The amortized cost and estimated fair value of AFS securities as of September 30, 2021 and December 31, 2020 are as follows:



(Dollars in thousands)			Gross		Gross
	Amortized		unrealized		unrealized		Fair
September 30, 2021	cost		gains		losses		value
U.S. Government and Agency	$	89,813	$	126	$	(293)	$	89,646
Municipal		226,582		7,184		(1,490)		232,276
Corporate		24,786		311		(141)		24,956
Agency mortgage-backed		126,238		1,217		(1,338)		126,117
Private-label mortgage-backed		27,073		50		(74)		27,049
Asset-backed		45,514		359		(129)		45,744
Total	$	540,006	$	9,247	$	(3,465)	$	545,788



(Dollars in thousands)			Gross		Gross
	Amortized		unrealized		unrealized		Fair
December 31, 2020	cost		gains		losses		value
U.S. Government and Agency	$	12,594	$	20	$	(40)	$	12,574
Municipal		236,253		11,020		(219)		247,054
Corporate		20,421		22		(155)		20,288
Agency mortgage-backed		70,443		1,905		(107)		72,241
Private-label mortgage-backed		8,412		56		(15)		8,453
Asset-backed		36,246		249		(165)		36,330
Total	$	384,369	$	13,272	$	(701)	$	396,940

At September 30, 2021 and December 31, 2020, the fair value of debt securities pledged to secure public funds and trust deposits totaled $168.0 million and $137.4 million, respectively. The Bank has no investment in a single issuer that exceeds 10% of shareholders’ equity, except for securities issued by the U.S. Treasury and U.S. government sponsored entities.

The amortized cost and estimated fair value of debt securities at September 30, 2021, 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	$	2,613	$	2,644
Due after one year through five years		21,770		22,368
Due after five years through ten years		268,783		274,542
Due after ten years		48,015		47,324
		341,181		346,878
Mortgage-backed and asset-backed		198,825		198,910
	$	540,006	$	545,788

The composition of the net realized gains (losses) on debt 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)	2021		2020		2021		2020
Proceeds	$	—	$	1,225	$	16,060	$	1,390
Gross gains realized		—		7		169		7
Gross losses realized		—		(23)		(78)		(33)
Net gains (losses) realized	$	—	$	(16)	$	91	$	(26)

Tax (provision) benefit on net gains (losses) realized	$	—	$	3	$	(19)	$	5

Impairment:

The debt securities portfolio contained 204 securities with $234.8 million of temporarily impaired fair value and $3.5 million in unrealized losses at September 30, 2021. The total unrealized loss position has increased $2.8 million since year-end 2020.

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, 2021, 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, 2021 and December 31, 2020:



	September 30, 2021
	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	$	59,916	$	(280)	15	$	3,946	$	(13)	5	$	63,862	$	(293)	20
Municipal		48,450		(971)	55		12,248		(519)	11		60,698		(1,490)	66
Corporate		8,447		(96)	17		1,455		(45)	2		9,902		(141)	19
Agency mortgage-backed		76,682		(1,179)	64		5,710		(159)	6		82,392		(1,338)	70
Private-label mortgage-backed		12,920		(74)	9		—		—	—		12,920		(74)	9
Asset-backed		1,952		(90)	14		3,074		(39)	6		5,026		(129)	20
Total temporarily impaired	$	208,367	$	(2,690)	174	$	26,433	$	(775)	30	$	234,800	$	(3,465)	204



	December 31, 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	$	3,966	$	(21)	5	$	4,185	$	(19)	11	$	8,151	$	(40)	16
Municipal		27,022		(219)	28		—		—	—		27,022		(219)	28
Corporate		7,576		(37)	13		3,040		(118)	4		10,616		(155)	17
Agency mortgage-backed		18,390		(101)	17		3,355		(6)	5		21,745		(107)	22
Private-label mortgage-backed		2,506		(15)	2		—		—	—		2,506		(15)	2
Asset-backed		1,458		(12)	2		11,452		(153)	15		12,910		(165)	17
Total temporarily impaired	$	60,918	$	(405)	67	$	22,032	$	(296)	35	$	82,950	$	(701)	102

The following table represents the cumulative credit losses on debt securities recognized in earnings for: