Note

Securities

The amortized costs, gross unrealized gains, gross unrealized losses and fair values for securities available for sale by major security type are as follows.

	March 31, 2020
	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
Available for Sale:
U.S. Government agencies and corporations	$	96,752	$	4,879	$	24	$	101,607
States and political subdivisions		100,811		2,028		542		102,297
Mortgage-backed securities		232,481		2,469		3,961		230,989
Corporate debt securities		4,000		126		---		4,126
Total securities available for sale	$	434,044	$	9,502	$	4,527	$	439,019

	December 31, 2019
	Amortized Costs		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
Available for S ale:
U.S. Government agencies and corporations	$	119,903	$	1,995	$	775	$	121,123
States and political subdivisions		88,092		791		644		88,239
Mortgage-backed securities		223,173		45		1,435		221,783
Corporate debt securities		3,998		120		---		4,118
Total securities available for sale	$	435,166	$	2,951	$	2,854	$	435,263

The amortized cost and fair value of single maturity securities available for sale at

March 31, 2020,

by contractual maturity, are shown below. 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. Mortgage-backed securities included in these totals are categorized by final maturity.

	March 31 , 2020
	Amortized Cost		Fair Value
Available for S ale:
Due in one year or less	$	19,102	$	19,196
Due after one year through five years		6,356		6,560
Due after five years through ten years		150,410		153,322
Due after ten years		258,176		259,941
Total securities available for sale	$	434,044	$	439,019

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows.

	March 31, 2020
	Less Than 12 Months				12 Months or More
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily Impaired Securities:
U.S. Government agencies and corporations	$	4,972	$	24	$	---	$	---
States and political subdivisions		14,157		500		596		42
Mortgage-backed securities		163,603		3,961		---		---
Total	$	182,732	$	4,485	$	596	$	42

	December 31, 2019
	Less Than 12 Months				12 Months or More
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily I mpaired S ecurities:
U.S. Government agencies and corporations	$	53,244	$	738	$	38,962	$	37
States and political subdivisions		35,934		596		591		48
Mortgage-backed securities		181,279		1,435		---		---
Total	$	270,457	$	2,769	$	39,553	$	85

The Company had

securities with a fair value of

$183,328

that were temporarily impaired at

March 31, 2020.

The total unrealized loss on these securities was

$4,527.

Of the temporarily impaired total,

security with a fair value of

$596

and an unrealized loss of

$42

has been in a continuous loss position for

months or more. The Company has determined that this security is temporarily impaired at

March 31, 2020

for the reasons set out below.

States and political subdivisions.

This category’s unrealized loss of

$42

security with a fair value of

$596

is primarily the result of interest rate and market fluctuations. The Company reviewed financial statements and cash flows for the security. The Company’s analysis determined that the unrealized loss is primarily the result of interest rate and market fluctuations and

not

associated with impaired financial status. The contractual terms of the investment does

not

permit the issuer to settle the securities at a price less than the cost basis of the investment. Because the Company does

not

intend to sell the investment and it is

not

likely that the Company will be required to sell the investment before recovery of its amortized cost basis, which

may

be at maturity, the Company does

not

consider the investment to be other-than-temporarily impaired.

Restricted Stock

The Company held restricted stock of

$1,279

as of

March 31, 2020

and

$1,220

December 31, 2019.

Restricted stock is reported separately from available for sale securities. As a member bank of the Federal Reserve system and the Federal Home Loan Bank of Atlanta (“FHLB”), NBB is required to maintain certain minimum investments in the common stock of those entities. Required levels of investment are based upon NBB’s capital, current borrowings, and a percentage of qualifying assets. The Company purchases stock from or sells stock back to the correspondents based on their calculations. The stock is held by member institutions only and is

not

actively traded.

Redemption of FHLB stock is subject to certain limitations and conditions. At its discretion, the FHLB

may

declare dividends on the stock. In addition to dividends, NBB also benefits from its membership with FHLB through eligibility to borrow from the FHLB, using as collateral NBB’s capital stock investment in the FHLB and qualifying NBB real estate mortgage loans totaling

$528,296

March 31, 2020.

Management reviews for impairment based upon the ultimate recoverability of the cost basis of the FHLB stock, and at

March 31, 2020,

management did

not

determine any impairment.

Management regularly monitors the credit quality of the investment portfolio. Changes in ratings are noted and follow-up research on the issuer is undertaken when warranted. Management intends to carefully monitor any changes in bond quality.