NOTE 3 - SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2016
U.S. Treasury securities and obligations of U.S.government agencies	$	37,406	$	117	$	(77	)	$	37,446
Obligations of states and political subdivisions		92,177		3,395		(574	)		94,998
Mortgage-back securities in government sponsored entities		62,756		483		(597	)		62,642

Total debt securities		192,339		3,995		(1,248	)		195,086
Equity securities in financial institutions		481		297		—			778

Total	$	192,820	$	4,292	$	(1,248	)	$	195,864


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2015
U.S. Treasury securities and obligations of U.S.government agencies	$	40,992	$	74	$	(129	)	$	40,937
Obligations of states and political subdivisions		87,255		4,959		(62	)		92,152
Mortgage-back securities in government sponsored entities		62,135		681		(243	)		62,573

Total debt securities		190,382		5,714		(434	)		195,662
Equity securities in financial institutions		481		106		—			587

Total	$	190,863	$	5,820	$	(434	)	$	196,249

The amortized cost and fair value of securities at year end 2016 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.


	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	9,171	$	9,172
Due from one to five years		28,862		29,002
Due from five to ten years		31,047		32,692
Due after ten years		60,503		61,578
Mortgage-backed securities in government sponsored entities		62,756		62,642
Equity securities in financial institutions		481		778

Total	$	192,820	$	195,864

Securities with a carrying value of $139,179 and $142,888 were pledged as of December 31, 2016 and 2015, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:


	2016		2015			2014
Sale proceeds	$	4,349	$	—		$	18,088
Gross realized gains		18		—			113
Gross realized losses		—		—			(1	)
Gains (losses) from securities called or settled by the issuer		1		(18	)		1

Debt securities with unrealized losses at year end 2016 and 2015 not recognized in income are as follows:


2016	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	13,271	$	(61	)	$	893	$	(16	)	$	14,164	$	(77	)
Obligations of states and political subdivisions		17,167		(558	)		519		(16	)		17,686		(574	)
Mortgage-backed securities in gov’t sponsored entities		35,453		(566	)		2,849		(31	)		38,302		(597	)

Total temporarily impaired	$	65,891	$	(1,185	)	$	4,261	$	(63	)	$	70,152	$	(1,248	)


2015	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	25,464	$	(112	)	$	1,132	$	(17	)	$	26,596	$	(129	)
Obligations of states and political subdivisions		2,932		(20	)		1,469		(42	)		4,401		(62	)
Mortgage-backed securities in gov’t sponsored entities		27,263		(172	)		5,041		(71	)		32,304		(243	)

Total temporarily impaired	$	55,659	$	(304	)	$	7,642	$	(130	)	$	63,301	$	(434	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive loss on the Consolidated Balance Sheet.

The Company has assessed each available-for-sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

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The length of time and the extent to which fair value has been below cost;

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The severity of impairment;

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The cause of the impairment and the financial condition and near-term prospects of the issuer;

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If the Company intends to sell the investment;

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If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

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If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

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Identification and evaluation of investments that have indications of impairment;

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Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

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Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

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Documentation of these analyses, as required by policy.

At December 31, 2016, the Company owned 67 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.