Securities

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Securities

Note 4. Securities

The amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale are summarized as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
September 30, 2020:
U.S. Government-sponsored enterprises (GSEs)	$	30,311	$	49	$	(150)	$	30,210
Municipal securities		88,864		1,948		(3)		90,809
Other debt securities		17,519		49		(66)		17,502
Mortgage-backed securities (GSEs)		74,424		1,938		(249)		76,113
Total	$	211,118	$	3,984	$	(468)	$	214,634

December 31, 2019:
U.S. Government-sponsored enterprises (GSEs)	$	19,015	$	41	$	(56)	$	19,000
Municipal securities		63,792		618		(19)		64,391
Other debt securities		3,481		22		(33)		3,470
Mortgage-backed securities (GSEs)		91,531		382		(426)		91,487
Total	$	177,819	$	1,063	$	(534)	$	178,348

At September 30, 2020, and December 31, 2019, securities with a carrying value totaling approximately $74.9 million and $92.3 million, respectively, were pledged to secure public funds and securities sold under agreements to repurchase.

Proceeds from sale of securities available for sale, gross gains and gross losses on sales and redemptions for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Proceeds from sales	$	4,884	$	-	$	11,759	$	16,515
Gross gains	$	17	$	-	$	43	$	35
Gross losses	$	(26)	$	-	$	(37)	$	(1)
Proceeds from redemptions	$	30,350	$	5,250	$	45,800	$	15,555

The amortized cost and estimated fair value of securities at September 30, 2020, by contractual maturity for non-mortgage backed securities are shown below (in thousands). 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.

	Amortized		Fair
	Cost		Value
Due in one year or less	$	4,623	$	4,679
Due from one year to five years		5,009		5,025
Due from five years to ten years		26,195		26,386
Due after ten years		100,867		102,431
		136,694		138,521
Mortgage-backed securities		74,424		76,113
Total	$	211,118	$	214,634

The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position (in thousands):

	Less than 12 Months					12 Months or Greater					Total
			Gross		Number			Gross		Number			Gross		Number
	Fair		Unrealized		of	Fair		Unrealized		of	Fair		Unrealized		of
	Value		Losses		Securities	Value		Losses		Securities	Value		Losses		Securities
September 30, 2020:
U.S. Government-sponsored enterprises (GSEs)	$	20,985	$	(149)	5	$	140	$	(1)	1	$	21,125	$	(150)	6
Municipal securities		3,892		(3)	3		—		—	—		3,892		(3)	3
Other debt securities		3,980		(55)	2		973		(11)	1		4,953		(66)	3
Mortgage-backed securities (GSEs)		10,456		(114)	7		7,636		(135)	3		18,092		(249)	10
Total	$	39,313	$	(321)	17	$	8,749	$	(147)	5	$	48,062	$	(468)	22
December 31, 2019:
U.S. Government-sponsored enterprises (GSEs)	$	2,972	$	(43)	2	$	5,987	$	(13)	2	$	8,959	$	(56)	4
Municipal securities		3,656		(16)	4		527		(3)	1		4,183		(19)	5
Other debt securities		—		—	—		947		(33)	1		947		(33)	1
Mortgage-backed securities (GSEs)		13,208		(194)	10		19,988		(232)	31		33,196		(426)	41
Total	$	19,836	$	(253)	16	$	27,449	$	(281)	35	$	47,285	$	(534)	51

The Company reviews the securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security’s decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Company may consider in the other-than-temporary impairment analysis include the length of time and extent to which

the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions.

Based on this evaluation, the Company concluded that any unrealized losses at September 30, 2020, represented a temporary impairment, as these unrealized losses are primarily attributable to changes in interest rates and current market conditions, and not credit deterioration of the issuers. As of September 30, 2020, the Company does not intend to sell any of the securities, does not expect to be required to sell any of the securities, and expects to recover the entire amortized cost of all of the securities.

The following is the amortized cost and carrying value of other investments (in thousands):

	September 30,		December 31,
	2020		2019
Federal Reserve Bank stock	$	8,641	$	7,917
Federal Home Loan Bank stock		5,838		4,646
First National Bankers Bank stock		350		350
Total	$	14,829	$	12,913

Our restricted investments consist of non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of September 30, 2020, the Company determined that there was no impairment on its other investments.