Available for Sale Securities

12 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

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, 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


		Gross	Gross
	Amortized	Unrealized	Unrealized	Estimated
December 31, 2018	Cost	Gains	Losses	Fair Value
Obligations of states and political subdivisions	$ 11,348	$ 25	$ (204)	$11,169
Government-sponsored mortgage-backed securities	52,363	4	(1,992)	50,375
Corporate collateralized mortgage obligations	410	1	(1)	410
Asset-backed securities	3,530	2	(1)	3,531
Certificates of deposit	249	-	(3)	246
Total available for sale securities	$ 67,900	$ 32	$ (2,201)	$65,731

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. At December 31, 2019, $2,956 of the Company’s mortgage related securities were pledged as collateral to secure customer deposit accounts. At December 31, 2018, $9,301 of the Company’s mortgage related securities were pledged as collateral to secure customer deposit accounts.

NOTE 3 — Available for Sale Securities – (continued)

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, 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)


	Less than 12 months		12 months or more		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
December 31, 2018	Value	Loss	Value	Loss	Value	Loss
Obligations of states and political subdivisions	$ 1,567	$ (5)	$ 6,909	$ (199)	$ 8,476	$ (204)
Government-sponsored mortgage-backed securities	29	-	49,549	(1,992)	49,578	(1,992)
Corporate collateralized mortgage obligations	204	-	147	(1)	351	(1)
Asset-backed securities	813	(1)	-	-	813	(1)
Certificates of deposit	-	-	246	(3)	246	(3)
Total	$ 2,613	$ (6)	$ 56,851	$ (2,195)	$ 59,464	$ (2,201)

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. At December 31, 2018, the bank had 59 debt securities with unrealized losses with aggregate depreciation of 3.6% from the Bank’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.

NOTE 3 — Available for Sale Securities – (continued)

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, 2019
	Amortized	Fair
	Cost	Value
Due in one year or less	$ 578	$ 578
Due after one through 5 years	6,417	6,482
Due after 5 through 10 years	3,161	3,209
Due after 10 years	1,330	1,318
Subtotal	11,486	11,587
Mortgage-related securities	57,259	57,323
Asset-backed securities	2,484	2,465
Total	$ 71,229	$ 71,375

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,

Proceeds from sales of available for sale securities

Gross gains

Gross losses