INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2019

INVESTMENT SECURITIES

INVESTMENT SECURITIES

4.INVESTMENT SECURITIES

At June 30, 2019 the Corporation had an investment security portfolio totaling $110.348 million, a decrease of $6.400 million from the December 31, 2018 balance of $116.748 million. The amortized cost and estimated fair value of investment securities available for sale as of June 30, 2019 and December 31, 2018 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
June 30, 2019
Corporate	$	15,452	$	48	$	(22)	$	15,478
US Agencies		22,067		134		(7)		22,194
US Agencies - MBS		29,114		498		(38)		29,574
Obligations of states and political subdivisions		42,371		860		(129)		43,102
Total securities available for sale	$	109,004	$	1,540	$	(196)	$	110,348
December 31, 2018
Corporate	$	20,198	$	24	$	(158)	$	20,064
US Agencies		16,198		5		(233)		15,970
US Agencies - MBS		32,974		124		(258)		32,840
Obligations of states and political subdivisions		47,828		341		(295)		47,874
Total securities available for sale	$	117,198	$	494	$	(944)	$	116,748

The following table presents the amortized cost and estimated fair value of investment securities by contractual maturity as of June 30, 2019 and December 31, 2018 (dollars in thousands):

	June 30, 2019				December 31, 2018
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Available -for-sale securities
Under 1 year	$	16,553	$	16,563	$	13,728	$	13,583
After 1 year through five years		49,310		49,954		54,563		54,382
After 5 years through 10 years		11,838		12,049		13,058		13,085
After 10 years		2,038		2,056		2,875		2,858
Subtotal		79,739		80,622		84,224		83,908
US Agencies - MBS		29,265		29,726		32,974		32,840
Total available -for-sale securities	$	109,004	$	110,348	$	117,198	$	116,748

The Corporation has evaluated gross unrealized losses that exist within the portfolio and considers them temporary in nature.  The Corporation has both the ability and the intent to hold the investment securities until their respective maturities and therefore does not anticipate the realization of the temporary losses.

The amortized cost and estimated fair value of investment securities pledged to secure FHLB borrowings and customer relationships were $5.411 million and $5.426 million, respectively, at June 30, 2019.