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Available For Sale Securities

6 Months Ended

Jun. 30, 2021

Note 4 – AVAILABLE FOR SALE Securities

The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at June 30, 2021 and December 31, 2020 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
($ in thousands)	Cost		Gains		Losses			Fair Value
June 30, 2021:
U.S. Treasury and Government agencies	$	9,044	$	292	$	-		$	9,336
Mortgage-backed securities		185,947		1,243		(1,503	)		185,687
State and political subdivisions		12,633		588		-			13,221
Other corporate securities		3,500		14		(2	)		3,512
Totals	$	211,124	$	2,137	$	(1,505	)	$	211,756

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
December 31, 2020:
U.S. Treasury and Government agencies	$	6,541	$	323	$	-		$	6,864
Mortgage-backed securities		125,973		1,845		(57	)		127,761
State and political subdivisions		11,595		680		-			12,275
Other corporate securities		2,500		6		-			2,506
Totals	$	146,609	$	2,854	$	(57	)	$	149,406

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

	Amortized		Fair
($ in thousands)	Cost		Value

Within one year	$	3,179	$	3,207
Due after one year through five years		3,387		3,449
Due after five years through ten years		11,599		12,107
Due after ten years		7,012		7,306
		25,177		26,069
Mortgage-backed securities		185,947		185,687
Totals	$	211,124	$	211,756

The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $50.6 million at June 30, 2021 and $53.7 million at December 31, 2020. The fair value of securities delivered for repurchase agreements was $27.3 million at June 30, 2021 and $28.2 million at December 31, 2020.

There were no realized gains and losses from sales of available-for-sale securities for the three and six months ended June 30, 2021 or June 30, 2020.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments was $118.1 million at June 30, 2021, and $27.3 million at December 31, 2020, which was approximately 56 and 18 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2021 and December 31, 2020 are as follows:

	Less than 12 Months					12 Months or Longer					Total
($ in thousands) June 30, 2021	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and Government agencies	$	-	$	-		$	-	$	-		$	-	$	-
Mortgage-backed securities		116,762		(1,501	)		358		(2	)		117,120		(1,503	)
State and political subdivisions		-		-			-		-			-		-
Other corporate securities		998		(2	)		-		-			998		(2	)
Totals	$	117,760	$	(1,503	)	$	358	$	(2	)	$	118,118	$	(1,505	)

	Less than 12 Months					12 Months or Longer					Total
December 31, 2020	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

U.S. Treasury and Government agencies	$	-	$	-		$	-	$	-		$	-	$	-
Mortgage-backed securities		26,582		(54	)		717		(3	)		27,299		(57	)
State and political subdivisions		-		-			-		-			-		-
Other corporate securities		-		-			-		-			-		-
Totals	$	26,582	$	(54	)	$	717	$	(3	)	$	27,299	$	(57	)

The total unrealized loss in the securities portfolio was $1.5 million as of June 30, 2021 compared to a $0.06 million unrealized loss at December 31, 2020. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Consideration is given to (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, and (3) the intent of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on its securities as of June 30, 2021.