| Securities |
Note 2: Securities
The amortized cost and estimated fair value of debt securities at September 30, 2021 and December 31, 2020, by contractual maturity, are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying
the securities may be called or repaid without any penalties, therefore, these securities have been included in the below table based on average remaining life.
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Mortgage-backed |
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Collateralized |
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U.S. government |
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Municipal |
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residential |
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mortgage |
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Total available-for- |
September 30, 2021 |
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agency obligations |
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obligations |
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obligations |
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obligations |
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sale |
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(Dollars in thousands) |
1 year or less |
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$ |
— |
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$ |
1,231 |
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$ |
456 |
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$ |
1,071 |
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$ |
2,758 |
1 to 5 years |
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3,938 |
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3,777 |
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31,185 |
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17,535 |
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56,435 |
5 to 10 years |
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6,507 |
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2,867 |
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13,837 |
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9,984 |
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33,195 |
After 10 years |
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— |
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2,970 |
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— |
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1,636 |
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4,606 |
Fair value |
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10,445 |
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10,845 |
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45,478 |
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30,226 |
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96,994 |
Gross unrealized gains |
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163 |
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464 |
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426 |
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441 |
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1,494 |
Gross unrealized losses |
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(39) |
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(12) |
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(309) |
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(259) |
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(619) |
Amortized cost |
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$ |
10,321 |
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$ |
10,393 |
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$ |
45,361 |
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$ |
30,044 |
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$ |
96,119 |
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Mortgage-backed |
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Collateralized |
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U.S. government |
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Municipal |
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residential |
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mortgage |
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Total available-for- |
December 31, 2020 |
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agency obligations |
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obligations |
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obligations |
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obligations |
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sale |
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(Dollars in thousands) |
1 year or less |
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$ |
1,000 |
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$ |
768 |
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$ |
1,443 |
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$ |
383 |
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$ |
3,594 |
1 to 5 years |
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4,862 |
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3,726 |
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34,486 |
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14,452 |
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57,526 |
5 to 10 years |
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1,285 |
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4,354 |
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7,165 |
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5,564 |
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18,368 |
After 10 years |
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— |
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2,132 |
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— |
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— |
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2,132 |
Fair value |
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7,147 |
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10,980 |
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43,094 |
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20,399 |
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81,620 |
Gross unrealized gains |
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154 |
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518 |
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884 |
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534 |
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2,090 |
Gross unrealized losses |
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(17) |
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(18) |
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(22) |
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(66) |
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(123) |
Amortized cost |
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$ |
7,010 |
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$ |
10,480 |
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$ |
42,232 |
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$ |
19,931 |
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$ |
79,653 |
As of September 30, 2021, and December 31, 2020, no securities were pledged to secure public deposits or for other purposes as required or permitted by law.
Information pertaining to securities with gross unrealized losses at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:
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Less than 12 Months |
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12 Months or Longer |
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Total |
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(Dollars in thousands) |
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Fair |
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Unrealized |
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Fair |
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Unrealized |
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Fair |
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Unrealized |
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Value |
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Losses |
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Value |
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Losses |
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Value |
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Losses |
September 30, 2021 |
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U.S. government agency obligations |
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$ |
2,383 |
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$ |
23 |
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$ |
1,154 |
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$ |
16 |
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$ |
3,537 |
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$ |
39 |
Municipal obligations |
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— |
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— |
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242 |
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12 |
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242 |
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12 |
Mortgage-backed residential obligations |
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19,537 |
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284 |
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2,213 |
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25 |
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21,750 |
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309 |
Collateralized mortgage obligations |
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18,762 |
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259 |
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— |
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— |
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18,762 |
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259 |
Total |
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$ |
40,682 |
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$ |
566 |
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$ |
3,609 |
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$ |
53 |
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$ |
44,291 |
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$ |
619 |
December 31, 2020 |
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U.S. government agency obligations |
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$ |
1,284 |
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$ |
17 |
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$ |
— |
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$ |
— |
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$ |
1,284 |
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$ |
17 |
Municipal obligations |
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— |
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— |
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238 |
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18 |
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238 |
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18 |
Mortgage-backed residential obligations |
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5,265 |
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17 |
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1,170 |
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5 |
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6,435 |
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22 |
Collateralized mortgage obligations |
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8,694 |
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66 |
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241 |
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— |
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8,935 |
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66 |
Total |
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$ |
15,243 |
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$ |
100 |
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$ |
1,649 |
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$ |
23 |
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$ |
16,892 |
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$ |
123 |
At September 30, 2021 and December 31, 2020, certain investment securities were in unrealized loss positions. Some investment securities have declined in value but do not presently represent realized losses. Unrealized losses on investment securities have not been recognized into income because the issuers’ bonds are of high credit quality, the Bank has the intent and ability to hold the securities
for the foreseeable future, and the declines in fair value are primarily due to market volatility. The fair values are expected to recover as the bonds approach their maturity dates.
The following table provides a summary of the proceeds from sales of securities available-for-sale, as well as gross gains and losses, for the periods presented.
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Three months ended September 30, |
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Nine months ended September 30, |
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2021 |
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2020 |
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2021 |
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2020 |
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(Dollars in thousands) |
Proceeds from sales of securities available-for-sale |
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$ |
6,769 |
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$ |
— |
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$ |
6,769 |
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$ |
12,112 |
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Gross realized gains |
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131 |
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— |
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131 |
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114 |
Gross realized losses |
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— |
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— |
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— |
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(55) |
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