(3) Securities

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


June 30, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	35,690	$	158	$	(85	)	$	35,763
Obligations of states and political subdivisions		104,811		4,386		(255	)		108,942
Mortgage-backed securities in government sponsored entities		84,266		853		(384	)		84,735

Total debt securities		224,767		5,397		(724	)		229,440
Equity securities in financial institutions		481		276		—			757

Total	$	225,248	$	5,673	$	(724	)	$	230,197


December 31, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
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-backed 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

The amortized cost and fair value of securities at June 30, 2017, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities are shown separately.


Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	4,800	$	4,801
Due after one year through five years		33,657		33,779
Due after five years through ten years		31,566		33,177
Due after ten years		70,478		72,948
Mortgage-backed securities		84,266		84,735
Equity securities		481		757

Total securities available for sale	$	225,248	$	230,197

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


	Three months ended				Six months ended
	June 30,				June 30,
	2017		2016		2017		2016
Sale proceeds	$	—	$	1,994	$	—	$	1,994
Gross realized gains		—		—		—		—
Gross realized losses		—		—		—		—
Gains from securities called or settled by the issuer		—		6		—		1

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $138,078 and $139,179 as of June 30, 2017 and December 31, 2016, respectively.

Securities with unrealized losses at June 30, 2017 and December 31, 2016 not recognized in income are as follows:


June 30, 2017	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	$	20,067	$	(73	)	$	821	$	(12	)	$	20,888	$	(85	)
Obligations of states and political subdivisions		11,377		(188	)		1,547		(67	)		12,924		(255	)
Mortgage-backed securities in gov’t sponsored entities		28,040		(332	)		3,110		(52	)		31,150		(384	)

Total temporarily impaired	$	59,484	$	(593	)	$	5,478	$	(131	)	$	64,962	$	(724	)


December 31, 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	)

At June 30, 2017, there were fifty-six securities in the portfolio with unrealized losses mainly due to higher market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities 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 market yields increasing across the municipal sector. 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.