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Investments | 9 Months Ended
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Sep. 30, 2020
Investments [Abstract] |
Investments | Note 4. Investments Available for Sale (AFS) Securities The amortized cost and estimated fair value of AFS securities as of September 30, 2020 and December 31, 2019 are as follows:
(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | unrealized |  | unrealized |  | Fair
September 30, 2020 |  | cost |  | gains |  | losses |  | value
U.S. Government and Agency securities |  | $ | 11,883 |  | $ | 29 |  | $ | (49) |  | $ | 11,863
Municipal securities |  |  | 213,206 |  |  | 8,497 |  |  | (270) |  |  | 221,433
Trust preferred and Corporate securities |  |  | 10,915 |  |  | 2 |  |  | (223) |  |  | 10,694
Agency mortgage-backed securities |  |  | 62,438 |  |  | 1,977 |  |  | (35) |  |  | 64,380
Private-label mortgage-backed securities |  |  | 5,807 |  |  | 22 |  |  | (19) |  |  | 5,810
Asset-backed securities |  |  | 32,681 |  |  | 59 |  |  | (447) |  |  | 32,293
|  | $ | 336,930 |  | $ | 10,586 |  | $ | (1,043) |  | $ | 346,473
(Dollars in thousands) |  |  |  |  | Gross |  | Gross |  |  |
|  | Amortized |  | unrealized |  | unrealized |  | Fair
December 31, 2019 |  | cost |  | gains |  | losses |  | value
U.S. Government and Agency securities |  | $ | 8,418 |  | $ | 30 |  | $ | (20) |  | $ | 8,428
Municipal securities |  |  | 90,865 |  |  | 1,418 |  |  | (997) |  |  | 91,286
Trust preferred and Corporate securities |  |  | 4,097 |  |  | — |  |  | (130) |  |  | 3,967
Agency mortgage-backed securities |  |  | 58,503 |  |  | 435 |  |  | (234) |  |  | 58,704
Private-label mortgage-backed securities |  |  | 398 |  |  | 31 |  |  | — |  |  | 429
Asset-backed securities |  |  | 24,918 |  |  | 6 |  |  | (305) |  |  | 24,619
|  | $ | 187,199 |  | $ | 1,920 |  | $ | (1,686) |  | $ | 187,433
At September 30, 2020 and December 31, 2019, the fair value of AFS securities pledged to secure public funds and trust deposits totaled $140.5 million and $107.1 million, respectively. The amortized cost and estimated fair value of debt securities at September 30, 2020, by contractual maturity are shown below. Actual maturities may differ from contractual maturities because of prepayment or call options embedded in the securities. Securities not due at a single maturity date are presented separately.
(Dollars in thousands) |  | Amortized ‎cost |  | Fair ‎value
Due in one year or less |  | $ | 5,925 |  | $ | 5,960
Due after one year through five years |  |  | 23,217 |  |  | 23,715
Due after five years through ten years |  |  | 174,099 |  |  | 180,496
Due after ten years |  |  | 32,763 |  |  | 33,819
|  |  | 236,004 |  |  | 243,990
Mortgage-backed and asset-backed securities |  |  | 100,926 |  |  | 102,483
|  | $ | 336,930 |  | $ | 346,473
The composition of the net realized gains on AFS securities for the three and nine months ended are as follows:
|  | For the Three Months Ended |  | For the Nine Months Ended
|  | September 30, |  | September 30,
(Dollars in thousands) |  | 2020 |  | 2019 |  | 2020 |  | 2019
Proceeds |  | $ | 1,225 |  | $ | 1,826 |  | $ | 1,390 |  | $ | 18,781
Gross gains realized |  |  | 7 |  |  | 4 |  |  | 7 |  |  | 285
Gross losses realized |  |  | (23) |  |  | (1) |  |  | (33) |  |  | (29)
Net (losses) gains realized |  | $ | (16) |  | $ | 3 |  | $ | (26) |  | $ | 256
Tax benefit (provision) on net (losses) gains realized |  | $ | 3 |  | $ | (1) |  | $ | 5 |  | $ | (54)
Impairment: The AFS securities portfolio contained 105 securities with $91 million of temporarily impaired fair value and $1.0 million in unrealized losses at September 30, 2020. The total unrealized loss position has decreased $643 thousand since year-end 2019. For securities with an unrealized loss, Management applies a systematic methodology in order to perform an assessment of the potential for other-than-temporary impairment. In the case of debt securities, investments considered for other-than-temporary impairment: (1) had a specified maturity or repricing date; (2) were generally expected to be redeemed at par; and (3) were expected to achieve a recovery in market value within a reasonable period of time. In addition, the Bank considers whether it intends to sell these securities or whether it will be forced to sell these securities before the earlier of amortized cost recovery or maturity. The impairment identified on debt securities and subject to assessment at September 30, 2020, was deemed to be temporary and required no further adjustments to the financial statements, unless otherwise noted. The following table reflects temporary impairment in the AFS portfolio, aggregated by investment category, length of time that individual securities have been in a continuous unrealized loss position and the number of securities in each category as of September 30, 2020 and December 31, 2019:
| September 30, 2020
| Less than 12 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
U.S. Government and Agency ‎ securities | $ | 6,127 |  | $ | (32) |  | 7 |  | $ | 2,372 |  | $ | (17) |  | 10 |  | $ | 8,499 |  | $ | (49) |  | 17
Municipal securities |  | 37,067 |  |  | (270) |  | 37 |  |  | — |  |  | — |  | — |  |  | 37,067 |  |  | (270) |  | 37
Trust preferred and Corporate securities |  | 2,898 |  |  | (64) |  | 5 |  |  | 2,994 |  |  | (159) |  | 4 |  |  | 5,892 |  |  | (223) |  | 9
Agency mortgage-backed securities |  | 9,011 |  |  | (29) |  | 8 |  |  | 3,479 |  |  | (6) |  | 5 |  |  | 12,490 |  |  | (35) |  | 13
Private-label mortgage-backed securities |  | 3,473 |  |  | (19) |  | 1 |  |  | — |  |  | — |  | — |  |  | 3,473 |  |  | (19) |  | 1
Asset-backed securities |  | 14,934 |  |  | (156) |  | 16 |  |  | 8,635 |  |  | (291) |  | 12 |  |  | 23,569 |  |  | (447) |  | 28
Total temporarily impaired ‎ securities | $ | 73,510 |  | $ | (570) |  | 74 |  | $ | 17,480 |  | $ | (473) |  | 31 |  | $ | 90,990 |  | $ | (1,043) |  | 105
| December 31, 2019
| Less than 12 months |  | 12 months or more |  | Total
| Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |
(Dollars in thousands) | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count |  | Value |  | Losses |  | Count
U.S. Government and Agency ‎ securities | $ | 2,559 |  | $ | (12) |  | 6 |  | $ | 1,335 |  | $ | (8) |  | 7 |  | $ | 3,894 |  | $ | (20) |  | 13
Municipal securities |  | 38,874 |  |  | (966) |  | 40 |  |  | 2,655 |  |  | (31) |  | 4 |  |  | 41,529 |  |  | (997) |  | 44
Trust preferred and Corporate securities |  | — |  |  | — |  | — |  |  | 3,967 |  |  | (130) |  | 5 |  |  | 3,967 |  |  | (130) |  | 5
Agency mortgage-backed securities |  | 21,185 |  |  | (185) |  | 32 |  |  | 6,555 |  |  | (49) |  | 22 |  |  | 27,740 |  |  | (234) |  | 54
Asset-backed securities |  | 17,644 |  |  | (128) |  | 19 |  |  | 5,669 |  |  | (177) |  | 9 |  |  | 23,313 |  |  | (305) |  | 28
Total temporarily impaired ‎ securities | $ | 80,262 |  | $ | (1,291) |  | 97 |  | $ | 20,181 |  | $ | (395) |  | 47 |  | $ | 100,443 |  | $ | (1,686) |  | 144
The following table represents the cumulative credit losses on AFS securities recognized in earnings for:
|  | Nine Months Ended
(Dollars in thousands) |  | September 30,
|  | 2020 |  | 2019
Balance of cumulative credit-related OTTI at January 1 |  | $ | 272 |  | $ | 272
Additions for credit-related OTTI not previously recognized |  |  | — |  |  | —
Additional increases for credit-related OTTI previously recognized when there is |  |  |  |  |  |
no intent to sell and no requirement to sell before recovery of amortized cost basis |  |  | — |  |  | —
Decreases for previously recognized credit-related OTTI because there was an intent to sell |  |  | — |  |  | —
Reduction for increases in cash flows expected to be collected |  |  | — |  |  | —
Balance of credit-related OTTI at September 30 |  | $ | 272 |  | $ | 272
Equity Securities at Fair Value The Corporation owns one equity investment. At September 30, 2020 and December 31, 2019, this investment was reported at fair value of $301 thousand and $440 thousand, respectively, with changes in value reported through income.

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