INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of March 31, 2021 and December 31, 2020, respectively, were as follows:


Available for sale securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2021
U.S. government agency obligations	$	31,474	$	303	$	65	$	31,712
Obligations of states and political subdivisions	140		—		—		140
Mortgage-backed securities	71,448		1,009		401		72,056

Corporate debt securities	27,752		446		285		27,913
Corporate asset-based securities	35,664		159		114		35,709
Trust preferred securities	17,298		342		10		17,630
Total available for sale securities	$	183,776	$	2,259	$	875	$	185,160

December 31, 2020
U.S. government agency obligations	$	33,048	$	387	$	70	$	33,365
Obligations of states and political subdivisions	140		—		—		140
Mortgage-backed securities	39,454		1,537		—		40,991

Corporate debt securities	17,199		372		109		17,462
Corporate asset-based securities	36,039		104		316		35,827
Trust preferred securities	16,297		189		38		16,448
Total available for sale securities	$	142,177	$	2,589	$	533	$	144,233


Held to maturity securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2021
U.S. government agency obligations	$	3,500	$	—	$	17	$	3,483
Obligations of states and political subdivisions	4,600		2		9		4,593
Mortgage-backed securities	49,319		200		1,809		47,710
Total held to maturity securities	$	57,419	$	202	$	1,835	$	55,786

December 31, 2020
Obligations of states and political subdivisions	$	600	$	2	$	—	$	602
Mortgage-backed securities	42,951		265		34		43,182
Total held to maturity securities	$	43,551	$	267	$	34	$	43,784

As of March 31, 2021, the Bank has pledged U.S. Government Agency securities with a carrying value of $548 and mortgage-backed securities with a carrying value of $2,655 as collateral against specific municipal deposits. At March 31,

2021, the Bank has pledged mortgage-backed securities with a carrying value of $1,121 as collateral against a borrowing line of credit with the Federal Reserve Bank. However, as of March 31, 2021, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of March 31, 2021, the Bank also has mortgage-backed securities with a carrying value of $402 pledged as collateral to the Federal Home Loan Bank of Des Moines.

At December 31, 2020, the Bank has pledged certain of its mortgage-backed securities with a carrying value of $1,209 as collateral to secure a line of credit with the Federal Reserve Bank. As of December 31, 2020, there were no borrowings outstanding on this Federal Reserve Bank line of credit. As of December 31, 2020, the Bank has pledged certain of its U.S. Government Agency securities with a carrying value of $576 and mortgage-backed securities with a carrying value of $3,028 as collateral against specific municipal deposits. As of December 31, 2020, the Bank also has mortgage-backed securities with a carrying value of $468 pledged as collateral to the Federal Home Loan Bank of Des Moines.

For the three month period ended March 31, 2020 gross sales of available for sale securities were $10,841. There were no sales of available for sale securities for the three month period ended March 31, 2021. Gross gains on sale of available for sale securities for the three months ended March 31, 2020 were $157. Gross losses on sale of available for sale securities for the three months ended March 31, 2020 were $1.

The estimated fair value of securities at March 31, 2021 and December 31, 2020, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities on mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Expected maturities may differ from contractual maturities on certain agency and municipal securities due to the call feature.


	March 31, 2021				December 31, 2020
Available for sale securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	140	$	140	$	—	$	—
Due after one year through five years	4,949		5,207		3,833		4,095
Due after five years through ten years	47,962		48,488		44,405		44,880
Due after ten years	59,277		59,269		54,485		54,267
Total securities with contractual maturities	$	112,328	$	113,104	$	102,723	$	103,242
Mortgage backed securities	71,448		72,056		39,454		40,991

Total available for sale securities	$	183,776	$	185,160	$	142,177	$	144,233


	March 31, 2021				December 31, 2020
Held to maturity securities	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years	4,300		4,300		200		200
Due after five years through ten years	3,800		3,776		400		402

Total securities with contractual maturities	8,100		8,076		600		602
Mortgage backed securities	49,319		47,710		42,951		43,182
Total held to maturity securities	$	57,419	$	55,786	$	43,551	$	43,784

Securities with unrealized losses at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


	Less than 12 Months				12 Months or More				Total
Available for sale securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2021
U.S. government agency obligations	$	—	$	—	$	13,088	$	65	$	13,088	$	65

Mortgage backed securities	39,035		401		—		—		39,035		401

Corporate debt securities	9,335		203		1,418		82		10,753		285
Corporate asset-based securities	5,947		19		11,829		95		17,776		114
Trust preferred securities	945		10		—		—		945		10
Total	$	55,262	$	633	$	26,335	$	242	$	81,597	$	875
December 31, 2020
U.S. government agency obligations	$	7,654	$	17	$	6,834	$	53	$	14,488	$	70



Corporate debt securities	3,447		27		1,418		82		4,865		109
Corporate asset-based securities	—		—		24,310		316		24,310		316
Trust preferred securities	5,612		38		—		—		5,612		38
Total	$	16,713	$	82	$	32,562	$	451	$	49,275	$	533


	Less than 12 Months				12 Months or More				Total
Held to maturity securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2021
U.S. government agency obligations	$	3,483	$	17	$	—	$	—	$	3,483	$	17
Obligations of states and political subdivisions	500		9		—		—		500		9
Mortgage-backed securities	42,342		1,809		—		—		42,342		1,809
Total	$	46,325	$	1,835	$	—	$	—	$	46,325	$	1,835
December 31, 2020

Mortgage-backed securities	$	16,538	$	34	$	—	$	—	$	16,538	$	34
Total	$	16,538	$	34	$	—	$	—	$	16,538	$	34

The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. As part of such monitoring, the credit quality of individual securities and their issuer is assessed. Significant inputs used to measure the amount of other-than-temporary impairment related to credit loss include, but are not limited to; the Company’s intent and ability to sell the debt security prior to recovery, that it is more likely than not that the Company will not sell the security prior to recovery, default and delinquency rates of the underlying collateral, remaining credit support, and historical loss severities. Adjustments to market value of available for sale securities that are considered temporary are recorded as separate components of shareholders’ equity, net of tax. If the unrealized loss of a security is identified as other-than-temporary based on information available, such as the decline in the creditworthiness of the issuer, external market ratings, or the anticipated or realized elimination of associated dividends, such impairments are further analyzed to determine if credit loss exists. If there is a credit loss, it will be recorded in the Company’s consolidated statement of operations. Non-credit components of the unrealized losses on available for sale securities will continue to be recognized in other comprehensive income (loss), net of tax. Unrealized losses reflected in the preceding tables have not been included in results of operations because the unrealized loss was not deemed other-than-temporary. Management has determined that more likely than not, the Company neither intends to sell, nor will it be required to sell each debt security before its anticipated recovery, and therefore recovery of cost will occur.