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Investment Securities | 9 Months Ended
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Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities Following is a comparison of the amortized cost and fair value of securities available-for-sale, as of September 30, 2021 and December 31, 2020:
(in 000's) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value (Carrying Amount)
September 30, 2021 |  |  |
Securities available-for-sale: |  |  |
U.S. Government agencies | $ | 35,830 |  |  | $ | 289 |  |  | $ | (81) |  |  | $ | 36,038 |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 64,720 |  |  | 454 |  |  | (142) |  |  | 65,032 |
Asset-backed securities | 4,674 |  |  | 22 |  |  | — |  |  | 4,696 |
Municipal bonds | 50,921 |  |  | 217 |  |  | (681) |  |  | 50,457 |
Corporate bonds | 5,000 |  |  | 509 |  |  | — |  |  | 5,509 |
Total securities available-for-sale | $ | 161,145 |  |  | $ | 1,491 |  |  | $ | (904) |  |  | $ | 161,732 |
(in 000's) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value (Carrying Amount)
December 31, 2020 |  |  |
Securities available-for-sale: |  |  |
U.S. Government agencies | $ | 33,800 |  |  | $ | 142 |  |  | $ | (232) |  |  | $ | 33,710 |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 37,732 |  |  | 722 |  |  | (9) |  |  | 38,445 |
Asset-backed securities | 3,871 |  |  | 38 |  |  | — |  |  | 3,909 |
Municipal bonds | 1,045 |  |  | 13 |  |  | — |  |  | 1,058 |
Corporate bonds | 5,000 |  |  | 219 |  |  | — |  |  | 5,219 |
Total securities available-for-sale | $ | 81,448 |  |  | $ | 1,134 |  |  | $ | (241) |  |  | $ | 82,341 |
The amortized cost and fair value of securities available for sale at September 30, 2021, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities on collateralized mortgage obligations cannot be anticipated due to allowed pay downs.
| September 30, 2021
| Amortized Cost |  | Fair Value (Carrying Amount)
(in 000's) |
Due in one year or less | $ | 996 |  |  | $ | 996 |
Due after one year through five years | 549 |  |  | 548 |
Due after five years through ten years | 44,887 |  |  | 44,960 |
Due after ten years | 49,993 |  |  | 50,196 |
Collateralized mortgage obligations | 64,720 |  |  | 65,032 |
| $ | 161,145 |  |  | $ | 161,732 |
There were no realized gains or losses on sales of available-for-sale securities for the three and nine month periods ended September 30, 2021 and September 30, 2020. There were no other-than-temporary impairment losses for the three and nine month periods ended September 30, 2021 and September 30, 2020. At September 30, 2021, available-for-sale securities with an amortized cost of approximately $98,069,000 (fair value of $98,744,000) were pledged as collateral for FHLB borrowings, securitized deposits, and public funds balances. The following summarizes temporarily impaired investment securities:
(in 000's) | Less than 12 Months |  | 12 Months or More |  | Total
September 30, 2021 | Fair Value (Carrying Amount) |  | Unrealized Losses |  | Fair Value (Carrying Amount) |  | Unrealized Losses |  | Fair Value (Carrying Amount) |  | Unrealized Losses
Securities available for sale: |  |  |  |  |
U.S. Government agencies | $ | — |  |  | $ | — |  |  | $ | 10,900 |  |  | $ | (81) |  |  | $ | 10,900 |  |  | $ | (81) |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 21,602 |  |  | (142) |  |  | 23 |  |  | — |  |  | 21,625 |  |  | (142) |
Corporate bonds | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Municipal bonds | 32,881 |  |  | (681) |  |  | — |  |  | — |  |  | 32,881 |  |  | (681) |
Asset-backed securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total impaired securities | $ | 54,483 |  |  | $ | (823) |  |  | $ | 10,923 |  |  | $ | (81) |  |  | $ | 65,406 |  |  | $ | (904) |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | $ | 9,013 |  |  | $ | (73) |  |  | $ | 16,963 |  |  | $ | (159) |  |  | $ | 25,976 |  |  | $ | (232) |
U.S. Government sponsored entities & agencies collateralized by mortgage obligations | 30 |  |  | (1) |  |  | 1,684 |  |  | (8) |  |  | 1,714 |  |  | (9) |
Corporate bonds | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Municipal bonds | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Asset-backed securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total impaired securities | $ | 9,043 |  |  | $ | (74) |  |  | $ | 18,647 |  |  | $ | (167) |  |  | $ | 27,690 |  |  | $ | (241) |
Temporarily impaired securities at September 30, 2021, were comprised of 28 municipal bonds, 6 U.S. government agency securities, and 7 U.S. government sponsored entities and agencies collateralized by mortgage obligations securities. The Company evaluates investment securities for other-than-temporary impairment (OTTI) at least quarterly, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under ASC Topic 320, Investments – Debt and Equity Instruments. The Company considers many factors in determining OTTI, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at the time of the evaluation. Additionally, OTTI occurs when the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If the Company intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary-impairment shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the other-than-temporary-impairment shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total other-than-temporary-impairment related to the credit loss is recognized in earnings, and is determined based on the difference between the present value of cash flows expected to be collected and the current amortized cost of the security. The amount of the total other-than-temporary-impairment related to other factors shall be recognized in other comprehensive (loss) income, net of applicable taxes. The previous amortized cost basis less the other-than-temporary-impairment recognized in earnings shall become the new amortized cost basis of the investment. Management periodically evaluates each available-for-sale investment security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. At September 30, 2021, the decline in fair value of the 28 municipal bonds, 6 U.S. government agency securities, and the 7 U.S. government sponsored entities and agencies collateralized by mortgage obligations securities is attributable to changes in interest rates, and not credit quality. Because the Company does not intend to sell these impaired securities, and it is more likely than not that it will not be required to sell these securities before its anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2021. During the nine months ended September 30, 2021 and 2020, the Company recognized $75,000 in unrealized holding losses and $89,000 in unrealized holding gains related to marketable equity securities in the consolidated statements of income, respectively. For the quarters ended September 30, 2021 and 2020, the Company recognized unrealized holding losses of $14,000 and unrealized holding gains of $4,000, respectively. The Company had no held-to-maturity or trading securities at September 30, 2021 or December 31, 2020.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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