Available for Sale Securities

3 Months Ended

Mar. 31, 2021

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:

	March 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Obligations of states and political subdivisions	$	11,772	$	187	$	(289	)	$	11,670
Government-sponsored mortgage-backed securities		46,913		861		(181	)		47,593
Asset-backed securities		7,052		64		—			7,116
Certificates of deposit		1,458		103		—			1,561
Total	$	67,195	$	1,215	$	(470	)	$	67,940
	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
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	$	57,145	$	1,588	$	(30	)	$	58,703

Available for sale securities with a carrying value of $1.8 million and $2.0 million were pledged as collateral at March 31, 2021 and December 31, 2020, 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.

	March 31, 2021
	Amortized Cost		Fair Value
	(in thousands)
Debt and other securities:
Due in one year or less	$	737	$	748
Due after one through 5 years		4,709		4,872
Due after 5 through 10 years		3,495		3,470
Due after 10 years		4,289		4,141
Total debt and other securities		13,230		13,231
Mortgage-related securities		46,913		47,593
Asset-backed securities		7,052		7,116
Total	$	67,195	$	67,940

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:

	March 31, 2021
	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	$	5,173	$	(289	)	$	—	$	—		$	5,173	$	(289	)
Government-sponsored mortgage-backed securities		19,347		(181	)		—		—			19,347		(181	)
Total	$	24,520	$	(470	)	$	—	$	—		$	24,520	$	(470	)
	December 31, 2020
	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	$	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	)

At March 31, 2021 and December 31, 2020, respectively, the Company had 9 and 5 debt securities with unrealized losses representing aggregate depreciation of approximately 1.9% and 0.3% 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 March 31,
	2021		2020
	(in thousands)
Proceeds from sales of securities available-for-sale	$	1,018	$	279
Gross realized gains		12		7
Gross realized losses		—		—