Available for Sale Securities

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Available for Sale Securities

NOTE 3 – AVAILABLE FOR SALE SECURITIES

The amortized costs and fair values of securities available-for-sale were as follows:

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Obligations of states and political subdivisions	$	7,659	$	250	$	—		$	7,909
Government-sponsored mortgage-backed securities		40,007		1,312		—			41,319
Corporate collateralized mortgage obligations		237		—		(2	)		235
Asset-backed securities		7,369		16		(7	)		7,378
Certificates of deposit		1,458		129		—			1,587
Total	$	56,730	$	1,707	$	(9	)	$	58,428

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Obligations of states and political subdivisions	$	9,779	$	67	$	(20	)	$	9,826
Government-sponsored mortgage-backed securities		56,975		416		(357	)		57,034
Corporate collateralized mortgage obligations		284		5		—			289
Asset-backed securities		2,484		—		(19	)		2,465
Certificates of deposit		1,707		54		—			1,761
Total	$	71,229	$	542	$	(396	)	$	71,375

Available for sale securities with a carrying value of $2.1 million and $3.0 million were pledged as collateral at September 30, 2020 and December 31, 2019, respectively.

The amortized costs and fair values of securities available-for-sale, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, expected maturities will differ from contractual maturities for mortgage-backed securities and asset-backed securities, as the expected repayment terms may be less than the underlying mortgage pool contractual maturities. Therefore, these securities are not included in the maturity categories in the maturity summary below.

	September 30, 2020
	Amortized Cost		Fair Value
	(in thousands)
Debt and other securities:
Due in one year or less	$	326	$	326
Due after one through 5 years		6,462		6,682
Due after 5 through 10 years		1,329		1,444
Due after 10 years		1,000		1,044
Total debt and other securities		9,117		9,496
Mortgage-related securities		40,244		41,554
Asset-backed securities		7,369		7,378
Total	$	56,730	$	58,428

Gross unrealized losses on securities available-for-sale and the fair values of the related securities, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position were as follows: 

	September 30, 2020
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Asset-backed securities	$	436	$	(1	)	$	1,509	$	(6	)	$	1,945	$	(7	)
Corporate collateralized obligations		145		(2	)		—		—			145		(2	)
Total	$	581	$	(3	)	$	1,509	$	(6	)	$	2,090	$	(9	)

	December 31, 2019
	Less than 12 months					12 months or longer					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(in thousands)
Obligations of states and political subdivisions	$	2,052	$	(14	)	$	667	$	(6	)	$	2,719	$	(20	)
Government-sponsored mortgage-backed securities		15,830		(106	)		16,747		(251	)		32,577		(357	)
Asset-backed securities		2,394		(18	)		71		(1	)		2,465		(19	)
Total	$	20,276	$	(138	)	$	17,485	$	(258	)	$	37,761	$	(396	)

At September 30, 2020 and December 31, 2019, respectively, the Company had 5 and 30 debt securities with unrealized losses representing aggregate depreciation of approximately 0.4% and 1.0% from their respective amortized cost bases. These unrealized losses relate principally to changes in interest rates and were not caused by changes in the financial condition of the issuers, the quality of any underlying assets or applicable credit enhancements. In analyzing whether unrealized losses on debt securities are other-than-temporary, management considers whether the securities are issued by a government body or agency, whether a rating agency has downgraded the securities, industry analysts’ reports, the financial condition and performance of the issuer and the quality of any underlying assets or credit enhancements. As management has the intent and ability to hold these debt securities to projected recovery, none of these declines are deemed to be other-than-temporary.

The following table provides a summary of the proceeds from sales of securities available-for-sale, as well as gross gains and losses, for the periods presented:

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
	(in thousands)				(in thousands)
Proceeds from sales of securities available-for-sale	$	19,005	$	—	$	19,283	$	—
Gross realized gains		1,014		—		1,022		—
Gross realized losses		—		—		—		—