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2. Investment Securities

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investment securities available for sale at September 30, 2018 and December 31, 2017 are as follows:

(Dollars in thousands)
	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	47,017		250		977		46,290
U.S. Government
sponsored enterprises		36,278		1		1,278		35,001
State and political subdivisions		121,755		1,911		252		123,414
Corporate bonds		1,000		11		—		1,011
Trust preferred securities		250		—		—		250
Total	$	206,300		2,173		2,507		205,966

(Dollars in thousands)
	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	53,124		814		329		53,609
U.S. Government
sponsored enterprises		40,504		140		264		40,380
State and political subdivisions		129,276		4,310		16		133,570
Corporate bonds		1,500		12		—		1,512
Trust preferred securities		250		—		—		250
Total	$	224,654		5,276		609		229,321

The current fair value and associated unrealized losses on investments in securities with unrealized losses at September 30, 2018 and December 31, 2017 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	September 30, 2018
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	20,557		276		14,698		701		35,255		977
U.S. Government
sponsored enterprises		19,435		586		14,564		692		33,999		1,278
State and political subdivisions		15,042		212		1,733		40		16,775		252
Total	$	55,034		1,074		30,995		1,433		86,029		2,507

(Dollars in thousands)
	December 31, 2017
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	8,701		75		11,259		254		19,960		329
U.S. Government
sponsored enterprises		12,661		98		10,067		166		22,728		264
State and political subdivisions		798		2		1,501		14		2,299		16
Total	$	22,160		175		22,827		434		44,987		609

At September 30, 2018, unrealized losses in the investment securities portfolio relating to debt securities totaled $2.5 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the September 30, 2018 tables above, 23 out of 152 securities issued by state and political subdivisions contained unrealized losses and 37 out of 44 securities issued by U.S. Government sponsored enterprises contained unrealized losses. These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.

The amortized cost and estimated fair value of investment securities available for sale at September 30, 2018, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2018
(Dollars in thousands)
	Amortized Cost		Estimated Fair Value
Due within one year	$	24,659		24,800
Due from one to five years		95,923		96,934
Due from five to ten years		31,869		31,208
Due after ten years		6,582		6,484
Mortgage-backed securities		47,017		46,290
Trust preferred securities		250		250
Total	$	206,300		205,966

Proceeds from sales of securities available for sale during the three and nine months ended September 30, 2018 were $14.0 million and resulted in net gains of $50,000. No securities available for sale were sold during the three and nine months ended September 30, 2017.

Securities with a fair value of approximately $92.1 million and $105.6 million at September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits and for other purposes as required by law.