NOTE 3 - INVESTMENT SECURITIES

The following presents the amortized cost and fair value of securities available‑for‑sale, with gross unrealized gains and losses recognized in accumulated other comprehensive loss as of December 31, 2019 and December 31, 2018 (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2019	Cost		Gains		Losses		Value
Investment securities available-for-sale:
U.S. Treasury debt	$	250	$	4	$	—	$	254
Government National Mortgage Association ("GNMA") mortgage-backed securities – residential		45,490		157		(335)		45,312
Federal National Mortgage Association ("FNMA") mortgage-backed securities – residential		2,935		11		(29)		2,917
Corporate collateralized mortgage obligations ("CMO") and mortgage-backed securities ("MBS")		10,425		40		(45)		10,420
Total securities available-for-sale	$	59,100	$	212	$	(409)	$	58,903


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2018	Cost		Gains		Losses		Value
Investment securities available-for-sale:
U.S. Treasury debt	$	250	$	—	$	—	$	250
GNMA		35,591		8		(1,597)		34,002
FNMA		4,076		2		(208)		3,870
Securities issued by U.S. government sponsored entities and agencies		4,525		—		(223)		4,302
Corporate collateralized mortgage obligations ("CMO") and mortgage-backed securities ("MBS")		1,281		1		(11)		1,271
Total securities available-for-sale	$	45,723	$	11	$	(2,039)	$	43,695

Net amortization of premiums and discounts related to mortgage securities during each of the years ended December 31, 2019 and 2018 was $0.2 million and is included in interest income.

In 2014 the Company began investing in a small business investment company ("SBIC") fund administered by the Small Business Administration. During 2019 and 2018, the Company invested $0.4 million and $0.3 million, respectively, in SBIC. At December 31, 2019 the Company held a balance of $1.6 million with SBIC, which is included in other assets in the accompanying consolidated balance sheets. The Company may be obligated to invest up to an additional $1.4 million in future SBIC investments.

At December 31, 2019, the amortized cost and estimated fair value of available‑for‑sale securities, excluding SBIC, have contractual maturity dates shown in the table below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands).


	Amortized		Fair
December 31, 2019	Cost		Value
Due after one year through five years	$	250	$	254
Securities (agency and CMO)		58,850		58,649
Total	$	59,100	$	58,903

At December 31, 2019 and December 31, 2018, securities with carrying values totaling $5.5 million and $5.4 million, respectively, were pledged to secure various public deposits and credit facilities of the Company.

At December 31, 2019 and December 31, 2018, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders’ equity.

At December 31, 2019 and December 31, 2018, twenty-six securities and thirty-three securities were in an unrealized loss position, with unrealized losses totaling $0.4 million and $2.0 million, respectively. Three of the securities in an unrealized loss position at December 31, 2019 have been in a continuous unrealized loss position for more than twelve months, the remaining securities in a loss position have been in a continuous unrealized loss position for less than twelve months. The unrealized loss positions were caused primarily by interest rate changes and market assumptions about prepayments of principal and interest on the underlying mortgages. Because the decline in market value is attributable to market conditions, not credit quality, and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be near or at maturity, the Company does not consider these investments to be other‑than‑temporarily impaired at December 31, 2019.

The following table summarizes securities with unrealized losses at December 31, 2019 and December 31, 2018, aggregated by major security type and length of time in a continuous unrealized loss position (in thousands, before tax):


	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2019	Value		Losses		Value		Losses		Value		Losses
GNMA	$	28,203	$	(193)	$	4,450	$	(142)	$	32,653	$	(335)
FNMA		—		—		2,347		(29)		2,347		(29)
Corporate CMO and MBS		7,780		(45)		—		—		7,780		(45)
Total	$	35,983	$	(238)	$	6,797	$	(171)	$	42,780	$	(409)


	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2018	Value		Losses		Value		Losses		Value		Losses
GNMA	$	201	$	—	$	32,696	$	(1,597)	$	32,897	$	(1,597)
FNMA		436		(3)		3,215		(205)		3,651		(208)
Securities issued by U.S. government sponsored entities and agencies		—		—		4,302		(223)		4,302		(223)
Corporate CMO and MBS		1,145		(9)		63		(2)		1,208		(11)
Total	$	1,782	$	(12)	$	40,276	$	(2,027)	$	42,058	$	(2,039)

The Company sold $7.5 million of securities and realized $0.1 million of gains and realized no losses, from the sale of securities using the specific identification method for the year ended December 31, 2019. The Company did not sell any securities during the year ended December 31, 2018.