4.	INVESTMENT SECURITIES AVAILABLE FOR SALE

Investment securities available for sale consisted of the following as of the dates indicated (in thousands):

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

U.S. Treasuries and government agencies	$	46,605	$	20	$	(18	)	$	46,607
Municipal securities		62,058		854		(50	)		62,862
Residential mortgage-backed securities		74,813		899		(38	)		75,674

Total	$	183,476	$	1,773	$	(106	)	$	185,143

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

U.S. Treasuries and government agencies	$	49,612	$	5	$	(117	)	$	49,500
Municipal securities		63,276		717		(60	)		63,933
Residential mortgage-backed securities		85,072		647		(567	)		85,152

Total	$	197,960	$	1,369	$	(744	)	$	198,585

The mortgage-backed portfolios at March 31, 2016 and December 31, 2015 were composed entirely of residential mortgage-backed securities issued or guaranteed by GNMA, FNMA or FHLMC.

The following tables summarize 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 (“OTTI”), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):

	March 31, 2016
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

U.S. Treasuries and government agencies	$	31,408	$	18	$	--	$	--	$	31,408	$	18
Municipal securities		3,269		28		2,390		22		5,659		50
Residential mortgage-backed securities		11,355		32		1,066		6		12,421		38

Total	$	46,032	$	78	$	3,456	$	28	$	49,488	$	106

	December 31, 201 5
	Less than 12 Months				12 Months or More				Total
		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

U.S. Treasuries and government agencies	$	46,805	$	117	$	--	$	--	$	46,805	$	117
Municipal securities		4,741		32		2,707		28		7,448		60
Residential mortgage-backed securities		57,561		567		--		--		57,561		567

Total	$	109,107	$	716	$	2,707	$	28	$	111,814	$	744

On a quarterly basis, management conducts a formal review of securities for the presence of OTTI. Management assesses whether an OTTI is present when the fair value of a security is less than its amortized cost basis at the balance sheet date. For such securities, OTTI is considered to have occurred if the Company intends to sell the security, if it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis or if the present values of expected cash flows is not sufficient to recover the entire amortized cost.

The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the fair value of securities will decrease; as market yields fall, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Additionally, the unrealized losses are also considered temporary because scheduled coupon payments have been made, it is anticipated that the entire principal balance will be collected as scheduled, and management neither intends to sell the securities nor is it more likely than not that the Company will be required to sell the securities before the recovery of the remaining amortized cost amount.

The Company has pledged investment securities with carrying values of approximately $125.5 million at March 31, 2016 and $119.1 million at December 31, 2015, as collateral for certain deposits in excess of $250,000 and for other purposes, including investment securities with carrying values of approximately $9.0 million at March 31, 2016 and $12.1 million at December 31, 2015, for securities sold under agreements to repurchase.

The following table sets forth the amount (dollars in thousands) of investment securities available for sale that contractually mature during each of the periods indicated and the weighted average yields for each range of maturities at March 31, 2016. Weighted average yields for municipal obligations have not been adjusted to a tax-equivalent basis. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay the obligation without prepayment penalties.

	March 31, 2016
	Amortized Cost		Fair Value		Weighted Average Rate

Within one year	$	45,990	$	45,990		0.61	%
Due from one year to five years		20,734		20,882		1.91	%
Due from five years to ten years		17,333		17,697		2.82	%
Due after ten years		24,606		24,900		3.12	%
		108,663		109,469		1.79	%
Residential mortgage-backed securities		74,813		75,674		2.29	%
Total	$	183,476	$	185,143		1.99	%

As of March 31, 2016 and December 31, 2015, investments with amortized cost totaling approximately $64.4 million and $68.4 million, respectively, have call options held by the issuer, of which approximately $25.6 million and $26.1 million, respectively, are or were callable within one year.

Sales of investment securities available for sale are summarized as follows (in thousands):

	Three Months Ended March 31,
	2016			2015

Sales proceeds	$	8,089		$	2,082

Gross realized gains	$	98		$	88
Gross realized losses		(100	)		--
Net gains (losses) on sales of investment securities	$	(2	)	$	88