Note 2. Securities

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, 2017
Obligations of U.S. Government agencies	$	9,574	$	11	$	(92	)	$	9,493
Obligations of state and political subdivisions		67,815		771		(152	)		68,434
Mortgage-backed securities		78,436		-		(1,120	)		77,316
Money market investments		1,169		-		-			1,169
Corporate bonds and other securities		7,349		166		(5	)		7,510
Other marketable equity securities		100		90		-			190
Total	$	164,443	$	1,038	$	(1,369	)	$	164,112

December 31, 2016
U.S. Treasury securities	$	20,000	$	-	$	-		$	20,000
Obligations of U.S. Government agencies		9,361		-		(166	)		9,195
Obligations of state and political subdivisions		78,645		358		(1,016	)		77,987
Mortgage-backed securities		85,649		18		(1,973	)		83,694
Money market investments		647		-		-			647
Corporate bonds and other securities		7,598		92		(12	)		7,678
Other marketable equity securities		100		64		-			164
Total	$	202,000	$	532	$	(3,167	)	$	199,365

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, 2017 or the year ended December 31, 2016.

The following table summarizes realized gains and losses on the sale of investment securities during the periods indicated:

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
	2017			2016				2017			2016
Securities Available-for-sale
Realized gains on sales of securities		$	2		$	24			$	89		$	578
Realized losses on sales of securities			-			(17	)			-			(56	)
Net realized gain		$	2		$	7			$	89		$	522

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 not deemed to be other-than-temporarily impaired as of September 30, 2017 and December 31, 2016, 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, 2017
	Less Than Twelve Months						More Than Twelve Months						Total
September 30, 2017	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
Obligations of U.S. Government agencies		$	10		$	4,393		$	82		$	3,120	$	92		$	7,513		11
Obligations of state and political subdivisions			80			5,006			72			6,898		152			11,904		15
Mortgage-backed securities			257			32,054			863			45,262		1,120			77,316		24
Corporate bonds			1			1,299			4			295		5			1,594		10
Total securities available-for-sale		$	348		$	42,752		$	1,021		$	55,575	$	1,369		$	98,327		60

December 31, 2016
	Less Than Twelve Months						More Than Twelve Months						Total
December 31, 2016	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
Obligations of U.S. Government agencies		$	166		$	9,195		$	-		$	-		$	166		$	9,195		6
Obligations of state and political subdivisions			1,016			38,020			-			-			1,016			38,020		56
Mortgage-backed securities			1,973			80,680			-			-			1,973			80,680		23
Corporate bonds			11			1,787			1			100			12			1,887		13
Total securities available-for-sale		$	3,166		$	129,682		$	1		$	100		$	3,167		$	129,782		98

Certain investments within the Company's portfolio had unrealized losses for more than twelve months at September 30, 2017 and December 31, 2016, 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, 2017 or December 31, 2016.

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.