Debt Securities

12 Months Ended

Dec. 31, 2020

NOTE 4 — Debt SECURITIES

The following table summarizes the amortized cost and fair value of securities available-for-sale at December 31, 2020 and 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income:



	Amortized		Gross		Gross
	Cost		Unrealized		Unrealized		Fair
(In thousands)	Basis		Gains		Losses		Value
December 31, 2020
State and municipal	$	10,211	$	683	$	—	$	10,894
Asset-backed securities		4,432		278		—		4,710
Government mortgage-backed securities		16,172		449		10		16,611
Total debt securities available-for-sale	$	30,815	$	1,410	$	10	$	32,215
December 31, 2019
State and municipal	$	10,808	$	398	$	—	$	11,206
Asset-backed securities		5,433		71		4		5,500
Government mortgage-backed securities		24,954		197		67		25,084
Total debt securities available-for-sale	$	41,195	$	666	$	71	$	41,790

The scheduled maturities of debt securities were as follows at December 31, 2020. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary.



	Available-for-Sale
	Amortized		Fair
(In thousands)	Cost		Value
Due after one year through five years	$	919	$	963
Due after five years through ten years		912		917
Due after ten years		8,380		9,014
Government mortgage-backed securities		16,172		16,611
Asset-backed securities		4,432		4,710
	$	30,815	$	32,215

There were no realized gains or losses on sales and calls during the year ended December 31, 2020. During the year ended December 31, 2019, gross realized gains on sales and calls were $216,000 and gross realized losses were $103,000.

There were no securities of issuers whose aggregate carrying amount exceeded 10% of equity at December 31, 2020.

Securities with carrying amounts of $21.3 million and $30.6 million were pledged to secure available borrowings with the Federal Home Loan Bank at December 31, 2020 and 2019, respectively.

As of December 31, 2020, the Company’ security portfolio consisted of 56 securities, three of which were in an unrealized loss position. The unrealized losses were related to the Company’s government mortgage-backed securities, as discussed below.

The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized-loss position for less than twelve months and for twelve months or more, and are temporarily impaired, are as follows at December 31, 2020 and 2019:


	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(In thousands)	Value		Losses		Value		Losses		Value		Losses
December 31, 2020
Temporarily impaired securities:
Government mortgage-backed securities	$	—	$	—	$	817	$	10	$	817	$	10
Total temporarily impaired debt securities	$	—	$	—	$	817	$	10	$	817	$	10
December 31, 2019
Temporarily impaired securities:
Asset-backed securities	$	606	$	4	$	—	$	—	$	606	$	4
Government mortgage-backed securities		5,207		8		5,418		59		10,625		67
Total temporarily impaired debt securities	$	5,813	$	12	$	5,418	$	59	$	11,231	$	71

Government mortgage-backed securities: The gross unrealized losses on government mortgage-backed securities were primarily attributable to relative changes in interest rates since the time of purchase. Management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at December 31, 2020.