Note 4 – Investment Securities

The following tables provide information on the amortized cost and estimated fair values of debt securities.


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
March 31, 2019
U.S. Government agencies	$	34,194	$	3	$	386	$	33,811
Mortgage-backed		118,652		103		1,752		117,003
Total	$	152,846	$	106	$	2,138	$	150,814

December 31, 2018
U.S. Government agencies	$	34,285	$	2	$	651	$	33,636
Mortgage-backed		124,162		115		3,481		120,796
Total	$	158,447	$	117	$	4,132	$	154,432


Held-to-maturity securities:
March 31, 2019
U.S. Government agencies	$	1,498	$	—	$	11	$	1,487
States and political subdivisions		1,401		10		—		1,411
Other Debt securities		3,000		—		33		2,967
Total	$	5,899	$	10	$	44	$	5,865

December 31, 2018
U.S. Government agencies	$	1,642	$	—	$	25	$	1,617
States and political subdivisions		1,401		14		—		1,415
Other Debt securities		3,000		—		32		2,968
Total	$	6,043	$	14	$	57	$	6,000

The Company adopted ASU 2016-01 effective January 1, 2018 and equity securities with an aggregate fair value of $1.3 million at March 31, 2019 and December 31, 2018 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $22 thousand and $19 thousand for the three months ended March 31, 2019 and March 31, 2018, respectively.

The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018.


	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
March 31, 2019
Available-for-sale securities:
U.S. Government agencies	$	829	$	7	$	32,625	$	379	$	33,454	$	386
Mortgage-backed		—		—		109,014		1,752		109,014		1,752
Total	$	829	$	7	$	141,639	$	2,131	$	142,468	$	2,138

Held-to-maturity securities:
U.S. Government agencies		—		—		1,487		11		1,487		11
Other debt securities		2,967		33		—		—		2,967		33
Total	$	2,967	$	33	$	1,487	$	11	$	4,454	$	44


	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
December 31, 2018
Available-for-sale securities:
U.S. Government agencies	$	1,079	$	10	$	32,362	$	641	$	33,441	$	651
Mortgage-backed		13,981		261		99,904		3,220		113,885		3,481
Total	$	15,060	$	271	$	132,266	$	3,861	$	147,326	$	4,132

Held-to-maturity securities:
U.S. Government agencies		—		—		1,617		25		1,617		25
Other debt securities		2,968		32		—		—		2,968		32
Total	$	2,968	$	32	$	1,617	$	25	$	4,585	$	57

All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary. There were seventy-nine available-for-sale securities and two held-to-maturity securities in an unrealized loss position at March 31, 2019.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at March 31, 2019.


	Available for sale				Held to maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	5,994	$	5,949	$	500	$	503
Due after one year through five years		29,105		28,741		400		403
Due after five years through ten years		63,477		62,754		3,501		3,472
Due after ten years		54,270		53,370		1,498		1,487
Total	$	152,846	$	150,814	$	5,899	$	5,865

The maturity dates for debt securities are determined using contractual maturity dates.