NOTE D — INVESTMENT SECURITIES

The following tables provide the composition of investment securities at June 30, 2015 and December 31, 2014 (dollars in thousands):

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

Available for sale at June 30, 2015

Ginnie Mae and GSE mortgage-backed pass-through securities

43,887

304

123

44,068

Ginnie Mae collateralized mortgage obligations

1,901

—

1,872

Mutual fund

1,846

—

1,880

47,634

338

152

47,820


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at June 30, 2015
GSE mortgage-backed pass-through securities	$	11,736	$	4	$	6	$	11,734
Municipal securities		5,405		14		—		5,419

	$	17,141	$	18	$	6	$	17,153


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2014
Ginnie Mae and GSE mortgage-backed pass-through securities	$	43,675	$	566	$	43	$	44,198
Ginnie Mae collateralized mortgage obligations		2,053		—		34		2,019
Mutual fund		1,826		41		—		1,867

	$	47,554	$	607	$	77	$	48,084


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at December 31, 2014
GSE mortgage-backed pass-through securities	$	4,736	$	20	$	—	$	4,756
Municipal securities		2,346		8		—		2,354

	$	7,082	$	28	$	—	$	7,110

The amortized cost and fair value of securities at June 30, 2015 by contractual maturity are shown below (dollars in thousands). Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available for Sale
	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		—		—
Five to ten years		—		—
After ten years		—		—

		—		—
Ginnie Mae and GSE mortgage-backed pass-through securities		43,887		44,068
Ginnie Mae collateralized mortgage obligations		1,901		1,872
Mutual fund		1,846		1,880

	$	47,634	$	47,820


	Held to Maturity
	Amortized Cost		Fair Value
Within one year	$	360	$	361
One to five years		1,559		1,563
Five to ten years		2,262		2,268
After ten years		1,224		1,227

Municipal securities		5,405		5,419
GSE mortgage-backed pass-through securities		11,736		11,734

	$	17,141	$	17,153

Mortgage-backed pass-through securities: The contractual cash flows of these investments are guaranteed by either Ginnie Mae, a U.S. Government agency, or by Fannie Mae and Freddie Mac, U.S. Government-sponsored entities, institutions which the U.S. Government has affirmed its commitment to support. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment.

Collateralized mortgage obligations: The contractual cash flows of these investments are guaranteed by Ginnie Mae, a U.S. Government agency. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the Company’s investment.

Municipal Securities: The municipal securities consisted of non-rated local issue revenue bonds.

Mutual fund: The mutual fund balance consisted of an investment in the CRA Qualified Investment mutual fund, whose portfolio composition is primarily in debt securities with an average credit quality rating of AAA.

Certain investment securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2015 and December 31, 2014 was $19,775,000 and $12,122,000, respectively, which was approximately 30.4% and 22.0%, respectively, of the Company’s investment portfolio at these dates.

Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The following table shows the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2015 and December 31, 2014 (dollars in thousands):


	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale at June 30, 2015
Ginnie Mae and GSE mortgage-backed pass-through securities	$	17,859	$	122	$	44	$	1	$	17,903	$	123
Ginnie Mae collateralized mortgage obligations		—		—		1,872		29		1,872		29

	$	17,859	$	122	$	1,916	$	30	$	19,775	$	152


	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available for sale at December 31, 2014
Ginnie Mae and GSE mortgage-backed pass-through securities	$	5,540	$	5	$	4,563	$	38	$	10,103	$	43
Ginnie Mae collateralized mortgage obligations		—		—		2,019		34		2,019		34

	$	5,540	$	5	$	6,582	$	72	$	12,122	$	77

Investment securities with a total market value of $8,508,000 and $8,499,000 were pledged at June 30, 2015 and December 31, 2014, respectively, to secure a repurchase agreement.

There were no sales of available for sale securities during the three-month and six-month periods ended June 30, 2015 and June 30, 2014.