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Securities

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Securities

Note 4. Securities

The amortized cost and fair value of securities available-for-sale at December 31, 2020 and 2019 are summarized as follow (in thousands):


		December 31, 2020
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
U.S. Government-sponsored enterprises (GSEs)		$	30,526		$	10		$	(6)		$	30,530
Municipal securities			89,644			2,345			—			91,989
Other debt securities			25,019			112			(13)			25,118
Mortgage-backed securities (GSEs)			66,425			1,754			(182)			67,997
Total		$	211,614		$	4,221		$	(201)		$	215,634


		December 31, 2019
					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
U.S. Government-sponsored enterprises (GSEs)		$	19,015		$	41		$	(56)		$	19,000
Municipal securities			63,792			618			(19)			64,391
Other debt securities			3,481			22			(33)			3,470
Mortgage-backed securities (GSEs)			91,531			382			(426)			91,487
Total		$	177,819		$	1,063		$	(534)		$	178,348

At December 31, 2020 and 2019, securities with a carrying value totaling approximately $80.2 million and $92.3 million, respectively, were pledged to secure public funds and securities sold under agreements to repurchase.

The Company has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair values of available for sale securities. See Note 18 - Derivatives for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.

Proceeds from sale and maturities and calls of securities available for sale, gross gains and gross losses were as follows (in thousands):


		Year Ended
		December 31,
		2020			2019
Proceeds from sales		$	11,759		$	16,515
Gross gains		$	7		$	35
Gross losses		$	(1)		$	(1)

Proceeds from maturities and calls		$	49,633		$	15,555

The amortized cost and estimated market value of securities by contractual maturity, are shown below (in thousands). 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.


		December 31, 2020
		Amortized			Fair
		Cost			Value
Due in one year or less		$	4,907		$	4,949
Due from one year to five years			4,159			4,174
Due from five years to ten years			36,172			36,442
Due after ten years			99,951			102,072
			145,189			147,637
Mortgage-backed securities			66,425			67,997
Total		$	211,614		$	215,634

The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of December 31, 2020 and 2019 (in thousands):


		As of December 31, 2020
		Less than 12 Months								12 Months or Greater								Total
					Gross			Number					Gross			Number					Gross			Number
		Fair			Unrealized			of		Fair			Unrealized			of		Fair			Unrealized			of
		Value			Losses			Securities		Value			Losses			Securities		Value			Losses			Securities
U.S. Government-sponsored enterprises (GSEs)		$	15,510		$	(5)		3		$	132		$	(1)		1		$	15,642		$	(6)		4
Municipal securities			—			—		—			—			—		—			—			—		—
Other debt securities			1,495			(5)		1			977			(8)		1			2,472			(13)		2
Mortgage-backed securities (GSEs)			9,790			(87)		6			6,083			(95)		3			15,873			(182)		9
Total		$	26,795		$	(97)		10		$	7,192		$	(104)		5		$	33,987		$	(201)		15


		As of December 31, 2019
		Less than 12 Months								12 Months or Greater								Total
					Gross			Number					Gross			Number					Gross			Number
		Fair			Unrealized			of		Fair			Unrealized			of		Fair			Unrealized			of
		Value			Losses			Securities		Value			Losses			Securities		Value			Losses			Securities
U.S. Government-sponsored enterprises (GSEs)		$	2,972		$	(43)		2		$	5,987		$	(13)		2		$	8,959		$	(56)		4
Municipal securities			3,656			(16)		4			527			(3)		1			4,183			(19)		5
Other debt securities			—			—		—			947			(33)		1			947			(33)		1
Mortgage-backed securities (GSEs)			13,208			(194)		10			19,988			(232)		31			33,196			(426)		41
Total		$	19,836		$	(253)		16		$	27,449		$	(281)		35		$	47,285		$	(534)		51

The Company reviews the securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security’s decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Company may consider in the other-than-temporary impairment analysis include the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions.

Based on this evaluation, the Company concluded that any unrealized losses at December 31, 2020 represented a temporary impairment, as these unrealized losses are primarily attributable to changes in interest rates and current market conditions,

and not credit deterioration of the issuers. As of December 31, 2020, the Company does not intend to sell any of the securities, does not expect to be required to sell any of the securities, and expects to recover the entire amortized cost of all of the securities.

Other Investments:

Our other investments consist of restricted non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of December 31, 2020, the Company determined that there was no impairment on its other investment securities.

The following is the amortized cost and carrying value of other investments (in thousands):


		December 31,			December 31,
		2020			2019
Federal Reserve Bank stock		$	8,606		$	7,917
Federal Home Loan Bank stock			5,838			4,646
First National Bankers Bank stock			350			350
Total		$	14,794		$	12,913