Securities

The amortized cost and fair value of securities available-for-sale at September 30, 2016 and December 31, 2015 are summarized as follows (in thousands):



	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government-sponsored enterprises (GSEs)	$	18,297	$	21	$	(30	)	$	18,288
Municipal securities	7,661		137		(6		)	7,792
Mortgage-backed securities	111,943		1,009		(404		)	112,548
	$	137,901	$	1,167	$	(440	)	$	138,628



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair 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 September 30, 2016, securities with a fair value totaling approximately $92,182,000 were pledged to secure public funds and securities sold under agreements to repurchase.

For the three and nine months ended September 30, 2016, there were available-for-sale securities sold with proceeds totaling $5,578,023 and $13,748,623 which resulted in gross gains realized of $18,224 and $199,587, respectively. For the nine months ended September 30, 2015 there were available-for-sale securities sold with proceeds totaling $10,968,362 and gross gains realized of and $52,255. For the three months ended September 30, 2015 there were no available-for-sale securities sold.

The amortized cost and estimated fair value of securities at September 30, 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 Cost		Fair Value
Due in one year or less	$	2,030	$	2,036
Due from one year to five years	13,606		13,595
Due from five years to ten years	6,323		6,366
Due after ten years	3,999		4,083
	25,958		26,080
Mortgage-backed securities	111,943		112,548
	$	137,901	$	138,628

Note 4. Securities, Continued

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 September 30, 2016 and December 31, 2015 (in thousands):



	As of September 30, 2016
	Less than 12 Months			12 Months or Greater			Total
	Fair Value	Gross Unrealized Losses		Fair Value	Gross Unrealized Losses		Fair Value	Gross Unrealized Losses
U.S. Government- sponsored enterprises (GSEs)	8,404	(30	)	—	—		8,404	(30	)
Municipal securities	1,552	(6	)	—	—		1,552	(6	)
Mortgage-backed securities	27,845	(230	)	11,269	(174	)	39,114	(404	)
	37,801	(266	)	11,269	(174	)	49,070	(440	)



	As of December 31, 2015
	Less than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized 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 September 30, 2016, the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows:

U.S. Government-sponsored enterprises: At September 30, 2016, 4 (or four) 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 investments 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 investments and it is more likely than not that the Bank will not be required to sell the investments before recovery of its amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at September 30, 2016.

Municipal securities: At September 30, 2016, 4 (or four) 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 September 30, 2016.

Mortgage-backed securities: At September 30, 2016, 32 (or thirty two) 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 these investments to be other-than-temporarily impaired at September 30, 2016.