NOTE 4. SECURITIES

The following table presents the amortized costs, unrealized gains, unrealized losses and approximate fair values of investment securities as of June 30, 2016, and December 31, 2015.

	As of June 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
(Amounts in thousands)	Cost		Gain		Loss			Fair Value
Available-for-sale securities:
U.S. government & agencies	$	3,250	$	12	$	—		$	3,262
Obligations of state and political subdivisions		56,818		2,198		(1	)		59,015
Residential mortgage backed securities and collateralized mortgage obligations		44,815		379		(179	)		45,015
Corporate securities		22,156		283		(126	)		22,313
Commercial mortgage backed securities		14,901		27		(63	)		14,865
Other asset backed securities		13,343		166		(73	)		13,436
Total	$	155,283	$	3,065	$	(442	)	$	157,906
Held-to-maturity securities:
Obligations of state and political subdivisions	$	35,415	$	1,727	$	(14	)	$	37,128

	As of December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized			Estimated
(Amounts in thousands)	Cost		Gain		Loss			Fair Value
Available-for-sale securities:
U.S. government & agencies	$	3,886	$	57	$	—		$	3,943
Obligations of state and political subdivisions		59,332		1,811		(39	)		61,104
Residential mortgage backed securities and collateralized mortgage obligations		32,215		192		(270	)		32,137
Corporate securities		33,775		194		(191	)		33,778
Commercial mortgage backed securities		12,893		10		(134	)		12,769
Other asset backed securities		15,331		82		(114	)		15,299
Total	$	157,432	$	2,346	$	(748	)	$	159,030
Held-to-maturity securities:
Obligations of state and political subdivisions	$	35,899	$	966	$	(220	)	$	36,645

The following table presents the expected maturities of investment securities at June 30, 2016.

	Available-For-Sale				Held-To-Maturity
(Amounts in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	5,606	$	5,629	$	—	$	—
One year through five years		57,722		58,304		1,543		1,589
Five years through ten years		36,167		37,421		16,514		17,325
After ten years		55,788		56,552		17,358		18,214
Total	$	155,283	$	157,906	$	35,415	$	37,128

The amortized cost and fair value of residential mortgage backed, collateralized mortgage obligations and commercial mortgage securities are presented by their expected average life, rather than contractual maturity, because the underlying loans may be repaid without prepayment penalties.

The following table presents the fair value of the securities held for pledging, segregated by purpose, as of June 30, 2016.

(Amounts in thousands)	Pledged		Available To Be Pledged		Total Held For Pledging Purposes
Public funds collateral	$	18,353	$	10,936	$	29,289
Federal Home Loan Bank of San Francisco borrowings		—		21,809		21,809
Total	$	18,353	$	32,745	$	51,098

The following table presents the cash proceeds from sales of securities and the associated gross realized gains and gross realized losses that have been included in earnings for the three and six months ended June 30, 2016 and 2015.

	Three Months Ended June 30,						Six Months Ended June 30,
(Amounts in thousands)	2016			2015			2016			2015
Proceeds from sales of securities	$	14,455		$	10,697		$	34,389		$	35,912

Gross realized gains on sales of securities:
Obligations of state and political subdivisions	$	40		$	37		$	111		$	70
Residential mortgage backed securities and collateralized mortgage obligations		2			49			2			62
Corporate securities		33			—			76			82
Commercial mortgage backed securities		—			—			5			4
Other asset backed securities		21			—			21			93
Total gross realized gains on sales of securities		96			86			215			311
Gross realized losses on sales of securities:
U.S. government & agencies		—			(1	)		—			(1	)
Residential mortgage backed securities and collateralized mortgage obligations		(64	)		—			(64	)		(9	)
Corporate securities		—			—			(25	)		—
Other asset backed securities		(4	)		(24	)		(4	)		(25	)
Total gross realized losses on sales of securities		(68	)		(25	)		(93	)		(35	)
Gain on investment securities, net	$	28		$	61		$	122		$	276

Investment securities that were in an unrealized loss position as of June 30, 2016 and December 31, 2015 are presented in the following tables, based on the length of time individual securities have been in an unrealized loss position. In the opinion of management, these securities are considered only temporarily impaired due to changes in market interest rates or widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or underlying collateral.

	As of June 30, 2016
	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Amounts in thousands)	Value		Losses			Value		Losses			Value		Losses
Available-for-sale securities:
Obligations of states and political subdivisions	$	1,109	$	(1	)	$	—	$	—		$	1,109	$	(1	)
Residential mortgage backed securities and collateralized mortgage obligations		11,091		(49	)		5,518		(130	)		16,609		(179	)
Corporate securities		2,542		(126	)		—		—			2,542		(126	)
Commercial mortgage backed securities		5,020		(53	)		2,996		(10	)		8,016		(63	)
Other asset backed securities		50		—			1,333		(73	)		1,383		(73	)
Total temporarily impaired securities	$	19,812	$	(229	)	$	9,847	$	(213	)	$	29,659	$	(442	)
Held-to-maturity securities:
Obligations of states and political subdivisions	$	—	$	—		$	1,651	$	(14	)	$	1,651	$	(14	)

	As of December 31, 2015
	Less Than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(Amounts in thousands)	Value		Loss			Value		Loss			Value		Loss
Available-for-sale securities:
Obligations of states and political subdivisions	$	7,682	$	(39	)	$	—	$	—		$	7,682	$	(39	)
Residential mortgage backed securities and collateralized mortgage obligations		16,279		(210	)		4,931		(60	)		21,210		(270	)
Corporate securities		18,707		(191	)		—		—			18,707		(191	)
Commercial mortgage backed securities		7,557		(62	)		1,516		(72	)		9,073		(134	)
Other asset backed securities		4,734		(13	)		3,430		(101	)		8,164		(114	)
Total temporarily impaired securities	$	54,959	$	(515	)	$	9,877	$	(233	)	$	64,836	$	(748	)
Held-to-maturity securities:
Obligations of states and political subdivisions	$	1,513	$	(63	)	$	4,831	$	(157	)	$	6,344	$	(220	)

At June 30, 2016, 30 securities were in unrealized loss positions and at December 31, 2015, 59 securities were in unrealized loss positions.

Other

-Than

-Temporary Impairment

At June 30, 2016, we held $3.2 million par value of AgriBank subordinated notes due July 15, 2019. On April 28, 2016 AgriBank announced that, on July 15, 2016 it would redeem all of the outstanding principal amount of these notes at 100% of the principal amount together with all accrued and unpaid interest. During the second quarter of 2016, we determined that the present value of the expected cash flows on our AgriBank investment was $546 thousand less than our amortized cost basis and recorded an other-than-temporary impairment for that amount. We did not recognize any additional, other-than-temporary impairment losses for the six months ended June 30, 2016, or the year ended December 31, 2015.