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Securities Available For Sale

The following table shows the gross unrealized losses and fair values for the securities available for sale portfolio, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at

March 31, 2019

and

December 31, 2018.

	Less Than Twelve Months						Twelve Months or More							Total
(Dollars in thousands)	# of Investments		Fair Value		Unrealized Losses		# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
March 31, 2019
Mortgage backed securities:
Federal National Mortgage Association (FNMA)		0	$	0		0		2	$	3,657		(37	)	$	3,657		(37	)
Collateralized mortgage obligations:
FNMA		0		0		0		1		191		(3	)		191		(3	)
Other marketable securities:
U.S. Government agency obligations		0		0		0		14		69,233		(740	)		69,233		(740	)
Municipal obligations		0		0		0		6		1,240		(4	)		1,240		(4	)
Corporate obligations		0		0		0		1		140		(1	)		140		(1	)
Corporate preferred stock		0		0		0		1		595		(105	)		595		(105	)
Total temporarily impaired securities		0	$	0		0		25	$	75,056		(890	)	$	75,056		(890	)

	Less Than Twelve Months							Twelve Months or More							Total
(Dollars in thousands)	# of Investments		Fair Value		Unrealized Losses			# of Investments		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
December 31, 2018
Mortgage backed securities:
FNMA		0	$	0		0			2	$	3,769		(117	)	$	3,769		(117	)
Federal Home Loan Mortgage Corporation (FHLMC)		1		4,060		(10	)		0		0		0			4,060		(10	)
Collateralized mortgage obligations:
FNMA		0		0		0			1		190		(9	)		190		(9	)
Other marketable securities:
U.S. Government agency obligations		0		0		0			14		68,735		(1,236	)		68,735		(1,236	)
Municipal obligations		3		498		(2	)		8		1,467		(8	)		1,965		(10	)
Corporate obligations		0		0		0			1		172		(1	)		172		(1	)
Corporate preferred stock		0		0		0			1		560		(140	)		560		(140	)
Total temporarily impaired securities		4	$	4,558		(12	)		27	$	74,893		(1,511	)	$	79,451		(1,523	)

We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the market liquidity for the investment, the financial condition and near-term prospects of the issuer, including any specific events which

may

influence the operations of the issuer, and our intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. The unrealized losses on impaired securities other than the corporate preferred stock are the result of changes in interest rates. The unrealized losses reported for the corporate preferred stock at

March 31, 2019

relates to a single trust preferred security that was issued by the holding company of a small community bank. As of

March 31, 2019

all payments were current on the trust preferred security and the issuer’s subsidiary bank was considered to be “well capitalized” based on its most recent regulatory filing. Based on a review of the issuer, it was determined that the trust preferred security was

not

other-than-temporarily impaired at

March 31, 2019

as the Company does

not

intend to sell and has the intent and ability to hold it for a period of time sufficient to recover the temporary loss. Management believes that the Company will receive all principal and interest payments contractually due on the security and that the decrease in the market value is primarily due to a lack of liquidity in the market for trust preferred securities. Management will continue to monitor the credit risk of the issuer and

may

be required to recognize other-than-temporary impairment charges on this security in future periods.

A summary of securities available for sale at

March 31, 2019

and

December 31, 2018

is as follows:

(Dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
March 31, 2019
Mortgage-backed securities:
FNMA	$	3,694		0		(37	)		3,657
FHLMC		3,860		35		0			3,895
Collateralized mortgage obligations:
FNMA		194		0		(3	)		191
		7,748		35		(40	)		7,743
Other marketable securities:
U.S. Government agency obligations		69,973		0		(740	)		69,233
Municipal obligations		2,075		4		(4	)		2,075
Corporate obligations		142		0		(1	)		141
Corporate preferred stock		700		0		(105	)		595
Corporate equity		145		0		0			145
		73,035		4		(850	)		72,189
	$	80,783		39		(890	)		79,932


December 31, 2018
Mortgage-backed securities:
FNMA	$	3,886		0		(117	)		3,769
FHLMC		4,074		0		(10	)		4,064
Collateralized mortgage obligations:
FNMA		199		0		(9	)		190
		8,159		0		(136	)		8,023
Other marketable securities:
U.S. Government agency obligations		69,971		0		(1,236	)		68,735
Municipal obligations		2,378		1		(10	)		2,369
Corporate obligations		173		0		(1	)		172
Corporate preferred stock		700		0		(140	)		560
Corporate equity		121		0		0			121
		73,343		1		(1,387	)		71,957
	$	81,502		1		(1,523	)		79,980

The following table indicates amortized cost and estimated fair value of securities available for sale at

March 31, 2019

based upon contractual maturity adjusted for scheduled repayments of principal and projected prepayments of principal based upon current economic conditions and interest rates.

(Dollars in thousands)	Amortized Cost		Fair Value
Due less than one year	$	7,356		7,303
Due after one year through five years		70,258		69,568
Due after five years through ten years		2,257		2,255
Due after ten years		767		661
No stated maturity		145		145

Total	$	80,783		79,932

The allocation of mortgage-backed securities in the table above is based upon the anticipated future cash flow of the securities using estimated mortgage prepayment speeds. The allocation of other marketable securities that have call features is based on the anticipated cash flows to the expected call date if it is anticipated that the security will be called, or to the maturity date if it is

not

anticipated to be called.