Debt Securities (Tables)

12 Months Ended

Dec. 31, 2021

Amortized Cost and Fair Value of Debt Securities Available-for-sale

The following table summarizes the amortized cost and fair value of debt securities available-for-sale at December 31, 2021 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Federal agencies	$	311	$	2	$	-		$	313
Mortgage-backed securities⁽¹⁾		33,085		69		-			33,154
State and political subdivisions		45,245		49		-			45,294
U.S. Treasury		6,052		-		(5	)		6,047
Total available-for-sale		84,693		120		(5	)		84,808
Total debt securities	$	84,693	$	120	$	(5	)	$	84,808

⁽¹⁾ All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.

Contractual Maturity

The amortized cost and estimated fair value of investment securities at December 31, 2021, by contractual maturity, are shown below. The expected life of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay the underlying mortgage loans with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	3,622	$	3,623
Due after one year through five years		22,030		22,076
Due after five years through ten years		22,819		22,821
Due after ten years		3,137		3,134
Mortgage-backed securities⁽¹⁾		33,085		33,154
Total available-for-sale	$	84,693	$	84,808

⁽¹⁾ All of our mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored entities.

Pledged Securities

The following table details book value of pledged securities as of December 31, 2021:

	December 31,
	2021		2020
Book value of pledged securities	$	37,477	$	-

Debt Securities in Continuous Unrealized Loss Position

The following table details gross unrealized losses and fair values of investment securities aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2021. As of December 31, 2021, the Company had the ability and intent to hold the debt securities classified as available-for-sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were acquired as a result of the acquisition of Watonga Bancshares, Inc. on December 9, 2021. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. Management has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statement of comprehensive income.

	Less than Twelve Months					Twelve Months or Longer				Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
(in thousands, except number of securities)
Available-for-sale
U.S. Treasury	$	6,047	$	(5	)	$	-	$	-	$	6,047	$	(5	)
Total available-for-sale	$	6,047	$	(5	)	$	-	$	-	$	6,047	$	(5	)