
	December 31, 2019								December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
(dollars in thousands)
U.S. Treasury	$	—	$	—	$	—	$	—	$	2,000	$	—	$	8	$	1,992
U. S. Government Sponsored Enterprises		—		—		—		—		3,946		—		31		3,915
SBA Backed Securities		54,331		23		143		54,211		70,477		1		284		70,194
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities		184,580		139		532		184,187		162,604		536		250		162,890
Privately Issued Residential Mortgage-Backed Securities		397		1		2		396		679		3		10		672
Obligations Issued by States and Political Subdivisions		18,016		60		—		18,076		93,445		58		—		93,503
Other Debt Securities		3,600		51		19		3,632		3,600		37		44		3,593

Total	$	260,924	$	274	$	696	$	260,502	$	336,751	$	635	$	627	$	336,759

Included in SBA Backed Securities and U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $186,245,000 and $197,304,000 at December 31, 2019 and 2018, respectively. Also included in securities

available-for-sale

at fair value are securities pledged for borrowing at the Federal Home Loan Bank amounting to $32,297,000 and $34,787,000 at December 31, 2019 and 2018, respectively. The Company realized gains on sales of securities of $13,000, $302,000 and $47,000 from the proceeds of sales of

available-for-sale

securities of $16,285,000, $27,517,000 and $18,180,000 for the years ended December 31, 2019, 2018, and 2017, respectively.

Debt securities of U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the estimated maturity distribution of the Company’s securities

available-for-sale

at December 31, 2019.


	Amortized Cost		Fair Value
(dollars in thousands)
Within one year	$	18,417	$	18,476
After one but within five years		113,192		112,935
After five but within ten years		124,489		124,274
More than ten years		4,826		4,817

Total	$	260,924	$	260,502

The weighted average remaining life of investment securities

available-for-sale

at December 31, 2019, was 5.4 years. The contractual maturities, which were used in the table above, of mortgage-backed securities, will differ from the actual maturities due to the ability of the issuers to prepay underlying obligations. Also, $244,688,000 of the securities are floating rate or adjustable rate and reprice prior to maturity.

As of December 31, 2019 and December 31, 2018, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade. The change in the unrealized losses on the Obligations Issued by States and Political Subdivisions, Privately Issued Residential Mortgage-Backed Securities and Other Debt Securities was primarily caused by changes in credit spreads and liquidity issues in the marketplace.

The unrealized loss on SBA Backed Securities and U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities related primarily to interest rates and not credit quality

The Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity. The Company does not consider these investments to be other-than-

temporarily

impaired at December 31, 2019 and December 31, 2018.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans.

The following table shows the temporarily impaired securities of the Company’s

available-for-sale

portfolio at December 31, 2019. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 45 and 18 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 122 holdings at December 31, 2019.


Temporarily Impaired Investments	December 31, 2019
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
U.S. Government Sponsored Enterprises		—		—		—		—		—		—
SBA Backed Securities		14,560		30		22,092		113		36,652		143
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		108,806		379		29,178		153		137,984		532
Privately Issued Residential Mortgage-Backed Securities		252		2		—		—		252		2
Obligations Issued by States and Political Subdivisions		—		—		—		—		—		—
Other Debt Securities		800		1		481		18		1,281		19

Total temporarily impaired securities	$	124,418	$	412	$	51,751	$	284	$	176,169	$	696

The following table shows the temporarily impaired securities of the Company’s

available-for-sale

portfolio at December 31, 2018. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months and longer. There are 10 and 30 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 190 holdings at December 31, 2018.


Temporarily Impaired Investments	December 31, 2018
	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(dollars in thousands)
U.S. Treasury	$	—	$	—	$	1,992	$	8	$	1,992	$	8
U.S. Government Sponsored Enterprises		3,914		31		—		—		3,914		31
SBA Backed Securities		17,950		28		44,323		256		62,273		284
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		19,244		21		45,782		229		65,026		250
Privately Issued Residential Mortgage-Backed Securities		—		—		495		10		495		10
Obligations Issued by States and Political Subdivisions		—		—		—		—		—		—
Other Debt Securities		—		—		455		44		455		44

Total temporarily impaired securities	$	41,108	$	80	$	93,047	$	547	$	134,155	$	627