(4) Investment Securities

Available for sale securities

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2020 and December 31, 2019 were as follows:


	Total
	Amortized		Gross Unrealized				Fair
(in thousands)	Cost		Gains		Losses		Value
March 31, 2020
U.S. Treasury	$	743	$	34	$	—	$	777
U.S. government and federal agency obligations		8,922		43		(19)		8,946
U.S. government-sponsored enterprises		37,320		433		—		37,753
Obligations of states and political subdivisions		42,724		486		(53)		43,157
Mortgage-backed securities		101,123		1,957		(63)		103,017
Other debt securities (a)		3,000		174		—		3,174
Bank issued trust preferred securities (a)		1,486		—		(261)		1,225
Total available-for-sale securities	$	195,318	$	3,127	$	(396)	$	198,049

December 31, 2019
U.S. Treasury	$	987	$	8	$	—	$	995
U.S. government and federal agency obligations		8,124		—		(77)		8,047
U.S. government-sponsored enterprises		22,300		41		(58)		22,283
Obligations of states and political subdivisions		33,704		144		(59)		33,789
Mortgage-backed securities		105,522		522		(428)		105,616
Other debt securities (a)		3,000		53		—		3,053
Bank issued trust preferred securities (a)		1,486		—		(176)		1,310
Total available-for-sale securities	$	175,123	$	768	$	(798)	$	175,093

(a) Certain hybrid instruments possessing characteristics typically associated with debt obligations.

The Company’s investment securities are classified as available for sale. Agency bonds and notes, Small Business Administration guaranteed loan certificates (SBA), residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC), and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises.

Debt securities with carrying values aggregating approximately $149.8 million and $139.8 million at March 31, 2020 and December 31, 2019, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2020, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.


	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	8,923	$	8,954
Due after one year through five years		20,335		20,462
Due after five years through ten years		42,787		43,470
Due after ten years		22,150		22,146
Total		94,195		95,032
Mortgage-backed securities		101,123		103,017
Total available-for-sale securities	$	195,318	$	198,049

Other securities

Other investment securities include equity securities with readily determinable fair values and other investment securities that do not have readily determinable fair values. Investments in Federal Home Loan Bank (FHLB) stock, and Midwest Independent Bank (MIB) bankers bank stock, that do not have readily determinable fair values, are required for membership in those organizations.


	March 31, 2020		December 31, 2019
(in thousands)	2020		2019
Other securities:
FHLB stock	$	7,133	$	5,644
MIB stock		151		151
Equity securities with readily determinable fair values		12		13
Total other investment securities	$	7,296	$	5,808

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2020 and December 31, 2019 were as follows:


	Less than 12 months				12 months or more				Total		Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in thousands)	Value		Losses		Value		Losses		Value		Losses
At March 31, 2020
U.S. government and federal agency obligations	$	1,686	$	(13)	$	1,557	$	(6)	$	3,243	$	(19)
Obligations of states and political subdivisions		7,440		(50)		532		(3)		7,972		(53)
Mortgage-backed securities		11,296		(55)		1,710		(8)		13,006		(63)
Bank issued trust preferred securities		—		—		1,225		(261)		1,225		(261)
Total	$	20,422	$	(118)	$	5,024	$	(278)	$	25,446	$	(396)

(in thousands)
At December 31, 2019
U.S. government and federal agency obligations	$	6,238	$	(69)	$	1,809	$	(8)	$	8,047	$	(77)
U.S. government-sponsored enterprises		5,949		(47)		7,488		(11)		13,437		(58)
Obligations of states and political subdivisions		10,729		(53)		1,931		(6)		12,660		(59)
Mortgage-backed securities		5,444		(37)		40,120		(391)		45,564		(428)
Bank issued trust preferred securities		—		—		1,310		(176)		1,310		(176)
Total	$	28,360	$	(206)	$	52,658	$	(592)	$	81,018	$	(798)

The total available for sale portfolio consisted of approximately 321 securities at March 31, 2020. The portfolio included 46 securities having an aggregate fair value of $25.4 million that were in a loss position at March 31, 2020. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $5.0 million at fair value at March 31, 2020. The $396,000 aggregate unrealized loss included in accumulated other comprehensive loss at March 31, 2020 was caused by interest rate fluctuations.

The total available for sale portfolio consisted of approximately 322 securities at December 31, 2019. The portfolio included 128 securities having an aggregate fair value of $81.0 million that were in a loss position at December 31, 2019. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer had a fair value of $52.7 million at December 31, 2019. The $798,000 aggregate unrealized loss included in accumulated other comprehensive loss at December 31, 2019 was caused by interest rate fluctuations.

Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at March 31, 2020 and December 31, 2019, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities.

The table presents the components of investment securities gains and losses, which have been recognized in earnings:


	Three Months Ended March 31,
(in thousands)	2020		2019
Investment securities (losses) gains, net
Available for sale securities:
Gains realized on sales	$	—	$	—
Losses realized on sales		—		—
Other-than-temporary impairment recognized		—		—
Other investment securities:
Fair value adjustments, net		(1)		1
Investment securities (losses) gains, net	$	(1)	$	1

During the three months ended March 31, 2020, the Company received $681,000 from the proceeds from the sale of available for sale debt securities and recognized an immaterial gain. There were no securities sales during the three months ended March 31, 2019. The Company recognized an unrealized loss of $1,000 for the three months ended March 31, 2020, compared to an unrealized gain of $1,000 for the three months ended March 31, 2019 related to equity securities.