INVESTMENT SECURITIES

The amortized cost and fair value of available-for-sale investment securities at December 31 are summarized as follows (in thousands):



	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
2017
Investment Securities Available-for-Sale:
U.S. Treasury notes	$	2,283	—	24	2,259
U.S. Agency notes	84,837		57	1,633	83,261
U.S. Agency mortgage-backed securities	68,347		33	1,227	67,153
Municipal securities:
Non-taxable	102,849		343	1,018	102,174
Taxable	20,313		175	122	20,366
Mutual funds	2,586		2	46	2,542
Trust preferred securities	49		1	—	50
Equity securities	574		97	4	667
	$	281,838	708	4,074	278,472

Investment Securities Held-to-Maturity:
Municipal securities:
Non-taxable	$	28,871	101	227	28,745
Taxable	3,700		—	95	3,605
	$	32,571	101	322	32,350

2016
Investment Securities Available-for-Sale:
U.S. Treasury notes	$	28,180	41	76	28,145
U.S. Agency notes	87,098		150	1,848	85,400
U.S. Agency mortgage-backed securities	72,402		89	1,444	71,047
Municipal securities:
Non-taxable	114,064		574	1,623	113,015
Taxable	19,710		220	85	19,845
Mutual funds	2,527		—	45	2,482
Trust preferred securities	49		—	1	48
Equity securities	632		55	10	677
	$	324,662	1,129	5,132	320,659

Investment Securities Held-to-Maturity:
Municipal securities:
Non-taxable	$	31,015	56	352	30,719
Taxable	9,988		—	217	9,771
	$	41,003	56	569	40,490

Information concerning securities with gross unrealized losses at December 31, 2017 and 2016, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (in thousands):



	Less Than Twelve Months			Twelve Months or More
	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses
2017
Investment Securities Available-for-Sale:
U.S. Treasury notes	$	2,259	24	—	—
U.S. Agency notes	33,651		344	44,560	1,289
U.S. Agency mortgage-backed securities	24,433		142	41,080	1,085
Municipal securities:
Non-taxable	36,348		315	24,197	703
Taxable	11,068		114	1,032	8
Mutual funds	—		—	1,519	46
Trust preferred securities	—		—	—	—
Equity securities	119		2	17	2
	$	107,878	941	112,405	3,133

Investment Securities Held-to-Maturity:
Municipal securities:
Non-taxable	$	9,824	133	3,542	94
Taxable	—		—	3,205	95
	$	9,824	133	6,747	189

2016
Investment Securities Available-for-Sale:
U.S. Treasury notes	$	16,076	76	—	—
U.S. Agency notes	69,784		1,848	—	—
U.S. Agency mortgage-backed securities	64,564		1,310	3,518	134
Municipal securities:
Non-taxable	72,867		1,621	451	2
Taxable	9,721		82	450	3
Mutual funds	1,205		37	277	8
Trust preferred securities	49		1	—	—
Equity securities	201		10	—	—
	$	234,467	4,985	4,696	147

Investment Securities Held-to-Maturity:
Municipal securities:
Non-taxable	$	20,429	251	2,564	101
Taxable	8,030		217	—	—
	$	28,459	468	2,564	101

Management has determined that the unrealized losses at December 31, 2017 are primarily due to fluctuations in market interest rates and do not reflect credit quality deterioration of the securities. Because the Company does not have the intent to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost, the Company does not consider these investments to be other-than-temporarily impaired.

Contractual maturities of investment securities at December 31, 2017 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations.



	Available-for-Sale			Held-to-Maturity
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	11,222	11,267	4,043	4,047
Due from one to five years	92,900		92,453	4,128	4,045
Due from five to ten years	102,520		100,836	8,415	8,286
Due after ten years	3,640		3,504	15,985	15,972
	210,282		208,060	32,571	32,350
U.S. Agency mortgage-backed securities	68,347		67,153	—	—
Mutual funds	2,586		2,542	—	—
Trust preferred securities	49		50	—	—
Equity securities	574		667	—	—
	$	281,838	278,472	32,571	32,350

Investment securities with a market value of $108,751,000 and $149,990,000 at December 31, 2017 and 2016, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

Certain information concerning the sale of investment securities available-for-sale for the years ended December 31 was as follows (in thousands):



	2017		2016	2015
Proceeds from sales	$	43,246	92,455	97,981
Gross realized gains	247		1,103	627
Gross realized losses	14		21	132