NOTE 4 – Available for Sale Securities

Amortized costs and fair values of available for sale securities are summarized as follows:


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2019
Obligations of the US government and US government sponsored agencies	$	944	$	14	$	—	$	958
Obligations of states and political subdivisions		8,590		36		(21)		8,605
Mortgage-backed securities		35,095		486		(99)		35,482
Certificates of deposit		1,000		17		—		1,017
Corporate debt securities		2,080		37		—		2,117
Total available for sale securities	$	47,709	$	590	$	(120)	$	48,179

December 31, 2018
Obligations of the US government and US government sponsored agencies	$	1,299	$	8	$	—	$	1,307
Obligations of states and political subdivisions		8,381		17		(103)		8,295
Mortgage-backed securities		29,164		24		(652)		28,536
Certificates of deposit		1,500		1		(55)		1,446
Corporate debt securities		4,220		2		(55)		4,167
Total available for sale securities	$	44,564	$	52	$	(865)	$	43,751

Fair values of securities are estimated based on financial models or prices paid for similar securities. It is possible interest rates could change considerably, resulting in a material change in estimated fair value.

The following table presents the portion of the Company’s portfolio which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position:


	Less Than 12 Months				12 Months or More				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
December 31, 2019
Obligations of states and political subdivisions	$	2,569	$	(17)	$	1,059	$	(4)	$	3,628	$	(21)
Mortgage-backed securities		7,604		(57)		4,372		(42)		11,976		(99)
Total	$	10,173	$	(74)	$	5,431	$	(46)	$	15,604	$	(120)
December 31, 2018
Obligations of the US government and US government sponsored agencies	$	175	$	—	$	113	$	—	$	288	$	—
Obligations of states and political subdivisions		—		—		6,142		(103)		6,142		(103)
Mortgage-backed securities		1,171		(24)		24,725		(628)		25,896		(652)
Certificates of deposit		—		—		1,195		(55)		1,195		(55)
Corporate debt securities		384		(2)		3,128		(53)		3,512		(55)
Total	$	1,730	$	(26)	$	35,303	$	(839)	$	37,033	$	(865)

At December 31, 2019, the investment portfolio included 14 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 18 securities available for sale, which had been in an unrealized loss position for less than twelve months. At December 31, 2018, the investment portfolio included 79 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 6 securities available for sale, which had been in an unrealized loss position for less than twelve months. Because these securities have a fixed interest rate, their fair value is sensitive to movements in market interest rates. These unrealized losses are considered temporary because the Company does not currently have the intent to sell the securities before recovery of the losses; therefore we expect to collect all contractually due amounts from these securities. Accordingly, these investments were reduced to their fair values through accumulated other comprehensive income, not through earnings.

We regularly assess our securities portfolio for OTTI. These assessments are based on the nature of the securities, the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent related to the individual securities, and the likelihood that we will have to sell securities prior to expected recovery. We did not have any impairment losses recognized in earnings for the years ended December 31, 2019 or December 31, 2018.

The amortized cost and fair value of available for sale securities by contractual maturity are shown below. Expected maturities will differ from contractual maturities in mortgage-backed securities since the anticipated maturities are not readily determinable. Therefore, these securities are not included in the maturity categories in the following maturity summary listed below:


	December 31, 2019
	Amortized Cost		Fair Value
Due in one year or less	$	1,297	$	1,306
Due after one year through 5 years		2,843		2,890
Due after 5 years through 10 years		4,395		4,418
Due after 10 years		4,079		4,083
Subtotal	$	12,614	$	12,697
Mortgage-backed securities		35,095		35,482
Total	$	47,709	$	48,179

The following is a summary of the proceeds from sales of securities available for sale, as well as gross gains and losses:

Available for sale securities with a carrying value of $999 and $960 were pledged at December 31, 2019 and 2018, respectively.

Years ended December 31,

Proceeds from sale of securities

Gross gains

Gross losses