3.	Securities

Equity Securities

The Corporation held equity securities with fair values of

$17,000

and

$7,000

March 31, 2019

and

December 31, 2018,

respectively. Beginning

January 1, 2018,

with the adoption of ASU

2016

01,

changes in the fair value of these securities are included in other income on the consolidated statements of net income as opposed to accumulated other comprehensive loss on the consolidated balance sheets. During the

three

months ended

March 31, 2019

and

2018,

the Corporation recognized a gain of

$10,000

and a loss of

$5,000,

respectively, on equity securities held at

March 31.

During the

three

month period ended

March 31, 2019,

the Corporation did

not

sell any equity securities. During the

three

month period ended

March 31, 2018,

the Corporation sold

$961,000

of equity securities with a realized net gain of

$59,000.

Debt Securities - Available-for-Sale

The following table summarizes the Corporation’s debt securities as of

March

31,

2019

and

December

31,

2018:

(Dollar amounts in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2019:
U.S. Treasury and federal agency	$	4,529	$	—	$	(57	)	$	4,472
U.S. government sponsored entities and agencies		14,083		24		(164	)		13,943
U.S. agency mortgage-backed securities: residential		30,905		42		(142	)		30,805
U.S. agency collateralized mortgage obligations: residential		21,866		19		(613	)		21,272
State and political subdivisions		19,921		101		(15	)		20,007
Corporate debt securities		8,505		20		(32	)		8,493
Total securities available-for-sale	$	99,809	$	206	$	(1,023	)	$	98,992

December 31, 2018:
U.S. Treasury and federal agency	$	4,532	$	—	$	(87	)	$	4,445
U.S. government sponsored entities and agencies		17,052		30		(299	)		16,783
U.S. agency mortgage-backed securities: residential		27,666		—		(490	)		27,176
U.S. agency collateralized mortgage obligations: residential		19,440		34		(810	)		18,664
State and political subdivisions		22,943		13		(224	)		22,732
Corporate debt securities		8,006		9		(97	)		7,918
Total securities available-for-sale	$	99,639	$	86	$	(2,007	)	$	97,718

The following table summarizes scheduled maturities of the Corporation’s debt securities as of

March

31,

2019.

Expected maturities

may

differ from contractual maturities because issuers

may

have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities and collateralized mortgage obligations are

not

due at a single maturity and are shown separately.

(Dollar amounts in thousands)	Available-for-sale
	Amortized Cost		Fair Value
Due in one year or less	$	925	$	922
Due after one year through five years		27,660		27,449
Due after five through ten years		16,716		16,786
Due after ten years		1,737		1,758
Mortgage-backed securities: residential		30,905		30,805
Collateralized mortgage obligations: residential		21,866		21,272
Total securities available-for-sale	$	99,809	$	98,992

Information pertaining to debt securities with gross unrealized losses at

March

31,

2019

and

December

31,

2018,

aggregated by investment category and length of time that individual securities have been in a continuous loss position are included in the table below:

(Dollar amounts in thousands)	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
March 31, 2019:
U.S. Treasury and federal agency	$	—	$	—		$	4,472	$	(57	)	$	4,472	$	(57	)
U.S. government sponsored entities and agencies		—		—			10,434		(164	)		10,434		(164	)
U.S. agency mortgage-backed securities: residential		3,922		(5	)		15,066		(137	)		18,988		(142	)
U.S. agency collateralized mortgage obligations: residential		1,784		(14	)		16,392		(599	)		18,176		(613	)
State and political subdivisions		794		—			1,959		(15	)		2,753		(15	)
Corporate debt securities		—		—			2,973		(32	)		2,973		(32	)
Total	$	6,500	$	(19	)	$	51,296	$	(1,004	)	$	57,796	$	(1,023	)

December 31, 2018:
U.S. Treasury and federal agency	$	—	$	—		$	4,445	$	(87	)	$	4,445	$	(87	)
U.S. government sponsored entities and agencies		2,472		(30	)		10,337		(269	)		12,809		(299	)
U.S. agency mortgage-backed securities: residential		19,483		(297	)		7,693		(193	)		27,176		(490	)
U.S. agency collateralized mortgage obligations: residential		1,443		(5	)		15,388		(805	)		16,831		(810	)
State and political subdivisions		7,061		(67	)		10,083		(157	)		17,144		(224	)
Corporate debt securities		962		(38	)		2,448		(59	)		3,410		(97	)
Total	$	31,421	$	(437	)	$	50,394	$	(1,570	)	$	81,815	$	(2,007	)

Gains and losses on sales of securities for the

three

months ended

March 31

were as follows:

(Dollar amounts in thousands)	For the three months ended March 31,
	2019			2018
Proceeds	$	3,975		$	6,531
Gains		6			14
Losses		(4	)		(21	)
Tax provision related to losses		—			(1	)

Management evaluates debt securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic, market or other conditions warrant such evaluation. Consideration is given to: (

) the length of time and the extent to which the fair value has been less than cost, (

) the financial condition and near-term prospects of the issuer, (

) whether the market decline was affected by macroeconomic conditions and (

) whether the Corporation has the intent to sell the security or more likely than

not

will be required to sell the security before recovery of its amortized cost basis. If the Corporation intends to sell an impaired security, or if it is more likely than

not

the Corporation will be required to sell the security before its anticipated recovery, the Corporation records an other-than-temporary loss in an amount equal to the entire difference between fair value and amortized cost. Otherwise, only the credit portion of the estimated loss on debt securities is recognized in earnings, with the other portion of the loss recognized in other comprehensive income.

There were

debt securities in an unrealized loss position as of

March 31, 2019,

of which

were in an unrealized loss position for more than

months. Of these

securities,

were collateralized mortgage obligations (issued by U.S. government sponsored entities),

were mortgage-backed securities,

were U.S. government sponsored entities and agency securities,

seven

were state and political subdivision securities,

six

were corporate securities and

five

were U.S. Treasury securities. The unrealized losses associated with these securities were

not

due to the deterioration in the credit quality of the issuer that would likely result in the non-collection of contractual principal and interest, but rather have been caused by a rise in interest rates from the time the securities were purchased. Based on that evaluation and other general considerations, and given that the Corporation’s current intention is

not

to sell any impaired securities and it is more likely than

not

it will

not

be required to sell these securities before the recovery of its amortized cost basis, the Corporation does

not

consider these debt securities with unrealized losses as of

March 31, 2019

to be other-than-temporarily impaired.