(3)	SECURITIES

The carrying amount of securities and their estimated fair values at September 30, 2018 and December 31, 2017 were as follows:


	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428

Available for sale:
U.S. Agency securities	$	73,957		30		(2,237	)		71,750
Taxable municipal bonds		960		2		(7	)		955
Tax free municipal bonds		24,086		144		(271	)		23,959
Mortgage backed securities		64,700		47		(2,129	)		62,618

	$	163,703		223		(4,644	)		159,282


	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428

Available for sale:
U.S. Agency securities	$	84,210		536		(653	)		84,093
Taxable municipal bonds		1,279		5		(1	)		1,283
Tax free municipal bonds		26,412		637		(83	)		26,966
Trust preferred securities		1,650		35		—			1,685
Mortgage-backed securities		71,389		201		(826	)		70,764

	$	184,940		1,414		(1,563	)		184,791

The scheduled maturities of debt securities available for sale at September 30, 2018 were as follows:


	Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Due within one year	$	2,520	$	2,522
Due in one to five years		28,341		27,677
Due in five to ten years		13,137		12,734
Due after ten years		6,895		6,822

		50,893		49,755
Amortizing agency bonds		48,110		46,909
Mortgage-backed securities		64,700		62,618

Total securities available for sale	$	163,703	$	159,282

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of September 30, 2018 were as follows:


	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	24,275		(545	)		41,874		(1,692	)		66,149		(2,237	)
Taxable municipal bonds		—		—			508		(7	)		508		(7	)
Tax free municipal bonds		8,261		(131	)		4,329		(140	)		12,590		(271	)
Mortgage-backed securities		22,582		(681	)		34,228		(1,448	)		56,810		(2,129	)

Total available for sale	$	55,118		(1,357	)		80,939		(3,287	)		136,057		(4,644	)

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2017 were as follows:


	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	41,501		(431	)		9,846		(222	)		51,347		(653	)
Taxable municipal bonds		521		(1	)		—		—			521		(1	)
Tax free municipal bonds		4,860		(51	)		913		(32	)		5,773		(83	)
Mortgage-backed securities		40,441		(289	)		21,566		(537	)		62,007		(826	)

Total available for sale	$	87,323		(772	)		32,325		(791	)		119,648		(1,563	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At September 30, 2018, the Company has 110 securities with unrealized losses. The losses for all securities are considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and are not related to the credit worthiness of the issuers. Furthermore, the Company has the intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments during the nine month period ended September 30, 2018.

At September 30, 2018 and December 31, 2017, securities with a book value of approximately $94.7 million and $119.8 million and a market value of approximately $93.7 million and $118.0 million, respectively, were pledged to various municipalities for deposits in excess of FDIC limits as required by law. At September 30, 2018 and December 31, 2017, securities with a market value of $42.0 million and $38.4 million, respectively, were sold to customers as part of overnight repurchase agreements.