4.	INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities at

December 31, 2019

and

2018

consisted of the following:

Available-for-Sale	2019
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential	$	123,940,000	$	1,924,000	$	(186,000	)	$	125,678,000
Obligations of states and political subdivisions		32,470,000		1,201,000		(29,000	)		33,642,000
	$	156,410,000	$	3,125,000	$	(215,000	)	$	159,320,000

Unrealized gain on available-for-sale investment securities totaling

$2,910,000

were recorded, net of

$861,000

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

December 31, 2019

. During the year ended

December 31, 2019

the Company sold

fifty-five

available-for-sale investment securities for total proceeds of

$19,668,000

recording a

$114,000

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

twenty-eight

of these securities totaling

$164,000

and a loss on sale on

twenty-seven

securities of

$50,000.

Available-for-Sale	2018
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Debt securities:
U.S. Government-sponsored agencies collateralized by mortgage obligations-residential	$	135,059,000	$	240,000	$	(2,621,000	)	$	132,678,000
Obligations of states and political subdivisions		39,311,000		121,000		(603,000	)		38,829,000
	$	174,370,000	$	361,000	$	(3,224,000	)	$	171,507,000

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 year ended

December 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. he 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.

Unrealized loss on available-for-sale investment securities totaling

$809,000

were recorded, net of

$239,000

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

December 31, 2017.

During the year ended

December 31, 2017

the Company sold

sixteen

available-for-sale investment securities for total proceeds of

$9,594,000

recording a

$158,000

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

four

of these securities totaling

$4,000

and a loss on sale on

twelve

securities of

$162,000.

Investment securities with unrealized losses at

December 31, 2019

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

December 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 agencies collateralized by mortgage obligations-residential	$	10,319,000	$	31,000	$	19,733,000	$	155,000	$	30,052,000	$	186,000
Obligations of states and political subdivisions		2,965,000		29,000		-		-		2,965,000		29,000
	$	13,284,000	$	60,000	$	19,733,000	$	155,000	$	33,017,000	$	215,000

Investment securities with unrealized losses at

December 31, 2018

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

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 agencies collateralized by mortgage obligations-residential	$	26,478,000	$	269,000	$	77,476,000	$	2,352,000	$	103,954,000	$	2,621,000
Obligations of states and political subdivisions		19,270,000		284,000		5,672,000		319,000		24,942,000		603,000
	$	45,748,000	$	553,000	$	83,148,000	$	2,671,000	$	128,896,000	$	3,224,000

December 31, 2019

, the Company held

185

securities of which

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

were in a loss position for less than

twelve

months. Of the

185

securities

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

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

December 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

December 31, 2019

are other than temporarily impaired.

The amortized cost and estimated fair value of investment securities at

December 31, 2019

by contractual maturity are shown below. 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.

	Amortized		Estimated Fair
	Cost		Value
After one year through five years	$	3,142,000	$	3,243,000
After five years through ten years		6,178,000		6,370,000
After ten years		23,150,000		24,029,000
Investment securities not due at a single maturity date:
Government-sponsored mortgage-backed securities		123,940,000		125,678,000
	$	156,410,000	$	159,320,000

Investment securities with amortized costs totaling

$83,596,000

and

$92,166,000

and estimated fair values totaling

$84,625,000

and

$90,122,000

December 31, 2019

and

2018

, respectively, were pledged to secure deposits and repurchase agreements.

There were

transfers of available-for-sale investment securities during the years ended

December 31, 2019

2018

2017

. There were

securities classified as held-to-maturity at

December 31, 2019

December 31, 2018

The Company adopted ASU

No.

2016

01,

Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities on

January 1, 2018

and recorded a

$209,000

gain related to adjusting the carrying value of equity securities without a readily determinable fair market to

$662,000

in accordance with this standard.