
	September 30, 2020
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	65,007	$	489	$	(1,814)	$	63,682
Municipal securities	87,365		3,296		(4,240)		86,421
Agency mortgage-backed securities	250,755		5,773		(3,236)		253,292
Private label mortgage-backed securities	71,519		1,128		(21)		72,626
Asset-backed securities	5,000		—		(79)		4,921
Corporate securities	48,406		500		(1,537)		47,369

Total available-for-sale	$	528,052	$	11,186	$	(10,927)	$	528,311


	September 30, 2020
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Securities held-to-maturity
Municipal securities	$	14,582	$	746	$	—	$	15,328
Corporate securities	53,672		551		(375)		53,848
Total held-to-maturity	$	68,254	$	1,297	$	(375)	$	69,176


	December 31, 2019
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	77,715	$	99	$	(1,942)	$	75,872
Municipal securities	97,447		1,706		(1,501)		97,652
Agency mortgage-backed securities	264,142		1,304		(4,006)		261,440
Private label mortgage-backed securities	63,704		97		(188)		63,613
Asset-backed securities	5,000		—		(45)		4,955
Corporate securities	38,632		220		(1,532)		37,320

Total available-for-sale	$	546,640	$	3,426	$	(9,214)	$	540,852


	December 31, 2019
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
Securities held-to-maturity
Municipal securities	$	10,142	$	226	$	—	$	10,368
Corporate securities	51,736		588		(132)		52,192
Total held-to-maturity	$	61,878	$	814	$	(132)	$	62,560

The Company elected to transfer ten available-for-sale (“AFS”) securities with an aggregate fair value of $4.5 million to a classification of held-to-maturity (“HTM”) on March 1, 2020. The net unrealized holding gain of $0.1 million, net of tax, as the date of the transfer was retained in accumulated other comprehensive loss, with the associated pretax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to interest income over the remaining life of the securities. The fair value of the transferred AFS securities became the book value of the HTM securities as of March 1, 2020, with no unrealized gain or loss at that date.

The carrying value of securities at September 30, 2020 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-Sale
(in thousands)	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years	31,197		26,893
Five to ten years	82,255		80,704
After ten years	87,326		89,875
	200,778		197,472
Agency mortgage-backed securities	250,755		253,292
Private label mortgage-backed securities	71,519		72,626
Asset-backed securities	5,000		4,921

Total	$	528,052	$	528,311


	Held-to-Maturity
(in thousands)	Amortized Cost		Fair Value

One to five years	$	2,869	$	2,989
Five to ten years	53,181		53,544
After ten years	12,204		12,643
Total	$	68,254	$	69,176

There were $0.1 million of gross gains resulting from sales of AFS securities during the three and nine months ended September 30, 2020. There were zero and $0.5 million of gross losses resulting from sales of AFS securities during the three and nine months ended September 30, 2019, respectively.

Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2020 and December 31, 2019 was $206.4 million and $317.5 million, which was approximately 35% and 53%, respectively, of the Company’s AFS and HTM securities portfolios. These declines resulted primarily from fluctuations in market interest rates after purchase. Management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced, with the resulting loss recognized in net income in the period the other-than-temporary impairment (“OTTI”) is identified.

The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2020.

The unrealized losses on the Company’s investments in agency mortgage-backed, private label mortgage-backed and asset-backed securities were caused primarily by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2020.

The following tables show the securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2020 and December 31, 2019.


	September 30, 2020
	Less Than 12 Months				12 Months or Longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	—	$	—	$	55,382	$	(1,814)	$	55,382	$	(1,814)
Municipal securities	61,269		(4,240)		—		—		61,269		(4,240)
Agency mortgage-backed securities	29,466		(361)		10,294		(2,875)		39,760		(3,236)
Private label mortgage-backed securities	2,410		(9)		1,026		(12)		3,436		(21)
Asset-backed securities	—		—		4,921		(79)		4,921		(79)
Corporate securities	—		—		20,463		(1,537)		20,463		(1,537)

Total	$	93,145	$	(4,610)	$	92,086	$	(6,317)	$	185,231	$	(10,927)


	September 30, 2020
	Less Than 12 Months				12 Months or Longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities held-to-maturity

Corporate securities	$	21,200	$	(375)	$	—	$	—	$	21,200	$	(375)
Total	$	21,200	$	(375)	$	—	$	—	$	21,200	$	(375)


	December 31, 2019
	Less Than 12 Months				12 Months or Longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	4,820	$	(61)	$	62,182	$	(1,881)	$	67,002	$	(1,942)
Municipal securities	1,279		(1,501)		—		—		1,279		(1,501)
Agency mortgage-backed securities	91,159		(829)		83,212		(3,177)		174,371		(4,006)
Private label mortgage-backed securities	30,077		(180)		2,884		(8)		32,961		(188)
Asset-backed securities	—		—		4,955		(45)		4,955		(45)
Corporate securities	—		—		22,985		(1,532)		22,985		(1,532)

Total	$	127,335	$	(2,571)	$	176,218	$	(6,643)	$	303,553	$	(9,214)


	December 31, 2019
	Less Than 12 Months				12 Months or Longer				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities held-to-maturity

Corporate securities	13,977		(132)		—		—		13,977		(132)
Total	$	13,977	$	(132)	$	—	$	—	$	13,977	$	(132)

Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three and nine months ended September 30, 2020 and September 30, 2019 were as follows:


(in thousands) Details About Accumulated Other Comprehensive Loss Components									Affected Line Item in the Statements of Income
	Three Months Ended September 30, 2020		Nine Months Ended September 30, 2020		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Realized gains (losses) on securities available-for-sale
Gain (loss) realized in earnings	$	98	$	139	$	—	$	(458)	Gain (loss) on sale of securities

Total reclassified amount before tax	98		139		—		(458)		Income Before Income Taxes
Tax expense (benefit)	26		38		—		(124)		Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss	$	72	$	101	$	—	$	(334)	Net Income