Securities

The following table summarizes the fair value of available-for-sale securities, the related gross unrealized gains and losses recognized in accumulated other comprehensive income, and the amortized cost as follows:



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	14,629	$	13	$	(35	)	$	14,607
States and political subdivisions	10,190		16		(25		)	10,181
U.S. government agency residential
mortgage-backed securities	127,039		7		(1,017		)	126,029
Collateralized residential mortgage obligations:
Agency	17,990		—		(157		)	17,833
Equity securities	2,632		158		—			2,790
Corporate	—		—		—			—
	$	172,480	$	194	$	(1,234	)	$	171,440



	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. government agencies	$	21,274	$	6	$	(171	)	$	21,109
States and political subdivisions	8,951		78		(1		)	9,028
U.S. government agency residential
mortgage-backed securities	99,338		551		(221		)	99,668
Collateralized residential mortgage obligations:
Agency	38		—		—			38
Equity securities	2,579		157		—			2,736
Collateralized debt obligations:
Single issue	765		—		(3		)	762
Corporate	2,000		30		—			2,030
	$	134,945	$	822	$	(396	)	$	135,371

The amounts below include the activity for available-for-sale securities related to sales, maturities and calls:



	2015			2014
Proceeds from calls and maturities	$	5,965		$	2,165
Proceeds from sales	91,409			60,161
Realized gains	519			1,258
Realized losses	(180		)	(329		)
Net impairment loss recognized in earnings	—			—

The amortized cost and fair value of the investment securities portfolio are shown below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.



	December 31, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	2,592	$	2,600
Due after one year through five years	9,075		9,076
Due after five years through ten years	8,173		8,151
Due after ten years	4,979		4,961
U.S. government agency residential mortgage-backed securities	127,039		126,029
Collateralized residential mortgage obligations	17,990		17,833
Equity	2,632		2,790
	$	172,480	$	171,440

Securities with carrying values of approximately $114.9 million at December 31, 2015 and $115.9 million at December 31, 2014 were pledged to secure public deposits and securities sold under agreements to repurchase and for other purposes as required or permitted by law. At December 31, 2015 there were no holdings of securities of any one issuer, other than the U.S. Government agencies, in an amount greater than 10% of stockholders’ equity. At year-end 2014, holdings of securities of any issuer other than U.S. government or its agencies in excess of 10% of stockholders’ equity were: $4.8 million in securities issued by Ottawa High School in Ottawa, IL.

The Company does not have any securities classified as trading or held-to-maturity.

Securities with unrealized losses not recognized in income are as follows presented by length of time individual securities have been in a continuous unrealized loss position:



	December 31, 2015
	Less than 12 Months					12 Months or More				Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. government agencies	$	10,394	$	(35	)	$	—	$	—	$	10,394	$	(35	)
States and political subdivisions	$	6,057	$	(25	)	$	—	$	—	$	6,057	$	(25	)
U.S. government agency residential
mortgage-backed securities	124,411		(1,017		)	—		—		124,411		(1,017		)
Collateralized residential mortgage
obligations: Agency	17,833		(157		)	—		—		17,833		(157		)
Corporate	—		—			—		—		—		—
Total temporarily impaired	$	158,695	$	(1,234	)	$	—	$	—	$	158,695	$	(1,234	)



	December 31, 2014
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. government agencies	$	18,212	$	(157	)	$	1,986	$	(14	)	$	20,198	$	(171	)
States and political subdivisions	386		(1		)	—		—			386		(1		)
U.S. government agency residential
mortgage-backed securities	34,809		(211		)	2,148		(10		)	36,957		(221		)
Collateralized debt obligations: Single issue	—		—			762		(3		)	762		(3		)
Total temporarily impaired	$	53,407	$	(369	)	$	4,896	$	(27	)	$	58,303	$	(396	)

Unrealized losses on agency bonds have not been recognized into income because the issuer(s) bonds are of high credit quality (rated AA or higher at the time of purchase), management does not intend to sell and it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates. The fair value is expected to recover as the bonds(s) approach maturity.

As of December 31, 2015, the Company’s security portfolio consisted of 59 securities, 46 of which were in an unrealized loss position. The majority of unrealized losses are related to the Company’s mortgage-backed and other securities, as discussed below:

At December 31, 2015, approximately 100.00% of the mortgage-backed securities held by the Company were issued by U.S. government-sponsored enterprises and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not intend to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2015.

At December 31, 2014, the Company’s security portfolio consisted of 67 securities, 16 of which were in an unrealized loss position. The approximately 99.96% of unrealized losses are related to the Company’s mortgage-backed securities and were issued by U.S. government-sponsored enterprises and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not intend to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2014.