The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of securities available for sale consisted of the following:

	June 30, 2017
		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair
(dollars in thousands)	Cost	Gains	Losses	Value
Debt and equity securities:
U.S. government and Federal agency obligations	$ 10,433	$ 17	$ (12)	$ 10,438
Obligations of states and political subdivisions	49,059	1,046	(127)	49,978
Other securities	6,017	306	(598)	5,725
TOTAL DEBT AND EQUITY SECURITIES	65,509	1,369	(737)	66,141

Mortgage-backed securities:
FHLMC certificates	21,380	165	(56)	21,489
GNMA certificates	1,437	12	-	1,449
FNMA certificates	28,457	234	(63)	28,628
CMOs issues by government agencies	26,814	79	(184)	26,709
TOTAL MORTGAGE-BACKED SECURITIES	78,088	490	(303)	78,275
TOTAL	$ 143,597	$ 1,859	$ (1,040)	$ 144,416

	June 30, 2016
		Gross	Gross	Estimated
	Amortized	Unrealized	Unrealized	Fair
(dollars in thousands)	Cost	Gains	Losses	Value
Debt and equity securities:
U.S. government and Federal agency obligations	$ 6,460	$ 57	$ -	$ 6,517
Obligations of states and political subdivisions	44,368	1,820	(3)	46,185
Other securites	5,861	206	(776)	5,291
TOTAL DEBT AND EQUITY SECURITIES	56,689	2,083	(779)	57,993

Mortgage-backed securities:
FHLMC certificates	23,298	501	-	23,799
GNMA certificates	1,814	42	-	1,856
FNMA certificates	28,292	639	-	28,931
CMOs issues by government agencies	16,489	160	(4)	16,645
TOTAL MORTGAGE-BACKED SECURITIES	69,893	1,342	(4)	71,231
TOTAL	$ 126,582	$ 3,425	$ (783)	$ 129,224

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

	June 30, 2017
	Amortized	Estimated
(dollars in thousands)	Cost	Fair Value
Within one year	$ 2,994	$ 3,010
After one year but less than five years	16,654	16,753
After five years but less than ten years	20,824	21,140
After ten years	25,037	25,238
Total investment securities	65,509	66,141
Mortgage-backed securities	78,088	78,275
Total investments and mortgage-backed securities	$ 143,597	$ 144,416

The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $114.1 million and $106.7 million at June 30, 2017 and 2016, respectively. The securities pledged consist of marketable securities, including $6.5 million and $5.5 million of U.S. Government and Federal Agency Obligations, $50.5 million and $52.2 million of Mortgage-Backed Securities, $19.9 million and $13.6 million of Collateralized Mortgage Obligations, $36.8 million and $34.8 million of State and Political Subdivisions Obligations, and $400,000 and $600,000 of Other Securities at June 30, 2017 and 2016, respectively.

Gains of $9,919 and $105,221 were recognized from sales of available-for-sale securities in 2016 and 2015 respectively. Losses of $4,956 and $98,993 were recognized from sales of available-for-sale securities in 2016 and 2015 respectively. There were no sales of available-for-sale securities in 2017.

With the exception of U.S. government agencies, the Company did not hold any securities of a single issuer, payable from and secured by the same source of revenue or taxing authority, the book value of which exceeded 10% of stockholders’ equity at June 30, 2017.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2017, was $52.3 million, which is approximately 36.2% of the Company’s available for sale investment portfolio, as compared to $4.7 million or approximately 3.6% of the Company’s available for sale investment portfolio at June 30, 2016. Except as discussed below, management believes the declines in fair value for these securities to be temporary.

The tables below show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2017 and 2016.

	Less than 12 months		More than 12 months		Total
		Unrealized		Unrealized		Unrealized
For the year ended June 30, 2017	Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
(dollars in thousands)
U.S. government-sponsored enterprises (GSEs)	$ 6,457	$ 12	$ -	$ -	$ 6,457	$ 12
Obligations of state and political subdivisions	12,341	127	256	-	12,597	127
Other securities	-	-	1,160	598	1,160	598
Mortgage-backed securities	29,836	267	2,285	36	32,121	303
Total investments and mortgage-backed securities	$ 48,634	$ 406	$ 3,701	$ 634	$ 52,335	$ 1,040

	Less than 12 months		More than 12 months		Total
		Unrealized		Unrealized		Unrealized
For the year ended June 30, 2016	Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
(dollars in thousands)
Obligations of state and political subdivisions	720	3	-	-	720	3
Other securities	-	-	1,080	776	1,080	776
Mortgage-backed securities	2,912	4	-	-	2,912	4
Total investments and mortgage-backed securities	$ 3,632	$ 7	$ 1,080	$ 776	$ 4,712	$ 783

The unrealized losses on the Company’s investments in U.S. government-sponsored enterprises, mortgage-backed securities, and obligations of state and political subdivisions were caused by increases in market interest rates. The contractual terms of these instruments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2017.

Other securities. At June 30, 2017, there were three pooled trust preferred securities with an estimated fair value of $824,000 and unrealized losses of $590,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. Rules adopted by the federal banking agencies in December 2013 to implement Section 619 of the Dodd-Frank Act (the “Volcker Rule”) generally prohibit banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund. All pooled trust preferred securities owned by the Company were included in a January 2014 listing of securities which the agencies considered to be grandfathered with regard to these prohibitions; as such, banking entities are permitted to retain their interest in these securities, provided the interest was acquired on or before December 10, 2013, unless acquired pursuant to a merger or acquisition.

The June 30, 2017, cash flow analysis for these three securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these three securities included annualized prepayments of 1.3 to 1.7 percent; recoveries of 21 percent on currently deferred issuers within the next two years; new deferrals of 48 to 50 basis points annually; and eventual recoveries of eight to nine percent of new deferrals.

One of these three securities has continued to receive cash interest payments in full since our purchase; two of the three securities received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but have since resumed cash interest payments. One of the two securities which were in PIK status resumed cash interest payments during fiscal 2014, and the second resumed cash interest payments during fiscal 2017. Our cash flow analysis indicates that cash interest payments are expected to continue for the three securities. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2017.

At December 31, 2008, analysis of a fourth pooled trust preferred security indicated other-than-temporary impairment (OTTI). The loss recognized at that time reduced the amortized cost basis for the security, and as of June 30, 2017, the estimated fair value of the security exceeds the new, lower amortized cost basis.

The Company does not believe any other individual unrealized loss as of June 30, 2017, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any additional OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the other-than-temporary impairment is identified.

Credit losses recognized on investments. As described above, one of the Company’s investments in trust preferred securities experienced fair value deterioration due to credit losses, but is not otherwise other-than-temporarily impaired. During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.” The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended June 30, 2017 and 2016.

	Accumulated Credit Losses
	Twelve-Month Period Ended
(dollars in thousands)	June 30,
	2017	2016
Credit losses on debt securities held
Beginning of period	$ 352	$ 365
Additions related to OTTI losses not previously recognized	-	-
Reductions due to sales	-	-
Reductions due to change in intent or likelihood of sale	-	-
Additions related to increases in previously-recognized OTTI losses	-	-
Reductions due to increases in expected cash flows	(12)	(13)
End of period	$ 340	$ 352