Securities available-for-sale are reported at fair value with unrealized gains or losses included in stockholders’ equity, net of tax. Accordingly, the carrying value of such securities reflects their fair value as of June 30, 2019 and December 31, 2018. Fair value is based upon either quoted market prices, or in certain cases where there is limited activity in the market for a particular instrument, assumptions are made to determine their fair value. See Note 7 of the Notes to Consolidated Financial Statements for a further discussion.

The following table summarizes the amortized cost and fair value of securities available-for-sale at June 30, 2019 and December 31, 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss).

Investment securities having a carrying value of approximately $125.4 million and $151.5 million at June 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits, borrowings, Federal Reserve Discount Window borrowings and Federal Home Loan Bank advances and for other purposes required or permitted by law. As of June 30, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

The following table presents information for investments in securities available-for-sale at June 30, 2019, based on scheduled maturities. Actual maturities can be expected to differ from scheduled maturities due to prepayment or early call options of the issuer. Securities not due at a single maturity date are shown separately.

	June 30, 2019
	Amortized		Fair
	Cost		Value
	(dollars in thousands)
Securities available-for-sale:
Due in one year or less	$	4,166	$	4,192
Due after one year through five years		29,411		29,449
Due after five years through ten years		22,538		23,126
Due after ten years		147,361		148,826
Residential mortgage pass-through securities		230,064		229,542
Commercial mortgage pass-through securities		5,748		5,826
Other securities		950		950
Total securities available-for-sale	$	440,238	$	441,911

Gross gains and losses from the sales of securities for periods presented were as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	(dollars in thousands)
	2019			2018		2019			2018
Proceeds	$	47,664		$	-	$	141,739		$	-

Gross gains on sales of securities		263			-		400			-
Gross losses on sales of securities		(272	)		-		(401	)		-
Net losses on sales of securities		(9	)		-		(1	)		-
Less: tax provision on net losses		(2	)		-		-			-

Net losses on sales of securities, after tax	$	(7	)	$	-	$	(1	)	$	-

The Company reviews all securities for potential recognition of other-than-temporary impairment. The Company maintains a watch list for the identification and monitoring of securities experiencing problems that require a heightened level of review. This could include credit rating downgrades.

The Company’s assessment of whether an impairment in the portfolio is other-than-temporary includes factors such as whether the issuer has defaulted on scheduled payments, announced restructuring and/or filed for bankruptcy, has disclosed severe liquidity problems that cannot be resolved, disclosed deteriorating financial condition or sustained significant losses.

Temporarily Impaired Securities

The Company does not believe that any of the unrealized losses, which were comprised of 69 and 148 securities as of June 30, 2019 and December 31, 2018, respectively, represent an other-than-temporary impairment (“OTTI”). The gross unrealized losses associated with U.S. Treasury and agency securities, federal agency obligations, mortgage-backed securities, corporate bonds, tax-exempt securities, and asset-backed securities are not considered to be other-than-temporary because these unrealized losses are related to changes in interest rates and do not affect the expected cash flows of the underlying collateral or issuer.

Factors which may contribute to unrealized losses include credit risk, market risk, changes in interest rates, economic cycles, and liquidity risk. The magnitude of any unrealized loss may be affected by the relative concentration of the Company’s investment in any one issuer or industry. The Company has established policies to reduce exposure through diversification of the securities portfolio including limits on concentrations to any one issuer. The Company believes the securities portfolio is prudently diversified.

The unrealized losses included in the tables below are primarily related to changes in interest rates and credit spreads. All of the Company’s securities are performing and are expected to continue to perform in accordance with their respective contractual terms and conditions. These are largely intermediate duration holdings and, in certain cases, monthly principal payments can further reduce loss exposure resulting from an increase in rates.

The Company evaluates all securities with unrealized losses quarterly to determine whether the loss is other-than-temporary. Unrealized losses in the corporate debt securities category consist primarily of senior unsecured corporate debt securities issued by large financial institutions, insurance companies and other corporate issuers. No corporate issuers have defaulted on interest payments. The declines in fair value is due in large part to the lack of an active trading market for these securities, changes in market credit spreads and rating agency downgrades. Management concluded that these securities were not OTTI at June 30, 2019.

In determining whether or not securities are OTTI, the Company must exercise considerable judgment. Accordingly, there can be no assurance that the actual results will not differ from the Company’s judgments and that such differences may not require the future recognition of OTTI charges that could have a material effect on the Company’s financial position and results of operations. In addition, the value of, and the realization of any loss on, a security is subject to numerous risks as cited above.

The following tables indicate gross unrealized losses not recognized in income and fair value, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018:

	June 30, 2019
	Total					Less than 12 Months					12 Months or Longer
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(dollars in thousands)
Investment Securities Available-for-Sale:
Federal agency obligation	$	4,260	$	(15	)	$	-	$	-		$	4,260	$	(15	)
Residential mortgage pass-through securities		147,392		(1,403	)		42,750		(73	)		104,642		(1,330	)
Obligations of U.S. states and political subdivisions		41,825		(819	)		-		-			41,825		(819	)
Corporate bonds and notes		8,696		(278	)		2,000		-			6,696		(278	)
Asset-backed securities		6,397		(58	)		4,406		(47	)		1,991		(11	)
Total temporarily impaired securities	$	208,570	$	(2,573	)	$	49,156	$	(120	)	$	159,414	$	(2,453	)

	December 31, 2018
	Total					Less than 12 Months					12 Months or Longer
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
	(dollars in thousands)
Investment Securities Available-for-Sale:
Federal agency obligation	$	35,472	$	(605	)	$	810	$	(1	)	$	34,662	$	(604	)
Residential mortgage pass-through securities		178,365		(4,602	)		42,040		(393	)		136,325		(4,209	)
Commercial mortgage pass-through securities		3,874		(45	)		-		-			3,874		(45	)
Obligations of U.S. states and political subdivisions		64,367		(3,402	)		7,765		(21	)		56,602		(3,381	)
Corporate bonds and notes		15,534		(540	)		7,767		(133	)		7,767		(407	)
Asset-backed securities		3,957		(16	)		2,219		(11	)		1,738		(5	)
Total Temporarily Impaired Securities	$	301,569	$	(9,210	)	$	60,601	$	(559	)	$	240,968	$	(8,651	)