The amortized cost and fair value of available for sale investment securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows (in thousands):

The amortized cost, unrecognized gains and losses, and fair value of investment securities held to maturity were as follows (in thousands):

During 2019, $45.1 million and $15.3 million, respectively, of available for sale investment securities and held to maturity investment securities were purchased. No investment securities were sold during 2019. No investment securities were purchased or sold during 2018.

The fair value and carrying amount, if different, of debt investment securities as of December 31, 2019, by contractual maturity were as follows (in thousands). Investment securities not due at a single maturity date are shown separately.

Investment securities with a carrying amount of approximately $120.5 million and $165.7 million at December 31, 2019 and 2018, respectively, were pledged to secure public deposits, certain other deposits, a line of credit for advances from the FHLB of Atlanta, and repurchase agreements.

Southern National monitors the portfolio for indicators of OTTI. At December 31, 2019 and 2018, certain investment securities’ fair values were below cost. As outlined in the tables below, there were 59 investment securities with fair values totaling approximately $75.1 million in the portfolio with the carrying value exceeding the estimated fair value that are considered temporarily impaired at December 31, 2019. Because the decline in fair value is attributable to changes in interest rates and market illiquidity, and not credit quality, and because we do not have the intent to sell these investment securities and it is likely that we will not be required to sell the investment securities before their anticipated recovery, management does not consider these investment securities to be other than temporarily impaired as of December 31, 2019.

The following tables present information regarding investment securities in a continuous unrealized loss position as of December 31, 2019 and 2018 by duration of time in a loss position (in thousands):

As of December 31, 2019, we owned pooled trust preferred investment securities as follows (in thousands):

(1)	Pre-tax, and represents unrealized losses at date of transfer from available for sale to held to maturity, net of accretion

(2)

Pre-tax

Each of these investment securities has been evaluated for OTTI. In performing a detailed cash flow analysis of each investment security, Sonabank works with independent third parties to estimate expected cash flows and assist with the evaluation of OTTI. The cash flow analyses performed included the following assumptions:

●

0.5% of the remaining performing collateral will default or defer per annum.

●

Recoveries of 9% with a two-year lag on all defaults and deferrals.

●

No prepayments for 10 years and then 1% per annum for the remaining life of the investment security.

●

Our investment securities have been modeled using the above assumptions by independent third parties using the forward London Inter-bank Offered Rate (“LIBOR”) curve to discount projected cash flows to present values.

The amount of cumulative other than temporary impairment related to credit losses, previously recognized in earnings, was $1,060 at December 31, 2019, 2018 and 2017. There were no other than temporary impairment charges related to credit losses or sales of these securities during the years ended December 31, 2019, 2018 or 2017.

Changes in accumulated other comprehensive (loss) by component for the years ended December 31, 2019, 2018 and 2017 are shown in the table below. All amounts are net of tax (in thousands).


	Unrealized Holding
	Gains (Losses) on		Held to Maturity
For the year ended December 31, 2019	Available for Sale		Securities		Total
Beginning balance	$	(2,419)	$	(170)	$	(2,589)
Current period other comprehensive income		3,362		10		3,372
Ending balance	$	943	$	(160)	$	783


	Unrealized Holding
	Losses on		Held to Maturity
For the year ended December 31, 2018	Available for Sale		Securities		Total
Beginning balance	$	(999)	$	(153)	$	(1,152)
Amounts reclassified from accumulated other comprehensive loss due to the adoption of ASU 2018-02		(199)		(30)		(229)
Subtotal		(1,198)		(183)		(1,381)
Current period other comprehensive (loss) income		(1,221)		13		(1,208)
Ending balance	$	(2,419)	$	(170)	$	(2,589)


	Unrealized Holding
	Losses on		Held to Maturity
For the year ended December 31, 2017	Available for Sale		Securities		Total
Beginning balance	$	(627)	$	(162)	$	(789)
Other comprehensive loss before reclassifications		(372)		(246)		(618)
Amounts reclassified from accumulated other comprehensive loss		—		255		255
Net current period other comprehensive income (loss)		(372)		9		(363)
Ending balance	$	(999)	$	(153)	$	(1,152)