
	June 30, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. Treasury and U.S. government agencies	$	105,385	$	1,655	$	(596)	$	—	$	106,444
Mortgage-backed securities, residential	315,852		2,380		(3,364)		—		314,868
Collateralized mortgage obligations, residential	184,683		3,555		(312)		—		187,926
Mortgage-backed securities, multifamily	1,938		—		(38)		—		1,900
Collateralized mortgage obligations, multifamily	28,910		999		(30)		—		29,879
Asset-backed securities	47,189		102		(55)		—		47,236
Obligations of states and political subdivisions	263,114		3,813		(1,673)		(3)		265,251
Debt securities	34,055		1,141		(9)		(18)		35,169
Total	$	981,126	$	13,645	$	(6,077)	$	(21)	$	988,673


	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


	June 30, 2021
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
U.S. government agencies	$	19,236	$	535	$	—	$	—	$	19,771
Mortgage-backed securities, residential	42,401		921		(254)		—		43,068
Collateralized mortgage obligations, residential	9,677		358		—		—		10,035
Mortgage-backed securities, multifamily	2,737		82		—		—		2,819

Obligations of states and political subdivisions	17,364		270		(48)		—		17,586
Debt securities	3,000		32		—		(137)		2,895
Total	$	94,415	$	2,198	$	(302)	$	(137)	$	96,174


	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

	$	90,766	$	3,114	$	(12)	$	—	$	93,868

The following table lists contractual maturities of investment securities classified as available for sale and held to maturity as of June 30, 2021. 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	$	25,763	$	26,042	$	7,809	$	7,913
Due after one year through five years	44,924		46,127		15,940		16,489
Due after five years through ten years	78,833		80,737		7,493		7,444
Due after ten years	253,034		253,958		8,358		8,406
	402,554		406,864		39,600		40,252
Mortgage-backed and asset-backed securities	578,572		581,809		54,815		55,922
Total securities	$	981,126	$	988,673	$	94,415	$	96,174

For the three and six months ended June 30, 2021 and the three months ended June 30, 2020, there were no sales of available for sale securities. There were proceeds from sales of available for sale securities of $94.7 million for the six months ended June 30, 2020 with gross gains on sales of securities of $569,000 and gross losses on sales of securities of $227,000. 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. In the second quarter of 2021, the Company recorded a gain on a called security of $9,000.

Securities with a carrying value of approximately $653.3 million and $578.0 million at June 30, 2021 and December 31, 2020, 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 BBB or above.


June 30, 2021	AAA		AA		BBB		Not Rated		Total
(in thousands)
U.S. Treasury and U.S. government agencies	$	19,236	$	—	$	—	$	—	$	19,236
Mortgage-backed securities, residential	42,401		—		—		—		42,401
Collateralized mortgage obligations, residential	9,677		—		—		—		9,677
Mortgage-backed securities, multifamily	2,737		—		—		—		2,737

Obligations of states and political subdivisions	2,843		14,102		—		419		17,364
Debt securities	—		—		3,000		—		3,000
Total	$	76,894	$	14,102	$	3,000	$	419	$	94,415


December 31, 2020	AAA		AA		Total
(in thousands)
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


June 30, 2021	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	$	10,460	$	435	$	12,083	$	161	6		$	22,543	$	596
Mortgage-backed securities, residential	221,699		3,354		4,068		10		62		225,767		3,364
Collateralized mortgage obligations, residential	21,314		312		—		—		7		21,314		312
Mortgage-backed securities, multifamily	1,900		38		—		—		1		1,900		38
Collateralized mortgage obligations, multifamily	1,543		30		—		—		1		1,543		30
Asset-backed securities	7,577		27		17,674		28		3		25,251		55
Obligations of states and political subdivisions	77,380		1,673		—		—		54		77,380		1,673
Debt securities	2,973		9		—		—		2		2,973		9
Total	$	344,846	$	5,878	$	33,825	$	199	$	136	$	378,671	$	6,077
Held to Maturity

Mortgage-backed securities, residential	$	15,320	$	253	$	111	1		11		$	15,431	$	254



Obligations of states and political subdivisions	4,741		48		—		—		5		4,741		48

Total	$	20,061	$	301	$	111	$	1	16		$	20,172	$	302


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

The Company has an equity securities portfolio which consists of investments in Community Reinvestment funds. The fair value of the equity portfolio was $15.4 million and $14.7 million at June 30, 2021 and December 31, 2020, respectively. For the three and six months ended June 30, 2021 and 2020, the Company recorded no sales of equity securities. The Company recorded fair value gains on equity securities of $11,000 and $198,000 for the second quarter of 2021 and 2020, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded fair value losses of $133,000 and $455,000, respectively. Fair value gain or loss on equity securities are recorded in noninterest income.

As of June 30, 2021, 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 Small Business Administration (“SBA”). Because the funds are primarily guaranteed by the federal government, there are minimal changes in fair 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 June 30, 2021, the net amortized cost equaled the fair value of the investment. There are no unfunded commitments related to these investments.

The Community Reinvestment funds also include $11.9 million of investment in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development as of June 30, 2021. 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.