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:
September 30, 2019
U.S. Government agencies	$	33,917	$	3	$	81	$	33,839
Mortgage-backed		104,926		458		312		105,072
Total	$	138,843	$	461	$	393	$	138,911

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:
September 30, 2019
U.S. Government agencies	$	1,380	$	12	$	—	$	1,392
States and political subdivisions		1,400		1		—		1,401
Other Debt securities		7,000		—		78		6,922
Total	$	9,780	$	13	$	78	$	9,715

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 September 30, 2019 and December 31, 2018 are presented separately on the balance sheet. The fair value adjustment recorded through earnings totaled $47 thousand for the nine months ended September 30, 2019 and $(20) thousand for the nine months ended September 30, 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 September 30, 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
September 30, 2019
Available-for-sale securities:
U.S. Government agencies	$	8,985	$	15	$	24,854	$	66	$	33,839	$	81
Mortgage-backed		17,476		48		23,296		264		40,772		312
Total	$	26,461	$	63	$	48,150	$	330	$	74,611	$	393

Held-to-maturity securities:
Other debt securities		6,922		78		—		—		6,922		78
Total	$	6,922	$	78	$	—	$	—	$	6,922	$	78


	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 thirty-nine available-for-sale securities and four held-to-maturity securities in an unrealized loss position at September 30, 2019.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at September 30, 2019.


	Available for sale				Held to maturity
	Amortized				Amortized
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	5,999	$	5,994	$	1,000	$	1,000
Due after one year through five years		28,660		28,581		400		401
Due after five years through ten years		56,236		56,373		7,000		6,922
Due after ten years		47,948		47,963		1,380		1,392
Total	$	138,843	$	138,911	$	9,780	$	9,715

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