3. INVESTMENT SECURITIES

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at June 30, 2017 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value

Investment securities available-for-sale:
U.S. Treasury Securities	$	28,660	$	—	$	(94	)	$	28,566
Securities of U.S. government agencies and corporations		22,370		7		(154	)		22,223
Obligations of states and political subdivisions		30,345		263		(114	)		30,494
Collateralized mortgage obligations		67,465		10		(940	)		66,535
Mortgage-backed securities		158,154		218		(1,803	)		156,569

Total debt securities	$	306,994	$	498	$	(3,105	)	$	304,387

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2016 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value

Investment securities available-for-sale:
U.S. Treasury Securities	$	28,738	$	2	$	(88	)	$	28,652
Securities of U.S. government agencies and corporations		24,382		2		(187	)		24,197
Obligations of states and political subdivisions		30,870		271		(253	)		30,888
Collateralized mortgage obligations		51,002		1		(1,065	)		49,938
Mortgage-backed securities		144,883		280		(1,759	)		143,404

Total debt securities	$	279,875	$	556	$	(3,352	)	$	277,079

The Company had $0 and $2,737,000 in proceeds from sales/calls of available-for-sale securities for the three and six months ended June 30, 2017, respectively. The Company had $16,726,000 and $20,704,000 in proceeds from calls of available-for-sale securities for the three and six months ended June 30, 2016. There were no gross realized gains on sales of available-for-sale securities for the three and six months ended June 30, 2017. Gross realized gains from sales of available-for-sale securities were $0 and $14,000 for the three and six months ended June 30, 2016. Gross realized losses from sales/calls of available-for-sale securities were $0 and $(16,000) for the three and six months ended June 30, 2017. There were no gross realized losses on sales of available-for-sale securities for the three and six months ended June 30, 2016.

The amortized cost and estimated market value of debt and other securities at June 30, 2017, by contractual and expected maturity, are shown in the following table:

(in thousands)	Amortized cost		Estimated fair value

Maturity in years:
Due in one year or less	$	32,376	$	32,341
Due after one year through five years		42,042		41,811
Due after five years through ten years		6,957		7,130
Due after ten years		—		—
Subtotal		81,375		81,282
MBS & CMO		225,619		223,105
Total	$	306,994	$	304,387

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. In addition, factors such as prepayments and interest rates may affect the yield on the carrying value of mortgage-related securities.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of June 30, 2017, follows:

	Less than 12 months					12 months or more					Total
(in thousands)	Fair Value		Unrealized losses			Fair Value		Unrealized losses			Fair Value		Unrealized losses

U.S. Treasury securities	$	28,566	$	(94	)	$	—	$	—		$	28,566	$	(94	)
Securities of U.S. government agencies and corporations		20,215		(154	)		—		—			20,215		(154	)
Obligations of states and political subdivisions		16,860		(110	)		993		(4	)		17,853		(114	)
Collateralized Mortgage obligations		55,931		(940	)		—		—			55,931		(940	)
Mortgage-backed securities		116,730		(1,459	)		18,211		(344	)		134,941		(1,803	)

Total	$	238,302	$	(2,757	)	$	19,204	$	(348	)	$	257,506	$	(3,105	)

No decline in value was considered "other-than-temporary" during the first six months of 2017. One hundred seventy securities, all considered investment grade, which had a fair value of $238,302,000 and a total unrealized loss of $2,757,000, have been in an unrealized loss position for less than twelve months as of June 30, 2017. Nineteen securities, all considered investment grade, which had a fair value of $19,204,000 and a total unrealized loss of $348,000, have been in an unrealized loss position for more than twelve months as of June 30, 2017. The declines in fair value were attributable to changes in interest rates. We have evaluated the credit ratings of our investment securities and their issuer and/or insurers, and based on this evaluation have determined that no investment security in our investment portfolio was other-than-temporarily impaired as of June 30, 2017. As the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities prior to their anticipated recovery, these investments are not considered other-than-temporarily impaired.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2016, follows:


	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		$	23,564		$	(88	)		$	—		$	—			$	23,564		$	(88	)
Securities of U.S. government agencies and corporations			22,195			(187	)			—			—				22,195			(187	)
Obligations of states and political subdivisions			16,168			(245	)			996			(8	)			17,164			(253	)
Collateralized Mortgage obligations			49,805			(1,065	)			—			—				49,805			(1,065	)
Mortgage-backed securities			109,092			(1,678	)			4,829			(81	)			113,921			(1,759	)

Total		$	220,824		$	(3,263	)		$	5,825		$	(89	)		$	226,649		$	(3,352	)

Investment securities carried at $34,406,000 and $38,152,000 at June 30, 2017 and December 31, 2016, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.