Note 3: Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Available-for-sale Securities:
December 31, 2019:
U.S. government agencies	$	40,000	$	––	$	(472)	$	39,528
Subordinated notes		4,500		36		(4)		4,532
State and municipal obligations		135,897	$	8,993		(165)		144,725
Total debt securities	$	180,397	$	9,029	$	(641)	$	188,785
Available-for-sale Securities:
December 31, 2018:
U.S. government agencies	$	45,250	$	—	$	(500)	$	44,750
State and municipal obligations	$	78,083	$	1,194	$	(36)	$	79,241
Total debt securities	$	123,333	$	1,194	$	(536)	$	123,991

The amortized cost and fair value of available-for-sale securities at December 31, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Amortized		Fair
	Cost		Value
	(In thousands)

Under 1 year	$	6,000	$	5,995
One to five years		38,500		38,065
Over ten years		135,897		144,725
Totals	$	180,397	$	188,785

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $46.8 million and $48.4 million at December 31, 2019 and 2018, respectively.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at December 31, 2019 and 2018, was $50.3 million and $49.9 million, which represented approximately 27% and 40%, respectively, of the Company’s available-for-sale investment portfolio.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary.

The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018:


	December 31, 2019
	Less than 12 Months				12 Months or More				Total
Description of	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Securities	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
US government agencies	$	39,528	$	(472)	$	—	$	—	$	39,528	$	(472)
Subordinated notes		996	$	(4)	$	—	$	—	$	996	$	(4)
State and municipal obligations	$	9,831	$	(165)	$	––	$	––	$	9,831	$	(165)
Total temporarily impaired securities	$	50,355	$	(641)	$	—	$	—	$	50,355	$	(641)


	December 31, 2018
	Less than 12 Months				12 Months or More				Total
Description of	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Securities	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
US government agencies	$	—	$	—	$	44,750	$	(500)	$	44,750	$	(500)
State and municipal obligations	$	5,182	$	(36)	$	—	$	—	$	5,182	$	(36)
Total temporarily impaired securities	$	5,182	$	(36)	$	44,750	$	(500)	$	49,932	$	(536)

The unrealized losses on the Company’s investments in direct obligations of U. S. Government agencies and state and political obligation were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2019.