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Debt Securities

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

(2)

Debt Securities. Debt Securities have been classified according to management’s intent. The carrying amount of debt securities and approximate fair values are as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value

*At March 31, 2021:*
Available for sale:
SBA Pool Securities	$	1,272	$	—	$	(39	)	$	1,233
Collateralized mortgage obligations		369		23		—			392
Taxable municipal securities		10,249		—		(591	)		9,658
Mortgage-backed securities		11,362		38		(303	)		11,097
Total	$	23,252	$	61	$	(933	)	$	22,380

Held-to-maturity:
Collateralized mortgage obligations	$	1,864	$	86		—		$	1,950
Mortgage-backed securities		601		19		—			620
Total	$	2,465	$	105		—		$	2,570

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

*At December 31, 2020:*
Available for sale:
SBA Pool Securities	$	1,338	$	—	$	(41	)	$	1,297
Collateralized mortgage obligations		458		27		—			485
Taxable municipal securities		5,063		29		(7	)		5,085
Mortgage-backed securities		11,984		53		(11	)		12,026
Total	$	18,843	$	109	$	(59	)	$	18,893

Held-to-maturity:
Collateralized mortgage obligations	$	2,420	$	116		—		$	2,536
Mortgage-backed securities		979		34		—			1,013
Total	$	3,399	$	150		—		$	3,549

There were no sales of debt securities during the three months ended March 31, 2021 and 2020.

Debt Securities available for sale with gross unrealized losses, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position, is as follows (in thousands):

	At March 31, 2021
					Less Than Twelve
	Over Twelve Months				Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value

Available for Sale :
SBA Pool Securities		39		1,233		—		—
Taxable municipal securities		—		—		591		9,658
Mortgage-backed securities		—		—		303		9,830
Total	$	39	$	1,233	$	894	$	19,488

	At December 31, 2020
	Over Twelve Months				Less Than Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value

Available for Sale :
SBA Pool Securities		41		1,297		—		—
Taxable municipal securities		—		—		7		1,413
Mortgage-backed securities		—		—		11		3,583
Total	$	41	$	1,297	$	18	$	4,996

Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis, and 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 prospectus of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At March 31, 2021 and December 31, 2020, the unrealized losses on twenty-seven and eleven debt securities respectively, were caused by market conditions. It is expected that the debt securities would not be settled at a price less than the book value of the investments. Because the decline in fair value is attributable to market conditions and not credit quality, and because the Company has the ability and intent to hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired.