INVESTMENT SECURITIES

The amortized cost and fair value of available-for-sale investment securities are as follows (in thousands):



	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2019
U.S. Agencies	$	2,868	$	109	$	—	$	2,977
State, county, and municipal securities	28,492		352		187		28,657
Mortgage-backed securities	385,321		2,757		2,820		385,258
Corporate debt securities	18,068		280		561		17,787
	$	434,749	$	3,498	$	3,568	$	434,679

December 31, 2018
U.S. Agencies	$	3,016	$	56	$	—	$	3,072
State, county, and municipal securities	44,639		214		765		44,088
Mortgage-backed securities	370,706		1,092		5,921		365,877
Corporate debt securities	25,567		433		1,283		24,717
	$	443,928	$	1,795	$	7,969	$	437,754

The amortized cost and fair value of held-to-maturity investment securities are as follows (in thousands):



	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
March 31, 2019
State, county, and municipal securities	$	1,662	$	2	$	5	$	1,659
Mortgage-backed securities	33,445		104		374		33,175
	$	35,107	$	106	$	379	$	34,834

December 31, 2018
State, county, and municipal securities	$	1,977	$	1	$	10	$	1,968
Mortgage-backed securities	35,782		—		776		$	35,006
	$	37,759	$	1	$	786	$	36,974

The amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity are shown below (in thousands):



	Amortized Cost		Fair Value
March 31, 2019
Due after one year through five years	$	6,389	$	5,888
Due after five years through ten years	24,097		24,505
Due after ten years	18,942		19,028
Mortgage-backed securities¹	385,321		385,258
	$	434,749	$	434,679

Held-to-maturity:
Due in one year or less	$	451	$	451
Due after one year through five years	1,211		1,208
Mortgage-backed securities¹	33,445		33,175
	$	35,107	$	34,834

¹Actual maturities may differ from contractual maturities as borrowers may prepay obligations without prepayment penalties.

The following summarizes the fair value of securities available-for-sale in an unrealized loss position as of the dates indicated (in thousands):



	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2019
State, county, and municipal securities	$	—	$	—	$	11,647	$	187	$	11,647	$	187
Mortgage-backed securities	—		—		169,319		2,820		169,319		2,820
Corporate debt securities	2,029		561		—		—		2,029		561
	$	2,029	$	561	$	180,966	$	3,007	$	182,995	$	3,568
December 31, 2018
State, county, and municipal securities	$	2,573	$	11	$	19,539	$	754	$	22,112	$	765
Mortgage-backed securities	25,706		34		197,036		5,887		222,742		5,921
Corporate debt securities	3,307		1,283		—		—		3,307		1,283
	$	31,586	$	1,328	$	216,575	$	6,641	$	248,161	$	7,969

The following summarizes the fair value of securities held-to-maturity in an unrealized loss position as of the dates indicated (in thousands):



	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2019
State, county, and municipal securities	$	—	$	—	$	819	$	5	$	819	$	5
Mortgage-backed securities	—		—		18,778		374		18,778		374
	$	—	$	—	$	19,597	$	379	$	19,597	$	379

December 31, 2018
State, county, and municipal securities	$	—	$	—	$	1,703	$	10	$	1,703	$	10
Mortgage-backed securities	—		—		35,006		776		35,006		776
	$	—	$	—	$	36,709	$	786	$	36,709	$	786

At March 31, 2019, the Company had 66 securities in an unrealized loss position. Management evaluates whether unrealized losses on securities represent impairment that is other than temporary on a quarterly basis. For debt securities, the Company considers its intent to sell or hold the securities and if it is more likely than not the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market’s perception of the issuer’s financial health and the security’s credit quality. If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. For equity securities, management reviews the near term prospects of the issuer, the nature and cause of the unrealized loss, the severity and duration of the impairments and other factors when determining if an unrealized loss is other than temporary. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income. At March 31, 2019, there was no intent to sell any of the securities in an unrealized loss position, and it is more likely than not the Company will not be required to sell these securities. Furthermore, the present value of cash flows expected to be collected exceeded the Company's amortized cost basis of the investment securities; therefore, these securities are not deemed to be other than temporarily impaired.

Proceeds from sales of available-for-sale securities as of March 31, 2019 and 2018 were $32.4 million and $410,000, respectively. Gross gains and losses on sales of available-for-sale securities for the three months ended March 31, 2019 were $375,000 and $2,000, respectively. There were not any gains or losses recognized on the sales of available-for-sale securities for the three months ended March 31, 2018.

The composition of investment securities reflects the strategy of management to maintain an appropriate level of liquidity while providing a relatively stable source of revenue. The securities portfolio may at times be used to mitigate interest rate risk associated with other areas of the balance sheet while also providing a means for the investment of available funds, providing liquidity and supplying investment securities that are required to be pledged as collateral against specific deposits and for other purposes. Securities with an aggregate carrying value of $110.9 million at March 31, 2019 and $162.5 million at December 31, 2018 were pledged to secure public funds on deposit and for other purposes required or permitted by law.