(4)	Investment Securities

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2017 and December 31, 2016 were as follows:

	Total
	Amortized		Gross Unrealized					Fair
(in thousands)	Cost		Gains		Losses			Value
March 31, 2017
U.S. government and federal agency obligations	$	13,560	$	0	$	(289	)	$	13,271
Government sponsored enterprises		35,521		0		(331	)		35,190
Obligations of states and political subdivisions		46,733		180		(516	)		46,397
Mortgage-backed securities:
Residential - government agencies		121,996		132		(1,816	)		120,312
Commercial - government agencies		990		10		0			1,000
Total mortgage-backed securities		122,986		142		(1,816	)		121,312
Total available-for-sale securities	$	218,800	$	322	$	(2,952	)	$	216,170

December 31, 2016
U.S. government and federal agency obligations	$	13,667	$	0	$	(303	)	$	13,364
Government sponsored enterprises		32,786		2		(329	)		32,459
Obligations of states and political subdivisions		42,666		123		(757	)		42,032
Mortgage-backed securities:
Residential - government agencies		127,527		124		(1,995	)		125,656
Commercial - government agencies		989		12		0			1,001
Total mortgage-backed securities		128,516		136		(1,995	)		126,657
Total available-for-sale securities	$	217,635	$	261	$	(3,384	)	$	214,512

All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, small business administration guaranteed loan certificates (SBA), residential and commercial agency mortgage-backed securities, and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises.

Other Investments and securities primarily consist of Federal Home Loan Bank stock, subordinated debt equity securities, and the Company’s interest in statutory trusts. These securities are reported at cost in other assets in the amount of $9.8 million and $9.8 million as of March 31, 2017 and December 31, 2016, respectively.

Debt securities with carrying values aggregating approximately $176.8 million and $167.6 million at March 31, 2017 and December 31, 2016, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2017, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.

	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	4,136	$	4,138
Due after one year through five years		59,006		58,628
Due after five years through ten years		26,630		26,123
Due after ten years		6,042		5,969
Total		95,814		94,858
Mortgage-backed securities		122,986		121,312
Total available-for-sale securities	$	218,800	$	216,170

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2017 and December 31, 2016 were as follows:

	Less than 12 months					12 months or more					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(in thousands)	Value		Losses			Value		Losses			Value		Losses
At March 31, 2017
U.S. government and federal agency obligations	$	8,362	$	(168	)	$	4,909	$	(121	)	$	13,271	$	(289	)
Government sponsored enterprises		34,190		(331	)		0		0			34,190		(331	)
Obligations of states and political subdivisions		28,205		(516	)		0		0			28,205		(516	)
Mortgage-backed securities:
Residential - government agencies		81,414		(1,381	)		23,717		(435	)		105,131		(1,816	)
Total	$	152,171	$	(2,396	)	$	28,626	$	(556	)	$	180,797	$	(2,952	)

(in thousands)
At December 31, 2016
U.S. government and federal agency obligations	$	13,365	$	(303	)	$	0	$	0		$	13,365	$	(303	)
Government sponsored enterprises		29,432		(329	)		0		0			29,432		(329	)
Obligations of states and political subdivisions		32,318		(757	)		0		0			32,318		(757	)
Mortgage-backed securities:
Residential - government agencies		109,772		(1,848	)		3,742		(147	)		113,514		(1,995	)
Total	$	184,887	$	(3,237	)	$	3,742	$	(147	)	$	188,629	$	(3,384	)

The total available for sale portfolio consisted of approximately 309 securities at March 31, 2017. The portfolio included 205 securities having an aggregate fair value of $180.8 million that were in a loss position at March 31, 2017. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $28.6 million at fair value. The $3.0 million aggregate unrealized loss included in accumulated other comprehensive income at March 31, 2017 was caused by interest rate fluctuations.

The total available for sale portfolio consisted of approximately 298 securities at December 31, 2016. The portfolio included 216 securities having an aggregate fair value of $188.6 million that were in a loss position at December 31, 2016. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer had a fair value of $3.7 million at December 31, 2016. The $3.4 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2016 was caused by interest rate fluctuations.

Because the decline in fair value is attributable to changes in interest rates and not credit quality, these investments were not considered other-than-temporarily impaired at March 31, 2017 and December 31, 2016, respectively. In the absence of changes in credit quality of these investments, the fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date, or if market yields for such investments decline. In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that the Company will be required to sell such investment securities.

The table presents the components of investment securities gains and losses, which have been recognized in earnings:

	Three Months Ended March 31,
(in thousands)	2017		2016
Gains realized on sales	$	0	$	472
Losses realized on sales		0		0
Other-than-temporary impairment recognized		0		0
Investment securities gains	$	0	$	472