Investments

9 Months Ended

Sep. 30, 2020

The amortized cost and fair value of our available-for-sale (“AFS”) securities and the corresponding amounts of gross unrealized gains and losses at the dates indicated were as follows (in thousands):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
September 30, 2020
Treasury bills	$	1,976	$	—	$	—	$	1,976
Municipal bonds	5,060		196		(2)		5,254
Agency mortgage-backed securities	5,932		135		(1)		6,066
Total	$	12,968	$	331	$	(3)	$	13,296

December 31, 2019
Municipal bonds	$	3,197	$	173	$	—	$	3,370
Agency mortgage-backed securities	5,888		56		(8)		5,936
Total	$	9,085	$	229	$	(8)	$	9,306

The amortized cost and fair value of AFS securities at September 30, 2020, by contractual maturity, are shown below (in thousands). Expected maturities of AFS securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Investments not due at a single maturity date, primarily mortgage-backed investments, are shown separately.


	September 30, 2020
	Amortized Cost		Fair Value
Due within one year	$	3,014	$	3,016
Due after one year through five years	489		506
Due after five years through ten years	1,426		1,479
Due after ten years	2,107		2,228
Mortgage-backed securities	5,932		6,067
Total	$	12,968	$	13,296

There were no pledged securities at September 30, 2020 or December 31, 2019.

There were no sales of AFS securities during the three and nine months ended September 30, 2020 or 2019.

The following table summarizes the aggregate fair value and gross unrealized loss by length of time of those investments that have been in a continuous unrealized loss position at the dates indicated (in thousands):


	September 30, 2020
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Treasury bills	$	1,033	$	—	$	—	$	—	$	1,033	$	—
Municipal bonds	909		(2)		—		—		909		(2)
Agency mortgage-backed securities	210		(1)		—		—		210		(1)
	$	2,152	$	(3)	$	—	$	—	$	2,152	$	(3)


	December 31, 2019
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Municipal bonds	$	3,387	$	(8)	$	—	$	—	$	3,387	$	(8)
Total	$	3,387	$	(8)	$	—	$	—	$	3,387	$	(8)

There were no credit losses recognized in earnings during the three and nine months ended September 30, 2020 or 2019 relating to the Company’s securities.

At September 30, 2020, the securities portfolio consisted of 16 agency mortgage-backed securities, ten municipal bonds and three short-term treasury bills with a total portfolio fair value of $13.3 million. At December 31, 2019, the securities portfolio consisted of 13 agency mortgage-backed securities and eight municipal bonds with a fair value of $9.3 million. At September 30, 2020, there were four securities in an unrealized loss position for less than 12 months, and there were no securities in an unrealized loss position for more than 12 months. At December 31, 2019, there were five securities in an unrealized loss position for less than 12 months, and there were no securities in an unrealized loss position for more than 12 months. The unrealized losses were caused by changes in market interest rates or the widening of market spreads subsequent to the initial purchase of these securities, and not related to the underlying credit of the issuers or the underlying collateral. It is expected that these securities will not be settled at a price less than the amortized cost of each investment. The unrealized losses on these investments are not considered other-than-temporary impairment ("OTTI") as of September 30, 2020, because the decline in fair value is not attributable to credit quality and because we do not intend, and it is not likely that we will be required, to sell these securities before recovery of their amortized cost basis. Additional deterioration in market and economic conditions related to the COVID-19 pandemic may, however, have an adverse impact on credit quality in the future and result in OTTI charges.