Note C – Investment Securities

The amortized costs and estimated fair values of investment securities classified as available for sale and held to maturity as of March 31, 2020 and December 31, 2019 is as follows:


	March 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gains		(Losses)		Value
Available for Sale:
U.S. Government Agency - SBA pools	$	2,148	$	6	$	(9)	$	2,145
U.S. Agency Mortgage-Backed Securities		3,653		101		(7)		3,747
Total Available for Sale	$	5,801	$	107	$	(16)	$	5,892

Held to Maturity:
U.S. Agency Mortgage-Backed Securities	$	357	$	5	$	(1)	$	361


	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gains		(Losses)		Value
Available for Sale:
U.S. Government Agency - SBA pools	$	2,274	$	6	$	(10)	$	2,270
U.S. Agency Mortgage-Backed Securities	$	3,908		48		(16)		3,940
Total Available for Sale	$	6,182	$	54	$	(26)	$	6,210

Held to Maturity:
U.S. Agency Mortgage-Backed Securities	$	389	$	2	$	(3)	$	388

There were no securities sold during the three months ended March 31, 2020 or in 2019.

The amortized cost and fair value of investment securities at March 31, 2020 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
(in thousands)	Cost		Value
Available for Sale:
Within One Year	$	—	$	—
After One Year Through Five Years		101		97
After Five Years Through Ten Years		1,300		1,338
After Ten Years		4,400		4,457
	$	5,801	$	5,892
Held to Maturity:
After Five Years Through Ten Years	$	207	$	210
After Ten Years		150		151
	$	357	$	361

The following tables reflect gross unrealized losses, fair values, and length of time in a continued unrealized loss position for all securities with fair values below amortized cost at March 31, 2020 and December 31, 2019:


	March 31, 2020
	Less Than 12 Months				12 Months or Longer				Total
			Unrealized				Unrealized				Unrealized
(in thousands)	Fair Value		Loss		Fair Value		Loss		Fair Value		Loss
Available for Sale:
U.S. Government Agency - SBA pools	$	1,166	$	9	$	—	$	—	$	1,166	$	9
U.S. Agency Mortgage-Backed Securities		96		3		324		4		420		7
Total Available for Sale	$	1,262	$	12	$	324	$	4	$	1,586	$	16

Held to Maturity:
U.S. Agency Mortgage-Backed Securities	$	—	$	—	$	94	$	1	$	94	$	1


	December 31, 2019
	Less Than 12 Months				12 Months or Longer				Total
			Unrealized				Unrealized				Unrealized
(in thousands)	Fair Value		Loss		Fair Value		Loss		Fair Value		Loss
Available for Sale:
U.S. Government Agency - SBA pools	$	1,277	$	10	$	—	$	—	$	1,277	$	10
U.S. Agency Mortgage-Backed Securities		—		—		1,043		16		1,043		16
Total Available for Sale	$	1,277	$	10	$	1,043	$	16	$	2,320	$	26

Held to Maturity:
U.S. Agency Mortgage-Backed Securities	$	—	$	—	$	103	$	3	$	103	$	3

On a quarterly basis (and more frequently when economic or market conditions warrant), management evaluates the investment securities portfolio on an individual security basis for other-than- temporary impairment (“OTTI”). If a security is in a loss position, management will determine if OTTI exists and will consider the following. First, if it is probable that the issuer of the security will be unable to pay all amounts due according to the contractual terms of the debt security, OTTI will be recognized. Second, if management intends to sell the security and does not expect to recover the loss before the anticipated sale date, OTTI will be recognized. In both instances, OTTI will be recognized for the affected security equal to the difference between the fair value and amortized cost through a charge to earnings. Third, if a security does not meet either of the criteria above and is both in a loss position for greater than one year and at a current loss of 10% or more, management will evaluate its ability and intent to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value.

Declines in the fair value of individual held to maturity and available for sale securities below their cost that are other-than-temporary result in write-downs of the individual securities to their fair value. The related write-downs are included in earnings as realized losses. No declines at March 31, 2020 and December 31, 2019, were deemed to be other-than-temporary. The unrealized losses on the securities available for sale generally result from changes in market interest rates and not credit quality. The Company does not intend to sell any such investments before recovery of their amortized cost bases, which may be at maturity.