The amortized cost and estimated fair values of investment securities available-for-sale at March 31, 2020 and December 31, 2019 were as follows:

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
March 31, 2020	value		gains		losses			cost
U.S. Treasury	$	—	$	—	$	—		$	—
U.S. Government agency		31,074		83		(7	)		30,998
State and municipal		62,838		935		(478	)		62,381
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		140,644		3,257		—			137,387
Collateralized mortgage obligations (CMOs)		84,646		2,315		(1	)		82,332
Pooled trust preferred		71		—		(14	)		85
Corporate debt		8,052		56		(9	)		8,005
Total investment debt securities available-for-sale	$	327,325	$	6,646	$	(509	)	$	321,188

			Gross		Gross
			unrealized		unrealized
	Fair		holding		holding			Amortized
December 31, 2019	value		gains		losses			cost
U.S. Government agency	$	69,298	$	8	$	(213	)	$	69,503
State and municipal		50,781		860		(19	)		49,940
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		134,829		371		(504	)		134,962
Collateralized mortgage obligations (CMOs)		86,610		260		(535	)		86,885
Pooled trust preferred		79		—		(6	)		85
Corporate debt		8,113		103		—			8,010
Total investment debt securities available-for-sale	$	349,710	$	1,602	$	(1,277	)	$	349,385

The amortized cost and estimated fair value of securities available-for-sale by contractual maturity at March 31, 2020 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities are assigned to categories based on contractual maturity except for mortgage-backed securities and CMOs which are based on the estimated average life of these securities and municipal securities that have been pre-refunded.

Proceeds from sales of investment securities available-for-sale were approximately $5,975,000 and $11,192,000 for the three months ended March 31, 2020 and 2019, respectively.

At March 31, 2020 and December 31, 2019, investment securities available-for-sale totaling approximately $190,462,000 and $205,016,000, respectively, were pledged as collateral for repurchase agreements and deposits of public funds.

The following table presents information related to the Company’s gains and losses on the sales of securities available-for-sale, and losses recognized for the other-than-temporary impairment (“OTTI”) of these investments. Gains and losses on available-for-sale securities are computed on the specific identification method and included in non-interest income. Gross realized losses on debt securities are net of other-than-temporary impairment charges:

The tax benefit applicable to the net realized (losses)/gains for the three-month periods ended March 31, 2020 and 2019 was $0 and $8,000, respectively.

QNB recognizes OTTI for debt securities classified as available-for-sale in accordance with FASB ASC 320, Investments – Debt and Equity Securities, which requires that we assess whether we intend to sell or it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of our amortized cost basis, the amount of the impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and, therefore, is not required to be recognized as a loss in the statement of income but is recognized in other comprehensive income. QNB believes that we will fully collect the carrying value of securities on which we have recorded a non-credit related impairment in other comprehensive income. No credit impairments were recognized on debt securities during the three months ended March 31, 2020 and 2019, respectively.

The following table indicates the length of time individual debt securities have been in a continuous unrealized loss position at March 31, 2020 and December 31, 2019:


			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
March 31, 2020	securities		value		losses			value		losses			value		losses
U.S. Treasury		—	$	—	$	—		$	—	$	—		$	—	$	—
U.S. Government agency		1		993		(7	)		—		—			993		(7	)
State and municipal		30		16,138		(478	)		—		—			16,138		(478	)
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		—		—		—			—		—			—		—
Collateralized mortgage obligations (CMOs)		1		—		—			742		(1	)		742		(1	)
Pooled trust preferred		1		—		—			71		(14	)		71		(14	)
Corporate debt		3		2,994		(9	)		—		—			2,994		(9	)
Total		36	$	20,125	$	(494	)	$	813	$	(15	)	$	20,938	$	(509	)


			Less than 12 months					12 months or longer					Total
	No. of		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
December 31, 2019	securities		value		losses			value		losses			value		losses
U.S. Government agency		36	$	28,857	$	(141	)	$	20,427	$	(72	)	$	49,284	$	(213	)
State and municipal		7		2,431		(14	)		515		(5	)		2,946		(19	)
U.S. Government agencies and sponsored enterprises (GSEs):
Mortgage-backed		66		28,482		(50	)		52,398		(454	)		80,880		(504	)
Collateralized mortgage obligations (CMOs)		64		24,412		(82	)		27,625		(453	)		52,037		(535	)
Pooled trust preferred		1		—		—			79		(6	)		79		(6	)
Corporate debt		—		—		—			—		—			—		—
Total		174	$	84,182	$	(287	)	$	101,044	$	(990	)	$	185,226	$	(1,277	)

Management evaluates debt securities, which are comprised of U.S Treasury securities, U.S. Government agencies, state and municipalities, mortgage-backed securities, CMOs and corporate debt securities, for other-than-temporary impairment and considers the current economic conditions, the length of time and the extent to which the fair value has been less than cost, interest rates and the bond rating of each security. The unrealized losses at March 31, 2020 in U.S. Government agency securities, state and municipal securities, mortgage-backed securities, CMOs and corporate debt securities are primarily the result of interest rate fluctuations. If held to maturity, these bonds will mature at par, and QNB will not realize a loss. The Company has the intent to hold the securities and does not believe it will be required to sell the securities before recovery occurs.

QNB holds one pooled trust preferred security as of March 31, 2020. This security has a total amortized cost of approximately $85,000 and a fair value of $71,000. The pooled trust preferred security is available-for-sale and is carried at fair value.

The Company’s investment in marketable equity securities primarily consists of investments with readily determinable fair values in large cap stock companies. Changes in fair value is recorded in unrealized gain/(losses) in non-interest income.

At March 31, 2020 and December 31, 2019, the Company had $9,417,000 and $9,164,000, respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 30, 2020 and 2019:

Tax benefit applicable to the net losses recognized for the three months ended March 31, 2020 as $849,000. Tax expense applicable to the net gains recognized for the three months ended March 31, 2019 was $295,000. Proceeds from sales of investment equity securities were approximately $0 and $358,000 for the three months ended March 31, 2020 and 2019, respectively.