2. Investment Securities

9 Months Ended

Sep. 30, 2018

Fair Value Measurements Tables

2. Investment Securities

Investment securities available for sale are carried in the consolidated balance sheets at their approximate fair value. Investment securities held to maturity are carried in the consolidated balance sheets at their amortized cost at September 30, 2018 and December 31, 2017 are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
September 30, 2018
U. S. Treasuries	$	123	$	-	$	-	$	123
December 31, 2017
U. S. Treasuries	$	125	$	-	$	-	$	125

The amortized cost and fair value of securities available for sale are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2018
U. S. Government sponsored enterprises	$	7,999	$	-	$	179	$	7,820
Mortgage-backed obligations of federal agencies		435		-		11		424
Total Securities Available for Sale	$	8,434	$	-	$	190	$	8,244
December 31, 2017
U. S. Treasuries	$	19,998	$	-	$	-	$	19,998
U.S. Government sponsored enterprises		7,999		-		19		7,980
Mortgage-backed obligations of federal agencies		508		-		6		502
Equity securities1		135		-		-		135
Total Securities Available for Sale	$	28,640	$	-	$	25	$	28,615

1 Transferred to other investments on January 1, 2018 upon adoption of ASU 2016-01

The amortized cost and fair value of securities at September 30, 2018, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Held to Maturity				Securities Available for Sale
	Amortized		Fair		Amortized		Fair
(dollars in thousands)	Cost		Value		Cost		Value
Due in one year or less	$	-	$	-	$	-	$	-
Due after one year through five years		123		123		5,999		5,880
Due after five years		-		-		2,435		2,364
Due after ten years		-		-		-		-
Total	$	123	$	123	$	8,434	$	8,244

There were no gains or losses on sales of available for sale securities in the three or nine month periods ended September 30, 2018 or 2017. There were also no securities with other than temporary impairment and no securities that had been in a continuous loss position in excess of twelve months as of September 30, 2018 and December 31, 2017.

A summary of unrealized losses (in thousands) and the length of time in a continuous loss position, by security type of September 30, 2018 and December 31, 2017 were as follows:

	Less than 12 Months					More than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2018
U. S. Government sponsored enterprises	$	7,820	$	(179	)	$	-	$	-	$	7,820	$	(179	)
Mortgage-backed obligations of federal agencies		424		(11	)		-		-		424		(11	)
Total	$	8,244	$	(190	)	$	-	$	-	$	8,244	$	(190	)

	Less than 12 Months					More than 12 Months				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2017
U. S. Government sponsored enterprises	$	3,981	$	(19	)	$	-	$	-	$	3,981	$	(19	)
Mortgage-backed obligations of federal agencies		502		(6	)		-		-		502		(6	)
Total	$	4,483	$	(25	)	$	-	$	-	$	4,483	$	(25	)

As of September 30, 2018, other investments consist of investments in twenty low-income housing and historic equity partnerships (carrying basis of $8,331), stock in the Federal Home Loan Bank (carrying basis $3,922) and various other investments (carrying basis $1,604). The interests in low-income housing and historic equity partnerships have limited transferability and the interests in the other stocks are restricted as to sales. The fair values of these securities are estimated to approximate their carrying value as of September 30, 2018. At September 30, 2018, the Company was committed to invest an additional $4,324 in six low-income housing limited partnerships. These funds will be paid as requested by the general partner to complete the projects. This additional investment has been reflected in the above carrying basis and in accrued liabilities on the consolidated balance sheet. During the first quarter of 2017, both Farmers & Merchants Financial Services and F&M Mortgage ended their relationship with Bankers Title Virginia resulting in a consolidated loss of $42.