Note 2. Securities

The amortized cost and fair values of securities available for sale as of June 30, 2019 and December 31, 2018 were as follows (dollars in thousands):

June 30, 2019	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		(Losses)			Value
U.S. Government agencies	$	19,500	$	-	$	(39	)	$	19,461
Mortgage-backed securities/CMOs		26,611		23		(169	)		26,465
Municipal bonds		10,785		143		(6	)		10,922
Total Securities Available for Sale	$	56,896	$	166	$	(214	)	$	56,848

December 31, 2018	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		(Losses)			Value
U.S. Government agencies	$	19,500	$	-	$	(526	)	$	18,974
Mortgage-backed securities/CMOs		25,901		1		(839	)		25,063
Municipal bonds		17,608		12		(265	)		17,355
Total Securities Available for Sale	$	63,009	$	13	$	(1,630	)	$	61,392

As of June 30, 2019, there were $36.9 million, or 27 issues of individual securities, in a loss position. These securities have an unrealized loss of $214 thousand and consisted of 19 mortgage-backed/CMOs, 4 municipal bonds, and 4 agency bonds.

The following table summarizes all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, at June 30, 2019, and December 31, 2018 (dollars in thousands):

June 30, 2019
	Less than 12 Months					12 Months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government agencies	$	-	$	-		$	11,961	$	(39	)	$	11,961	$	(39	)
Mortgage-backed/CMOs		4,041		(7	)		19,374		(162	)		23,415		(169	)
Municipal bonds		1,048		(5	)		503		(1	)		1,551		(6	)
	$	5,089	$	(12	)	$	31,838	$	(202	)	$	36,927	$	(214	)
December 31, 2018
	Less than 12 Months					12 Months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government agencies	$	-	$	-		$	18,974	$	(526	)	$	18,974	$	(526	)
Mortgage-backed/CMOs		-		-			24,657		(839	)		24,657		(839	)
Municipal bonds		4,983		(34	)		10,722		(231	)		15,705		(265	)
	$	4,983	$	(34	)	$	54,353	$	(1,596	)	$	59,336	$	(1,630	)

The Company’s securities portfolio is primarily made up of fixed rate bonds, the prices of which move inversely with interest rates. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. At the end of any accounting period, the portfolio may have both unrealized gains and losses. Management does not believe any of the securities in an unrealized loss position are impaired due to credit quality. Accordingly, as of June 30, 2019, management believes the impairments detailed in the table above are temporary, and no impairment loss has been realized in the Company’s consolidated income statement.

An “other-than-temporary impairment” (“OTTI”) is considered to exist if either of the following conditions are met: it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, or the Company does not expect to recover the security’s entire amortized cost basis (even if the Company does not intend to sell). In the event that a security would suffer impairment for a reason that was “other than temporary,” the Company would be expected to write down the security’s value to its new fair value, and the amount of the write down would be included in earnings as a realized loss. As of June 30, 2019, management has concluded that none of its investment securities have an OTTI based upon the information available. Additionally, management has the ability to hold any security with an unrealized loss until maturity or until such time as the value of the security has recovered from its unrealized loss position.

Securities having carrying values of $5.0 million at June 30, 2019 were pledged as collateral to secure public deposits. At December 31, 2018, securities having carrying values of $18.0 million were similarly pledged.

For the six months ended June 30, 2019, proceeds from the sales of securities amounted to $10.4 million, and realized gain on these securities netted $64 thousand. For the six months ended June 30, 2018, there were no sales of securities.

Restricted securities are securities with limited marketability and consist of stock in the Federal Reserve Bank of Richmond (“FRB”), the Federal Home Loan Bank of Atlanta (“FHLB”), and CBB Financial Corporation (“CBBFC”), the holding company for Community Bankers Bank. These restricted securities, totaling $1.7 million as of both June 30, 2019 and December 31, 2018 are carried at cost.