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Securities Available For Sale

The following table shows the gross unrealized losses and fair value for the securities available for sale portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at

September 30, 2020

and

December 31, 2019.

	Less Than Twelve Months							Twelve Months or More							Total
(Dollars in thousands)	# of Investments		Fair Value		Unrealized Losses			# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2020
Mortgage-backed securities:
Federal National Mortgage Association (FNMA)		2	$	10,254		(35	)		0	$	0		0		$	10,254		(35	)
Other marketable securities:
Corporate obligations		1		37		(1	)		0		0		0			37		(1	)
Corporate preferred stock		0		0		0			1		595		(105	)		595		(105	)
Total temporarily impaired securities		3	$	10,291		(36	)		1	$	595		(105	)	$	10,886		(141	)

	Less Than Twelve Months							Twelve Months or More							Total
(Dollars in thousands)	# of Investments		Fair Value		Unrealized Losses			# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2019
Mortgage backed securities:
FNMA		4	$	12,143		(65	)		0	$	0		0		$	12,143		(65	)
Other marketable securities:
U.S. Government agency obligations		0		0		0			4		19,972		(21	)		19,972		(21	)
Corporate preferred stock		0		0		0			1		665		(35	)		665		(35	)
Total temporarily impaired securities		4	$	12,143		(65	)		5	$	20,637		(56	)	$	32,780		(121	)

The Company reviews its investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the market liquidity for the investment, the financial condition and near-term prospects of the issuer, including any specific events which

may

influence the operations of the issuer, and the Company's intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. The unrealized losses on impaired securities other than the corporate preferred stock are the result of changes in interest rates. The unrealized losses reported for the corporate preferred stock at

September 30, 2020

relates to a single trust preferred security that was issued by the holding company of a small community bank. As of

September 30, 2020

all payments were current on the trust preferred security and the issuer's subsidiary bank was considered to be “well capitalized” based on its most recent regulatory filing. Based on a review of the issuer, it was determined that the trust preferred security was

not

other-than-temporarily impaired at

September 30, 2020.

The Company does

not

intend to sell the preferred stock and has the intent and ability to hold it for a period of time sufficient to recover the temporary loss. Management believes that the Company will receive all principal and interest payments contractually due on the security and that the decrease in the market value is primarily due to a lack of liquidity in the market for trust preferred securities. Management will continue to monitor the credit risk of the issuer and

may

be required to recognize other-than-temporary impairment charges on this security in future periods.

A summary of securities available for sale at

September 30, 2020

and

December 31, 2019

is as follows:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
September 30, 2020:
Mortgage-backed securities:
FNMA	$	52,922		1,388		(35	)		54,275
Federal Home Loan Mortgage Corporation (FHLMC)		16,783		272		0			17,055
Collateralized mortgage obligations:
FNMA		121		7		0			128
		69,826		1,667		(35	)		71,458
Other marketable securities:
U.S. Government agency obligations		45,046		333		0			45,379
Municipal obligations		1,091		5		0			1,096
Corporate obligations		37		0		(1	)		36
Corporate preferred stock		700		0		(105	)		595
		46,874		338		(106	)		47,106
	$	116,700		2,005		(141	)		118,564

Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
December 31, 2019
Mortgage-backed securities:
FNMA	$	46,604		47		(65	)		46,586
FHLMC		8,004		88		0			8,092
Collateralized mortgage obligations:
FNMA		169		4		0			173
		54,777		139		(65	)		54,851
Other marketable securities:
U.S. Government agency obligations		49,974		39		(21	)		49,992
Municipal obligations		1,969		7		0			1,976
Corporate obligations		108		0		0			108
Corporate preferred stock		700		0		(35	)		665
		52,751		46		(56	)		52,741
	$	107,528		185		(121	)		107,592

The following table indicates amortized cost and estimated fair value of securities available for sale at

September 30, 2020

based upon contractual maturity adjusted for scheduled repayments of principal and projected prepayments of principal based upon current economic conditions and interest rates.

(Dollars in thousands)	Amortized Cost		Fair Value
Due less than one year	$	63,341		64,159
Due after one year through five years		43,832		44,776
Due after five years through ten years		8,662		8,865
Due after ten years		865		764
Total	$	116,700		118,564

The allocation of mortgage-backed securities in the table above is based upon the anticipated future cash flow of the securities using estimated mortgage prepayment speeds. The allocation of other marketable securities that have call features is based on the anticipated cash flows to the call date if it is anticipated that the security will be called, or to the maturity date if it is

not

anticipated to be called.