Note 4:

Securities

The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows:


(Dollars in thousands)
Available-for-sale securities September 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Corporate bonds	$	700	$	—	$	—		$	700
U.S. Government agencies		23,046		126		(36	)		23,136
State and municipal obligations		24,490		202		(130	)		24,562
Certificates of deposits		5,456		41		—			5,497

	$	53,692	$	369	$	(166	)	$	53,895


Available-for-sale securities December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. Government agencies	$	16,969	$	33	$	(37	)	$	16,965
State and municipal obligations		23,335		226		(160	)		23,401
Certificates of deposits		2,232		8		(2	)		2,238

	$	42,536	$	267	$	(199	)	$	42,604

Gross realized gains and gross realized losses on sales and calls of securities were as follows:


	For the three months ended September 30,						For the nine months ended September 30,
(Dollars in thousands)	2015			2014			2015			2014
Gross realized gains	$	3		$	3		$	27		$	8
Gross realized losses		(1	)		(11	)		(23	)		(33	)

Net realized gains (losses)	$	2		$	(8	)	$	4		$	(25	)


Aggregate proceeds	$	1,995		$	479		$	4,819		$	3,810

Average yields (taxable equivalent) on securities were 2.40% and 2.43% for the three months ended September 30, 2015 and 2014, respectively, and 2.40% and 2.39% for the nine months ended September 30, 2015 and 2014, respectively.

Securities with a market value of $12.4 million and $8.5 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of September 30, 2015 and December 31, 2014, respectively. As of September 30, 2015 and December 31, 2014, all the securities pledged to repurchase agreements were state and municipal obligations. All the repurchase agreements had remaining contractual maturities that were overnight and continuous. Securities sold under repurchase agreements were $10.5 million and $6.0 million as of September 30, 2015 and December 31, 2014, respectively, and included in liabilities on the consolidated balance sheets. The securities pledged to each agreement are reviewed daily and can be changed at the option of the Bank with minimal risk of loss due to fair value.

Securities in an unrealized loss position at September 30, 2015 and December 31, 2014, by duration of the unrealized loss, are shown below. The unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All agency securities, states and municipal securities and certificates of deposit are investment grade or better and their losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. Furthermore, all amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at September 30, 2015 included nine federal agencies and 27 municipals. Bonds with unrealized loss positions at December 31, 2014 included 13 federal agencies, 29 municipals and three certificates of deposit. The tables are shown below.


(Dollars in thousands)	Less than 12 months				12 months or more				Total
September 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	3,280	$	18	$	1,745	$	18	$	5,025	$	36
States and municipal obligations		5,328		38		3,438		92		8,766		130

Total temporarily impaired securities	$	8,608	$	56	$	5,183	$	110	$	13,791	$	166


	Less than 12 months				12 months or more				Total
December 31, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Government agencies	$	1,499	$	4	$	3,532	$	33	$	5,031	$	37
States and municipal obligations		412		5		9,006		155		9,418		160
Certificates of deposit		742		2		—		—		742		2

Total temporarily impaired securities	$	2,653	$	11	$	12,538	$	188	$	15,191	$	199

The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1.6 million and $1.9 million at September 30, 2015 and December 31, 2014, respectively. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $460 thousand and $382 thousand at September 30, 2015 and December 31, 2014, respectively. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership with the FHLB and FRB. These securities do not have a readily determinable fair value as their ownership is restricted, and they lack an active market for trading. Additionally, per charter provisions related to the FHLB and FRB stock, all repurchase transactions of such stock must occur at par. Accordingly, these securities are carried at cost, and are periodically evaluated for impairment. The Company’s determination as to whether its investment in FHLB and FRB stock is impaired is based on management’s assessment of the ultimate recoverability of its par value rather than recognizing temporary declines in its value. The determination of whether the decline affects the ultimate recoverability of the investments is influenced by available information regarding various factors. These factors include, among others, the significance of the decline in net assets of the issuing banks as compared to the capital stock amount reported by these banks, and the length of time a decline has persisted; commitments by such banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuing bank; and the overall liquidity position of the issuing bank. Based on its most recent analysis of publicly available information regarding the financial condition of the issuing banks, management concluded that no impairment existed in the carrying value of FHLB and FRB stock.