SECURITIES AVAILABLE FOR SALE

12 Months Ended

Dec. 31, 2020

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE FOR SALE

NOTE 3 — SECURITIES AVAILABLE FOR SALE

The carrying value and estimated fair value of securities available for sale are as follows (dollars in thousands):

	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
December 31, 2020
Corporate	$	27,815	$	247	$	(19)	$	28,043
US Agencies		6,480		109		—		6,589
US Agencies - MBS		33,372		914		(6)		34,280
Obligations of states and political subdivisions		41,682		1,242		—		42,924
Total securities available for sale	$	109,349	$	2,512	$	(25)	$	111,836
December 31, 2019
Corporate	$	20,779	$	160	$	(1)	$	20,938
US Agencies		14,450		47		(1)		14,496
US Agencies - MBS		34,063		492		(29)		34,526
Obligations of states and political subdivisions		37,382		630		—		38,012
Total securities available for sale	$	106,674	$	1,329	$	(31)	$	107,972

Following is information pertaining to securities with gross unrealized losses at December 31, 2020 and 2019 aggregated by investment category and length of time these individual securities have been in a loss position (dollars in thousands):

	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
December 31, 2020
Corporate	$	(19)	$	9,293	$	—	$	—
US Agencies		—		—		—		—
US Agencies - MBS		(2)		83		(4)		123
Obligations of states and political subdivisions		—		—		—		—
Total securities available for sale	$	(21)	$	9,376	$	(4)	$	123
December 31, 2019
Corporate		(1)		2,502		—		—
US Agencies		—		—		(1)		500
US Agencies - MBS		(9)		6,966		(20)		1,233
Obligations of states and political subdivisions		—		—		—		—
Total securities available for sale	$	(10)	$	9,468	$	(21)	$	1,733

There were 10 securities in an unrealized loss position in 2020 and 26 in 2019. The gross unrealized losses in the current portfolio are considered temporary in nature and related to interest rate fluctuations. The Corporation has both the ability and intent to hold the investment securities until their respective maturities and therefore does not anticipate the realization of the temporary losses.

Following is a summary of the proceeds from sales and calls of securities available for sale, as well as gross gains and losses for the years ended December 31 (dollars in thousands):

	2020		2019
Proceeds from sales and calls	$	9,560	$	5,805
Gross gains on sales and calls		2		208

The carrying value and estimated fair value of securities available for sale at December 31, 2020, by contractual maturity, are shown below (dollars in thousands):

	Amortized		Estimated
	Cost		Fair Value
Due in one year or less	$	15,645	$	15,820
Due after one year through five years		22,554		23,201
Due after five years through ten years		24,965		25,261
Due after ten years		12,813		13,274
Subtotal		75,977		77,556
US Agencies - MBS		33,372		34,280
Total	$	109,349	$	111,836

Contractual maturities may differ from expected maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities with a market value of $22.438 million are pledged as collateral to the Federal Home Loan Bank and $3.752 million are pledged to certain customer relationships. See Note 10 for information on securities pledged to secure borrowings from the Federal Home Loan Bank.

The following is information pertaining to securities with gross unrealized losses at December 31, 2020 and 2019 (dollars in thousands):

	Less Than Twelve Months						Over Twelve Months						Total
	Number				Gross		Number				Gross		Number				Gross
	of		Fair		Unrealized		of		Fair		Unrealized		of		Fair		Unrealized
December 31, 2020	Securities		Value		Loss		Securities		Value		Loss		Securities		Value		Loss
Corporate		4	$	9,293	$	(19)		—	$	—	$	—		4	$	9,293	$	(19)
US Agencies		—		—		—		—		—		—		—		—		—
US Agencies - MBS		4		83		(2)		2		123		(4)		6		206		(6)
Obligations of states and political subdivisions		—		—		—		—		—		—		—		—		—
Total		8	$	9,376	$	(21)		2	$	123	$	(4)		10	$	9,499	$	(25)

	Less Than Twelve Months						Over Twelve Months						Total
	Number				Gross		Number				Gross		Number				Gross
	of		Fair		Unrealized		of		Fair		Unrealized		of		Fair		Unrealized
December 31, 2019	Securities		Value		Loss		Securities		Value		Loss		Securities		Value		Loss
Corporate		1	$	2,502	$	(1)		—	$	—	$	—		1	$	2,502	$	(1)
US Agencies		—		—		—		1		500		(1)		1		500		(1)
US Agencies - MBS		10		6,966		(9)		13		1,233		(20)		23		8,199		(29)
Obligations of states and political subdivisions		—		—		—		1		115		—		1		115		—
Total		11	$	9,468	$	(10)		15	$	1,848	$	(21)		26	$	11,316	$	(31)