SECURITIES AVAILABLE FOR SALE

3 Months Ended

Mar. 31, 2021

SECURITIES AVAILABLE FOR SALE.

SECURITIES AVAILABLE FOR SALE

NOTE 2 – SECURITIES AVAILABLE FOR SALE

The amortized costs, gross unrealized gains and losses, and estimated fair values of securities available for sale as of March 31, 2021 and December 31, 2020 are summarized as follows:

	March 31, 2021
	Gross		Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Obligations of U.S. Government entities and agencies	$	9,232	$	—	$	—	$	9,232
States and political subdivisions		8,205		127		(96)		8,236
Mortgage-backed GSE residential		1,251		20		—		1,271
Total	$	18,688	$	147	$	(96)	$	18,739

	December 31, 2020
	Gross		Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Obligations of U.S. Government entities and agencies	$	9,306	$	—	$	—	$	9,306
States and political subdivisions		7,182		247		—		7,429
Mortgage-backed GSE residential		1,368		14		—		1,382
Total	$	17,856	$	261	$	—	$	18,117

The amortized costs and estimated fair values of investment securities available for sale at March 31, 2021 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale
	Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value
Due in one year or less	$	1,192	$	1,192
Due after one year but less than five years		8,688		8,706
Due after five years but less than ten years		6,954		6,967
Due in more than ten years		603		603
Mortgage-backed GSE residential		1,251		1,271
Total	$	18,688	$	18,739

There were no securities pledged as of March 31, 2021 and December 31, 2020 to secure public deposits and repurchase agreements. There were no securities sold during the three months ended March 31, 2021 and 2020.

Information pertaining to securities with gross unrealized losses at March 31, 2021 aggregated by investment category and length of time that individual securities have been in a continuous loss position, are summarized in the table below. There were no securities in an unrealized loss position at December 31, 2020.

	March 31, 2021
	Twelve Months or Less				Over Twelve Months
	Gross		Estimated		Gross		Estimated
	Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value
States and political subdivisions	$	3,765	$	(96)	$	—	$	—
Total	$	3,765	$	(96)	$	—	$	—

Management evaluates 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 prospects 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, the four securities available for sale with unrealized losses have depreciated 2.48% from the Company’s amortized cost basis. These securities have not been in a loss position for greater than twelve months.

State and political subdivisions. The Company’s unrealized losses on four investments in state and political subdivision bonds relates to interest rate increases. Management currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of the investment. Because the Company does not plan to sell the investments, and because it is not more likely than not that the Company will be required to sell the investments before the recovery of the par value, which may be at maturity, management does not consider these investments to be other-than-temporarily impaired at March 31, 2021.