Note 3. 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)
June 30, 2018
U.S. Treasury securities	$	6,844	$	-	$	(26	)	$	6,818
Obligations of U.S. Government agencies		11,519		-		(160	)		11,359
Obligations of state and political subdivisions		51,846		111		(716	)		51,241
Mortgage-backed securities		71,152		-		(2,893	)		68,259
Money market investments		1,326		-		-			1,326
Corporate bonds and other securities		3,950		44		(16	)		3,978
Total	$	146,637	$	155	$	(3,811	)	$	142,981

December 31, 2017
Obligations of U.S. Government agencies	$	9,530	$	27	$	(122	)	$	9,435
Obligations of state and political subdivisions		64,413		489		(137	)		64,765
Mortgage-backed securities		75,906		-		(1,610	)		74,296
Money market investments		1,194		-		-			1,194
Corporate bonds and other securities		7,049		195		(10	)		7,234
Other marketable equity securities		100		97		-			197
Total	$	158,192	$	808	$	(1,879	)	$	157,121

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 six months ended June 30, 2018 or the year ended December 31, 2017.

The following table summarizes net realized gains and losses on the sale of investment securities during the periods indicated (dollars in thousands):

	Three Months Ended							Six Months Ended
	June 30,							June 30,
	2018				2017			2018				2017
Securities Available-for-sale
Realized gains on sales of securities		$	51			$	87		$	131			$	87
Realized losses on sales of securities			(11	)			-			(11	)			-
Net realized gain		$	40			$	87		$	120			$	87

The following table shows 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 June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated:

June 30, 2018
	Less Than Twelve Months						More Than Twelve Months				Total
	Gross Unrealized Losses			Fair Value			Gross Unrealized Losses		Fair Value		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Securities Available-for-Sale
U.S. Treasury securities		$	26		$	6,818	$	-	$	-		$	26		$	6,818
Obligations of U.S. Government agencies			37			7,678		123		3,481			160			11,159
Obligations of state and political subdivisions			332			20,739		384		10,625			716			31,364
Mortgage-backed securities			130			4,170		2,763		64,089			2,893			68,259
Corporate bonds			4			996		12		188			16			1,184
Total securities available-for-sale		$	529		$	40,401	$	3,282	$	78,383		$	3,811		$	118,784

December 31, 2017
	Less Than Twelve Months						More Than Twelve Months						Total
	Gross Unrealized Losses			Fair Value			Gross Unrealized Losses			Fair Value			Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Securities Available-for-Sale
Obligations of U.S. Government agencies		$	11		$	3,189		$	111		$	3,089		$	122		$	6,278
Obligations of state and political subdivisions			32			11,141			105			10,999			137			22,140
Mortgage-backed securities			67			9,742			1,543			64,554			1,610			74,296
Corporate bonds			2			1,098			8			792			10			1,890
Total securities available-for-sale		$	112		$	25,170		$	1,767		$	79,434		$	1,879		$	104,604

The number of investments at an unrealized loss position as of June 30, 2018 and December 31, 2017 were 103 and 77, respectively. Certain investments within the Company's portfolio had unrealized losses for more than twelve months at June 30, 2018 and December 31, 2017, 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 June 30, 2018 or December 31, 2017.

Restricted Securities

The restricted security category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB), the Federal Reserve Bank (FRB), and Community Bankers' Bank (CBB). 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, FRB, and CBB stock are 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.