(

)

Debt Securities Available for Sale

Debt securities are classified according to management's intent. The amortized cost of debt securities and fair values are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(in thousands)
At June 30, 2020
U.S. Government agency securities	$	275	$	4	$	-		$	279
Municipal securities		11,824		567		-			12,391
Mortgage-backed securities		47,497		1,534		(30	)		49,001
Asset-backed securities		5,486		-		(259	)		5,227
Total	$	65,082	$	2,105	$	(289	)	$	66,898

At December 31, 2019
U.S. Government agency securities	$	408	$	-	$	(1	)	$	407
Municipal securities		9,332		81		(72	)		9,341
Mortgage-backed securities		45,499		401		(97	)		45,803
Asset-backed securities		5,825		14		(57	)		5,782
Total	$	61,064	$	496	$	(227	)	$	61,333

The following table summarizes the sale of debt securities available for sale.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
Proceeds from sale of debt securities	$	-	$	-	$	-	$	4,245
Gross gains		-		-		-		27
Gross losses		-		-		-		(20	)
Net gain on sale of debt securities	$	-	$	-	$	-	$	7

Debt securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows:

	Less Than Twelve Months					Over Twelve Months
	Gross					Gross
	Unrealized			Fair		Unrealized			Fair
	Losses			Value		Losses			Value
(in thousands)
At June 30, 2020
Mortgage-backed securities	$	(17	)	$	3,370	$	(13	)	$	2,060
Asset-backed securities		(175	)		3,311		(84	)		1,916
Total	$	(192	)	$	6,681	$	(97	)	$	3,976

At December 31, 2019
U.S. Government agency securities	$	(1	)	$	407	$	-		$	-
Municipal securities		(72	)		3,814		-			-
Mortgage-backed securities		(56	)		4,629		(41	)		4,115
Asset-backed securities		(57	)		3,901		-			-
Total	$	(186	)	$	12,751	$	(41	)	$	4,115

The unrealized losses at

June 30, 2020

and

December 31, 2019

nine

and

thirteen

securities, respectively, were caused by market conditions. It is expected that the securities would

not

be settled at a price less than the par 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. Debt securities available for sale measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements Using
			Quoted Prices
			In Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
(in thousands)
At June 30, 2020
U.S. Government agency securities	$	279	$	-	$	279	$	-
Municipal securities		12,391		-		12,391		-
Mortgage-backed securities		49,001		-		49,001		-
Asset-backed securities		5,227		-		5,227		-
Total	$	66,898	$	-	$	66,898	$	-

At December 31, 2019
U.S. Government agency securities	$	407	$	-	$	407	$	-
Municipal securities		9,341		-		9,341		-
Mortgage-backed securities		45,803		-		45,803		-
Asset-backed securities		5,782		-		5,782		-
Total	$	61,333	$	-	$	61,333	$	-

The scheduled maturities of debt securities are as follows:

	At June 30, 2020
	Amortized		Fair
	Cost		Value
(in thousands)
Due in less than one year	$	361	$	361
Due in one to five years		725		734
Due in five to ten years		3,579		3,854
Due after ten years		12,920		12,948
Mortgage-backed securities		47,497		49,001
Total	$	65,082	$	66,898