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Securities
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Securities SECURITIES
The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 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
September 30, 2020    
 U.S. government sponsored entities & agencies$27,092 $126 $(19)$27,199 
State and political subdivision109,498 8,140 (88)117,550 
Mortgage-backed securities: residential19,237 255 — 19,492 
Mortgage-backed securities: commercial8,025 630 — 8,655 
Collateralized mortgage obligations: residential              14,177 169 (13)14,333 
Collateralized mortgage obligations: commercial              31,659 1,344 — 33,003 
U.S. Treasury1,000 3 — 1,003 
SBA18,869 63 (124)18,808 
Asset backed securities10,298 — (344)9,954 
Corporate bonds3,491 39 — 3,530 
Total available-for-sale$243,346 $10,769 $(588)$253,527 
December 31, 2019    
State and political subdivision$89,304 $4,463 $(20)$93,747 
Mortgage-backed securities: residential10,609 82 (126)10,565 
Mortgage-backed securities: commercial8,567 224 (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. Treasury1,976 23 — 1,999 
SBA22,051 87 (154)21,984 
Asset backed securities10,390 — (306)10,084 
Corporate bonds2,030 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 September 30,For the nine months ended September 30,
(Dollars in thousands)2020201920202019
Proceeds$5,051 $11,080 $42,640 $46,545 
Gross gains434 202 1,871 543 
Gross losses— (51)(9)(392)
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.
 September 30, 2020
(Dollars in thousands)Amortized
Cost		Fair
Value
Within one year$11,141 $11,228 
One to five years27,530 28,494 
Five to ten years70,259 73,165 
Beyond ten years134,416 140,640 
Total$243,346 $253,527 
Securities pledged at September 30, 2020 and December 31, 2019 had a carrying amount of $97.2 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 September 30, 2020, the Bank held 66 tax-exempt state and local municipal securities totaling $48.9 million backed by the Michigan School Bond Loan Fund. Other than the aforementioned investments, at September 30, 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 September 30, 2020 and December 31, 2019 aggregated by security type and length of time in a continuous unrealized loss position:
 Less than 12 Months12 Months or LongerTotal
(Dollars in thousands)Fair
value		Unrealized
Losses		Fair
value		Unrealized
Losses		Fair
value		Unrealized
Losses
September 30, 2020      
Available-for-sale      
U.S. government sponsored entities & agencies$14,981 $(19)$— $— $14,981 $(19)
State and political subdivision1,858 (88)— — 1,858 (88)
Collateralized mortgage obligations: residential— — 1,136 (13)1,136 (13)
SBA— — 13,190 (124)13,190 (124)
Asset backed securities— — 9,954 (344)9,954 (344)
Total available-for-sale$16,839 $(107)$24,280 $(481)$41,119 $(588)
December 31, 2019      
Available-for-sale      
State and political subdivision$5,109 $(20)$305 $— $5,414 $(20)
Mortgage-backed securities: residential4,022 (39)3,982 (87)8,004 (126)
Mortgage-backed securities: commercial1,769 (11)430 (1)2,199 (12)
Collateralized mortgage obligations: residential770 (1)4,631 (50)5,401 (51)
Collateralized mortgage obligations: commercial— — 1,716 (10)1,716 (10)
SBA3,961 (13)12,405 (141)16,366 (154)
Asset backed securities8,220 (232)1,864 (74)10,084 (306)
Corporate bonds489 (13)— — 489 (13)
Total available-for-sale$24,340 $(329)$25,333 $(363)$49,673 $(692)
As of September 30, 2020, the Company's investment portfolio consisted of 306 securities, 29 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 September 30, 2020.