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2. Investment Securities

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investment securities available for sale at June 30, 2020 and December 31, 2019 are as follows:

(Dollars in thousands)
	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	74,338		3,362		39		77,661
U.S. Government sponsored enterprises		22,166		1,044		222		22,988
State and political subdivisions		101,329		5,241		—		106,570
Trust preferred securities		250		—		—		250
Total	$	198,083		9,647		261		207,469

(Dollars in thousands)
	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Mortgage-backed securities	$	77,812		1,371		227		78,956
U.S. Government sponsored enterprises		28,265		443		311		28,397
State and political subdivisions		84,686		3,657		200		88,143
Trust preferred securities		250		—		—		250
Total	$	191,013		5,471		738		195,746

The current fair value and associated unrealized losses on investments in securities with unrealized losses at June 30, 2020 and December 31, 2019 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

(Dollars in thousands)
	June 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	10,857		39		—		—		10,857		39
U.S. Government sponsored enterprises		—		—		4,454		222		4,454		222
Total	$	10,857		39		4,454		222		15,311		261

(Dollars in thousands)
	December 31, 2019
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities	$	28,395		177		6,351		50		34,746		227
U.S. Government sponsored enterprises		2,899		10		6,151		301		9,050		311
State and political subdivisions		7,367		200		—		—		7,367		200
Total	$	38,661		387		12,502		351		51,163		738

At June 30, 2020, unrealized losses in the investment securities portfolio relating to debt securities totaled $261,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the June 30, 2020 tables above, eight out of 63 securities issued by state and political subdivisions 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 June 30, 2020, 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.

June 30, 2020
(Dollars in thousands)
	Amortized Cost		Estimated Fair Value
Due within one year	$	9,933		10,127
Due from one to five years		48,311		50,935
Due from five to ten years		48,710		51,567
Due after ten years		16,541		16,929
Mortgage-backed securities		74,338		77,661
Trust preferred securities		250		250
Total	$	198,083		207,469

Proceeds from sales of securities available for sale during the six months ended June 30, 2020 were $17.0 million and resulted in net gains of $457,000. Proceeds from sales of securities available for sale during the six months ended June 30, 2019 were $12.3 million and resulted in net gains of $231,000.

Securities with a fair value of approximately $70.0 million and $66.0 million at June 30, 2020 and December 31, 2019, respectively, were pledged to secure public deposits and for other purposes as required by law.