INVESTMENT SECURITIES

The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of securities available-for-sale and securities held-to-maturity as of March 31, 2016 and December 31, 2015 are as follows (amounts in thousands):



	March 31, 2016
Securities Available-for-Sale:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Taxable municipal securities	$	24,781	$	665	$	26	$	25,420
Mortgage-backed securities
GNMA	13,343		207		5		13,545
FNMA & FHLMC	30,831		169		16		30,984
Other debt securities	500		—		—		500
Equity securities	11		—		—		11
Total	$	69,466	$	1,041	$	47	$	70,460



	March 31, 2016
Securities Held-to-Maturity:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Taxable municipal securities	$	3,418	$	48	$	—	$	3,466
Mortgage-backed securities
GNMA	56,351		1,068		16		57,403
FNMA	2,443		56		—		2,499
Total	$	62,212	$	1,172	$	16	$	63,368



	December 31, 2015
Securities Available-for-Sale:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Taxable municipal securities	$	24,789	$	225	$	447	$	24,567
Mortgage-backed securities
GNMA	13,512		68		50		13,530
FNMA & FHLMC	32,024		—		351		31,673
Other debt securities	500		—		—		500
Equity securities	11		—		—		11
Total	$	70,836	$	293	$	848	$	70,281



	December 31, 2015
Securities Held-to-Maturity:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Taxable municipal securities	$	3,531	$	1	$	20	$	3,512
Mortgage-backed securities
GNMA	59,185		509		230		59,464
FNMA	2,638		19		—		2,657
Total	$	65,354	$	529	$	250	$	65,633

The following tables show gross unrealized losses and fair values of investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2016 and December 31, 2015 (amounts in thousands).



	March 31, 2016
	Less Than 12 Months					12 Months or More					Total
Securities Available-for-Sale:	# Securities	Fair value		Unrealized losses		# Securities	Fair value		Unrealized losses		Fair value		Unrealized losses
Taxable municipal securities	5	$	4,384	$	11	1	$	779	$	15	$	5,163	$	26
Mortgage-backed securities
GNMA	1	4,624		5		—	—		—		4,624		5
FNMA & FHLMC	3	3,438		16		—	—		—		3,438		16
Total temporarily impaired securities	9	$	12,446	$	32	1	$	779	$	15	$	13,225	$	47



	March 31, 2016
	Less Than 12 Months					12 Months or More					Total
Securities Held-to-Maturity:	# Securities	Fair value		Unrealized losses		# Securities	Fair value		Unrealized losses		Fair value		Unrealized losses
Mortgage-backed securities
GNMA	1	$	1,000	$	1	1	$	3,292	$	15	$	4,292	$	16
Total temporarily impaired securities	1	$	1,000	$	1	1	$	3,292	$	15	$	4,292	$	16



	December 31, 2015
	Less Than 12 Months					12 Months or More					Total
Securities Available-for-Sale:	# Securities	Fair value		Unrealized losses		# Securities	Fair value		Unrealized losses		Fair value		Unrealized losses
Taxable municipal securities	20	$	16,888	$	447	—	$	—	$	—	$	16,888	$	447
Mortgage-backed securities
GNMA	3	10,010		50		—	—		—		10,010		50
FNMA & FHLMC	11	31,673		351		—	—		—		31,673		351
Total temporarily impaired securities	34	$	58,571	$	848	—	$	—	$	—	$	58,571	$	848



	December 31, 2015
	Less Than 12 Months					12 Months or More					Total
Securities Held-to-Maturity:	# Securities	Fair value		Unrealized losses		# Securities	Fair value		Unrealized losses		Fair value		Unrealized losses
Taxable municipal securities	9	$	3,325	$	20	—	$	—	$	—	$	3,325	$	20
Mortgage-backed securities
GNMA	14	20,784		116		3	5,130		114		25,914		230
Total temporarily impaired securities	23	$	24,109	$	136	3	$	5,130	$	114	$	29,239	$	250

Management evaluates each quarter whether unrealized losses on securities represent impairment that is other than temporary. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not that the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market's perception of the issuer's financial health and the security's credit quality. If it is determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income.

The unrealized gains and losses on securities at March 31, 2016 resulted from changing market interest rates compared to the yields available at the time the underlying securities were purchased. As of March 31, 2016, there were 3 of 54 Government National Mortgage Association ("GNMA") mortgage-backed securities ("MBS"), 3 of 14 Federal National Mortgage Association ("FNMA") and Federal Home Loan Mortgage Corporation ("FHLMC") MBS, and 6 of 38 taxable municipal securities that contained net unrealized losses. Management identified no impairment related to credit quality. For debt securities in an unrealized loss position, the Company does not intend to sell and it is not likely that the Company will be required to sell these securities before the anticipated recovery of the amortized cost basis. As a result, no other than temporary impairment losses were recognized during the three months ended March 31, 2016.

The amortized cost and fair value of available-for-sale and held-to-maturity securities at March 31, 2016 by expected maturities are shown on the following table (amounts 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.



	March 31, 2016
Securities Available-for-Sale:	Amortized Cost		Fair Value
Taxable municipal securities:
Due after ten years	$	24,781	$	25,420
Total taxable municipal securities	24,781		25,420

Mortgage-backed securities - GNMA/FNMA & FHLMC:
Due after ten years	44,174		44,529
Total mortgage-backed securities - GNMA/FNMA & FHLMC	44,174		44,529

Other debt securities:
Due after five years through ten years	500		500
Total other debt securities	500		500

Other securities:
Equity securities	11		11
Total other securities	11		11

Total available-for-sale securities	$	69,466	$	70,460

Securities Held-to-Maturity:
Taxable municipal securities:
Due within one year	$	157	$	158
Due after one year through five years	2,200		2,225
Due after five years through ten years	1,061		1,083
Total taxable municipal securities	3,418		3,466

Mortgage-backed securities - GNMA/FNMA:
Due after five years through ten years	7,443		7,664
Due after ten years	51,351		52,238
Total mortgage-backed securities - GNMA/FNMA	58,794		59,902

Total held-to-maturity securities	$	62,212	$	63,368

Securities with a carrying value of approximately $70.2 million and $61.1 million at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. Sales and calls of securities available-for-sale for the three months ended March 31, 2015 of $2.6 million generated net realized gains of $56,000, and no gross realized losses. There were no sales of securities available-for-sale for the three months ended March 31, 2016.