Note

. Investment Securities

The following tables present the amortized cost and fair value of available-for-sale securities, including gross unrealized gains and losses, as of the dates indicated:

	September 30, 2017
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Treasury securities	$	36,973	$	-	$	(9	)	$	36,964
U.S. Agency securities		1,254		21		-			1,275
Municipal securities		102,347		2,648		(88	)		104,907
Single issue trust preferred securities		9,363		-		(401	)		8,962
Mortgage-backed Agency securities		22,518		72		(347	)		22,243
Equity securities		55		18		-			73
Total securities available for sale	$	172,510	$	2,759	$	(845	)	$	174,424

	December 31, 2016
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	1,342	$	3	$	-		$	1,345
Municipal securities		111,659		2,258		(586	)		113,331
Single issue trust preferred securities		22,104		-		(2,165	)		19,939
Mortgage-backed Agency securities		31,290		66		(465	)		30,891
Equity securities		55		18		-			73
Total securities available for sale	$	166,450	$	2,345	$	(3,216	)	$	165,579

The following tables present the amortized cost and fair value of held-to-maturity securities, including gross unrealized gains and losses, as of the dates indicated:

	September 30, 2017
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
(Amounts in thousands)
U.S. Agency securities	$	17,949	$	31	$	-	$	17,980
Corporate securities		7,233		13		-		7,246
Total securities held to maturity	$	25,182	$	44	$	-	$	25,226

	December 31, 2016
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
(Amounts in thousands)
U.S. Agency securities	$	36,741	$	124	$	-		$	36,865
Corporate securities		10,392		11		(2	)		10,401
Total securities held to maturity	$	47,133	$	135	$	(2	)	$	47,266

he following table presents the amortized cost and aggregate fair value of available-for-sale securities and held-to-maturity securities, by contractual maturity, as of the date indicated. Actual maturities could differ from contractual maturities because issuers

may

have the right to call or prepay obligations with or without penalties.

	September 30, 2017
	Amortized
(Amounts in thousands)	Cost		Fair Value
Available-for-sale securities
Due within one year	$	37,288	$	37,279
Due after one year but within five years		5,617		5,734
Due after five years but within ten years		96,693		98,602
Due after ten years		10,339		10,493
		149,937		152,108
Mortgage-backed securities		22,518		22,243
Equity securities		55		73
Total securities available for sale	$	172,510	$	174,424

Held-to-maturity securities
Due within one year	$	-	$	-
Due after one year but within five years		25,182		25,226
Due after five years but within ten years		-		-
Due after ten years		-		-
Total securities held to maturity	$	25,182	$	25,226

The following tables present the fair values and unrealized losses for available-for-sale securities in a continuous unrealized loss position for less than

months and for

months or longer as of the dates indicated:

	September 30, 2017
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
(Amounts in thousands)
U.S. Treasury securities	$	36,963	$	(9	)	$	-	$	-		$	36,963	$	(9	)
Municipal securities		9,421		(52	)		1,427		(36	)		10,848		(88	)
Single issue trust preferred securities		-		-			8,962		(401	)		8,962		(401	)
Mortgage-backed Agency securities		7,898		(59	)		8,281		(288	)		16,179		(347	)
Total	$	54,282	$	(120	)	$	18,670	$	(725	)	$	72,952	$	(845	)

	December 31, 2016
	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
(Amounts in thousands)
Municipal securities	$	24,252	$	(527	)	$	715	$	(59	)	$	24,967	$	(586	)
Single issue trust preferred securities		-		-			19,939		(2,165	)		19,939		(2,165	)
Mortgage-backed Agency securities		12,834		(166	)		11,851		(299	)		24,685		(465	)
Total	$	37,086	$	(693	)	$	32,505	$	(2,523	)	$	69,591	$	(3,216	)

There were

unrealized losses for held-to-maturity securities as of

September 30, 2017.

The following table presents the fair values and unrealized losses for held-to-maturity securities in a continuous unrealized loss position for less than

months and for

months or longer as of the date indicated:

	December 31, 2016
	Less than 12 Months					12 Months or Longer				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
(Amounts in thousands)
Corporate securities	$	3,533	$	(2	)	$	-	$	-	$	3,533	$	(2	)
Total	$	3,533	$	(2	)	$	-	$	-	$	3,533	$	(2	)

here were

individual securities in an unrealized loss position as of

September 30, 2017,

and their combined depreciation in value represented

0.42%

of the investment securities portfolio. There were

individual securities in an unrealized loss position as of

December 31, 2016,

and their combined depreciation in value represented

1.51%

of the investment securities portfolio.

The Company reviews its investment portfolio quarterly for indications of

other-than-temporary impairment (“OTTI”). The initial indicator of OTTI for both debt and equity securities is a decline in fair value below book value and the severity and duration of the decline. For debt securities, the credit-related OTTI is recognized as a charge to noninterest income and the noncredit-related OTTI is recognized in other comprehensive income (“OCI”). During the

three

and

nine

months ended

September 30, 2017,

the Company incurred

OTTI charges on debt securities. During the

three

and

nine

months ended

September 30, 2016,

the Company incurred OTTI charges on debt securities owned of

$4.64

million related to the Company’s change in intent to hold certain securities to recovery. The intent was changed to sell specific trust preferred securities in the Company’s investment portfolio primarily to reduce credit concentrations with

two

issuers. Temporary impairment on debt securities is primarily related to changes in benchmark interest rates, changes in pricing in the credit markets, and other current economic factors. For equity securities, the OTTI is recognized as a charge to noninterest income. During the

three

and

nine

months ended

September 30, 2017,

the Company incurred

OTTI charges related to equity securities. During the

three

months ended

September 30, 2016,

the Company incurred

OTTI charges related to equity holdings. During the

nine

months ended

September 30, 2016,

the Company incurred OTTI charges related to certain equity holdings of

$11

thousand.

The

following table presents gross realized gains and losses from the sale of available-for-sale securities for the periods indicated:

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2017		2016			2017			2016
(Amounts in thousands)
Gross realized gains	$	-	$	203		$	-		$	344
Gross realized losses		-		(178	)		(657	)		(397	)
Net gain (loss) on sale of securities	$	-	$	25		$	(657	)	$	(53	)

The carrying amount of securities pledged for various purposes

totaled

$99.69

million as of

September 30, 2017,

and

$139.75

million as of

December 31, 2016.