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
March 31, 2016
Securities available for sale
U.S. Treasury and government sponsored entities		$239,893		$805		$29		$240,669
Municipal securities	10,016		94		18		10,092
U.S. Agency mortgage-backed securities	7		—		—		7
Corporate bonds	40,822		52		162		40,712
Preferred stock	4,921		18		57		4,882
Total securities available for sale		$295,659		$969		$266		$296,362
Securities held to maturity
Municipal securities		$902		$51		$—		$953
Total securities held to maturity		$902		$51		$—		$953
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

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 March 31, 2016 and December 31, 2015 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
March 31, 2016:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$23,463		$25		$523		$4		$23,986		$29
Corporate Bonds	19,051		162		—		—		19,051		162
Municipal Securities	2,694		18		—		—		2,694		18
Preferred Stock	1,492		57		—		—		1,492		57
Total		$46,700		$262		$523		$4		$47,223		$266

December 31, 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

The unrealized losses on investments in government sponsored entities, corporate bonds, preferred stock, and municipal securities in both periods were caused by changes in interest rates. At March 31, 2016 and December 31, 2015, respectively, there were thirteen and thirty-nine available-for-sale securities with unrealized losses that have been in a loss position for less than twelve months. There were two and six securities as of March 31, 2016 and December 31, 2015 that have been in an unrealized loss position for more than twelve months. The contractual terms of the investments in a loss position 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 March 31, 2016 and December 31, 2015, $54.7 million and $59.7 million in securities were pledged for deposits and borrowings.

The amortized cost and fair values of debt securities at March 31, 2016, 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
US Treasury and government sponsored entities
Within 1 year		$14,997		$15,020	0.85	%
1-5 years		$224,896		$225,649	1.16	%
Total		$239,893		$240,669	1.14	%
U.S. Agency mortgage-backed securities
1-5 years		$7		$7	2.20	%
Total		$7		$7	2.20	%
Corporate bonds
Within 1 year		$7,103		$7,104	1.44	%
1-5 years	33,719		33,608		1.39	%
Total		$40,822		$40,712	1.40	%
Preferred stock
Over 10 years		$4,921		$4,882	7.16	%
Total		$4,921		$4,882	7.16	%
Municipal securities
Within 1 year		$966		$966	0.45	%
1-5 years	7,704		7,834		2.89	%
5-10 years	2,248		2,245		4.19	%
Total		$10,918		$11,045	2.94	%

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the three months ending March 31, 2016 and 2015, respectively, are as follows:



(In Thousands)	Proceeds		Gross Gains		Gross Losses
2016
Available for sale securities		$771		$—		$23
2015
Available for sale securities		$1,621		$114		$—

A summary of interest income for the three months ending March 31, 2016 and 2015 on available for sale investment securities is as follows:



(In Thousands)	2016		2015
US Treasury and government sponsored entities		$679		$618
U.S. Agency mortgage-backed securities	4		7
Other	222		175
Total taxable interest income		$905		$800
Municipal securities		$75		$85
Total tax-exempt interest income		$75		$85
Total		$980		$885