SECURITIES AVAILABLE FOR SALE

The following table summarizes amortized cost and fair value of securities available for sale at December 31, 2016 and 2015 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). At December 31, 2016 and 2015 all investment securities were classified as available for sale.



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2016
U.S. Government Agencies	$	39,569	$	147	$	124	$	39,592
States and political subdivisions	163,677		1,782		1,177		164,282
U.S. Government Sponsored Enterprises (GSE) residential mortgage-backed securities	116,022		928		6		116,944
GSE residential collateralized mortgage obligations (CMOs)	72,411		240		3,268		69,383
GSE commercial CMOs	5,148		0		292		4,856
Private label CMOs	5,042		0		36		5,006
Total debt securities	401,869		3,097		4,903		400,063
Equity securities	50		41		0		91
Totals	$	401,919	$	3,138	$	4,903	$	400,154
December 31, 2015
U.S. Government Agencies	$	47,209	$	200	$	182	$	47,227
States and political subdivisions	124,421		2,483		943		125,961
GSE residential mortgage-backed securities	132,389		229		269		132,349
GSE residential CMOs	15,668		215		40		15,843
GSE commercial CMOs	63,598		735		563		63,770
Private label CMOs	8,944		0		43		8,901
Total debt securities	392,229		3,862		2,040		394,051
Equity securities	50		23		0		73
Totals	$	392,279	$	3,885	$	2,040	$	394,124

The following table summarizes securities available for sale with unrealized losses at December 31, 2016 and 2015, aggregated by major security type and length of time in a continuous unrealized loss position.



	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2016
U.S. Government Agencies	$	10,710	$	23	$	13,531	$	101	$	24,241	$	124
States and political subdivisions	58,924		610		5,075		567		63,999		1,177
GSE residential mortgage-backed securities	5,034		6		0		0		5,034		6
GSE residential CMOs	59,534		3,264		634		4		60,168		3,268
GSE commercial CMOs	4,856		292		0		0		4,856		292
Private label CMOs	0		0		5,005		36		5,005		36
Totals	$	139,058	$	4,195	$	24,245	$	708	$	163,303	$	4,903
December 31, 2015
U.S. Government Agencies	$	27,640	$	182	$	0	$	0	$	27,640	$	182
States and political subdivisions	30,252		373		14,139		570		44,391		943
GSE residential mortgage-backed securities	82,911		269		0		0		82,911		269
GSE residential CMOs	0		0		4,237		40		4,237		40
GSE commercial CMOs	33,606		563		0		0		33,606		563
Private label CMOs	8,901		43		0		0		8,901		43
Totals	$	183,310	$	1,430	$	18,376	$	610	$	201,686	$	2,040

The Company has 46 securities and 53 securities at December 31, 2016 and 2015 for which amortized cost exceeds fair value, as discussed below.

U.S. Government Agencies and GSE Securities. At December 31, 2016, a total of 17 U.S. Government Agencies and GSE securities, including mortgage-backed and CMOs have unrealized losses, 14 of which were in the less than 12 months category, and 3 which were in the 12 months or more category. At December 31, 2015, the Company had 29 such securities with unrealized losses, 25 of which were in the less than 12 months category, and 4 of which were in the 12 months or more category. These unrealized losses have been caused by a widening of spreads or a rise in interest rates from the time the securities were purchased. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the par value basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that 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 December 31, 2016 or 2015.

State and Political Subdivisions. At December 31, 2016, a total of 26 state and political subdivision securities have unrealized losses, 25 of which were in the less than 12 months category, and 1 which was in the 12 months or more category. At December 31, 2015, the Company had 21 such securities with unrealized losses, 16 of which were in the less than 12 months category, and 5 of which were in the 12 months or more category. These unrealized losses have been caused by a widening of spreads or a rise in interest rates from the time the securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is other-than-temporarily impaired. Because the Company does not intend to sell the investments and it is not more likely than not that 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 December 31, 2016 or 2015.

Private Label CMOs. At December 31, 2016, a total of 3 private label CMOs have unrealized losses, all 3 of which were in the 12 months or more category. At December 31, 2015, the Company had 3 such securities with unrealized losses, all 3 of which were in the less than 12 months category. These unrealized losses have been caused by a widening of spreads or a rise in interest rates from the time the securities were purchased. Because the Company does not intend to sell the investments and it is not more likely than not that 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 December 31, 2016.

The following table summarizes amortized cost and fair value of securities available for sale at December 31, 2016 by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.



	Available for Sale
(Dollars in thousands)	Amortized Cost		Fair Value

Due in one year or less	$	15	$	15
Due after one year through five years	7,157		7,258
Due after five years through ten years	72,205		72,817
Due after ten years	123,869		123,784
Mortgage-backed securities and CMOs	198,623		196,189
Total debt securities	401,869		400,063
Equity securities	50		91
Totals	$	401,919	$	400,154

Proceeds from sales of securities available for sale for the years ended December 31, 2016, 2015 and 2014 totaled $64,742,000, $65,611,000 and $169,573,000. Gross gains on the sales of securities totaled $1,468,000, $1,948,000 and $2,301,000 for the years ended December 31, 2016, 2015 and 2014. Gross losses on sales of securities available for sale totaled $48,000, $24,000 and $366,000 for the years ended December 31, 2016, 2015 and 2014.

Securities pledged at December 31, 2016 and 2015 had a fair value of $317,282,000 and $250,397,000 and were pledged to secure public funds and for other purposes as required or permitted by law.