3. Investment securities:

The amortized cost and fair value of investment securities aggregated by investment category at December 31, 2016 and 2015 are summarized as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2016	Cost		Gains		Losses		Value
Available-for-sale:
U.S. Treasury securities	$	7,570			$	132	$	7,438
U.S. Government-sponsored enterprises		82,314	$	79		1,480		80,913
State and municipals:
Taxable		14,698		566		39		15,225
Tax-exempt		110,931		2,309		640		112,600
Mortgage-backed securities:
U.S. Government agencies		21,041		48		47		21,042
U.S. Government-sponsored enterprises		22,303		48		159		22,192
Total	$	258,857	$	3,050	$	2,497	$	259,410
Held-to-maturity:
Tax-exempt state and municipals	$	6,862	$	72	$	67	$	6,867
Mortgage-backed securities:
U.S. Government agencies		68		1				69
U.S. Government-sponsored enterprises		3,587		191				3,778
Total	$	10,517	$	264	$	67	$	10,714


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2015	Cost		Gains		Losses		Value
Available-for-sale:
U.S. Treasury securities	$	10,030			$	31	$	9,999
U.S. Government-sponsored enterprises		68,831	$	291		62		69,060
State and municipals:
Taxable		15,842		735		32		16,545
Tax-exempt		121,099		3,915		90		124,924
Mortgage-backed securities:
U.S. Government agencies		31,612		73		117		31,568
U.S. Government-sponsored enterprises		32,928		119		208		32,839
Total	$	280,342	$	5,133	$	540	$	284,935
Held-to-maturity:
Tax-exempt state and municipals	$	6,865	$	186	$	16	$	7,035
Mortgage-backed securities:
U.S. Government agencies		84		1				85
U.S. Government-sponsored enterprises		5,160		326				5,486
Total	$	12,109	$	513	$	16	$	12,606

The Company had net unrealized gains on available-for-sale securities of $359, net of deferred income taxes of $194 at December 31, 2016, and $2,985, net of deferred income taxes of $1,608, at December 31, 2015. Proceeds from the sale of investment securities available-for-sale amounted to $27,408 in 2016, $81,983 in 2015, and $15,389 in 2014. Gross gains of $623, $1,189, and $919 were realized on the sale of securities in 2016, 2015, and 2014, respectively. There were no gross losses in 2016 or 2015. Gross losses of $58 were realized on the sale of securities in 2014.

The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at December 31, 2016, is summarized as follows:


	Fair
December 31, 2016	Value
Within one year	$	37,123
After one but within five years		105,581
After five but within ten years		51,940
After ten years		21,531
		216,175
Mortgage-backed securities		43,235
Total	$	259,410

The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at December 31, 2016, is summarized as follows:


	Amortized		Fair
December 31, 2016	Cost		Value
Within one year
After one but within five years
After five but within ten years
After ten years	$	6,862	$	6,867
		6,862		6,867
Mortgage-backed securities		3,655		3,847
Total	$	10,517	$	10,714

Securities with a carrying value of $144,750 and $180,478 at December 31, 2016 and 2015, respectively, were pledged to secure public deposits, repurchase agreements and certain other deposits as required or permitted by law.

Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At December 31, 2016 and 2015, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. Government agencies and sponsored enterprises that exceeded 10.0 percent of stockholders’ equity.

The fair value and gross unrealized losses of investment securities with unrealized losses for which an OTTI has not been recognized at December 31, 2016 and 2015, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows:


	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2016	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury securities	$	7,438	$	132					$	7,438	$	132
U.S. Government-sponsored enterprises		59,460		1,480						59,460		1,480
State and municipals:
Taxable		1,035		39						1,035		39
Tax-exempt		55,166		707	$	226	$			55,392		707
Mortgage-backed securities:
U.S. Government agencies		5,917		27		1,496		20		7,413		47
U.S. Government-sponsored enterprises		16,412		85		2,712		74		19,124		159
Total	$	145,428	$	2,470	$	4,434	$	94	$	149,862	$	2,564


	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2015	Value		Losses		Value		Losses		Value		Losses
U.S. Treasury securities	$	9,999	$	31					$	9,999	$	31
U.S. Government-sponsored enterprises		34,159		62						34,159		62
State and municipals:
Taxable					$	532	$	32		532		32
Tax-exempt		21,341		87		1,952		19		23,293		106
Mortgage-backed securities:
U.S. Government agencies		15,114		56		5,477		61		20,591		117
U.S. Government-sponsored enterprises		17,647		104		6,030		104		23,677		208
Total	$	98,260	$	340	$	13,991	$	216	$	112,251	$	556

The Company had 163 investment securities, consisting of 107 tax-exempt state and municipal obligations, two U.S. Treasury securities, two taxable state and municipal obligations, 22 U.S. Government-sponsored enterprise securities and 30 mortgage-backed securities that were in unrealized loss positions at December 31, 2016. Of these securities, nine mortgage-backed securities and two tax-exempt state and municipal securities were in a continuous unrealized loss position for twelve months or more. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at December 31, 2016.

The Company had 88 investment securities, consisting of 38 tax-exempt state and municipal obligations, one U.S. Treasury security, one taxable state and municipal obligation, twelve U.S. Government-sponsored enterprise securities, and 36 mortgage-backed securities that were in unrealized loss positions at December 31, 2015. Of these securities, seven mortgage-backed securities, four tax-exempt state and municipal securities and one taxable state and municipal obligation were in continuous unrealized loss positions for twelve months or more. There was no OTTI recognized for each of the years in the three-year period ended December 31, 2016.