Note 6 - Securities

The following tables summarize the Bank’s holdings for both securities held-to-maturity and securities available-for-sale as of March 31, 2021 and December 31, 2020 (amounts in thousands):


		March 31, 2021
	Amortized	Gross Unrealized		Fair Value
	Costs	Gains	(Losses)
Held-to-Maturity
US agency obligations	$3,667	$281	$ -	$3,948

Available-for-Sale
US Treasuries	2,000	22	-	2,022
US agency obligations	47,427	649	(1,325)	46,751
Mortgage-backed securities	16,646	149	(307)	16,488
Municipals	28,864	336	(950)	28,250
Corporates	6,066	255	-	6,321
	$101,003	$1,411	$(2,582)	$99,832

		December 31, 2020
	Amortized	Gross Unrealized		Fair Value
	Costs	Gains	(Losses)
Held-to-Maturity
US agency obligations	$3,671	$521	$ -	$4,192

Available-for-Sale
US Treasuries	$2,000	$27	$ -	$2,027
US 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

Note 6 – Securities (continued)

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 of time that individual securities have been in a continuous unrealized loss position, at March 31, 2021 and December 31, 2020 (amounts in thousands):


	Less than 12 months		More than 12 months			Total
	Fair	Unrealized	Fair	Unrealized	Fair		Unrealized
March 31, 2021	Value	Losses	Value	Losses	Value		Losses
Description of securities
Held-to-maturity
US agency obligations	$ -	$ -	$ -	$ -	$ -		$ -

Available-for-sale
US Treasuries	-	-	-	-	-		-
US agency obligations	25,166	1,325	-	-	25,166		1,325
Mortgage-backed securities	10,750	307	-	-	10,750		307
Municipals	17,178	950	-	-	17,178		950
Corporates	-	-	-	-	-		-
Total	$53,094	$2,582	$ -	$ -	$53,094		$2,582

	Less than 12 months		More than 12 months			Total
	Fair	Unrealized	Fair	Unrealized	Fair		Unrealized
December 31, 2020	Value	Losses	Value	Losses	Value		Losses
Description of securities
Held-to-maturity
US agency obligations	$ -	$ -	$ -	$ -	$ -		$ -

Available-for-sale
US Treasuries	-	-	-	-	-		-
US 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	$32,211	$437	$ -	$ -	$32,211		$437

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and may do so more frequently when economic or market concerns warrant 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, (3) the intent of Financial, if any, to sell the security; (4) whether Financial more likely than not will be

Note 6 – Securities (continued)

required to sell the security before recovering its cost; and (5) whether Financial does not expect to recover the security’s entire amortized cost basis (even if Financial does not intend to sell the security).

At March 31, 2021, the Company did not consider the unrealized losses as other-than-temporary losses due to the nature of the securities involved. As of March 31, 2021, the Bank owned 36 securities in an unrealized loss position that were being evaluated for other than temporary impairment. Thirteen of these securities was S&P rated AAA and 23 were rated AA. As of March 31, 2021, 20 of these securities were municipal issues and 16 were backed by the US government.

Based on the analysis performed by management as mandated by the Bank’s investment policy, management believes the default risk to be minimal. Because management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to change in interest rates and other market conditions, no declines currently are deemed to be other-than-temporary.

There were no sales of available-for-sale securities during the three months ended March 31, 2021 as compared to $14,619 in sales during the same periods in 2020. In 2020, there were gross gains on sales of available-for-sale securities of $431 during the three month periods ended March 31, 2020. There were no sales of held-to-maturity securities during the three month periods ended March 31, 2021 and 2019.