Note 4 – Investments

The amortized cost, gross unrealized gains and losses, and fair value of investment securities at June 30, 2019 and December 31, 2018 were as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
June 30, 2019	Cost		Gains		Losses			Value
Available-for-sale securities:
U.S. agency securities	$	92,468	$	1,869	$	(106	)	$	94,231
U.S. treasury securities		33,843		254		(1	)		34,096
Obligations of state and
political subdivisions		57,831		691		(7	)		58,515
Corporate obligations		3,000		80		-			3,080
Mortgage-backed securities in
government sponsored entities		46,414		508		(104	)		46,818
Total available-for-sale securities	$	233,556	$	3,402	$	(218	)	$	236,740

December 31, 2018
Available-for-sale securities:
U.S. agency securities	$	106,516	$	509	$	(640	)	$	106,385
U.S. treasury securities		33,813		-		(455	)		33,358
Obligations of state and
political subdivisions		52,074		150		(177	)		52,047
Corporate obligations		3,000		34		-			3,034
Mortgage-backed securities in
government sponsored entities		46,839		59		(712	)		46,186
Total available-for-sale securities	$	242,242	$	752	$	(1,984	)	$	241,010

The following table shows the Company’s gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at June 30, 2019 and December 31, 2018 (in thousands). As of June 30, 2019, the Company owned 41 securities whose fair value was less than their cost basis.

June 30, 2019	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. agency securities	$	-	$	-		$	36,648	$	(106	)	$	36,648	$	(106	)
U.S. treasury securities		-		-			1,987		(1	)		1,987		(1	)
Obligations of state and
political subdivisions		-		-			1,843		(7	)		1,843		(7	)
Mortgage-backed securities in
government sponsored entities		-		-			18,381		(104	)		18,381		(104	)
Total securities	$	-	$	-		$	59,077	$	(218	)	$	59,077	$	(218	)

December 31, 2018
U.S. agency securities	$	5,981	$	(5	)	$	52,673	$	(635	)	$	58,654	$	(640	)
U.S. treasury securities		4,948		(31	)		28,410		(424	)		33,358		(455	)
Obligations of states and
political subdivisions		8,979		(22	)		12,441		(155	)		21,420		(177	)
Mortgage-backed securities in
government sponsored entities		5,272		(18	)		32,570		(694	)		37,842		(712	)
Total securities	$	25,180	$	(76	)	$	126,094	$	(1,908	)	$	151,274	$	(1,984	)

As of June 30, 2019 and December 31, 2018, the Company’s investment securities portfolio contained unrealized losses on agency securities issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, U.S treasury securities, obligations of states and political subdivisions and mortgage backed securities issued by government sponsored entities. For fixed maturity investments management considers whether the present value of cash flows expected to be collected are less than the security’s amortized cost basis (the difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and the Company’s intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. Once a decline in value is determined to be other than temporary, if the Company does not intend to sell the security, and it is more likely than not that it will not be required to sell the security before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. The Company has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and is the result of interest rate changes, sector credit rating changes, or issuer-specific rating changes that are not expected to result in the non-collection of principal and interest during the period.

There were no sales of available for sale securities during the three or six months ended June 30, 2019 and 2018.

The following table presents the net gains on the Company’s equity investments recognized in earnings during the three month and six month periods ended June 30, 2019 and 2018, and the portion of unrealized gains for the period that relates to equity investments held at June 30, 2019 and 2018 (in thousands):

	Three Months Ended				Six Months Ended
	June. 30,				June. 30,
Equity securities	2019		2018		2019		2018
Net gains (losses) recognized in equity securities during the period	$	30	$	7	$	41	$	13
Less: Net gains realized on the sale of equity securities during the period		-		-		-		-
Net unrealized gains (losses)	$	30	$	7	$	41	$	13

Investment securities with an approximate carrying value of $227.3 million and $221.2 million at June 30, 2019 and December 31, 2018, respectively, were pledged to secure public funds and certain other deposits.

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of debt securities (excludes equity securities) at June 30, 2019, by contractual maturity, are shown below (in thousands):

	Amortized
	Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	23,352	$	23,288
Due after one year through five years		109,730		111,676
Due after five years through ten years		36,649		37,289
Due after ten years		63,825		64,487
Total	$	233,556	$	236,740