3.	INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity as of

March 31, 2018

and

December 31, 2017

were as follows:

	Available-for-Sale
	March 31 , 201 8
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	87,463	$	202	$	(1,983	)	$	85,682
Commercial		67,846		16		(1,868	)		65,994
Obligations of states and political subdivisions		4,749		140		(3	)		4,886
U.S. Treasury securities		80		—		—			80
Total	$	160,138	$	358	$	(3,854	)	$	156,642

	Held-to-Maturity
	March 31, 2018
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	14,237	$	—	$	(342	)	$	13,895
Obligations of U.S. government-sponsored agencies		9,209		—		(255	)		8,954
Obligations of states and political subdivisions		1,854		—		(16	)		1,838
Total	$	25,300	$	—	$	(613	)	$	24,687

	Available-for-Sale
	December 31, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	83,360	$	286	$	(860	)	$	82,786
Commercial		67,281		27		(1,234	)		66,074
Obligations of states and political subdivisions		4,752		182		(3	)		4,931
U.S. Treasury securities		80		—		—			80
Total	$	155,473	$	495	$	(2,097	)	$	153,871

	Held-to-Maturity
	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	15,065	$	1	$	(186	)	$	14,880
Obligations of U.S. government-sponsored agencies		9,326		7		(144	)		9,189
Obligations of states and political subdivisions		1,888		5		(13	)		1,880
Total	$	26,279	$	13	$	(343	)	$	25,949

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of

March 31, 2018

are presented in the following table:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Maturing within one year	$	699	$	707	$	—	$	—
Maturing after one to five years		22,234		21,719		1,827		1,813
Maturing after five to ten years		80,332		78,419		4,293		4,217
Maturing after ten years		56,873		55,797		19,180		18,657
Total	$	160,138	$	156,642	$	25,300	$	24,687

For purposes of the maturity table, mortgage-backed securities, which are

not

due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following table reflects gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of

March 31, 2018

and

December 31, 2017.

	Available-for-Sale
	March 31 , 201 8
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	56,885	$	(1,209	)	$	21,126	$	(774	)
Commercial		20,155		(398	)		44,735		(1,470	)
Obligations of states and political subdivisions		426		(3	)		—		—
U.S. Treasury securities		80		—			—		—
Total	$	77,546	$	(1,610	)	$	65,861	$	(2,244	)

	Held-to-Maturity
	March 31 , 2018
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	7,642	$	(150	)	$	6,253	$	(192	)
Obligations of U.S. government-sponsored agencies		1,656		(23	)		7,298		(232	)
Obligations of states and political subdivisions		1,311		(8	)		527		(8	)
Total	$	10,609	$	(181	)	$	14,078	$	(432	)

	Available-for-Sale
	December 31, 201 7
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	47,007	$	(467	)	$	21,122	$	(393	)
Commercial		18,554		(180	)		46,312		(1,054	)
Obligations of states and political subdivisions		428		(3	)		—		—
U.S. Treasury securities		80		—			—		—
Total	$	66,069	$	(650	)	$	67,434	$	(1,447	)

	Held-to-Maturity
	December 31, 2017
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	7,895	$	(63	)	$	6,675	$	(123	)
Obligations of U.S. government-sponsored agencies		865		(2	)		7,388		(142	)
Obligations of states and political subdivisions		571		(3	)		531		(10	)
Total	$	9,331	$	(68	)	$	14,594	$	(275	)

Management evaluates securities for other-than-temporary impairment

less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: (i) the length of time and the extent to which fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) whether the Company intends to sell the securities, and (iv) whether it is more likely than

not

that the Company will be required to sell the securities before recovery of their amortized cost bases.

As of

March 31, 2018,

debt securities had been in a loss position for more than

months, and

debt securities had been in a loss position for less than

months. As of

December 31, 2017,

debt securities had been in a loss position for more than

months, and

debt securities had been in a loss position for less than

months. As of both

March 31, 2018

and

December 31, 2017,

the losses for all securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were

not

related to the creditworthiness of the issuers. Further, the Company has the current 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 as of

March 31, 2018 or

December 31, 2017.

Investment securities with a carrying value of

$78.0

million and

$86.8

million as of

March 31, 2018

and

December 31, 2017,

respectively, were pledged to secure public deposits and for other purposes.