Note 2: Securities

The amortized cost and fair values, together with gross unrealized gains and losses of securities are as follows:


			Gross		Gross
			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
March 31, 2021:
U.S. government agencies	$	4,000	$	22	$	—	$	4,022

Subordinated notes		4,500		25		(2)		4,523
State and municipal obligations		125,998	$	11,770		—		137,768
Total debt securities	$	134,498	$	11,817	$	(2)	$	146,313

			Gross		Gross
			Unrealized		Unrealized
	Amortized Cost		Gains		Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2020:
U.S. government agencies	$	10,000	$	53	$	—	$	10,053

Subordinated notes		4,500		6		(1)		4,505
State and municipal obligations		129,006	$	14,503		—		143,509
Total debt securities	$	143,506	$	14,562	$	(1)	$	158,067

The amortized cost and fair value of available-for-sale securities at March 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	Cost		Value
	(In thousands)
Under 1 year	$	—	$	—
One to five years		—		—
Five to ten years		8,500		8,545
Over ten years		125,998		137,768

Totals	$	134,498	$	146,313

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $57.2 million and $55.8 million at March 31, 2021 and December 31, 2020, respectively.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at March 31, 2021 was $998,000, which represented less than 1% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at December 31, 2020 was $1.0 million, which represented less than 1% of the Company’s available-for-sale.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result of an increase in longer term interest rates.

Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2021:


	March 31, 2021
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
U.S. Government agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal obligations		—		—		—		—		—		—
Subordinated notes		998		(2)		—		—		998		(2)
Total temporarily impaired securities	$	998	$	(2)	$	—	$	—	$	998	$	(2)


	December 31, 2020
	Less than 12 Months				12 Months or More				Total
Description of			Unrealized				Unrealized				Unrealized
Securities	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(In thousands)
US government agencies	$	—	$	—	$	—	$	—	$	—	$	—
Subordinated notes		—	$	—		1,000		(1)		1,000		(1)
State and municipal obligations		—	$	—		—		—		—		—
Total temporarily impaired securities	$	—	$	—	$	1,000	$	(1)	$	1,000	$	(1)

The unrealized losses on the Company’s investments in available for sale securities were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2021.

During the quarter ended March 31, 2020 the Company sold $8.0 million of US Government Agency bonds for a total gain of approximately $69,000. There were no sales of investment securities for the three months ended March 31, 2021.