Note 4 – Investments

The amortized cost, gross unrealized gains and losses, and fair value of investment securities at March 31, 2016 and December 31, 2015 were as follows (in thousands):

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
March 31, 2016	Cost		Gains		Losses			Value
Available-for-sale securities:
U.S. agency securities	$	212,978	$	1,377	$	(36	)	$	214,319
U.S. treasury securities		5,078		4		-			5,082
Obligations of state and
political subdivisions		101,685		3,089		(116	)		104,658
Corporate obligations		12,503		52		(19	)		12,536
Mortgage-backed securities in
government sponsored entities		32,675		351		(37	)		32,989
Equity securities in financial
institutions		2,001		364		(24	)		2,341
Total available-for-sale securities	$	366,920	$	5,237	$	(232	)	$	371,925

December 31, 2015
Available-for-sale securities:
U.S. agency securities	$	199,749	$	369	$	(527	)	$	199,591
U.S. treasury securities		10,103		-		(21	)		10,082
Obligations of state and
political subdivisions		99,856		3,080		(73	)		102,863
Corporate obligations		14,583		68		(86	)		14,565
Mortgage-backed securities in
government sponsored entities		30,107		186		(89	)		30,204
Equity securities in financial institutions		2,001		436		(5	)		2,432
Total available-for-sale securities	$	356,399	$	4,139	$	(801	)	$	359,737

The following table shows the Company's gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time, which individual securities have been in a continuous unrealized loss position, at March 31, 2016 and December 31, 2015 (in thousands). As of March 31, 2016, the Company owned 44 securities whose fair value was less than their cost basis.

March 31, 2016	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
U.S. agency securities	$	34,231	$	(36	)	$	-	$	-		$	34,231	$	(36	)
Obligations of state and
political subdivisions		12,058		(96	)		2,197		(20	)		14,255		(116	)
Corporate obligations		4,257		(14	)		2,140		(5	)		6,397		(19	)
Mortgage-backed securities in
government sponsored entities		6,174		(21	)		929		(16	)		7,103		(37	)
Equity securities in financial institutions		985		(24	)		-		-			985		(24	)
Total securities	$	57,705	$	(191	)	$	5,266	$	(41	)	$	62,971	$	(232	)

December 31, 2015
U.S. agency securities	$	123,591	$	(527	)	$	-	$	-		$	123,591	$	(527	)
U.S. treasury securities		10,082		(21	)		-		-			10,082		(21	)
Obligations of states and
political subdivisions		7,023		(57	)		2,914		(16	)		9,937		(73	)
Corporate obligations		5,822		(61	)		2,138		(25	)		7,960		(86	)
Mortgage-backed securities in
government sponsored entities		9,830		(77	)		227		(12	)		10,057		(89	)
Equity securities in financial institutions		106		(5	)		-		-			106		(5	)
Total securities	$	156,454	$	(748	)	$	5,279	$	(53	)	$	161,733	$	(801	)

As of March 31, 2016, the Company's investment securities portfolio contained unrealized losses on agency securities issued or backed by the full faith and credit of the United States government or are generally viewed as having the implied guarantee of the U.S. government, obligations of states and political subdivisions, corporate obligations, mortgage backed securities issued by government sponsored entities, and equity securities in financial institutions. For fixed maturity investments management considers whether the present value of cash flows expected to be collected are less than the security's amortized cost basis (the difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and the Company's intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. Once a decline in value is determined to be other than temporary, if the Company does not intend to sell the security, and it is more likely than not that it will not be required to sell the security before recovery of the security's amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings. For equity securities where the fair value has been significantly below cost for one year, the Company's policy is to recognize an impairment loss unless sufficient evidence is available that the decline is not other than temporary and a recovery period can be predicted. The Company has concluded that any impairment of its investment securities portfolio outlined in the above table is not other than temporary and is the result of interest rate changes, sector credit rating changes, or issuer-specific rating changes that are not expected to result in the non-collection of principal and interest during the period.

Proceeds from sales of securities available-for-sale for the three months ended March 31, 2016 and 2015 were $5,020,000 and $14,623,000, respectively. The gross gains and losses were as follows (in thousands):

	Three Months Ended
	March 31,
	2016		2015
Gross gains	$	27	$	137
Gross losses		-		(11	)
Net gains	$	27	$	126

Investment securities with an approximate carrying value of $221.9 million and $203.8 million at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public funds and certain other deposits.

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The amortized cost and fair value of debt securities at March 31, 2016, by contractual maturity, are shown below (in thousands):

	Amortized
	Cost		Fair Value
Available-for-sale debt securities:
Due in one year or less	$	37,238	$	37,445
Due after one year through five years		198,445		200,491
Due after five years through ten years		43,004		43,960
Due after ten years		86,232		87,688
Total	$	364,919	$	369,584