA	3,961		(13		)	12,405		(141		)	16,366		(154		)
Asset backed securities	8,220		(232		)	1,864		(74		)	10,084		(306		)
Corporate bonds	489		(13		)	—		—			489		(13		)
Total available-for-sale	$	24,340	$	(329	)	$	25,333	$	(363	)	$	49,673	$	(692	)

As of March 31, 2020, the Company's investment portfolio consisted of 321 securities, 81 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in interest rates since purchased. The Company expects full recovery of the carrying amount of these securities and does not intend to sell the securities in an unrealized loss position nor does it believe it will be required to sell securities in an unrealized loss position before the value is recovered. The Company does not consider these securities to be other-than-temporarily impaired at March 31, 2020.