Note 2. Securities

The amortized cost and fair values of securities available for sale as of September 30, 2015 and December 31, 2014 were as follows (dollars in thousands):

September 30, 2015	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government agencies	$	19,715	$	238	$	(11)		$	19,942
Corporate bonds		11,152		11		(24	)		11,139
Asset-backed securities		2,119		-		(21	)		2,098
Mortgage-backed securities/CMOs		59,437		364		(215	)		59,586
Municipal bonds		22,666		176		(147	)		22,695
	$	115,089	$	789	$	(418	)	$	115,460

December 31, 2014	Amortized		Gross Unrealized		Gross Unrealized			Fair
	Cost		Gains		Losses			Value
U.S. Government agencies	$	31,189	$	395	$	(56	)	$	31,528
Corporate bonds		21,373		21		(118	)		21,276
Asset-backed securities		2,133		-		(28	)		2,105
Mortgage-backed securities/CMOs	Mortgage-backed securities/CMOs	63,327		297		(404	)		63,220
Municipal bonds		23,727		157		(197	)		23,687
	$	141,749	$	870	$	(803	)	$	141,816

Securities having carrying values of $34.023 million at September 30, 2015 were pledged as collateral to secure public deposits and securities sold under agreements to repurchase. At December 31, 2014, securities having carrying values of $23.799 millionwere similarly pledged.

For the nine months ended September 30, 2015, proceeds from the sales and calls of securities amounted to $34.892 million, and realized gains on these securities were $69 thousand. For the nine months ended September 30, 2014, proceeds from the sales of securities amounted to $6.490 million, and realized gains on these securities were $16 thousand.

Restricted securities are securities with limited marketability and consist of stock in the Federal Reserve Bank of Richmond (“FRB”), the Federal Home Loan Bank of Atlanta (“FHLB”), and CBB Financial Corporation (“CBBFC”), the holding company for Community Bankers Bank, totaling $1.586 million as of September 30, 2015 and $1.565 million as of December 31, 2014. These restricted securities are carried at cost.

The following table summarizes all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, at September 30, 2015 and December 31, 2014 (dollars in thousands):

September 30, 2015

	Less than 12 Months					12 Months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government agencies	$	-	$	-		$	989	$	(11	)	$	989	$	(11)
Corporate bonds		6,028		(24	)		-		-			6,028		(24	)
Asset-backed securities		1,143		(18	)		955		(3	)		2,098		(21	)
Mortgage-backed/CMOs		13,101		(43	)		12,071		(172	)		25,172		(215	)
Municipal bonds		5,956		(80	)		1,906		(67	)		7,862		(147	)
	$	26,228	$	(165	)	$	15,921	$	(253	)	$	42,149	$	(418	)
December 31, 2014
	Less than 12 Months					12 Months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government agencies	$	6,375	$	(21	)	$	966	$	(35	)	$	7,341	$	(56	)
Corporate bonds		13,213		(102	)		3,032		(16	)		16,245		(118	)
Asset-backed securities		98		-			2,007		(28	)		2,105		(28	)
Mortgage-backed/CMOs		6,276		(35	)		25,081		(369	)		31,357		(404	)
Municipal bonds		1,769		(19	)		10,330		(178	)		12,099		(197	)
	$	27,731	$	(177	)	$	41,416	$	(626	)	$	69,147	$	(803	)

As of September 30, 2015, there were $42.149 million, or 48 issues of individual securities in a loss position. These securities have an unrealized loss of $418 thousand and consisted of 21 mortgage-backed/CMOs, 18 municipal bonds, and 9 other security issues.

The Company's securities portfolio is primarily made up of fixed rate bonds, whose prices move inversely with interest rates. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. At the end of any accounting period, the portfolio may have both unrealized gains and losses. Management does not believe any of the securities in an unrealized loss position are impaired due to credit quality. Accordingly, as of September 30, 2015, management believes the impairments detailed in the table above are temporary, and no impairment loss has been realized in the Company's consolidated income statement.

An “other-than-temporary impairment” (“OTTI”) is considered to exist if any of the following conditions are met: it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, or the Company does not expect to recover the security's entire amortized cost basis (even if the Company does not intend to sell). In the event that a security would suffer impairment for a reason that was “other than temporary,” the Company would be expected to write down the security's value to its new fair value, and the amount of the write down would be included in earnings as a realized loss. As of September 30, 2015, management has concluded that none of its investment securities have an OTTI based upon the information available at this time. Additionally, management has the ability to hold any security with an unrealized loss until maturity or until such time as the value of the security has recovered from its unrealized loss position.