NOTE 3: SECURITIES

The amortized cost and fair values of investments in securities at December 31, 2017 and 2016, are summarized in the following tables:


			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses		Fair Value
December 31, 2017
Securities available for sale:
State and municipal securities	$	60,861	$	1,173	$	(118)	$	61,916
U.S. Agency Securities:
Debt securities		17,315		—		(370)		16,945
Collateralized mortgage obligations		61,878		50		(675)		61,253
Mortgage-backed securities		82,510		330		(866)		81,974
Other securities		1,104		—		(17)		1,087
Total	$	223,668	$	1,553	$	(2,046)	$	223,175
Securities held to maturity:
Mortgage-backed securities	$	33	$	2	$	—	$	35


December 31, 2016
Securities available for sale:
State and municipal securities	$	58,991	$	638	$	(650)	$	58,979
U.S. Agency Securities:
Debt securities		20,795		—		(454)		20,341
Collateralized mortgage obligations		34,005		90		(325)		33,770
Mortgage-backed securities		92,489		516		(1,215)		91,790
Other securities		1,081		—		(17)		1,064
Total	$	207,361	$	1,244	$	(2,661)	$	205,944
Securities held to maturity:
Mortgage-backed securities	$	34	$	3	$	—	$	37

The amortized cost and estimated fair value of securities at December 31, 2017 and 2016, by contractual maturities, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations.


	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
(Dollars in thousands)	Cost		Value		Cost		Value
December 31, 2017
Amounts maturing in:
1 year or less	$	6,203	$	6,194	$	—	$	—
1 year through 5 years		26,811		26,635		—		—
5 years through 10 years		9,215		9,348		—		—
After 10 years		181,439		180,998		33		35
	$	223,668	$	223,175	$	33	$	35
December 31, 2016
Amounts maturing in:
1 year or less	$	5,579	$	5,570	$	—	$	—
1 year through 5 years		28,946		28,937		—		—
5 years through 10 years		20,834		20,880		—		—
After 10 years		152,002		150,557		34		37
	$	207,361	$	205,944	$	34	$	37

Securities with a carrying amount of approximately $6.1 million and $302,000 were sold during the years ended December 31, 2017 and 2016, respectively. Net gains of $27,000 and $28,000 were recognized, which is reflected in other noninterest income in the Company’s consolidated statements of income for the years ended December 31, 2017 and 2016, respectively. There were no security sales during the year ended December 31, 2015.

At December 31, 2017 and December 31, 2016, securities with a carrying amount of approximately $58.7 million and $54.0 million respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

The Company held 106 and 121 securities at December 31, 2017 and December 31, 2016, respectively, that were in a gross unrealized loss position as illustrated in the table below. Management does not have the intent to sell any of the securities classified as available for sale in an unrealized loss position and believes that it is more likely than not that the Company will not have to sell any of these securities before a recovery of cost. The unrealized losses are attributable primarily to changes in market interest rates relative to those available when the securities were acquired. The fair value of these securities is expected to recover as the securities reach their maturity or re‑pricing date, or if changes in market rates for such investments decline. Management does not believe that any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2017 and 2016, management believes the impairments detailed in the table below are temporary and no impairment loss has been recorded in the Company’s consolidated statements of income for the years ended December 31, 2017, 2016 and 2015.

Information pertaining to individual securities with unrealized losses at December 31, 2017 and 2016, aggregated by investment category and the length of time were as follows:



	Less Than Twelve Months				Twelve Months or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses
December 31, 2017
Securities available for sale:
State and municipal securities	$	2,494	$	(3)	$	6,516	$	(115)
U.S. Agency Securities:
Debt securities		4,464		(55)		12,481		(315)
Collateralized mortgage obligations		44,116		(380)		9,938		(295)
Mortgage-backed securities		22,079		(123)		32,538		(743)
Other securities		—		—		1,087		(17)
	$	73,153	$	(561)	$	62,560	$	(1,485)
December 31, 2016
Securities available for sale:
State and municipal securities	$	22,856	$	(647)	$	313	$	(3)
U.S. Agency Securities:
Debt securities		18,341		(454)		—		—
Collateralized mortgage obligations		24,800		(325)		—		—
Mortgage-backed securities		67,500		(1,215)		—		—
Other securities		1,064		(17)		—		—
	$	134,561	$	(2,658)	$	313	$	(3)