INVESTMENT SECURITIES AVAILABLE FOR SALE

The amortized cost and estimated fair value of investment securities at

March 31, 2019

and

December

31,

2018

consisted of the following, in thousands:

Available-for-Sale	March 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations- residential	$	132,756	$	652	$	(1,320	)	$	132,088
Obligations of states and political subdivisions		40,735		554		(150	)		41,139
	$	173,491	$	1,206	$	(1,470	)	$	173,227

Net unrealized loss on available-for-sale investment securities totaling

$264,000

were recorded, net of

$78,000

in tax benefits, as accumulated other comprehensive income within shareholders' equity at

March 31, 2019.

investment securities were sold during the

three

months ended

March 31, 2019.

Available-for-Sale	December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations- residential	$	135,059	$	240	$	(2,621	)	$	132,678
Obligations of states and political subdivisions		39,311		121		(603	)		38,829
	$	174,370	$	361	$	(3,224	)	$	171,507

Unrealized loss on available-for-sale investment securities totaling

$2,863,000

were recorded, net of

$846,000

in tax benefits, as accumulated other comprehensive loss within shareholders' equity at

December 31, 2018.

During the

three

months ended

March 31, 2018

the Company sold

eighteen

available-for-sale investment securities for total proceeds of

$4,157,000

recording a

$8,000

loss on sale. The Company realized a gain on sale from

eight

of these securities totaling

$4,000

and a loss on sale on

ten

securities of

$12,000.

There were

transfers of available-for-sale investment securities during the

three

months ended

March 31, 2019

and

twelve

months ended

December 31, 2018.

There were

securities classified as held-to-maturity at

March 31, 2019

December 31, 2018.

Investment securities with unrealized losses at

March 31, 2019

and

December 31, 2018

are summarized and classified according to the duration of the loss period as follows, in thousands:

March 31, 2019	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential	$	-	$	-	$	84,580	$	1,320	$	84,580	$	1,320
Obligations of states and political subdivisions		681		10		10,538		140		11,219		150
	$	681	$	10	$	95,118	$	1,460	$	95,799	$	1,470

December 31, 2018	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential	$	26,478	$	269	$	77,476	$	2,352	$	103,954	$	2,621
Obligations of states and political subdivisions		19,270		284		5,672		319		24,942		603
	$	45,748	$	553	$	83,148	$	2,671	$	128,896	$	3,224

March 31, 2019,

the Company held

219

securities of which

107

were in a loss position. Of the securities in a loss position,

was in a loss position for less than

twelve

months. Of the

219

securities,

are U.S. Government-sponsored agencies collateralized by residential mortgage obligations and

122

were obligations of states and political subdivisions. The unrealized losses relate principally to market rate conditions. All of the securities continue to pay as scheduled. When analyzing an issuer’s financial condition, management considers the length of time and extent to which the market value has been less than cost; the historical and implied volatility of the security; the financial condition of the issuer of the security; and the Company’s intent and ability to hold the security to recovery. As of

March 31, 2019,

management does

not

have the intent to sell these securities nor does it believe it is more likely than

not

that it will be required to sell these securities before the recovery of its amortized cost basis. Based on the Company’s evaluation of the above and other relevant factors, the Company does

not

believe the securities that are in an unrealized loss position as of

March 31, 2019

are other than temporarily impaired.

The amortized cost and estimated fair value of investment securities at

March

31,

2019

by contractual maturity are shown below, in thousands.

	Amortized Cost		Estimated Fair Value
Within one year	$	-	$	-
After one year through five years		6,428		6,504
After five years through ten years		14,600		14,718
After ten years		19,707		19,917
Investment securities not due at a single maturity date:
Government-sponsored mortgage-backed securities		132,756		132,088
	$	173,491	$	173,227

Expected maturities will differ from contractual maturities because the issuers of the securities

may

have the right to call or prepay obligations with or without call or prepayment penalties.

Investment securities with amortized costs totaling

$89,081,000

and

$92,166,000

and estimated fair values totaling

$88,234,000

and

$90,122,000

March 31, 2019

and

December 31, 2018,

respectively, were pledged to secure deposits and repurchase agreements.