AFS Securities

The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows at:



	June 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Government sponsored enterprises	$	10,362	$	9	$	—	$	10,371
States and political subdivisions	215,874		10,187		14		226,047
Auction rate money market preferred	3,200		—		81		3,119
Preferred stocks	3,800		—		394		3,406
Mortgage-backed securities	235,480		4,715		—		240,195
Collateralized mortgage obligations	116,863		2,512		50		119,325
Total	$	585,579	$	17,423	$	539	$	602,463



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Government sponsored enterprises	$	24,407	$	13	$	75	$	24,345
States and political subdivisions	224,752		7,511		46		232,217
Auction rate money market preferred	3,200		—		334		2,866
Preferred stocks	3,800		—		501		3,299
Mortgage-backed securities	264,109		1,156		1,881		263,384
Collateralized mortgage obligations	134,080		1,136		1,191		134,025
Total	$	654,348	$	9,816	$	4,028	$	660,136

The amortized cost and fair value of AFS securities by contractual maturity at June 30, 2016 are as follows:



	Maturing								Securities with Variable Monthly Payments or Noncontractual Maturities
	Due in One Year or Less		After One Year But Within Five Years		After Five Years But Within Ten Years		After Ten Years				Total
Government sponsored enterprises	$	—	$	10,032	$	330	$	—	$	—	$	10,362
States and political subdivisions	30,337		71,821		83,398		30,318		—		215,874
Auction rate money market preferred	—		—		—		—		3,200		3,200
Preferred stocks	—		—		—		—		3,800		3,800
Mortgage-backed securities	—		—		—		—		235,480		235,480
Collateralized mortgage obligations	—		—		—		—		116,863		116,863
Total amortized cost	$	30,337	$	81,853	$	83,728	$	30,318	$	359,343	$	585,579
Fair value	$	30,414	$	84,966	$	88,857	$	32,181	$	366,045	$	602,463

Expected maturities for government sponsored enterprises and states and political subdivisions may differ from contractual maturities because issuers may have the right to call or prepay obligations.

As the auction rate money market preferred and preferred stocks have continual call dates, they are not reported by a specific maturity group. Because of their variable monthly payments, mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group.

A summary of the sales activity of AFS securities was as follows for the:



	Three Months Ended June 30		Six Months Ended June 30
	2016		2016
Proceeds from sales of AFS securities	$	35,664	$	35,664
Gross realized gains (losses)	$	245	$	245
Applicable income tax expense (benefit)	$	83	$	83

We had no sales of AFS securities in the three and six month periods ended June 30, 2015.

The cost basis used to determine the realized gains or losses of AFS securities sold was the amortized cost of the individual investment security as of the trade date.

The following information pertains to AFS securities with gross unrealized losses at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position. There were no AFS securities with gross unrealized losses for less than twelve month as of June 30, 2016.



	June 30, 2016
	Twelve Months or More
	Gross Unrealized Losses		Fair Value		Total Unrealized Losses
Government sponsored enterprises	$	—	$	—	$	—
States and political subdivisions	14		439		14
Auction rate money market preferred	81		3,119		81
Preferred stocks	394		3,406		394
Mortgage-backed securities	—		—		—
Collateralized mortgage obligations	50		12,750		50
Total	$	539	$	19,714	$	539
Number of securities in an unrealized loss position:			9		9



	December 31, 2015
	Less Than Twelve Months				Twelve Months or More
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Total Unrealized Losses
Government sponsored enterprises	$	—	$	—	$	75	$	4,925	$	75
States and political subdivisions	14		3,355		32		2,623		46
Auction rate money market preferred	—		—		334		2,866		334
Preferred stocks	—		—		501		3,299		501
Mortgage-backed securities	882		131,885		999		37,179		1,881
Collateralized mortgage obligations	415		53,441		776		26,717		1,191
Total	$	1,311	$	188,681	$	2,717	$	77,609	$	4,028
Number of securities in an unrealized loss position:			36				26		62

As of June 30, 2016 and December 31, 2015, we conducted an analysis to determine whether any AFS securities currently in an unrealized loss position should be other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria:


•	Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate?


•	Is the investment credit rating below investment grade?


•	Is it probable the issuer will be unable to pay the amount when due?


•	Is it more likely than not that we will have to sell the security before recovery of its cost basis?


•	Has the duration of the investment been extended?

Based on our analyses, the fact that we have asserted that we do not have the intent to sell AFS securities in an unrealized loss position, and considering it is unlikely that we will have to sell any AFS securities in an unrealized loss position before recovery of their cost basis, we do not believe that the values of any AFS securities were other-than-temporarily impaired as of June 30, 2016 or December 31, 2015.