Investment Securities

The carrying values and approximate fair values of investment securities at the periods indicated are presented below:



(In Thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2015
Securities available for sale
U.S. Treasury and government sponsored entities		$238,116		$150		$830		$237,436
Municipal securities	10,227		117		18		10,326
U.S. Agency mortgage-backed securities	818		1		10		809
Corporate bonds	39,049		57		88		39,018
Preferred stock	3,549		8		33		3,524
Total securities available for sale		$291,759		$333		$979		$291,113
Securities held to maturity
Municipal securities		$903		$56		$—		$959
Total securities held to maturity		$903		$56		$—		$959
December 31, 2014
Securities available for sale
U.S. Treasury and government sponsored entities		$226,624		$105		$539		$226,190
Municipal securities	11,843		285		4		12,124
U.S. Agency mortgage-backed securities	1,024		6		1		1,029
Corporate bonds	38,820		415		—		39,235
Preferred stock	2,999		153		—		3,152
Total securities available for sale		$281,310		$964		$544		$281,730
Securities held to maturity
Municipal securities		$2,201		$107		$—		$2,308
Total securities held to maturity		$2,201		$107		$—		$2,308

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015 and 2014 were as follows:



	Less Than 12 Months				More Than 12 Months				Total
(In Thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2015:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$146,433		$829		$36		$1		$146,469		$830
Corporate Bonds	19,874		88						19,874		88
Municipal Securities	4,454		18		—		—		4,454		18
Mortgage-backed Securities	637		9		100		1		737		10
Preferred Stock	2,514		33		—		—		2,514		33
Total		$173,912		$977		$136		$2		$174,048		$979
2014:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$165,004		$539		$—		$—		$165,004		$539
Municipal Securities	567		4		—		—		567		4
Mortgage-backed Securities	117		1		—		—		117		1
Total		$165,688		$544		$—		$—		$165,688		$544

The unrealized losses on investments in government sponsored entities, corporate bonds, and municipal securities in both periods were caused by changes in interest rates. At December 31, 2015 and 2014, there were thirty-nine and twenty-nine available-for-sale securities in an unrealized loss position, respectively, that have been in a loss position for less than twelve months. There were six and zero securities with unrealized losses at December 31, 2015 and 2014, respectively, that have been at a loss position for more than twelve months. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because it is more likely than not that the Company will hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired.

At December 31, 2015 and 2014, $59.7 million and $54.1 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and fair values of debt securities at December 31, 2015, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Although preferred stock has no stated maturity, it is aggregated in the calculation of weighted average yields presented below in the category of investments that mature in ten years or more.



(In Thousands)	Amortized Cost		Fair Value		Weighted Average Yield
U.S. Treasury and government sponsored entities
Within 1 year		$14,995		$15,006	0.86	%
1-5 years		$223,121		$222,430	1.12	%
Total		$238,116		$237,436	1.10	%
U.S. Agency mortgage-backed securities
1-5 years		$31		$30	1.99	%
5-10 years	471		465		2.94	%
Over 10 years	316		314		2.82	%
Total		$818		$809	2.86	%
Corporate bonds
Within 1 year		$5,339		$5,346	1.30	%
1-5 years	33,710		33,672		1.10	%
Total		$39,049		$39,018	1.13	%
Preferred stock
Over 10 years		$3,549		$3,524	6.72	%
Total		$3,549		$3,524	6.72	%
Municipal securities
Within 1 year		$1,140		$1,144	1.91	%
1-5 years	7,730		7,885		2.89	%
5-10 years	2,260		2,256		4.19	%
Total		$11,130		$11,285	3.05	%

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2015, 2014, and 2013, respectively, are as follows:



(In Thousands)	Proceeds		Gross Gains		Gross Losses
2015
Available for sale securities		$20,522		$271		$—
2014
Available for sale securities		$24,102		$465		$4
2013
Available for sale securities		$23,514		$333		$—

A summary of interest income for the years ending December 31, 2015, 2014, and 2013 on available for sale investment securities is as follows:



(In Thousands)	2015		2014		2013
U.S. Treasury and government sponsored entities		$2,378		$1,769		$898
U.S. Agency mortgage-backed securities	25		25		1
Other	670		857		1,136
Total taxable interest income		$3,073		$2,651		$2,035
Municipal securities		$320		$391		$568
Total tax-exempt interest income		$320		$391		$568
Total		$3,393		$3,042		$2,603