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INVESTMENT SECURITIES
6 Months Ended
Jun. 30, 2019
INVESTMENT SECURITIES [Abstract]  
INVESTMENT SECURITIES
3.  INVESTMENT SECURITIES

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at June 30, 2019 are summarized as follows:

(in thousands)
 
Amortized cost
  
Unrealized gains
  
Unrealized losses
  
Estimated fair value
 
 
            
Investment securities available-for-sale:
            
U.S. Treasury Securities
 
$
36,463
  
$
636
  
$
(29
)
 
$
37,070
 
Securities of U.S. government agencies and corporations
  
49,823
   
382
   
(57
)
  
50,148
 
Obligations of states and political subdivisions
  
22,728
   
645
   
(9
)
  
23,364
 
Collateralized mortgage obligations
  
67,618
   
358
   
(409
)
  
67,567
 
Mortgage-backed securities
  
133,053
   
777
   
(981
)
  
132,849
 
 
                
Total debt securities
 
$
309,685
  
$
2,798
  
$
(1,485
)
 
$
310,998
 

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2018 are summarized as follows:
 
(in thousands)
 
Amortized
cost
  
Unrealized
gains
  
Unrealized
losses
  
Estimated fair
value
 
 
            
Investment securities available-for-sale:
            
U.S. Treasury Securities
 
$
50,825
  
$
14
  
$
(157
)
 
$
50,682
 
Securities of U.S. government agencies and corporations
  
42,215
   
89
   
(228
)
  
42,076
 
Obligations of states and political subdivisions
  
19,110
   
181
   
(123
)
  
19,168
 
Collateralized mortgage obligations
  
65,615
   
34
   
(1,850
)
  
63,799
 
Mortgage-backed securities
  
142,297
   
147
   
(3,532
)
  
138,912
 
 
                
Total debt securities
 
$
320,062
  
$
465
  
$
(5,890
)
 
$
314,637
 

The Company had $15,683,000 and $32,683,000 in proceeds from sales, calls and maturities of available-for-sale securities for the three and six months ended June 30, 2019, respectively.  The Company had $3,465,000 and $14,580,000 in proceeds from sales, calls and maturities of available-for-sale securities for the three and six months ended June 30, 2018, respectively.  Gross realized gains on sales of available-for-sale securities were $47,000 for the three and six months ended June 30, 2019.  There were no gross realized gains from sales of available-for-sale securities for the three and six months ended June 30, 2018.  Gross realized losses from sales of available-for-sale securities were $(53,000) for the three and six months ended June 30, 2019.  There were no gross realized losses on sales of available-for-sale securities for the three and six months ended June 30, 2018.

The amortized cost and estimated market value of debt and other securities at June 30, 2019, by contractual and expected maturity, are shown in the following table:
 
(in thousands)
 
Amortized
cost
  
Estimated
fair value
 
 
      
Maturity in years:
      
Due in one year or less
 
$
43,519
  
$
43,519
 
Due after one year through five years
  
45,639
   
46,488
 
Due after five years through ten years
  
12,891
   
13,370
 
Due after ten years
  
6,965
   
7,205
 
Subtotal 
  
109,014
   
110,582
 
MBS & CMO
  
200,671
   
200,416
 
Total
 
$
309,685
  
$
310,998
 

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of June 30, 2019, follows:

 
 
Less than 12 months
  
12 months or more
  
Total
 
(in thousands)
 
Fair Value
  
Unrealized
losses
  
Fair Value
  
Unrealized
losses
  
Fair Value
  
Unrealized
losses
 
                   
U.S. Treasury securities
 
$
  
$
  
$
11,489
  
$
(29
)
 
$
11,489
  
$
(29
)
Securities of U.S. government agencies and corporations
  
1,984
   
(1
)
  
17,669
   
(56
)
  
19,653
   
(57
)
Obligations of states and political subdivisions
  
   
   
3,325
   
(9
)
  
3,325
   
(9
)
Collateralized Mortgage obligations
  
   
   
42,082
   
(409
)
  
42,082
   
(409
)
Mortgage-backed securities
  
1,234
   
(9
)
  
83,995
   
(972
)
  
85,229
   
(981
)
 
                        
Total
 
$
3,218
  
$
(10
)
 
$
158,560
  
$
(1,475
)
 
$
161,778
  
$
(1,485
)

No decline in value was considered “other-than-temporary” during the first six months of 2019.  Eight securities, all considered investment grade, which had a fair value of $3,218,000 and a total unrealized loss of $10,000, have been in an unrealized loss position for less than twelve months as of June 30, 2019.  One hundred forty six securities, all considered investment grade, which had a fair value of $158,560,000 and a total unrealized loss of $1,475,000, have been in an unrealized loss position for more than twelve months as of June 30, 2019.  The unrealized losses on the Company's investment securities were caused by market conditions for these types of investments, particularly changes in risk-free interest rates.  The Company does not intend to sell the securities and has concluded it is not more likely than not that we will be required to sell these securities prior to recovery of their anticipated cost basis. Therefore, the Company does not consider these investments to be other than temporarily impaired as of June 30, 2019.

The fair value of investment securities could decline in the future if the general economy deteriorates, inflation increases, credit ratings decline, the issuer's financial condition deteriorates, or the liquidity for securities declines. As a result, other than temporary impairments may occur in the future.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2018, follows:

 
                  
 
 
Less than 12 months
  
12 months or more
  
Total
 
 
 
Fair Value
  
Unrealized
losses
  
Fair Value
  
Unrealized
losses
  
Fair Value
  
Unrealized
losses
 
 
                  
U.S. Treasury Securities
 
$
37,805
  
$
(67
)
 
$
5,951
  
$
(90
)
 
$
43,756
  
$
(157
)
Securities of U.S. government agencies and corporations
  
16,959
   
(39
)
  
13,540
   
(189
)
  
30,499
   
(228
)
Obligations of states and political subdivisions
  
847
   
(2
)
  
9,134
   
(121
)
  
9,981
   
(123
)
Collateralized Mortgage obligations
  
2,217
   
(6
)
  
53,217
   
(1,844
)
  
55,434
   
(1,850
)
Mortgage-backed securities
  
16,358
   
(123
)
  
105,361
   
(3,409
)
  
121,719
   
(3,532
)
 
                        
Total
 
$
74,186
  
$
(237
)
 
$
187,203
  
$
(5,653
)
 
$
261,389
  
$
(5,890
)

Investment securities carried at $33,066,000 and $36,781,000 at June 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.