(2)	Securities:

Securities, which consist of debt and equity investments, have been classified in the consolidated balance sheets according to management’s intent. The carrying amount of securities and their estimated fair values follow:


	December 31, 2018
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Restricted:
FHLB stock	$	4,428		—		—			4,428

Available for Sale:
U.S. Agency securities	$	81,158		345		(1,154	)		80,349
Tax free municipal bonds		25,753		181		(152	)		25,782
Taxable municipal bonds		957		2		(5	)		954
Mortgage-backed securities		64,909		56		(1,246	)		63,719

	$	172,777		584		(2,557	)		170,804


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

Available for Sale:
U.S. Agency securities	$	84,210		536		(653	)		84,093
Tax free municipal bonds		26,412		637		(83	)		26,966
Taxable municipal bonds		1,279		5		(1	)		1,283
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 December 31, 2018 are as follows:


			Estimated
December 31, 2018	Amortized Cost		Fair Value
Due within one year	$	2,991		2,996
Due in one to five years		28,101		27,736
Due in five to ten years		14,146		13,944
Due after ten years		14,890		14,971
Amortizing agency bonds		47,740		47,438
Mortgage-backed securities		64,909		63,719

	$	172,777		170,804

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2018 and December 31, 2017 are as follows:


	Less than 12 months					12 months or longer					Total
December 31, 2018	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
Available for sale
U.S. Agency securities	$	—		—			54,441		(1,154	)		54,441		(1,154	)
Tax free municipals		1,465		(8	)		5,619		(144	)		7,084		(152	)
Taxable municipals		—		—			507		(5	)		507		(5	)
Mortgage-backed securities		—		—			54,548		(1,246	)		54,548		(1,246	)

	$	1,465		(8	)		115,115		(2,549	)		116,580		(2,557	)


	Less than 12 months					12 months or longer					Total
December 31, 2017	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
Available for sale
U.S. Agency securities	$	41,501		(431	)		9,846		(222	)		51,347		(653	)
Tax free municipals		4,860		(51	)		913		(32	)		5,773		(83	)
Taxable municipals		521		(1	)		—		—			521		(1	)
Mortgage-backed securities		40,441		(289	)		21,566		(537	)		62,007		(826	)

	$	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. Management gives consideration 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 December 31, 2018, the Company has 86 securities with unrealized losses. Management believes these unrealized losses relate to changes in interest rates and not credit quality. Management also believes the Company has the ability to hold these securities until maturity and, therefore, no declines are deemed to be other than temporary. The carrying value of the Company’s investment securities may decline in the future if the financial condition of issuers deteriorates and management determines it is probable that the Company will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future.

In June of 2008, the Company purchased $2.0 million par value of a private placement subordinated debenture issued by First Financial Services Corporation (“FFKY”), the holding Company for First Federal Savings Bank (“First Fed”). At September 30, 2013, the Company recognized a $400,000 impairment charge related to management’s financial analysis of the issuing institution, and our opinion that it would be unable to make dividend payments after the five-year extension expired. In June 2018, the security was called at its $2.0 million par value by its current sponsor. The unrealized accretion of the previous impairment was recognized as a $373,000 gain on the sale of securities in June 2018.

During 2018, the Company sold investment securities classified as available for sale for proceeds of $10.1 million resulting in gross gains of $195,000 and gross losses of $15,000. During 2017, the Company sold investment securities classified as available for sale for proceeds of $18.0 million resulting in gross gains of $272,000 and gross losses of $103,000. During 2016, the Company sold investment securities classified as available for sale for proceeds of $19.0 million resulting in gross gains of $690,000 and gross losses of $78,000.

As part of its normal course of business, the Bank holds significant balances of municipal and other deposits that require the Bank to pledge investment instruments as collateral. At December 31, 2018, the Bank pledged investments with a book value of $96.5 million and a market value of approximately $96.9 million to various municipal entities as required by law. In addition, the Bank has provided $49.6 million of letters of credit issued by the Federal Home Loan Bank of Cincinnati to collateralize municipal deposits. At December 31, 2017, the Bank pledged investments with a book value of $118.0 million and a market value of approximately $119.8 million to various municipal entities as required by law. In addition, the Bank has provided $47.6 million of letters of credit issued by the Federal Home Loan Bank of Cincinnati to collateralize municipal deposits. At December 31, 2018 and December 31, 2017, the collateral for the letters of credit issued are the Bank’s one to four family loan portfolio.