INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2020

INVESTMENT SECURITIES

SECURITIES AVAILABLE FOR SALE

4.INVESTMENT SECURITIES

At March 31, 2020 the Corporation had an investment security portfolio totaling $114.734 million, a increase of $6.762 million from the December 31, 2019 balance of $107.972 million. The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2020 and December 31, 2019 are as follows (dollars in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
March 31, 2020
Corporate	$	20,265	$	78	$	(319)	$	20,024
US Agencies		9,457		154		—		9,611
US Agencies - MBS		36,743		788		(816)		36,715
Obligations of states and political subdivisions		48,078		518		(212)		48,384
Total securities available for sale	$	114,543	$	1,538	$	(1,347)	$	114,734
December 31, 2019
Corporate	$	20,779	$	160	$	(1)	$	20,938
US Agencies		14,450		47		(1)		14,496
US Agencies - MBS		34,063		492		(29)		34,526
Obligations of states and political subdivisions		37,382		630		—		38,012
Total securities available for sale	$	106,674	$	1,329	$	(31)	$	107,972

The following table presents the amortized cost and estimated fair value of investment securities by contractual maturity as of March 31, 2020 and December 31, 2019 (dollars in thousands):

	March 31,				December 31,
	2020				2019
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Available -for-sale securities
Under 1 year	$	15,383	$	15,398	$	21,532	$	21,575
After 1 year through five years		38,919		39,653		40,063		40,664
After 5 years through 10 years		11,898		11,281		10,019		10,189
After 10 years		11,600		11,687		997		1,018
Subtotal		77,800		78,019		72,611		73,446
US Agencies - MBS		36,743		36,715		34,063		34,526
Total available -for-sale securities	$	114,543	$	114,734	$	106,674	$	107,972

The following is information pertaining to securities with gross unrealized losses at March 31, 2020 and December 31, 2019 (dollars in thousands):

	Less Than Twelve Months						Over Twelve Months						Total
	Number				Gross		Number				Gross		Number				Gross
	of		Fair		Unrealized		of		Fair		Unrealized		of		Fair		Unrealized
March 31, 2020	Securities		Value		Loss		Securities		Value		Loss		Securities		Value		Loss
Corporate		6	$	14,504	$	(319)		—	$	—	$	—		6	$	14,504	$	(319)
US Agencies		—		—		—		—		—		—		—		—		—
US Agencies - MBS		17		16,017		(814)		3		39		(2)		20		16,056		(816)
Obligations of states and political subdivisions		46		9,474		(212)		—		—		—		46		9,474		(212)
Total		69	$	39,995	$	(1,345)		3	$	39	$	(2)		72	$	40,034	$	(1,347)

	Less Than Twelve Months						Over Twelve Months						Total
	Number				Gross		Number				Gross		Number				Gross
	of		Fair		Unrealized		of		Fair		Unrealized		of		Fair		Unrealized
December 31, 2019	Securities		Value		Loss		Securities		Value		Loss		Securities		Value		Loss
Corporate		1	$	2,502	$	(1)		—	$	—	$	—		1	$	2,502	$	(1)
US Agencies		—		—		—		1		500		(1)		1		500		(1)
US Agencies - MBS		10		6,966		(9)		13		1,233		(19)		23		8,199		(28)
Obligations of states and political subdivisions		—		—		—		1		115		(1)		1		115		(1)
Total		11	$	9,468	$	(10)		15	$	1,848	$	(21)		26	$	11,316	$	(31)

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 $25.327 million and $25.884 million, respectively, at March 31, 2020.