Note 2. Investment Securities

Securities available for sale are as follows:


	December 31, 2019
	Dollars in Thousands
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Obligations of U.S. Government agencies and corporations	$	10,186	$	162	$	36	$	10,312
Obligations of States and political subdivisions		33,885		716		43		34,558
Mortgage-backed securities		56,275		236		90		56,421
Equity securities		4,923		42		—		4,965
	$	105,269	$	1,156	$	169	$	106,256


	December 31, 2018
	Dollars in Thousands
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
Obligations of U.S. Government agencies and corporations	$	9,469	$	47	$	96	$	9,420
Obligations of States and political subdivisions		21,383		139		426		21,096
Mortgage-backed securities		19,942		15		553		19,404
Equity securities		1,500		—		120		1,380
	$	52,294	$	201	$	1,195	$	51,300

Gross unrealized losses and fair values, 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 are as follows:

Securities available‑for‑sale:


	December 31, 2019
	Dollars in Thousands
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Obligations of U.S. Government agencies and corporations	$	5,269	$	34	$	2,000	$	2	$	7,269	$	36
Mortgage-backed securities		11,600		32		4,489		58		16,089		90
Obligations of States and political subdivisions		4,669		43		—		—		4,669		43
Equity Securities		—		—		—		—		—		—
Total securities with unrealized losses	$	21,538	$	109	$	6,489	$	60	$	28,027	$	169


	December 31, 2018
	Dollars in Thousands
	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Obligations of U.S. Government agencies and corporations	$	3,973	$	18	$	5,927	$	78	$	9,900	$	96
Mortgage-backed securities		5,485		111		13,440		442		18,924		553
Obligations of States and political subdivisions		9,119		81		11,977		345		21,096		426
Equity Securities		—		—		1,380		120		1,380		120
Total securities with unrealized losses	$	18,577	$	209	$	32,724	$	985	$	51,300	$	1,195

For individual securities classified as either available for sale or held to maturity, the Company must determine whether a decline in fair value below the amortized cost basis is other than temporary. In estimating other‑than‑temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near‑term prospects of the issuer, and (iii) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. If the decline in fair value is considered to be other than temporary, the cost basis of the individual security shall be written down to the fair value as a new cost basis and the amount of the write‑down shall be included in earnings (that is, accounted for as a realized loss).

At December 31, 2019 there were two agency securities, eight mortgage‑backed securities (MBS), and four collateralized mortgage obligations (CMO), that have been in a continuous unrealized loss position for more than twelve months. Management found no evidence of OTTI on any of these securities and believes that unrealized losses are due to fluctuations in fair values resulting from changes in market interest rates and are considered temporary. As of December 31, 2019, management also believes it has the ability and intent to hold the securities for a period of time sufficient for a recovery of cost.

During the period ending December 31, 2019 the Company sold 12 securities, resulting in a gain of $10 thousand. During the period ending December 31, 2018, the Company did not sell any securities. Thirteen securities were either matured or called during 2019, resulting in a net gain of $97 thousand. Four securities were either matured or called during 2018, resulting in no gain or loss.

The Company realized a loss of $9 thousand on equity securities during the year ended December 31, 2019.

Contractual maturities of investment securities at December 31, 2019 are shown below. Actual maturities may differ from contractual maturities because debtors may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage‑backed securities have no stated maturity and primarily reflect investments in various Pass‑through and Participation Certificates issued by the Federal National Mortgage Association and the Government National Mortgage Association. Repayment of mortgage‑backed securities is affected by the contractual repayment terms of the underlying mortgages collateralizing these obligations and the current level of interest rates.

The following is a summary of maturities, calls, or repricing of securities available for sale:


	December 31, 2019
	Securities
	Available for Sale
	Dollars in Thousands
		Amortized		Fair
		Cost		Value
Due in one year or less	$	2,252	$	2,250
Due after one year through five years		4,030		4,026
Due after five years through ten years		20,129		20,621
Due after ten years or more		22,583		22,938
Mortgage-backed, due in monthly installments		56,275		56,421
	$	105,269	$	106,256


	December 31, 2018
	Securities
	Available for Sale
	Dollars in Thousands
	Amortized		Fair
	Cost		Value
Due in one year or less	$	5,175	$	5,166
Due after one year through five years		4,727		4,649
Due after five years through ten years		10,566		10,521
Due after ten years or more		11,884		11,560
Mortgage‑backed, due in monthly installments		19,942		19,404
	$	52,294	$	51,300

The Company has pledged certain securities as collateral for qualified customers' deposit accounts at December 31, 2019 and 2018 as follows:


	2019		2018
Amortized cost	$	9,143	$	8,597
Fair value		9,179		8,632