INVESTMENT SECURITIES

The amortized cost and approximate fair value of investment securities are summarized as follows:



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(amounts in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	506,111	$	1,453	$	(6,590	)	$	500,974
Corporate notes (2)	39,925		320		(178		)	40,067
Equity securities (3)	22,514		—		(3,302		)	19,212
Total	$	568,550	$	1,773	$	(10,070	)	$	560,253


(1)	Consists of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA.


(2)	Includes subordinated debt issued by other bank holding companies.


(3)	Consists primarily of equity securities issued by a foreign entity.



	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(amounts in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	376,854	$	2,805	$	(2,348	)	$	377,311
Corporate notes (2)	15,000		104		—			15,104
Equity securities (3)	23,074		1,197		(1		)	24,270
Total	$	414,928	$	4,106	$	(2,349	)	$	416,685


(1)	Consists primarily of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA.


(2)	Includes subordinated debt issued by other bank holding companies.


(3)	Consists primarily of equity securities issued by a foreign entity.

The following table shows proceeds from the sale of available-for-sale investment securities, gross gains, and gross losses on those sales of securities:



	For the Year Ended December 31,
	2015			2014		2013
(amounts in thousands)
Proceeds from sale of available-for-sale investment securities	$	806		$	213,249	$	135,193
Gross gains	$	—		$	3,191	$	1,274
Gross losses	(85		)	—		—
Net gains	$	(85	)	$	3,191	$	1,274

These gains and losses were determined using the specific identification method and were included in non-interest income.

The following table shows debt investment securities by stated maturity. Investment securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date:



	December 31, 2015
	Available for Sale
	Amortized Cost		Fair Value
(amounts in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years	—		—
Due after five years through ten years	32,925		33,112
Due after ten years	7,000		6,955
Mortgage-backed securities	506,111		500,974
Total debt securities	$	546,036	$	541,041

Gross unrealized losses and fair value of Customers' investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows:



	December 31, 2015
	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
(amounts in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	305,702	$	(4,384	)	$	57,357	$	(2,206	)	$	363,059	$	(6,590	)
Corporate notes (2)	9,748		(178		)	—		—			9,748		(178		)
Equity securities (3)	19,206		(3,301		)	6		(1		)	19,212		(3,302		)
Total	$	334,656	$	(7,863	)	$	57,363	$	(2,207	)	$	392,019	$	(10,070	)


(1)	Consists of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA.


(2)	Includes subordinated debt issued by other bank holding companies.


(3)	Consists primarily of equity securities issued by a foreign entity.



	December 31, 2014
	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
(amounts in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	60,388	$	(81	)	$	80,426	$	(2,267	)	$	140,814	$	(2,348	)
Equity securities (2)	—		—			5		(1		)	5		(1		)
Total	$	60,388	$	(81	)	$	80,431	$	(2,268	)	$	140,819	$	(2,349	)


(1)	Consists primarily of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA.


(2)	Consists primarily of equity securities issued by a foreign entity.

At December 31, 2015, there were twenty-six available-for-sale investment securities in the less-than-twelve-month category and sixteen available-for-sale investment securities in the twelve-month-or-more category. The unrealized losses on the mortgage backed securities are guaranteed by government-sponsored entities and primarily relate to changes in market interest rates. All amounts are expected to be recovered when market prices recover or at maturity. The unrealized losses on the equity securities reflect decreases in market price and adverse changes in foreign currency exchange rates. Customers evaluated the financial condition and capital strength of the issuer of these securities and concluded that the decline in fair value was temporary and estimated the value could reasonably recover by way of increases in market price or positive changes in foreign currency exchange rates. Customers intends to hold these securities for the foreseeable future, and does not intend to sell the securities before the price recovers. Customers considers it more likely than not that it will not be required to sell the securities. Accordingly, Customers concluded that the securities are not other-than-temporarily impaired as of December 31, 2015.

At December 31, 2015 and 2014, Customers Bank had pledged investment securities aggregating $299.8 million and $376.9 million fair value, respectively, as collateral against its borrowings primarily with the FHLB and an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities.