Note 3. Securities

Amortized costs and fair values, with gross unrealized gains and losses, of securities available-for-sale as of the dates indicated are as follows:

	June 30, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Treasury securities	$	12,377	$	103	$	-		$	12,480
Obligations of U.S. Government agencies		11,633		16		(77	)		11,572
Obligations of state and policitcal subdivisions		41,303		830		(1	)		42,132
Mortgage-backed securities		72,254		564		(645	)		72,173
Money market investments		3,484		-		-			3,484
Corporate bonds and other securities		3,542		74		(4	)		3,612
	$	144,593	$	1,587	$	(727	)	$	145,453

	December 31, 2018
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Treasury securities	$	12,323	$	6	$	(1	)	$	12,328
Obligations of U.S. Government agencies		10,868		2		(156	)		10,714
Obligations of state and policitcal subdivisions		49,194		155		(512	)		48,837
Mortbage-backed securities		73,444		93		(2,346	)		71,191
Money market investments		1,897		-		-			1,897
Corporate bonds and other securities		3,250		42		(12	)		3,280
	$	150,976	$	298	$	(3,027	)	$	148,247

The Company has a process in place to identify debt securities that could potentially have a credit or interest-rate related impairment that is other-than-temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues. On a quarterly basis, management reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. Management considers relevant facts and circumstances in evaluating whether a credit or interest-rate related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (a) the extent and length of time the fair value has been below cost; (b) the reasons for the decline in value; (c) the financial position and access to capital of the issuer, including the current and future impact of any specific events; and (d) for fixed maturity securities, the Company’s intent to sell a security or whether it is more-likely-than-not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.

The Company has not recorded impairment charges through income on securities for the three or six months ended June 30, 2019 or the year ended December 31, 2018.

The following table summarizes net realized gains and losses on the sale of investment securities during the periods indicated:

	Three Months Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2019		2018			2019			2018
Securities Available-for-sale
Realized gains on sales of securities	$	-	$	51		$	36		$	131
Realized losses on sales of securities		-		(11	)		(10	)		(11	)
Net realized gain	$	-	$	40		$	26		$	120

The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of June 30, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:

	June 30, 2019
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Obligations of U.S. Government agencies	$	5	$	3,012	$	72	$	5,565	$	77	$	8,577
Obligations of state and policitcal subdivisions		-		-		1		1,527		1		1,527
Mortgage-backed securities		-		-		645		49,086		645		49,086
Corporate bonds and other securities		-		-		4		196		4		196
Total securities available-for-sale	$	5	$	3,012	$	722	$	56,374	$	727	$	59,386

	December 31, 2018
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
U.S. Treasury securities	$	1	$	2,484	$	-	$	-	$	1	$	2,484
Obligations of U.S. Government agencies		47		6,014		109		3,206		156		9,220
Obligations of state and policitcal subdivisions		10		5,829		502		23,727		512		29,556
Mortgage-backed securities		-		-		2,346		63,930		2,346		63,930
Corporate bonds and other securities		1		100		11		389		12		489
Total securities available-for-sale	$	59	$	14,427	$	2,968	$	91,252	$	3,027	$	105,679

The number of investments at an unrealized loss position as of June 30, 2019 and December 31, 2018 were 28 and 88, respectively. Certain investments within the Company’s portfolio had unrealized losses for more than twelve months at June 30, 2019 and December 31, 2018, as shown in the tables above. The unrealized losses were caused by increases in market interest rates. Because the Company does not intend to sell the investments and management believes it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at June 30, 2019 or December 31, 2018.

Restricted Securities

The restricted security category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB), the Federal Reserve Bank (FRB), and Community Bankers’ Bank (CBB). These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB, FRB, and CBB stock are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered.