Investment Securities

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



(In Thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
September 30, 2016
Securities available for sale
U.S. Treasury and government sponsored entities		$244,805		$709		$9		$245,505
Municipal securities	9,261		35		27		9,269
U.S. Agency mortgage-backed securities	4		—		—		4
Corporate bonds	40,357		177		—		40,534
Preferred stock	4,922		134		11		5,045
Total securities available for sale		$299,349		$1,055		$47		$300,357
Securities held to maturity
Municipal securities		$900		$32		$—		$932
Total securities held to maturity		$900		$32		$—		$932
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 September 30, 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
September 30, 2016:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$14,432		$5		$489		$4		$14,921		$9
Municipal Securities	4,859		14		1,479		13		6,338		27
Preferred Stock	1,031		11		—		—		1,031		11
Total		$20,322		$30		$1,968		$17		$22,290		$47

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 U.S. treasury and government sponsored entities, preferred stock, and municipal securities in both periods were caused by changes in interest rates. At September 30, 2016 and December 31, 2015, respectively, there were eight 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 September 30, 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 September 30, 2016 and December 31, 2015, $51.6 million and $59.7 million in securities were pledged for deposits and borrowings.

The amortized cost and estimated fair values of debt securities at September 30, 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		$9,998		$10,009	0.84	%
1-5 years	234,807		235,496		1.11	%
Total		$244,805		$245,505	1.10	%
U.S. Agency mortgage-backed securities
1-5 years		$4		$4	1.47	%
Total		$4		$4	1.47	%
Corporate bonds
Within 1 year		$6,613		$6,621	1.67	%
1-5 years	33,744		33,913		3.87	%
Total		$40,357		$40,534	3.51	%
Preferred stock
Over 10 years		$4,922		$5,045	6.41	%
Total		$4,922		$5,045	6.41	%
Municipal securities
Within 1 year		$476		$476	2.10	%
1-5 years	7,655		7,704		2.91	%
5-10 years	2,030		2,021		4.13	%
Total		$10,161		$10,201	3.12	%

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the nine months ending September 30, 2016 and 2015, respectively, are as follows:



(In Thousands)	Proceeds		Gross Gains		Gross Losses
2016
Available for sale securities		$5,785		$12		$23
2015
Available for sale securities		$3,633		$134		$—

A summary of interest income for the nine months ending September 30, 2016 and 2015, on available for sale investment securities is as follows:



(In Thousands)	2016		2015
US Treasury and government sponsored entities		$1,979		$1,713
U.S. Agency mortgage-backed securities	4		20
Other	667		507
Total taxable interest income		$2,650		$2,240
Municipal securities		$213		$248
Total tax-exempt interest income		$213		$248
Total		$2,863		$2,488