(3) INVESTMENT SECURITIES (Bank Holding Company Accounting)

Fixed maturity securities available for sale at September 30, 2018 consisted of the following:


(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mortgage-backed securities, principally obligations of US federal agencies	$	35,147	$	9	$	(1,188	)	$	33,968
State and municipalities		12,239		1		(451	)		11,789

Total	$	47,386	$	10	$	(1,639	)	$	45,757

The amortized cost and estimated market value of investment securities as of September 30, 2018 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	27	$	27
Due after one year through five years		11,404		11,035
Due after five years through ten years		11,718		11,283
Due after ten years		24,237		23,412

Total	$	47,386	$	45,757

Information pertaining to securities with gross unrealized losses at September 30, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows.

Less than Twelve Months

Twelve Months and Over

(Dollars in thousands)

Gross Unrealized
Losses

Fair Value

Gross Unrealized
Losses

Fair Value

Mortgage-backed securities, principally obligations of US federal agencies

(143

)

7,165

(1,045

)

24,751

State and municipalities

(142

)

5,918

(309

)

5,726

Total

(285

)

13,083

(1,354

)

30,477

Unrealized losses on securities have not been recognized into income because the issuers’ bonds are of high credit quality, and the Company has the intent and ability to hold the securities for the foreseeable future. The fair value is expected to recover as the bonds approach the maturity date.

As of December 31, 2017, under Investment Company Accounting, investment securities made up 0% of the net investments.