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Investment and Mortgage-Backed Securities, Available for Sale
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment and Mortgage-Backed Securities, Available for Sale Investment and Mortgage-Backed Securities, Available For Sale
The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of investment and mortgage-backed securities available for sale at the dates indicated were as follows:
 September 30, 2021
 Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Student Loan Pools$70,206,668 $518,071 143,568 $70,581,171 
Small Business Administration (“SBA”) Bonds139,129,553 1,148,197 952,400 139,325,350 
Tax Exempt Municipal Bonds44,797,517 5,009,076 36,273 49,770,320 
Taxable Municipal Bonds53,962,317 1,028,467 450,104 54,540,680 
Mortgage-Backed Securities309,035,345 6,900,422 2,319,619 313,616,148 
Total Available For Sale$617,131,400 $14,604,233 $3,901,964 $627,833,669 
 December 31, 2020
 Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Student Loan Pools$61,244,212 $220,239 $382,986 $61,081,465 
SBA Bonds153,565,023 797,456 1,057,454 153,305,025 
Tax Exempt Municipal Bonds42,793,179 6,023,263 — 48,816,442 
Taxable Municipal Bonds46,680,301 1,743,322 75,168 48,348,455 
Mortgage-Backed Securities267,854,880 10,672,412 754,278 277,773,014 
Total Available For Sale$572,137,595 $19,456,692 $2,269,886 $589,324,401 

Student Loan Pools are typically 97% guaranteed by the United States government while SBA bonds are 100% backed by the full faith and credit of the United States government. The majority of the mortgage-backed securities included in the tables above and below are issued or guaranteed by an agency of the United States government such as Ginnie Mae, or by Government Sponsered Entities ("GSEs"), including Fannie Mae and Freddie Mac. Ginnie Mae mortgage-backed securities are backed by the full faith and credit of the United States government, while those issued by GSEs are not.

At September 30, 2021, AFS Ginnie Mae mortgage-backed securities had an amortized cost and fair value of $133.8 million and $133.9 million, respectively, compared to an amortized cost and fair value of $91.7 million and $93.4 million, respectively, at December 31, 2020.

Also included in mortgage-backed securities in the tables above and below are private label collateralized mortgage obligation ("CMO") securities, which are issued by non-governmental real estate mortgage investment conduits and are not backed by the full faith and credit of the United States government.  At September 30, 2021 the Bank held AFS private label CMO mortgage-backed securities with an amortized cost and fair value of $31.4 million and $31.6 million, compared to an amortized cost and fair value of $37.0 million and $37.7 million at December 31, 2020, respectively.
6. Investment and Mortgage-Backed Securities, Available For Sale, Continued

The amortized cost and fair value of investment and mortgage-backed securities available for sale at September 30, 2021 are shown below by contractual maturity.  Expected maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without call or prepayment penalties. Since mortgage-backed securities are not due at a single maturity date, they are disclosed separately, rather than allocated over the maturity groupings set forth in the table below.
September 30, 2021
Investment Securities:Amortized CostFair Value
One Year or Less$74,883 $70,483 
After One – Five Years7,092,198 7,092,980 
After Five – Ten Years82,618,930 83,552,707 
More Than Ten Years218,310,044 223,501,351 
Mortgage-Backed Securities309,035,345 313,616,148 
Total Available For Sale$617,131,400 $627,833,669 

At September 30, 2021 the amortized cost and fair value of investment and mortgage-backed securities available for sale pledged as collateral for certain deposit accounts, FHLB advances and other borrowings were $299.5 million and $309.0 million, respectively, compared to an amortized cost and fair value of $263.3 million and $274.4 million, respectively, at December 31, 2020.

There were no sales of available for sale securities during the nine months ended September 30, 2021. The Bank received $4.6 million and $25.0 million in gross proceeds from sales of available for sale securities during the three and nine months ended September 30, 2020, respectively. As a result, the Company recognized gross gains of $139,000 and $1.3 million during the three and nine months ended September 30, 2020, respectively, and no gross losses during the three and nine months ended September 30, 2020.
The following tables show gross unrealized losses and fair value, aggregated by investment category, and length of time that the individual available for sale securities were in a continuous unrealized loss position at the dates indicated.
 September 30, 2021
 Less than 12 Months12 Months or MoreTotal
 Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Student Loan Pools$19,683,284 $101,836 $8,974,486 $41,732 $28,657,770 $143,568 
SBA Bonds28,694,170 637,312 38,137,753 315,088 66,831,923 952,400 
Tax Exempt Municipal Bonds4,740,849 36,273 — — 4,740,849 36,273 
Taxable Municipal Bonds15,994,162 285,575 3,344,600 164,529 19,338,762 450,104 
Mortgage-Backed Securities112,346,749 1,955,565 9,280,082 364,054 121,626,831 2,319,619 
 $181,459,214 $3,016,561 $59,736,921 $885,403 $241,196,135 $3,901,964 

 December 31, 2020
 Less than 12 Months12 Months or MoreTotal
 Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Student Loan Pools$7,196,541 $46,207 $29,460,703 $336,779 $36,657,244 $382,986 
SBA Bonds39,843,800 653,518 43,907,816 403,936 83,751,616 1,057,454 
Taxable Municipal Bond7,092,538 75,168 — — 7,092,538 75,168 
Mortgage-Backed Securities51,941,025 655,213 9,542,092 99,065 61,483,117 754,278 
 $106,073,904 $1,430,106 $82,910,611 $839,780 $188,984,515 $2,269,886 
6. Investment and Mortgage-Backed Securities, Available For Sale, Continued

Securities classified as available for sale are recorded at fair market value.  At September 30, 2021 and December 31, 2020, 22.7% and 37.0% of the unrealized losses, representing 71 and 88 individual securities, respectively, consisted of securities in a continuous loss position for 12 months or more. The Company has the ability and intent to hold these securities until such time as the value recovers or the securities mature.  The Company believes, based on industry analyst reports and credit ratings, that the deterioration in value is attributable to changes in market interest rates and is not in the credit quality of the issuer and therefore, these losses are not considered other-than-temporary. The Company reviews its investment securities portfolio at least quarterly and more frequently when economic conditions warrant, assessing whether there is any indication of other-than-temporary impairment (“OTTI”).
Additional deterioration in market and economic conditions related to the novel coronavirus of 2019 (“COVID-19”) pandemic may, however, have an adverse impact on credit quality in the future and result in OTTI charges. Factors considered in the review include estimated future cash flows, length of time and extent to which market value has been less than cost, the financial condition and near term prospects of the issuer, and our intent and ability to retain the security to allow for an anticipated recovery in market value. If the review determines that there is OTTI, an impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made, or the Company may recognize a portion in other comprehensive income. The fair value of investments on which OTTI is recognized then becomes the new cost basis of the investment. There was no OTTI recognized during the nine months ended September 30, 2021 and the year ended December 31, 2020.