Available for Sale Securities

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Available for Sale Securities

NOTE 3 — Available for Sale Securities

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
December 31, 2020	Cost		Gains		Losses			Fair Value
Obligations of states and political subdivisions	$	11,570	$	244	$	(11	)	$	11,803
Government-sponsored mortgage-backed securities		36,886		1,165		(12	)		38,039
Asset-backed securities		7,231		57		(7	)		7,281
Certificates of deposit		1,458		122		—			1,580
Total available for sale securities	$	57,145	$	1,588	$	(30	)	$	58,703

			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
December 31, 2019	Cost		Gains		Losses			Fair Value
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 available for sale securities	$	71,229	$	542	$	(396	)	$	71,375

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 Company’s mortgage-backed securities and collateralized mortgage obligations issued by government sponsored enterprises are guaranteed by one of the following government enterprises: Fannie Mae, Freddie Mac or Ginnie Mae. Available for sale securities with a carrying value of $2.0 million and $3.0 million were pledged as collateral to secure customer deposit accounts at December 31, 2020 and December 31, 2019, respectively.

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
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2020	Value		Loss			Value		Loss			Value		Loss
Obligations of states and political subdivisions	$	4,235	$	(11	)	$	—	$	—		$	4,235	$	(11	)
Government-sponsored mortgage-backed securities		4,984		(12	)		—		—			4,984		(12	)
Asset-backed securities		—		—			638		(7	)		638		(7	)
Total	$	9,219	$	(23	)	$	638	$	(7	)	$	9,857	$	(30	)

	Less than 12 months					12 months or more					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2019	Value		Loss			Value		Loss			Value		Loss
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 December 31, 2020, the Company had 5 debt securities with unrealized losses with aggregate depreciation of 0.3% from the Company’s amortized cost basis. At December 31, 2019, the Company had 30 debt securities with unrealized losses with aggregate depreciation of 1.0% from the Company’s amortized cost basis. These unrealized losses relate principally to the changes in interest rates and are not caused by changes in the financial condition of the issuer, 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. Since management has the ability to hold debt securities for the foreseeable future, no declines are deemed to be other than temporary.

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, 2020
	Amortized		Fair
	Cost		Value
Due in one year or less	$	1,239	$	1,255
Due after one through 5 years		5,217		5,419
Due after 5 through 10 years		1,326		1,435
Due after 10 years		5,246		5,274
Subtotal		13,028		13,383
Mortgage-related securities		36,886		38,039
Asset-backed securities		7,231		7,281
Total	$	57,145	$	58,703

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

	Years ended December 31,
	2020		2019
Proceeds from sales of available for sale securities	$	19,515	$	—
Gross gains		1,023		—
Gross losses		—		—