Investment Securities

AFS securities as of the balance sheet dates consisted of the following:



March 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Available-for-sale
Debt securities:
U.S. Government-sponsored enterprises	$	5,050	$	49	$	(42	)	$	5,057
Agency mortgage-backed	46,212		1,881		(14		)	48,079
State and political subdivisions	27,767		611		(39		)	28,339
Corporate	7,808		304		(140		)	7,972
Total	$	86,837	$	2,845	$	(235	)	$	89,447



December 31, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Available-for-sale
Debt securities:
U.S. Government-sponsored enterprises	$	6,349	$	19	$	(76	)	$	6,292
Agency mortgage-backed	45,503		602		(81		)	46,024
State and political subdivisions	26,489		515		(39		)	26,965
Corporate	7,804		378		(70		)	8,112
Total	$	86,145	$	1,514	$	(266	)	$	87,393

There were no investment securities HTM at March 31, 2020 or December 31, 2019. There were no investment securities pledged as collateral at March 31, 2020 or December 31, 2019.

The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of March 31, 2020 were as follows:



	Amortized Cost		Fair Value
Available-for-sale	(Dollars in thousands)
Due in one year or less	$	940	$	947
Due from one to five years	3,679		3,784
Due from five to ten years	14,136		14,406
Due after ten years	21,870		22,231
	40,625		41,368
Agency mortgage-backed	46,212		48,079
Total debt securities available-for-sale	$	86,837	$	89,447

Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities usually differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and are not included in the contractual maturity categories in the above maturity summary.

Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:



March 31, 2020	Less Than 12 Months						12 Months and over						Total
	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
		(Dollars in thousands)
Debt securities:
U.S. Government- sponsored enterprises	2	$	1,112	$	(3	)	7	$	1,614	$	(39	)	9	$	2,726	$	(42	)
Agency mortgage-backed	—	—		—			1	703		(14		)	1	703		(14		)
State and political subdivisions	10	4,923		(39		)	—	—		—			10	4,923		(39		)
Corporate	1	497		(3		)	3	1,363		(137		)	4	1,860		(140		)
Total	13	$	6,532	$	(45	)	11	$	3,680	$	(190	)	24	$	10,212	$	(235	)



December 31, 2019	Less Than 12 Months						12 Months and over						Total
	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
		(Dollars in thousands)
Debt securities:
U.S. Government- sponsored enterprises	4	$	2,376	$	(22	)	8	$	2,772	$	(54	)	12	$	5,148	$	(76	)
Agency mortgage-backed	8	6,193		(38		)	8	4,861		(43		)	16	11,054		(81		)
State and political subdivisions	9	3,813		(38		)	1	304		(1		)	10	4,117		(39		)
Corporate	—	—		—			3	1,430		(70		)	3	1,430		(70		)
Total	21	$	12,382	$	(98	)	20	$	9,367	$	(168	)	41	$	21,749	$	(266	)

The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists. A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT.

An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery.

Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover:


•	The length of time, and extent to which, the fair value has been less than the amortized cost;


•	Adverse conditions specifically related to the security, industry, or geographic area;


•	The historical and implied volatility of the fair value of the security;


•	The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future;


•	Failure of the issuer of the security to make scheduled interest or principal payments;


•	Any changes to the rating of the security by a rating agency;


•	Recoveries or additional declines in fair value subsequent to the balance sheet date; and


•	The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty.

The Company has the ability to hold the investment securities that had unrealized losses at March 31, 2020 and December 31, 2019 for the foreseeable future and no declines were deemed by management to be OTT.

The following table presents the proceeds, gross realized gains and gross realized losses from the sales of AFS securities:



	For The Three Months Ended March 31, 2020			For The Three Months Ended March 31, 2019
	(Dollars in thousands)
Proceeds	$	3,076		$	6,510

Gross gains	32			38
Gross losses	(21		)	(34		)
Net gains on sales of investment securities AFS	$	11		$	4