NOTE 2 – SECURITIES AVAILABLE FOR SALE

The amortized costs, gross unrealized gains and losses, and estimated fair values of securities available for sale as of December 31, 2019 and 2018 are summarized as follows:


	December 31, 2019
	Gross		Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Obligations of U.S. Government entities and agencies	$	12,436	$	—	$	—	$	12,436
States and political subdivisions		1,246		33		—		1,279
Mortgage-backed GSE residential		2,015		—		(35)		1,980
Total	$	15,697	$	33	$	(35)	$	15,695


	December 31, 2018
	Gross		Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Obligations of U.S. Government entities and agencies	$	15,183	$	—	$	—	$	15,183
States and political subdivisions		1,248		—		(35)		1,213
Mortgage-backed GSE residential		2,607		—		(115)		2,492
Total	$	19,038	$	—	$	(150)	$	18,888

The amortized costs and estimated fair values of investment securities available for sale at December 31, 2019, by contractual maturity are shown below. 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 Available for Sale
	Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value
Due in one year or less	$	810	$	810
Due after one year but less than five years		2,324		2,324
Due after five years but less than ten years		4,241		4,274
Due in more than ten years		6,307		6,307
Mortgage-backed GSE residential		2,015		1,980
Total	$	15,697	$	15,695

There were no securities pledged as of December 31, 2019 and 2018 to secure public deposits and repurchase agreements. There were no securities sold during 2019, 2018 and 2017.

Information pertaining to securities with gross unrealized losses at December 31, 2019 and 2018 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:


	December 31, 2019
	Twelve Months or Less				Over Twelve Months
	Gross		Estimated		Gross		Estimated
	Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value
Mortgage-backed GSE residential		—		—		(35)		1,975
Total	$	—	$	—	$	(35)	$	1,975


	December 31, 2018
	Twelve Months or Less				Over Twelve Months
	Gross		Estimated		Gross		Estimated
	Unrealized		Fair		Unrealized		Fair
(Dollars in thousands)	Losses		Value		Losses		Value
States and political subdivisions	$	(35)	$	1,213	$	—	$	—
Mortgage-backed GSE residential		—		—		(115)		2,492
Total	$	(35)	$	1,213	$	(115)	$	2,492

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At December 31, 2019, the three debt securities with unrealized losses have depreciated 1.72% from the Company’s amortized cost basis and have been in a loss position for greater than twelve months.

Mortgage-backed GSE residential. The Company’s unrealized loss on three investments in residential GSE mortgage-backed securities was caused by interest rate increases. The contractual cash flows of the investment are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the security would not be settled at a price less than the amortized cost base of the Company’s investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has no immediate plans to sell the investment, and because it is not more likely than not that the Company will be required to sell the investment before recovery of their amortized cost base, which may be maturity, management does not consider this investment to be other-than-temporarily impaired at December 31, 2019.