The investment portfolio consists primarily of U.S. Government sponsored entity and agency securities collateralized by residential mortgage obligations, private label mortgage and asset backed securities (PLMABS), corporate debt securities, and obligations of states and political subdivisions securities. As of March 31, 2021, $177,938,000 of these securities were held as collateral for borrowing arrangements, public funds, and for other purposes.

The fair value of the available-for-sale investment portfolio reflected a net unrealized gain of $7,470,000 at March 31, 2021 compared to an unrealized gain of $21,091,000 at December 31, 2020. The unrealized gain/(loss) recorded is net of $2,208,000 and $6,235,000 in tax liabilities (benefits) as accumulated other comprehensive income (loss) within shareholders’ equity at March 31, 2021 and December 31, 2020, respectively.


	March 31, 2021
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Debt securities:

U.S. Government agencies	$	644	$	11	$	—	$	655
Obligations of states and political subdivisions	408,188		10,458		(5,163)		413,483
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	212,364		3,186		(1,164)		214,386
Private label mortgage and asset backed securities	108,053		1,263		(1,396)		107,920
Corporate debt securities	32,000		444		(169)		32,275
Total available-for-sale	$	761,249	$	15,362	$	(7,892)	$	768,719


	December 31, 2020
Available-for-Sale Securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Debt securities:

U.S. Government agencies	$	651	$	29	$	—	$	680
Obligations of states and political subdivisions	361,734		18,170		(339)		379,565
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	214,203		3,575		(1,480)		216,298
Private label mortgage and asset backed securities	82,413		1,337		(242)		83,508
Corporate debt securities	30,000		260		(219)		30,041
Total available-for-sale	$	689,001	$	23,371	$	(2,280)	$	710,092

As market interest rates or risks associated with a security’s issuer continue to change and impact the actual or perceived values of investment securities, the Company may determine that selling these securities and using proceeds to purchase securities that fit with the Company’s current risk profile is appropriate and beneficial to the Company.


	March 31, 2021
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale Securities	Value		Losses		Value		Losses		Value		Losses
Debt securities:


Obligations of states and political subdivisions	$	184,550	$	(5,163)	$	—	$	—	$	184,550	$	(5,163)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	22,132		(481)		69,688		(683)		91,820		(1,164)
Private label mortgage and asset backed securities	56,865		(1,364)		4,379		(32)		61,244		(1,396)
Corporate debt securities	12,831		(169)		—		—		12,831		(169)
Total available-for-sale	$	276,378	$	(7,177)	$	74,067	$	(715)	$	350,445	$	(7,892)


	December 31, 2020
	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-Sale Securities	Value		Losses		Value		Losses		Value		Losses
Debt securities:


Obligations of states and political subdivisions	$	36,209	$	(339)	$	—	$	—	$	36,209	$	(339)
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	30,755		(385)		77,337		(1,095)		108,092		(1,480)
Private label mortgage and asset backed securities	25,407		(242)		—		—		25,407		(242)
Corporate debt securities	12,881		(119)		3,900		(100)		16,781		(219)
Total available-for-sale	$	105,252	$	(1,085)	$	81,237	$	(1,195)	$	186,489	$	(2,280)

The Company periodically evaluates each investment security for other-than-temporary impairment, relying primarily on industry analyst reports, observation of market conditions, and interest rate fluctuations. The portion of the impairment that is attributable to a shortage in the present value of expected future cash flows relative to the amortized cost should be recorded as a current period charge to earnings. The discount rate in this analysis is the original yield expected at time of purchase.

As of March 31, 2021, the Company performed an analysis of the investment portfolio to determine whether any of the investments held in the portfolio had an other-than-temporary impairment (OTTI). The Company evaluated all individual available-for-sale investment securities with an unrealized loss at March 31, 2021 and identified those that had an unrealized loss for at least a consecutive 12 month period, which had an unrealized loss at March 31, 2021 greater than 10% of the recorded book value on that date, or which had an unrealized loss of more than $75,000. The Company also analyzed any securities that may have been downgraded by credit rating agencies.

For those investment securities that met the evaluation criteria, management obtained and reviewed the most recently published national credit ratings for those investment securities. There were no OTTI losses recorded during the three months ended March 31, 2021.

At March 31, 2021, the Company held 114 obligations of states and political subdivision securities of which 43 were in a loss position for less than 12 months. The unrealized losses on the Company’s investments in obligations of states and political subdivision securities were caused by interest rate changes. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2021.

At March 31, 2021, the Company held 114 U.S. Government sponsored entity and agency securities collateralized by residential mortgage obligations of which four were in a loss position for less than 12 months and 15 have been in a loss position for more than 12 months. The unrealized losses on the Company’s investments in U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations were caused by interest rate changes. The contractual cash flows of those investments are guaranteed or supported by an agency or sponsored entity of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has the ability to hold and does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2021.

At March 31, 2021, the Company had a total of 36 Private Label Mortgage and Asset Backed Securities (PLMABS). 13 of the PLMABS securities were in a loss position for less than 12 months and one has been in loss for more than 12 months at March 31, 2021. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has the ability and intent to hold, and it is more likely than not that it will not be required to sell, those investments until a recovery of fair value, which may be the maturity date, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2021. The Company continues to monitor these securities for indications that declines in value, if any, may be other-than-temporary.

At March 31, 2021, the Company held ten corporate debt securities of which four were in a loss position for less than 12 months. The unrealized loss on the Company’s investments in corporate debt security was caused by interest rate changes. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell, and it is more likely than not that it will not be required to sell those investments until a recovery of fair value, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at March 31, 2021.

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


	March 31, 2021
Available-for-Sale Securities	Amortized Cost		Estimated Fair Value
Within one year	$	301	$	305
After one year through five years	3,285		3,612
After five years through ten years	24,932		26,876
After ten years	379,670		382,690
	408,188		413,483
Investment securities not due at a single maturity date:

U.S. Government agencies	644		655
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations	212,364		214,386
Private label mortgage and asset backed securities	108,053		107,920
Corporate debt securities	32,000		32,275
Total available-for-sale	$	761,249	$	768,719