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Investment Securities

6 Months Ended

Jun. 30, 2021

(2) Investment Securities

Investment securities available for sale at June 30, 2021 and December 31, 2020 are as follows:

(Dollars in thousands)
	June 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S Treasuries	$	7,961		30		31		7,960
U.S. Government sponsored enterprises		15,098		291		195		15,194
Mortgage-backed securities		207,289		2,483		654		209,118
State and political subdivisions		132,038		4,185		966		135,257
Total	$	362,386		6,989		1,846		367,529

(Dollars in thousands)
	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Government sponsored enterprises	$	7,384		331		208		7,507
Mortgage-backed securities		143,095		2,812		593		145,314
State and political subdivisions		87,757		4,758		87		92,428
Total	$	238,236		7,901		888		245,249

The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2021 and December 31, 2020 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	June 30, 2021
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasuries	$	4,975		31		-		-		4,975		31
U.S. Government sponsored enterprises		5,515		4		3,841		191		9,356		195
Mortgage-backed securities		41,819		635		1,980		19		43,799		654
State and political subdivisions		34,460		966		-		-		34,460		966
Total	$	86,769		1,636		5,821		210		92,590		1,846

(Dollars in thousands)
	December 31, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Government sponsored enterprises	$	-		-		4,193		208		4,193		208
Mortgage-backed securities		80,827		565		4,762		28		85,589		593
State and political subdivisions		7,126		87		-		-		7,126		87
Total	$	87,953		652		8,955		236		96,908		888

At June 30, 2021, unrealized losses in the investment securities portfolio relating to debt securities totaled $1.8 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the June 30, 2021 tables above, one out of two U.S. Treasury securities, 29 out of 129 securities issued by state and political subdivisions and 21 out of 92 securities issued by U.S. Government sponsored enterprises contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.

The amortized cost and estimated fair value of investment securities available for sale at June 30, 2021, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

June 30, 2021
(Dollars in thousands)
	Amortized Cost		Estimated Fair Value
Due within one year	$	12,347		12,511
Due from one to five years		10,160		10,812
Due from five to ten years		102,044		104,879
Due after ten years		30,546		30,209
Mortgage-backed securities		207,289		209,118
Total	$	362,386		367,529

No securities available for sale were sold during the three and six months ended June 30, 2021. Proceeds from sales of securities available for sale during the three and six months ended June 30, 2020 were $17.0 million and resulted in net gains of $457,000.

Securities with a fair value of approximately $79.3 million and $77.3 million at June 30, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and for other purposes as required by law.