Note

– Securities –

The amortized cost and fair values of securities available for sale as of

March 31, 2019

and

December 31, 2018

are summarized as follows:

	March 31, 2019
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government Agencies	$	19,352	$	200	$	37	$	19,515
Corporate Securities		13,046		98		232		12,912
Mortgage-Backed Securities		167,705		975		1,816		166,864
Municipal Securities		104,436		630		235		104,831
Total Securities Available for Sale	$	304,539	$	1,903	$	2,320	$	304,122

	December 31, 2018
	(Dollars in thousands)
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government Agencies	$	17,529	$	54	$	144	$	17,439
Corporate Securities		13,052		76		436		12,692
Mortgage-Backed Securities		168,854		328		3,564		165,618
Municipal Securities		114,472		250		955		113,767
Total Securities Available for Sale	$	313,907	$	708	$	5,099	$	309,516

The following tables present a summary of securities with gross unrealized losses and fair values at

March 31, 2019

and

December 31, 2018,

aggregated by investment category and length of time in a continued unrealized loss position. Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered a temporary impairment of the securities.

	March 31, 2019
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government Agencies	$	-	$	-	$	4,347	$	37	$	4,347	$	37
Corporate Securities		3,938		92		2,360		140		6,298		232
Mortgage-Backed Securities		17		-		109,574		1,816		109,591		1,816
Municipal Securities		7,529		31		26,745		204		34,274		235
Total Securities Available for Sale	$	11,484	$	123	$	143,026	$	2,197	$	154,510	$	2,320

	December 31, 2018
	Less Than 12 Months				12 Months or Greater				Total
	(Dollars in thousands)
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government Agencies	$	4,399	$	28	$	4,610	$	116	$	9,009	$	144
Corporate Securities		6,274		260		2,324		176		8,598		436
Mortgage-Backed Securities		67,770		1,264		61,271		2,300		129,041		3,564
Municipal Securities		40,473		484		29,782		471		70,255		955
Total Securities Available for Sale	$	118,916	$	2,036	$	97,987	$	3,063	$	216,903	$	5,099

Management evaluates securities for other than temporary impairment when economic and market conditions warrant such evaluations. Consideration is given to the extent and length of time the fair value has been below cost, the reasons for the decline in value, and the Company’s intent to sell a security or whether it is more likely than

not

that the Company will be required to sell the security before the recovery of its amortized cost. The Company has developed a process to identify securities that could potentially have a credit impairment that is other than temporary. This process involves evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues. When the Company determines that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.

The amortized cost and fair values of securities available for sale as of

March 31, 2019

by contractual maturity are shown below. Actual maturities

may

differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities

may

be called or repaid without any penalties.

	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Less Than One Year	$	13,370	$	13,395
One to Five Years		67,733		67,901
Over Five to Ten Years		138,146		137,588
Over Ten Years		85,290		85,238
Total Securities Available for Sale	$	304,539	$	304,122