The following table summarizes the amortized cost, the corresponding amounts of gross unrealized gains and losses, and estimated fair value of AFS debt securities as of September 30, 2021 and December 31, 2020:



	September 30, 2021
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale debt securities
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	27,094	$	256	$	(136)	$	27,214
Residential collateralized mortgage obligations	75,471		432		(582)		75,321
Total available-for-sale debt securities	$	102,565	$	688	$	(718)	$	102,535



	December 31, 2020
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale debt securities
U.S. Government-sponsored agency securities	$	1,000	$	5	$	—	$	1,005
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	19,281	$	430	$	(7)	$	19,704
Residential collateralized mortgage obligations	70,318		814		(50)		71,082
Total available-for-sale debt securities	$	90,599	$	1,249	$	(57)	$	91,791

There were no sales of AFS debt securities in the three and nine months ended September 30, 2021 and 2020. The amortized cost and estimated fair value of AFS debt securities at September 30, 2021, by contractual maturity, are shown below.



($ in thousands)	Amortized Cost		Fair Value
Available-for-sale debt securities
U.S. Government agencies or sponsored agency securities:
After one year through five years	$	732	$	766
After five years through ten years	3,990		4,133
After ten years	97,843		97,636
Total available-for-sale debt securities	$	102,565	$	102,535

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2021 and December 31, 2020, 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 presents the fair value and the associated gross unrealized losses on AFS debt securities by length of time those individual securities in each category have been in a continuous loss at September 30, 2021 and December 31, 2020:



($ in thousands)	September 30, 2021
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale debt securities
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	20,201	$	(136)	$	—	$	—	$	20,201	$	(136)
Residential collateralized mortgage obligations	47,696		(562)		2,626		(20)		50,322		(582)
Total available-for-sale debt securities	$	67,897	$	(698)	$	2,626	$	(20)	$	70,523	$	(718)



($ in thousands)	December 31, 2020
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale debt securities
U.S. Government agencies or sponsored agency securities:
Residential mortgage-backed securities	$	3,089	$	(7)	$	—	$	—	$	3,089	$	(7)
Residential collateralized mortgage obligations	13,593		(50)		—		—		13,593		(50)
Total available-for-sale debt securities	$	16,682	$	(57)	$	—	$	—	$	16,682	$	(57)

Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, along with the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or whether it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is

recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components, as follows: (i) OTTI related to credit loss, which must be recognized in the income statement, and (ii) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis.

The unrealized losses were primarily attributable to interest rate movement, not credit quality. These securities (Fannie Mae, Ginnie Mae, and Freddie Mac) are guaranteed or sponsored by agencies of the U.S. government, and the issuers of the securities are of high credit quality. The Company believes that the gross unrealized losses presented in the previous tables are temporary and no credit losses are expected. As a result, the Company expects full collection of the carrying amount of these securities, does not intend to sell the securities in an unrealized loss position, and it was more-likely-than-not the Company will not have to sell these securities prior to recovery of amortized cost. Accordingly, the Company does not consider these securities to be OTTI as of September 30, 2021.

As of September 30, 2021 and December 31, 2020, there were no pledged securities to secure public deposits, borrowing and letters of credit from the Federal Home Loan Bank (“FHLB”) and the Board of Governors of the Federal Reserve System (“FRB”), and for other purposes required or permitted by law. The following table presents the other investment securities, which are included in Other investments on the Consolidated Balance Sheet as of September 30, 2021 and December 31, 2020:



($ in thousands)	September 30, 2021		December 31, 2020
Federal Home Loan Bank stock	$	7,005	$	6,043
Pacific Coast Bankers Bank stock	190		190
Mutual fund - CRA qualified	3,734		3,773
Total other investment securities	$	10,929	$	10,006