
	December 31, 2020
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	63,868	$	1,447	$	(313)	$	—	$	65,002
Mortgage-backed securities, residential	224,978		3,718		(540)		—		228,156
Collateralized mortgage obligations, residential	204,093		4,967		(22)		—		209,038
Mortgage-backed securities, multifamily	1,944		—		—		—		1,944
Collateralized mortgage obligations, multifamily	39,628		1,909		(2)		—		41,535
Asset-backed securities	40,915		—		(225)		—		40,690
Obligations of states and political subdivisions	228,790		5,149		(228)		(1)		233,710
Debt securities	35,056		616		—		(1)		35,671
Total	$	839,272	$	17,806	$	(1,330)	$	(2)	$	855,746


	December 31, 2019
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	135,361	$	722	$	(436)	$	135,647
Mortgage-backed securities, residential	224,679		752		(839)		224,592
Collateralized mortgage obligations, residential	275,566		2,433		(712)		277,287
Mortgage-backed securities, multifamily	2,901		59		—		2,960
Collateralized mortgage obligations, multifamily	45,774		574		(123)		46,225

Obligations of states and political subdivisions	58,979		1,077		(35)		60,021
Debt securities	9,000		168		—		9,168
Total	$	752,260	$	5,785	$	(2,145)	$	755,900


	December 31, 2020
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	25,565	$	779	$	—	$	—	$	26,344
Mortgage-backed securities, residential	39,276		1,469		(12)		—		40,733
Collateralized mortgage obligations, residential	14,590		532		—		—		15,122
Mortgage-backed securities, multifamily	705		54		—		—		759

Obligations of states and political subdivisions	10,630		280		—		—		10,910

Total	$	90,766	$	3,114	$	(12)	$	—	$	93,868


	December 31, 2019
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government agencies	$	31,335	$	182	$	(8)	$	31,509
Mortgage-backed securities, residential	48,082		562		(121)		48,523
Collateralized mortgage obligations, residential	28,147		172		(55)		28,264
Mortgage-backed securities, multifamily	1,750		4		(2)		1,752

Obligations of states and political subdivisions	12,161		195		—		12,356
Debt securities	2,500		—		—		2,500
Total	$	123,975	$	1,115	$	(186)	$	124,904

The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of December 31, 2020. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	13,410	$	13,603	$	9,022	$	9,078
Due after one year through five years	62,626		64,509		21,535		22,440
Due after five years through ten years	53,139		54,782		3,130		3,193
Due after ten years	198,539		201,489		2,508		2,543
	327,714		334,383		36,195		37,254
Mortgage-backed and asset-backed securities	511,558		521,363		54,571		56,614
Total	$	839,272	$	855,746	$	90,766	$	93,868

For the twelve months ended December 31, 2020, proceeds from sales of available-for-sale securities totaled $130.9 million with gross gains on sales and calls of securities of $1.3 million and gross losses on sales and calls of securities of $248,000. There were no sales for the twelve months ended December 31, 2019. Gains or losses on sales of securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method.

Securities with a carrying value of approximately $578.0 million and $581.1 million at December 31, 2020 and December 31, 2019, respectively, were pledged to secure public deposits and for other purposes required by applicable laws and regulations.

Credit ratings, which are updated monthly, are a key measure for estimating the probability of a bond's default and for monitoring credit quality on an on-going basis. For bonds other than U.S. Treasuries and bonds issued or guaranteed by U.S. government agencies, credit ratings issued by one or more nationally recognized statistical rating organization are considered in conjunction with an assessment by the Company's management. Investment grade reflects a credit quality of A or above.


(in thousands)	AAA		AA		Total

U.S. Treasury and U.S. government agencies	$	25,565	$	—	$	25,565
Mortgage-backed securities, residential	39,276		—		39,276
Collateralized mortgage obligations, residential	14,590		—		14,590
Mortgage-backed securities, multifamily	705		—		705

Obligations of states and political subdivisions	2,959		7,671		10,630

Total	$	83,095	$	7,671	$	90,766


December 31, 2020	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses
AVAILABLE FOR SALE
U.S. Treasury and U.S. government agencies	$	4,966	$	29	$	17,652	$	284	6		$	22,618	$	313
Mortgage-backed securities, residential	84,137		471		5,656		69		30		89,793		540
Collateralized mortgage obligations, residential	23,858		22		—		—		7		23,858		22
Mortgage-backed securities, multifamily	1,943		—		—		—		1		1,943		—
Collateralized mortgage obligations, multifamily	2,527		2		—		—		1		2,527		2
Asset-backed securities	40,690		225		—		—		6		40,690		225
Obligations of states and political subdivisions	15,901		228		—		—		10		15,901		228

Total	$	174,022	$	977	$	23,308	$	353	$	61	$	197,330	$	1,330
HELD TO MATURITY

Mortgage-backed securities, residential	2,561		12		—		—		4		2,561		12





Total	$	2,561	$	12	$	—	$	—	$	4	$	2,561	$	12


December 31, 2019	Less Than 12 Months				12 Months or Longer				Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
AVAILABLE FOR SALE
U.S. Treasury and U.S. government agencies	$	11,625	$	39	$	41,617	$	397	11	$	53,242	$	436
Mortgage-backed securities, residential	67,039		313		64,509		526		48	131,548		839
Collateralized mortgage obligations, residential	58,743		248		34,980		464		38	93,723		712

Collateralized mortgage obligations, multifamily	7,651		118		4,878		5		3	12,529		123

Obligations of states and political subdivisions	373		2		6,559		33		5	6,932		35

Total	$	145,431	$	720	$	152,543	$	1,425	105	$	297,974	$	2,145
HELD TO MATURITY
U.S. government agencies	$	3,195	$	6	$	5,102	$	2	2	$	8,297	$	8
Mortgage-backed securities, residential	5,379		20		8,060		101		10	13,439		121
Collateralized mortgage obligations, residential	7,083		26		2,532		29		6	9,615		55
Mortgage-backed securities, multifamily	—		—		998		2		1	998		2



Total	$	15,657	$	52	$	16,692	$	134	19	$	32,349	$	186

The Company has an equity securities portfolio which consists of investments in other financial institutions for market appreciation purposes and investments in Community Reinvestment funds; however, as of December 31, 2020, the Company has no investments in other financial institutions. The market value of the equity portfolio was $14.7 million and $16.5 million at December 31, 2020 and December 31, 2019, respectively. The Company recorded $4.1 million and $1.3 million of proceeds from sales of equity securities for the twelve months ended December 31, 2020 and 2019, respectively, The Company recorded $552,000 in market value losses on equity securities in noninterest income for the year ended December 31, 2020, $496,000 in market value gains on equity securities for the year ended December 31, 2019 and market value losses on equity securities of $583,000 during 2018.

As of December 31, 2020, the Company's investments in Community Reinvestment funds include $3.5 million that are primarily invested in community development loans that are guaranteed by the SBA. Because the funds are primarily guaranteed by the federal government, there are minimal changes in market value between accounting periods. These funds can be redeemed with 60 days' notice at the net asset value less unpaid management fees with the approval of the fund manager. As of December 31, 2020, the net amortized cost equaled the market value of the investment. There are no unfunded commitments related to these investments.

The Community Reinvestment funds also include $11.2 million of investment in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development as of December 31, 2020. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to these investments.