Note 4. Securities

The amortized cost and fair value of securities available-for-sale at March 31, 2016 and December 31, 2015 are summarized as follows (in thousands):

	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

U.S. Government-sponsored enterprises (GSEs)	$	17,732	$	97	$	-	$	17,829

Municipal securities		7,582		83		(1)		7,664

Mortgage-backed securities		131,905		593		(430)		132,068


	$	157,219	$	773	$	(431)	$	157,561

	December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

U.S. Government-sponsored enterprises (GSEs)	$	22,745	$	48	$	(50)	$	22,743

Municipal securities		7,614		52		(17)		7,649

Mortgage-backed securities		136,625		375		(979)		136,021

	$	166,984	$	475	$	(1,046)	$	166,413

At March 31, 2016, securities with a fair value totaling approximately $105,900,000 were pledged to secure public funds and securities sold under agreements to repurchase.

For the three months ended March 31, 2016, there were available-for-sale securities sold with proceeds totaling $5,072,500 which resulted in gross gains realized of $83,263 and gross losses of $-. For the three months ended March 31, 2015 there were no securities sold.

The amortized cost and estimated fair value of securities at March 31, 2016, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
Due in one year or less	$	1,949	$	1,952
Due from one year to five years		12,899		12,946
Due from five years to ten years		5,356		5,429
Due after ten years		5,110		5,166
		25,314		25,493
Mortgage-backed securities		131,905		132,068

	$	157,219	$	157,561

The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position, as of March 31, 2016 and December 31, 2015 (in thousands):

	As of March 31, 2016
	Less than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses

Municipal securities		534		(1)		-		-		534		(1)

Mortgage-backed securities		34,957		(136)		12,127		(294)		47,084		(430)
	$	35,491	$	(137)	$	12,127	$	(294)	$	47,618	$	(431)

	As of December 31, 2015
	Less than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government- sponsored enterprises (GSEs)	$	8,464	$	(50)	$	-	$	-	$	8,464	$	(50)

Municipal securities		2,456		(17)		-		-		2,456		(17)

Mortgage-backed securities		72,641		(470)		16,325		(509)		88,966		(979)
	$	83,561	$	(537)	$	16,325	$	(509)	$	99,886	$	(1,046)

At March 31, 2016, the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows:

U.S. Government-sponsored enterprises: At March 31, 2016, one investment in U.S. GSE securities had unrealized losses. This unrealized loss related principally to changes in market interest rates. The contractual terms of the investment does not permit the issuer to settle the security at a price less than the amortized cost bases of the investment. Because the Bank does not intend to sell the investment and it is more likely than not that the Bank will not be required to sell the investment before recovery of its amortized cost basis, which may be maturity, the Bank does not consider this investment to be other-than temporarily impaired at March 31, 2016.

Municipal securities: At March 31, 2016, two investments in obligations of municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than-temporarily impaired at March 31, 2016.

Mortgage-backed securities: At March 31, 2016, 34 (or thirty four) investments in residential mortgage-backed securities had unrealized losses. This impairment is believed to be caused by the current interest rate environment. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not deem those investments to be other-than-temporarily impaired at March 31, 2016.