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2. Investment Securities
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
2. Investment Securities

Investment securities available for sale at March 31, 2019 and December 31, 2018 are as follows:

 

(Dollars in thousands)                        
     March 31, 2019  
     Amortized Cost      Gross Unrealized Gains      Gross Unrealized Losses      Estimated Fair Value  
Mortgage-backed securities   $ 53,390       635       394       53,631  
U.S. Government                                
sponsored enterprises     34,045       138       569       33,614  
State and political subdivisions     94,566       2,379       12       96,933  
Trust preferred securities     250       -       -       250  
Total   $ 182,251       3,152       975       184,428  

 

(Dollars in thousands)                        
     December 31, 2018  
     Amortized Cost      Gross Unrealized Gains      Gross Unrealized Losses      Estimated Fair Value  
Mortgage-backed securities   $ 52,145       516       558       52,103  
U.S. Government                                
sponsored enterprises     35,356       71       793       34,634  
State and political subdivisions     105,545       2,089       43       107,591  
Trust preferred securities     250       -       -       250  
Total   $ 193,296       2,676       1,394       194,578  

 

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2019 and December 31, 2018 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

 

(Dollars in thousands)                                    
    March 31, 2019  
     Less than 12 Months      12 Months or More      Total  
     Fair Value      Unrealized Losses      Fair Value      Unrealized Losses      Fair Value      Unrealized Losses  
Mortgage-backed securities   $ 1,520       5       17,948       389       19,468       394  
U.S. Government                                                
sponsored enterprises     -       -       26,240       569       26,240       569  
State and political subdivisions     274       1       1,872       11       2,146       12  
Total   $ 1,794       6       46,060       969       47,854       975  

 

 

 

(Dollars in thousands)                                    
    December 31, 2018  
     Less than 12 Months      12 Months or More      Total  
     Fair Value      Unrealized Losses      Fair Value      Unrealized Losses      Fair Value      Unrealized Losses  
Mortgage-backed securities   $ 6,932       56       17,670       502       24,602       558  
U.S. Government                                                
sponsored enterprises     1,784       69       25,172       724       26,956       793  
State and political subdivisions     4,815       26       1,578       17       6,393       43  
Total   $ 13,531       151       44,420       1,243       57,951       1,394  

 

At March 31, 2019, unrealized losses in the investment securities portfolio relating to debt securities totaled $975,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2019 tables above, four out of 113 securities issued by state and political subdivisions contained unrealized losses and 29 out of 47 securities issued by U.S. Government sponsored enterprises contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.

 

The amortized cost and estimated fair value of investment securities available for sale at March 31, 2019, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

March 31, 2019            
(Dollars in thousands)            
     Amortized Cost      Estimated Fair Value  
Due within one year   $ 21,274       21,360  
Due from one to five years     63,480       65,011  
Due from five to ten years     35,496       35,827  
Due after ten years     8,361       8,349  
Mortgage-backed securities     53,390       53,631  
Trust preferred securities     250       250  
Total   $ 182,251       184,428  

 

Proceeds from sales of securities available for sale during the three months ended March 31, 2019 were $12.3 million and resulted in net gains of $231,000. No securities available for sale were sold during the three months ended March 31, 2018.

 

Securities with a fair value of approximately $90.2 million and $93.0 million at March 31, 2019 and December 31, 2018, respectively, were pledged to secure public deposits and for other purposes as required by law.