Note 4 - Securities

A summary of the amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

	December 31, 2020
	Amortized	Gross Unrealized		Fair
	Cost	Gains	Losses	Value
Held-to-maturity
U.S. agency obligations	$3,671	$521	$ -	$4,192

Available-for-sale
U.S. Treasuries	$2,000	$27	$ -	$2,027
U.S. agency obligations	40,111	1,544	(335)	41,320
Mortgage-backed securities	15,461	241	(6)	15,696
Municipals	24,275	594	(96)	24,773
Corporates	6,070	299	-	6,369

	$87,917	$2,705	$(437)	$90,185


	December 31, 2019
	Amortized	Gross Unrealized		Fair
	Cost	Gains	Losses	Value
Held-to-maturity
U.S. agency obligations	$3,688	$173	$ -	$3,861

Available-for-sale
U.S. Treasuries	$1,966	$ -	$(2)	$1,964
U.S. agency obligations	32,163	278	(333)	32,108
Mortgage-backed securities	10,328	42	(106)	10,264
Municipals	11,118	117	(13)	11,222
Corporates	4,086	32	(21)	4,097

	$59,661	$469	$(475)	$59,655

Temporarily Impaired Securities

The following tables show the gross unrealized losses and fair value of the Bank’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length

Note 4 –Securities (continued)

of time that individual securities have been in a continuous unrealized loss position, at December 31, 2020 and 2019:


December 31, 2020	Less than 12 months		More than 12 months		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Losses	Value	Losses	Value	Losses
Held-to-maturity
U.S. agency obligations	$ -	$ -	$ -	$ -	$ -	$ -

Available-for-sale
U.S. Treasuries	-	-	-	-	-	-
U.S. agency obligations	15,808	335	-	-	15,808	335
Mortgage-backed securities	8,201	6	-	-	8,201	6
Municipals	8,202	96	-	-	8,202	96
Corporates	-	-	-	-	-	-

Total temporarily impaired securities	$32,211	$437	$ -	$ -	$32,211	$437


December 31, 2019	Less than 12 months		More than 12 months		Total
	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
	Value	Losses	Value	Losses	Value	Losses
Held-to-maturity
U.S. agency obligations	$ -	$ -	$ -	$ -	$ -	$ -

Available-for-sale
U.S. Treasuries	-	-	1,964	2	1,964	2
U.S. agency obligations	12,395	218	12,048	115	24,443	333
Mortgage-backed securities	-	-	6,609	106	6,609	106
Municipals	-	-	2,736	13	2,736	13
Corporates	-	-	1,042	21	1,042	21

Total temporarily impaired securities	$12,395	$218	$24,399	$257	$36,794	$475

Note 4 –Securities (continued)

U.S. agency obligations. The unrealized losses on the seven investments in U.S. agency obligations at December 31, 2020 were caused by an increase in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2020. Each of these seven investments carries an S&P investment grade rating of AA or better.

Mortgage-backed securities. The unrealized loss on the two investments in U.S. government agency mortgage-backed securities at December 31, 2020 was caused by an increase in interest rates. The contractual terms of those investments does not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of the amortized cost basis, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2020. Each of these two investments carries an S&P investment grade rating of AAA.

Municipals. The unrealized losses on the nine investments in municipal obligations at December 31, 2020 were caused by an increase in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider those investments to be other-than-temporarily impaired at December 31, 2020. Each of these nine investments carries an S&P investment grade rating of A or above.

The amortized costs and fair values of securities at December 31, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Held-to-Maturity		Available-for-Sale
	Amortized	Fair	Amortized	Fair
	Cost	Values	Cost	Values

Due in one year or less	$ -	$ -	$501	$501
Due after one year through five years	-	-	12,634	13,022
Due after five years through ten years	398	452	39,437	40,936
Due after ten years	3,273	3,740	35,345	35,726

	$3,671	$4,192	$87,917	$90,185

The Bank received $13,313 and $9,733 in proceeds from sales of securities available-for-sale in 2020 and 2019, respectively. Gross realized gains amounted to $644 and $394 in 2020 and 2019, respectively. Gross realized losses amounted to $0 in both years.

Note 4 –Securities (continued)

At December 31, 2020 and 2019, securities with a carrying value of $31,202 and $22,307, respectively, were pledged as collateral for public deposits and for other purposes as required or permitted by law.