Securities

The primary strategic objective related to the Company's securities portfolio is to assist with liquidity and interest rate risk management. The fair value of the securities classified as available-for-sale was $156.3 million at March 31, 2017 compared to $165.9 million at December 31, 2016. The carrying value of securities classified as restricted (Federal Reserve and Federal Home Loan Bank stock) was $8.0 million at March 31, 2017 compared to $9.9 million at December 31, 2016. The Company does not have any securities classified as trading or held-to-maturity.

The following table summarizes the fair value of available-for-sale securities, the related gross unrealized gains and losses recognized in accumulated other comprehensive income, and the amortized cost at March 31, 2017 and December 31, 2016:



	March 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	12,680	$	—	$	(487	)	$	12,193
States and political subdivisions	9,120		3		(25		)	9,098
U.S. government agency residential
mortgage-backed securities	119,082		134		(862		)	118,354
Collateralized residential mortgage obligations:
Agency	13,692		8		(73		)	13,627
Equity securities	2,703		348		(21		)	3,030
	$	157,277	$	493	$	(1,468	)	$	156,302



	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	12,680	$	—	$	(609	)	$	12,071
States and political subdivisions	9,127		2		(64		)	9,065
U.S. government agency residential
mortgage-backed securities	128,550		90		(1,327		)	127,313
Collateralized residential mortgage obligations:
Agency	14,566		—		(110		)	14,456
Equity securities	2,689		354		(21		)	3,022
	$	167,612	$	446	$	(2,131	)	$	165,927

The amounts below include the activity for available-for-sale securities related to sales, maturities and calls:



	Three Months Ended March 31,
	2017		2016
Proceeds from calls and maturities	$	—	$	115
Proceeds from sales	—		5,016
Realized gains	—		37
Realized losses	—		—
Net impairment loss recognized in earnings	—		—

The amortized cost and fair value of the investment securities portfolio are shown below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date and equity securities are shown separately.



	March 31, 2017
	Amortized Cost		Fair Value
Due in one year or less	$	3,431	$	3,430
Due after one year through five years	3,784		3,776
Due after five years through ten years	14,585		14,085
Due after ten years	—		—
U.S. government agency residential mortgage-backed securities	119,082		118,354
Collateralized residential mortgage obligations	13,692		13,627
Equity	2,703		3,030
	$	157,277	$	156,302

Securities with unrealized losses not recognized in income are as follows presented by length of time individual securities have been in a continuous unrealized loss position:



	March 31, 2017
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government agencies	$	12,193	$	(487	)	$	—	$	—		$	12,193	$	(487	)
States and political subdivisions	5,221		(25		)	—		—			5,221		(25		)
U.S. government agency residential
mortgage-backed securities	75,122		(640		)	17,367		(222		)	92,489		(862		)
Collateralized residential mortgage
obligations: Agency	8,182		(73		)	—		—			8,182		(73		)
Equity securities	—		—			3,030		(21		)	3,030		(21		)
Total temporarily impaired	$	100,718	$	(1,225	)	$	20,397	$	(243	)	$	121,115	$	(1,468	)



	December 31, 2016
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government agencies	$	12,071	$	(609	)	$	—	$	—		$	12,071	$	(609	)
States and political subdivisions	5,691		(64		)	—		—			5,691		(64		)
U.S. government agency residential
mortgage-backed securities	92,400		(1,178		)	9,379		(149		)	101,779		(1,327		)
Collateralized residential mortgage
obligations: Agency	12,559		(110		)	—		—			12,559		(110		)
Equity securities	2,568		(21		)	—		—			2,568		(21		)
Total temporarily impaired	$	125,289	$	(1,982	)	$	9,379	$	(149	)	$	134,668	$	(2,131	)

Unrealized losses associated with these securities are primarily due to changes in interest rates and market volatility, and the government agencies and government sponsored entities ("GSE") have not experienced significant adverse events that would call into question their ability to repay those debt obligations according to contractual terms. Further, because the Company does not have the intent to sell these bonds and it is more likely than not that it will not be required to sell the securities before their anticipated recovery of their amortized cost bases, the Company does not consider these securities to be other-than temporarily impaired as of March 31, 2017 or December 31, 2016.