Note 2. Securities

The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities at September 30, 2015 and December 31, 2014 were as follows (in thousands):


	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available for sale:
U.S. agency and mortgage-backed securities	$	92,758	$	568	$	(463	)	$	92,863
Obligations of states and political subdivisions		16,037		308		(50	)		16,295
Corporate equity securities		1		7		—			8

Total securities available for sale	$	108,796	$	883	$	(513	)	$	109,166

Securities held to maturity:
U.S. agency and mortgage-backed securities	$	42,490	$	137	$	(124	)	$	42,503
Obligations of states and political subdivisions		11,786		55		(41	)		11,800

Total securities held to maturity	$	54,276	$	192	$	(165	)	$	54,303

Total securities	$	163,072	$	1,075	$	(678	)	$	163,469


	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available for sale:
U.S. agency and mortgage-backed securities	$	67,462	$	374	$	(807	)	$	67,029
Obligations of states and political subdivisions		16,031		325		(99	)		16,257
Corporate equity securities		1		5		—			6

Total securities available for sale	$	83,494	$	704	$	(906	)	$	83,292

At September 30, 2015 and December 31, 2014, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands):


	September 30, 2015
	Less than 12 months					12 months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		(Loss)			Fair Value		(Loss)			Fair Value		(Loss)
Securities available for sale:
U.S. agency and mortgage-backed securities	$	24,974	$	(125	)	$	18,114	$	(338	)	$	43,088	$	(463	)
Obligations of states and political subdivisions		2,286		(15	)		1,058		(35	)		3,344		(50	)

Total securities available for sale	$	27,260	$	(140	)	$	19,172	$	(373	)	$	46,432	$	(513	)

Securities held to maturity:
U.S. agency and mortgage-backed securities	$	14,612	$	(124	)	$	—	$	—		$	14,612	$	(124	)
Obligations of states and political subdivisions		5,000		(41	)		—		—			5,000		(41	)

Total securities held to maturity	$	19,612	$	(165	)	$	—	$	—		$	19,612	$	(165	)

Total securities	$	46,872	$	(305	)	$	19,172	$	(373	)	$	66,044	$	(678	)


	December 31, 2014
	Less than 12 months					12 months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		(Loss)			Fair Value		(Loss)			Fair Value		(Loss)
Securities available for sale:
U.S. agency and mortgage-backed securities	$	8,677	$	(60	)	$	32,527	$	(747	)	$	41,204	$	(807	)
Obligations of states and political subdivisions		715		(1	)		2,841		(98	)		3,556		(99	)

Total securities available for sale	$	9,392	$	(61	)	$	35,368	$	(845	)	$	44,760	$	(906	)

The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities.

At September 30, 2015, there were thirty-one U.S. agency and mortgage-backed securities and twenty obligations of state and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 4.4 years at September 30, 2015. At December 31, 2014, there were twenty-nine U.S. agency and mortgage-backed securities and seven obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2014. The weighted-average re-pricing term of the portfolio was 3.9 years at December 31, 2014. The unrealized losses at September 30, 2015 in the U.S. agency and mortgage-backed securities portfolio and the obligation of states and political subdivisions portfolio were related to changes in market interest rates and not credit concerns of the issuers.

The amortized cost and fair value of securities at September 30, 2015 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date.


	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due within one year	$	391	$	393	$	—	$	—
Due after one year through five years		7,806		7,853		633		631
Due after five years through ten years		20,377		20,499		15,215		15,245
Due after ten years		80,221		80,413		38,428		38,427
Corporate equity securities		1		8		—		—

	$	108,796	$	109,166	$	54,276	$	54,303

Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at September 30, 2015, and no impairment has been recognized. Restricted securities are not part of the securities portfolio.

The composition of restricted securities at September 30, 2015 and December 31, 2014 was as follows (in thousands):


	September 30, 2015		December 31, 2014
Federal Home Loan Bank stock	$	466	$	470
Federal Reserve Bank stock		875		846
Community Bankers’ Bank stock		50		50

	$	1,391	$	1,366