6. Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale were as follows:



	September 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	2,002	$	-	$	(6)	$	1,996
States and political subdivisions		119,173		1,548		(1,016)		119,705
Corporate obligations		10,115		39		(65)		10,089
Mortgage-backed securities-
government sponsored entities		156,636		34		(2,990)		153,680
Total debt securities		287,926		1,621		(4,077)		285,470
Equity securities-financial services		185		51		-		236
	$	288,111	$	1,672	$	(4,077)	$	285,706



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

	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	2,005	$	-	$	(8)	$	1,997
States and political subdivisions		127,585		884		(3,368)		125,101
Corporate obligations		10,255		37		(180)		10,112
Mortgage-backed securities-government
sponsored entities		169,124		26		(4,220)		164,930
Total debt securities		308,969		947		(7,776)		302,140
Equity securities-financial services		320		104		-		424
	$	309,289	$	1,051	$	(7,776)	$	302,564

The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands):



	September 30, 2017
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	1,997	$	(6)	$	1,997	$	(6)
States and political subdivisions		45,387		(483)		24,817		(533)		70,204		(1,016)
Corporate obligations		3,697		(28)		3,222		(37)		6,919		(65)
Mortgage-backed securities-government sponsored entities		101,143		(1,541)		50,504		(1,449)		151,647		(2,990)
	$	150,227	$	(2,052)	$	80,540	$	(2,025)	$	230,767	$	(4,077)



	December 31, 2016
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	1,997	$	(8)	$	-	$	-	$	1,997	$	(8)
States and political subdivisions		90,109		(3,362)		205		(6)		90,314		(3,368)
Corporate obligations		6,895		(180)		-		-		6,895		(180)
Mortgage-backed securities-government sponsored entities		152,614		(3,912)		9,967		(308)		162,581		(4,220)
	$	251,615	$	(7,462)	$	10,172	$	(314)	$	261,787	$	(7,776)

At September 30, 2017, the Company has 145 debt securities in an unrealized loss position in the less than twelve months category and 73 debt securities in the twelve months or more category. In Management’s opinion the unrealized losses reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2017. Management believes that all unrealized losses represent temporary impairment of the securities as the Company does not have the intent to sell the securities and it is more likely than not that it will not have to sell the securities before recovery of its cost basis.

The amortized cost and fair value of debt securities as of September 30, 2017 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.



	Available for Sale
	Amortized Cost		Fair Value
		(In Thousands)

Due in one year or less	$	4,643	$	4,663
Due after one year through five years		18,134		18,131
Due after five years through ten years		47,731		47,333
Due after ten years		60,783		61,663

Mortgage-backed securities-government sponsored agencies		156,636		153,680
	$	287,927	$	285,470

Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands):



	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2017		2016		2017		2016
Gross realized gains	$	129	$	-	$	173	$	269
Gross realized losses		-		-		(6)		-
Net realized gain	$	129	$	-	$	167	$	269
Proceeds from sales of securities	$	11,192	$	70,028	$	13,027	$	101,804

Securities with a carrying value of $205,678,000 and $217,907,000 at September 30, 2017 and 2016, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.