Note 2. Securities

Amortized costs and fair values of securities held-to-maturity as of the dates indicated are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
September 30, 2015
Obligations of U.S. Government agencies	$	100	$	0	$	(1	)	$	99
Obligations of state and political subdivisions		28,783		536		(8	)		29,311
Mortgage-backed securities		54,507		3,063		0			57,570
Total	$	83,390	$	3,599	$	(9	)	$	86,980

December 31, 2014
Obligations of U.S. Government agencies	$	100	$	0	$	(3	)	$	97
Obligations of state and political subdivisions		29,529		449		(18	)		29,960
Mortgage-backed securities		60,460		3,889		0			64,349
Total	$	90,089	$	4,338	$	(21	)	$	94,406

Amortized costs and fair values of securities available-for-sale as of the dates indicated are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
September 30, 2015
U.S. Treasury securities	$	20,000	$	0	$	0		$	20,000
Obligations of U.S. Government agencies		4,254		2		(120	)		4,136
Obligations of state and political subdivisions		48,716		546		(395	)		48,867
Mortgage-backed securities		53,925		23		(480	)		53,468
Money market investments		680		0		0			680
Corporate bonds		3,298		9		(4	)		3,303
Other marketable equity securities		100		0		(15	)		85
Total	$	130,973	$	580	$	(1,014	)	$	130,539

December 31, 2014
U.S. Treasury securities	$	20,000	$	0	$	0		$	20,000
Obligations of U.S. Government agencies		4,768		2		(152	)		4,618
Obligations of state and political subdivisions		49,783		698		(235	)		50,246
Mortgage-backed securities		61,296		34		(442	)		60,888
Money market investments		719		0		0			719
Corporate bonds		2,798		3		(11	)		2,790
Other marketable equity securities		100		0		(15	)		85
Total	$	139,464	$	737	$	(855	)	$	139,346

There were no gains or losses recorded on the sale of available-for-sale securities in the three months ended September 30, 2014 or in the three or nine months ended September 30, 2015. For the nine months ended September 30, 2014, there were no gains, and gross losses were $7 thousand.

OTHER-THAN-TEMPORARILY IMPAIRED SECURITIES

Management assesses whether the Company intends to sell or it is more-likely-than-not that the Company will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other-than-temporarily impaired and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, the Company separates the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security's amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security's fair value and the present value of expected future cash flows is due to factors that are not credit related, which are recognized in other comprehensive income.

The present value of expected future cash flows is determined using the best-estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best-estimate cash flows vary depending on the type of security. The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds, and structural support, including subordination and guarantees.

The Company has a process in place to identify debt securities that could potentially have a credit or interest-rate related impairment that is other-than-temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues. On a quarterly basis, management reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. Management considers relevant facts and circumstances in evaluating whether a credit or interest-rate related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (a) the extent and length of time the fair value has been below cost; (b) the reasons for the decline in value; (c) the financial position and access to capital of the issuer, including the current and future impact of any specific events; and (d) for fixed maturity securities, the Company's intent to sell a security or whether it is more-likely-than-not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity, and for equity securities, the Company's ability and intent to hold the security for a period of time that allows for the recovery in value.

The Company has not recorded impairment charges through income on securities for the three or nine months ended September 30, 2015 or the year ended December 31, 2014.

TEMPORARILY IMPAIRED SECURITIES

The following table shows the number of securities with unrealized losses, and the gross unrealized losses and fair value of the Company's investments with unrealized losses that are deemed to be temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated.

	September 30, 2015
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Number of Securities
	(dollars in thousands)
Securities Available-for-Sale
Debt securities:
Obligations of U.S. Government agencies	$	0	$	0	$	120	$	3,834	$	120	$	3,834		1
Obligations of state and political subdivisions		226		13,060		169		3,952		395		17,012		33
Mortgage-backed securities		480		34,229		0		0		480		34,229		5
Corporate bonds		2		1,198		2		298		4		1,496		12
Other marketable equity securities		0		0		15		85		15		85		1
Total securities available-for-sale	$	708	$	48,487	$	306	$	8,169	$	1,014	$	56,656		52

Securities Held-to-Maturity
Obligations of U.S. Government agencies	$	0	$	0	$	1	$	99	$	1	$	99		1
Obligations of state and political subdivisions		6		1,444		2		536		8		1,980		4
Total securities held-to-maturity	$	6	$	1,444	$	3	$	635	$	9	$	2,079		5

Total securities	$	714	$	49,931	$	309	$	8,804	$	1,023	$	58,735		57

	December 31, 2014
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Number of Securities
	(dollars in thousands)
Securities Available-for-Sale
Debt securities:
U.S. Treasury securities	$	0	$	20,000	$	0	$	0	$	0	$	20,000		1
Obligations of U.S. Government agencies		0		0		152		4,316		152		4,316		1
Obligations of state and political subdivisions		2		604		233		11,951		235		12,555		24
Mortgage-backed securities		62		16,589		380		32,104		442		48,693		6
Corporate bonds		3		1,096		8		792		11		1,888		14
Other marketable equity securities		15		85		0		0		15		85		1
Total securities available-for-sale	$	82	$	38,374	$	773	$	49,163	$	855	$	87,537		47

Securities Held-to-Maturity
Obligations of U.S. Government agencies	$	0	$	0	$	3	$	97	$	3	$	97		1
Obligations of state and political subdivisions		2		1,261		16		1,203		18		2,464		6
Total securities held-to-maturity	$	2	$	1,261	$	19	$	1,300	$	21	$	2,561		7

Total securities	$	84	$	39,635	$	792	$	50,463	$	876	$	90,098		54

Certain investments within the Company's portfolio had unrealized losses at September 30, 2015 and December 31, 2014, as shown in the tables above. The unrealized losses were caused by increases in market interest rates. Because the Company does not intend to sell the investments and management believes it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at September 30, 2015 or December 31, 2014.

Restricted Securities

The restricted security category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB) and the Federal Reserve Bank (FRB). These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB and FRB stock is carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered.