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Investment Securities

9 Months Ended

Sep. 30, 2021

(2)	Investment Securities

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

(Dollars in thousands)
	September 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S Treasuries	$	7,963		39		12		7,990
U.S. Government
sponsored enterprises		14,566		289		178		14,677
Mortgage-backed securities		222,526		2,427		1,648		223,305
State and political subdivisions		153,551		4,327		945		156,933
Total	$	398,606		7,082		2,783		402,905

(Dollars in thousands)
	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		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 September 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)
	September 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	$	4,994		12		-		-		4,994		12
U.S. Government
sponsored enterprises		5,386		5		3,442		173		8,828		178
Mortgage-backed securities		114,889		1,505		5,897		143		120,786		1,648
State and political subdivisions		37,729		800		3,757		145		41,486		945
Total	$	162,998		2,322		13,096		461		176,094		2,783

(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 September 30, 2021, unrealized losses in the investment securities portfolio relating to debt securities totaled $2.8 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2021 tables above, one out of two U.S. Treasury securities, 35 out of 145 securities issued by state and political subdivisions and 43 out of 97 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 September 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.

September 30, 2021
(Dollars in thousands)
	Amortized Cost		Fair Value
Due within one year	$	11,591		11,689
Due from one to five years		10,143		10,763
Due from five to ten years		136,387		139,315
Due after ten years		17,959		17,833
Mortgage-backed securities		222,526		223,305
Total	$	398,606		402,905

No securities available for sale were sold during the three and nine months ended September 30, 2021. Proceeds from sales of securities available for sale during the three months ended September 30, 2020 were $29.2 million and resulted in net gains of $1.7 million. Proceeds from sales of securities available for sale during the nine months ended September 30, 2020 were $46.1 million and resulted in net gains of $2.1 million.

Securities with a fair value of approximately $90.6 million and $77.3 million at September 30, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and for other purposes as required by law.