NOTE 2. INVESTMENT SECURITIES

Amortized cost and fair values of investment securities held-to-maturity at December 31, 2015, including gross unrealized gains and losses, are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value

Municipal securities	$	52,859	$	1,699	$	(88)	$	54,470
Total investment securities held-to-maturity	$	52,859	$	1,699	$	(88)	$	54,470

Amortized cost and fair values of investment securities held-to-maturity at December 31, 2014, including gross unrealized gains and losses, are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value

Municipal securities	$	54,538	$	1,600	$	(267)	$	55,871
Total investment securities held-to-maturity	$	54,538	$	1,600	$	(267)	$	55,871

Amortized cost and fair values of investment securities available-for-sale at December 31, 2015 are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value

U. S. Agency securities	$	29,532	$	—	$	(181)	$	29,351
U.S. Sponsored Mortgage-backed securities		34,246		1		(533)		33,714
Municipal securities		1,775		23		—		1,798
Total debt securities		65,553		24		(714)		64,863
Equity and other securities		5,309		95		(11)		5,393
Total investment securities available-for-sale	$	70,862	$	119	$	(725)	$	70,256

Amortized cost and fair values of investment securities available-for-sale at December 31, 2014 are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value

U. S. Agency securities	$	37,926	$	73	$	(465)	$	37,534
U.S. Sponsored Mortgage-backed securities		30,293		58		(419)		29,932
Total debt securities		68,219		131		(884)		67,466
Equity and other securities		670		77		—		747
Total investment securities available-for-sale	$	68,889	$	208	$	(884)	$	68,213

The following tables summarize amortized cost and fair values of debt securities by maturity:


	December 31, 2015
	Held to Maturity				Available for sale

	Amortized		Fair		Amortized		Fair
(in thousands)	Cost		Value		Cost		Value

Within one year	$	400	$	402	$	—	$	—
After one year, but within five		5,918		6,082		28,466		28,290
After five years, but within ten		14,196		14,513		5,194		5,157
After ten Years		32,345		33,473		31,893		31,416
Total	$	52,859	$	54,470	$	65,553	$	64,863

Investment securities with a carrying value of $106.4 million and $118.7 million at December 31, 2015 and 2014, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window.

The Company’s investment portfolio includes securities that are in an unrealized loss position as of December 31, 2015, the details of which are included in the following table. Although these securities, if sold at December 31, 2015 would result in a pretax loss of $813 thousand, the Company has no intent to sell the applicable securities at such fair values, and maintains the Company has the ability to hold these securities until all principal has been recovered. It is not more likely than not the Company would sell any securities at a loss for liquidity purposes. Declines in the fair values of these securities can be traced to general market conditions which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company’s ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated. As of December 31, 2015, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain any material realized losses as a result of the current temporary decline in fair value.

The following table discloses investments in an unrealized loss position at December 31, 2015:


(in thousands)	Less than 12 months				12 months or more
Description and			Unrealized				Unrealized
number of positions	Fair Value		Loss		Fair Value		Loss

U.S. Agency securities (9)	$	28,351	$	(181)	$	—	$	—
U.S. Sponsored Mortgage-backed securities (19)		20,647		(233)		11,862		(300)
Municipal securities (22)		3,827		(32)		5,559		(56)
Equity and other securities (1)		2,489		(11)		—		—
	$	55,314	$	(457)	$	17,421	$	(356)

The following table discloses investments in an unrealized loss position at December 31, 2014:


(in thousands)	Less than 12 months				12 months or more
Description and			Unrealized				Unrealized
number of positions	Fair Value		Loss		Fair Value		Loss

U.S. Agency securities (9)	$	996	$	(3)	$	26,900	$	(462)
U.S. Sponsored Mortgage-backed securities (8)		678		(3)		14,824		(416)
Municipal securities (42)		528		(3)		16,489		(264)
	$	2,202	$	(9)	$	58,213	$	(1,142)

The Company sold investments available-for-sale of $12.9 million, $61.3 million and $15.2 million in 2015, 2014 and 2013, respectively. These sales resulted in gross gains of $125 thousand, $553 thousand and $145 thousand and gross losses of $0, $140 thousand and $0 in 2015, 2014 and 2013, respectively.

During 2015, the Company sold investments held-to-maturity of $421 thousand, resulting in gross gains of $5 thousand. The held-to-maturity investment was sold due to a credit downgrade, indicating significant deterioration of the issuer’s creditworthiness. The Company sold no held-to-maturity investments during 2014 and 2013.