NOTE 4 – Available for Sale Securities

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


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
March 31, 2020
Obligations of the US government and US government sponsored agencies	$	866	$	22	$	—	$	888
Obligations of states and political subdivisions		10,957		205		(28)		11,134
Mortgage-backed securities		39,222		1,312		(60)		40,474
Certificates of deposit		750		25		—		775
Corporate debt securities		1,801		10		(19)		1,792
Total available for sale securities	$	53,596	$	1,574	$	(107)	$	55,063

December 31, 2019
Obligations of the US government and US government sponsored agencies	$	944	$	14	$	—	$	958
Obligations of states and political subdivisions		8,590		36		(21)		8,605
Mortgage-backed securities		35,095		486		(99)		35,482
Certificates of deposit		1,000		17		—		1,017
Corporate debt securities		2,080		37		—		2,117
Total available for sale securities	$	47,709	$	590	$	(120)	$	48,179

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 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
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
March 31, 2020
Obligations of states and political subdivisions	$	1,638	$	(27)	$	1,052	$	(1)	$	2,690	$	(28)
Mortgage-backed securities		3,982		(53)		683		(7)		4,665		(60)
Corporate debt securities		1,014		(19)		—		—		1,014		(19)
Total	$	6,634	$	(99)	$	1,735	$	(8)	$	8,369	$	(107)
December 31, 2019
Obligations of states and political subdivisions	$	2,569	$	(17)	$	1,059	$	(4)	$	3,628	$	(21)
Mortgage-backed securities		7,604		(57)		4,372		(42)		11,976		(99)
Total	$	10,173	$	(74)	$	5,431	$	(46)	$	15,604	$	(120)

At March 31, 2020, the investment portfolio included 8 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 16 securities available for sale, which had been in an unrealized loss position for less than twelve months. At December 31, 2019, the investment portfolio included 14 securities available for sale, which had been in an unrealized loss position for greater than twelve months, and 18 securities available for sale, which had been in an unrealized loss position for less than twelve months. Because these securities have a fixed interest rate, their fair value is sensitive to movements in market interest rates. These unrealized losses are considered temporary because the Company does not currently have the intent to sell the securities before recovery of the losses; therefore we expect to collect all contractually due amounts from these securities. Accordingly, these investments were reduced to their fair values through accumulated other comprehensive income, not through earnings.

We regularly assess our securities portfolio for OTTI. These assessments are based on the nature of the securities, the underlying collateral, the financial condition of the issuer, the extent and duration of the loss, our intent related to the individual securities, and the likelihood that we will have to sell securities prior to expected recovery. We did not have any impairment losses recognized in earnings for the three months ended March 31, 2020 or March 31, 2019.

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:


	March 31, 2020
	Amortized Cost		Fair Value
Due in one year or less	$	1,020	$	1,019
Due after one year through 5 years		2,708		2,731
Due after 5 years through 10 years		4,525		4,660
Due after 10 years		6,121		6,179
Subtotal	$	14,374	$	14,589
Mortgage-backed securities		39,222		40,474
Total	$	53,596	$	55,063

Proceeds from sales of available for sale securities during the three months ended March 31, 2020 and 2019 were $0 and $2,133, respectively. Gross realized gains on these sales amounted to $0 and $0, while gross realized losses on these sales were $0 and $8, respectively.

Available for sale securities with a carrying value of $1,036 and $999 were pledged at March 31, 2020 and December 31, 2019, respectively.