INVESTMENT SECURITIES AVAILABLE FOR SALE

The amortized cost and estimated fair value of investment securities at

March 31, 2020

and

December 31, 2019

consisted of the following, in thousands:

Available-for-Sale	March 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations- residential	$	121,019	$	4,876	$	-		$	125,895
Obligations of states and political subdivisions		32,064		1,289		(1	)		33,352
	$	153,083	$	6,165	$	(1	)	$	159,247

Unrealized gain on available-for-sale investment securities totaling

$6,164,000

were recorded, net of

$1,822,000

in tax expense, as accumulated other comprehensive income within shareholders' equity at

March 31, 2020

securities were sold during the

three

months ended

March 31, 2020

Available-for-Sale	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations- residential	$	123,940	$	1,924	$	(186	)	$	125,678
Obligations of states and political subdivisions		32,470		1,201		(29	)		33,642
	$	156,410	$	3,125	$	(215	)	$	159,320

Unrealized gain on available-for-sale investment securities totaling

$2,910,000

were recorded, net of

$861,000

in tax expense, as accumulated other comprehensive loss within shareholders' equity at

December 31, 2019

securities were sold during the

three

months ended

March 31, 2019

There were

transfers of available-for-sale investment securities during the

three

months ended

March 31, 2020

and

twelve

months ended

December 31, 2019

. There were

securities classified as held-to-maturity at

March 31, 2020

December 31, 2019

Investment securities with unrealized losses at

March 31, 2020

and

December 31, 2019

are summarized and classified according to the duration of the loss period as follows, in thousands:

March 31, 2020	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential	$	-	$	-	$	-	$	-	$	-	$	-
Obligations of states and political subdivisions		998		1						998		1
	$	998	$	1	$	-	$	-	$	998	$	1

December 31, 2019	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential	$	10,319	$	31	$	19,733	$	155	$	30,052	$	186
Obligations of states and political subdivisions		2,965		29		-		-		2,965		29
	$	13,284	$	60	$	19,733	$	155	$	33,017	$	215

March 31, 2020

, the Company held

185

securities of which

were in a loss position. All of the securities in a loss position were in a loss position for less than

twelve

months. Of the

185

securities,

are U.S. Government-sponsored agencies collateralized by residential mortgage obligations and

were obligations of states and political subdivisions. The unrealized losses relate principally to market rate conditions. All of the securities continue to pay as scheduled. When analyzing an issuer’s financial condition, management considers the length of time and extent to which the market value has been less than cost; the historical and implied volatility of the security; the financial condition of the issuer of the security; and the Company’s intent and ability to hold the security to recovery. As of

March 31, 2020

, management does

not

have the intent to sell these securities nor does it believe it is more likely than

not

that it will be required to sell these securities before the recovery of its amortized cost basis. Based on the Company’s evaluation of the above and other relevant factors, the Company does

not

believe the securities that are in an unrealized loss position as of

March 31, 2020

are other than temporarily impaired.

The amortized cost and estimated fair value of investment securities at

March 31, 2020

by contractual maturity are shown below, in thousands.

	Amortized Cost		Estimated Fair Value
Within one year	$	-	$	-
After one year through five years		3,468		3,569
After five years through ten years		5,464		5,629
After ten years		23,132		24,154
Investment securities not due at a single maturity date:
Government-sponsored mortgage-backed securities		121,019		125,895
	$	153,083	$	159,247

Expected maturities will differ from contractual maturities because the issuers of the securities

may

have the right to call or prepay obligations with or without call or prepayment penalties.

Investment securities with amortized costs totaling

$91,211,000

and

$83,596,000

and estimated fair values totaling

$94,906,000

and

$84,625,000

March 31, 2020

and

December 31, 2019

, respectively, were pledged to secure deposits and repurchase agreements.