NOTE D - INVESTMENT SECURITIES

The amortized cost and fair value of available for sale (“AFS”) investments, with gross unrealized gains and losses, follow:


	December 31, 2019
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
	(dollars in thousands)
Securities available for sale:
U.S. government agencies – GSE’s	$	9,839	$	159	$	(2)	$	9,996
Mortgage-backed securities – GSE’s		46,926		830		(13)		47,743
Corporate bonds		2,282		17		—		2,299
Municipal bonds		12,152		177		—		12,329

	$	71,199	$	1,183	$	(15)	$	72,367


	December 31, 2018
			Gross		Gross
	Amortized		unrealized		unrealized		Fair
	cost		gains		losses		value
	(dollars in thousands)
Securities available for sale:
U.S. government agencies – GSE’s	$	9,852	$	36	$	(51)	$	9,837
Mortgage-backed securities – GSE’s		23,150		62		(229)		22,983
Corporate bonds		1,697		25		—		1,722
Municipal bonds		16,910		105		(24)		16,991

	$	51,609	$	228	$	(304)	$	51,533

Securities with a carrying value of $18.4 million and $6.4 million at December 31, 2019 and 2018, respectively, were pledged to secure public monies on deposit as required by law, customer repurchase agreements, and access to the Federal Reserve Discount Window.

The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2019 and 2018.


	2019
	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
	(dollars in thousands)
Securities available for sale:
U.S. government agencies – GSE’s	$	872	$	—	$	621	$	(2)	$	1,493	$	(2)
Mortgage-backed securities – GSE’s		2,672		(3)		3,774		(10)		6,446		(13)
Corporate bonds		—		—		—		—		—		—
Municipal bonds		—		—		—		—		—		—
Total temporarily impaired securities	$	3,544	$	(3)	$	4,395	$	(12)	$	7,939	$	(15)

At December 31, 2019, the Company had two AFS mortgage-backed GSE’s and one U.S Government agency – GSE with an unrealized loss for twelve or more consecutive months totaling $12,000. The Company had three AFS securities with a loss for twelve months or less. One U.S. government agency GSE and two mortgage-backed GSE’s had unrealized losses for less than twelve months totaling $3,000 at December 31, 2019. All unrealized losses are attributable to the general trend of interest rates


	2018
	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	value		losses		value		losses		value		losses
	(dollars in thousands)
Securities available for sale:
U.S. government agencies – GSE’s	$	1,224	$	(6)	$	4,086	$	(45)	$	5,310	$	(51)
Mortgage-backed securities – GSE’s		200		—		16,932		(229)		17,132		(229)
Corporate bonds		—		—		—		—		—		—
Municipal bonds		1,007		(2)		1,740		(22)		2,747		(24)
Total temporarily impaired securities	$	2,431	$	(8)	$	22,758	$	(296)	$	25,189	$	(304)

At December 31, 2018, the Company had twenty-four AFS mortgage-backed GSE’s, four municipals and six U.S Government agencies – GSE’s with an unrealized loss for twelve or more consecutive months totaling $296,000. The Company had six AFS securities with a loss for twelve months or less. Three U.S. government agency GSE’s, two municipals and one mortgage-backed GSE had unrealized losses for less than twelve months totaling $8,000 at December 31, 2018. All unrealized losses are attributable to the general trend of interest rates.

Since none of the unrealized losses relate to the liquidity of the securities or the issuer’s ability to honor redemption obligations and the Company has the intent and ability to hold these securities to recovery, no other than temporary impairments were identified for these investments having unrealized losses for the periods ended December 31, 2019 and December 31, 2018. In 2019, the Company realized gains of $48,000 on proceeds of $1.1 million related to the disposal of two securities; in 2018, the Company did not sell any securities; and in 2017 the Company realized net gains of $1,000 on proceeds of $22.0 million related to the disposal of fifty one securities.

The following table sets forth certain information regarding the amortized costs, carrying values and contractual maturities of the Company’s investment portfolio at December 31, 2019.


	Amortized		Fair
	Cost		Value
	(dollars in thousands)

Securities available for sale:
U.S. government agencies – GSE’s
Due within one year	$	122	$	123
Due after one but within five years		7,517		7,620
Due after five but within ten years		1,855		1,909
Due after ten years		345		344
		9,839		9,996
Mortgage-backed securities – GSE’s
Due within one year		4,455		4,449
Due after one but within five years		33,217		33,802
Due after five but within ten years		710		719
Due after ten years		8,544		8,773
		46,926		47,743
Corporate bonds
Due within one year		276		280
Due after one but within five years		—		—
Due after five but within ten years		1,256		1,269
Due after ten years		750		750
		2,282		2,299
Municipal bonds
Due within one year		4,048		4,062
Due after one but within five years		220		220
Due after five but within ten years		747		764
Due after ten years		7,137		7,283
		12,152		12,329
Total securities available for sale
Due within one year		8,901		8,914
Due after one but within five years		40,954		41,642
Due after five but within ten years		4,568		4,661
Due after ten years		16,776		17,150
	$	71,199	$	72,367

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities may mature earlier than their weighted-average contractual maturities because of principal prepayments.