INVESTMENT SECURITIES

The portfolio of securities consisted of the following (in thousands):



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale:
Obligations of state and political subdivisions	$	30,750	$	770	$	27	$	31,493
GSE mortgage-backed securities	84,946		2,321		229		87,038
Collateralized mortgage obligations: residential	194,067		297		2,276		192,088
Collateralized mortgage obligations: commercial	5,512		1		65		5,448
Mutual funds	2,100		—		8		2,092
	$	317,375	$	3,389	$	2,605	$	318,159



	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale:
U.S. Government sponsored enterprises	$	10,339	$	—	$	112	$	10,227
Obligations of state and political subdivisions	43,079		1,555		29		44,605
GSE mortgage-backed securities	106,208		3,183		288		109,103
Collateralized mortgage obligations: residential	62,093		266		1,520		60,839
Collateralized mortgage obligations: commercial	24,462		190		107		24,545
Other asset-backed securities	24,041		321		19		24,343
Collateralized debt obligation	266		952		—		1,218
Mutual funds	2,100		4		—		2,104
	$	272,588	$	6,471	$	2,075	$	276,984



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity:
Obligations of state and political subdivisions	$	43,737	$	697	$	6	$	44,428
GSE mortgage-backed securities	55,696		705		131		56,270
Collateralized mortgage obligations: residential	10,803		—		361		10,442
Collateralized mortgage obligations: commercial	6,556		2		—		6,558
	$	116,792	$	1,404	$	498	$	117,698



	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity:
Obligations of state and political subdivisions	$	45,914	$	267	$	192	$	45,989
GSE mortgage-backed securities	67,268		1,080		164		68,184
Collateralized mortgage obligations: residential	12,709		—		479		12,230
Collateralized mortgage obligations: commercial	15,310		53		173		15,190
	$	141,201	$	1,400	$	1,008	$	141,593

With the exception of two private-label collateralized mortgage obligations ("CMOs") with a combined balance remaining of $27,000 at December 31, 2015 and three private-label CMOs with a combined balance remaining of $44,000 at December 31, 2014, respectively, all of the Company’s CMOs are government-sponsored enterprise securities.

The amortized cost and fair value of debt securities at December 31, 2015 by contractual maturity are shown below (in thousands). Except for mortgage backed securities, collateralized mortgage obligations, other asset backed securities, and collateralized debt obligations, expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Amortized Cost		Fair Value
Available-for-sale:
Due in one year or less	$	5,670	$	5,702
Due after one year through five years	19,456		20,002
Due after five years through ten years	3,929		4,118
Due after ten years	1,695		1,671
Mortgage-backed securities and collateralized mortgage obligations:
Residential	279,013		279,126
Commercial	5,512		5,448
Mutual funds	2,100		2,092
	$	317,375	$	318,159



	Amortized Cost		Fair Value
Held-to-maturity:
Due in one year or less	$	472	$	473
Due after one year through five years	3,406		3,431
Due after five years through ten years	10,575		10,756
Due after ten years	29,284		29,768
Mortgage-backed securities and collateralized mortgage obligations:
Residential	66,499		66,712
Commercial	6,556		6,558
	$	116,792	$	117,698

Details concerning investment securities with unrealized losses are as follows (in thousands):



	December 31, 2015
	Securities with losses under 12 months				Securities with losses over 12 months				Total
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Available-for-sale:
Obligations of state and political subdivisions	$	1,192	$	27	$	—	$	—	$	1,192	$	27
GSE mortgage-backed securities	21,607		229		—		—		21,607		229
Collateralized mortgage obligations: residential	140,999		1,207		30,029		1,069		171,028		2,276
Collateralized mortgage obligations: commercial	—		—		2,946		65		2,946		65
Mutual funds	2,092		8		—		—		2,092		8
	$	165,890	$	1,471	$	32,975	$	1,134	$	198,865	$	2,605



	December 31, 2014
	Securities with losses under 12 months				Securities with losses over 12 months				Total
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Available-for-sale:
U.S. Government sponsored enterprises	$	4,973	$	32	$	5,254	$	80	$	10,227	$	112
Obligations of state and political subdivisions	2,029		29		—		—		2,029		29
GSE mortgage-backed securities	6,668		25		21,538		263		28,206		288
Collateralized mortgage obligations: residential	9,366		53		37,997		1,467		47,363		1,520
Collateralized mortgage obligations: commercial	—		—		3,747		107		3,747		107
Other asset-backed securities	6,401		19		—		—		6,401		19
	$	29,437	$	158	$	68,536	$	1,917	$	97,973	$	2,075



	December 31, 2015
	Securities with losses under 12 months				Securities with losses over 12 months				Total
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Held-to-maturity:
Obligations of state and political subdivisions	$	541	$	1	$	505	$	5	$	1,046	$	6
GSE mortgage-backed securities	—		—		7,021		131		7,021		131
Collateralized mortgage obligations: residential	—		—		10,442		361		10,442		361
	$	541	$	1	$	17,968	$	497	$	18,509	$	498



	December 31, 2014
	Securities with losses under 12 months				Securities with losses over 12 months				Total
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Held-to-maturity:
Obligations of state and political subdivisions	$	11,761	$	35	$	13,263	$	157	$	25,024	$	192
GSE mortgage-backed securities	—		—		8,142		164		8,142		164
Collateralized mortgage obligations: residential	—		—		12,230		479		12,230		479
Collateralized mortgage obligations: commercial	7,599		173		—		—		7,599		173
	$	19,360	$	208	$	33,635	$	800	$	52,995	$	1,008

Management evaluates whether unrealized losses on securities represent impairment that is other than temporary on a quarterly basis. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market’s perception of the issuer’s financial health and the security’s credit quality. If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income.

As of December 31, 2015, 48 securities had unrealized losses totaling 1.41% of the individual securities’ amortized cost basis and 0.71% of the Company’s total amortized cost basis. 16 of the 48 securities had been in an unrealized loss position for over twelve months at December 31, 2015. These 16 securities had an amortized cost basis and unrealized loss of $52.6 million and $1.6 million, respectively. The unrealized losses on debt securities at December 31, 2015 and 2014 resulted from changing market interest rates over the yields available at the time the underlying securities were purchased. Management identified no impairment related to credit quality. At December 31, 2015 and 2014, management had both the intent and ability to hold impaired securities, and no impairment was evaluated as other than temporary. As a result, no impairment losses were recognized on debt securities during the years ended December 31, 2015, 2014, or 2013.

During the year ended December 31, 2015, the Company sold 22 securities classified as available-for-sale at a net gain of $1.2 million. Of the 22 securities sold, 12 were sold with gains totaling $1.4 million and 10 securities were sold at a loss of $135,000. During the year ended December 31, 2014, the Company sold four securities classified as available-for-sale at a gross gain of $128,000.

Securities with an aggregate carrying value of approximately $285.4 million and $279.8 million at December 31, 2015 and 2014, respectively, were pledged to secure public funds on deposit and for other purposes required or permitted by law.