Investment Securities

The amortized cost and fair value of investment securities are as follows:



	Amortized Cost		Gross Unrealized					Fair Value
	Amortized Cost		Gains		Losses			Fair Value
	(In thousands)
December 31, 2015
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,130	$	6	$	—		$	3,136
Mortgage backed securities	342,211		350		(4,177		)	338,384
Other securities	1		2		—			3
	$	345,342	$	358	$	(4,177	)	$	341,523
Held to maturity:
Corporate bonds	$	15,492	$	—	$	(70	)	$	15,422

December 31, 2014
Available for sale:
U.S. government sponsored and federal agency obligations	$	3,245	$	16	$	—		$	3,261
Mortgage backed securities	293,755		822		(3,242		)	291,335
Other securities	1		2		—			3
	$	297,001	$	840	$	(3,242	)	$	294,599

The table below presents the fair value and gross unrealized losses of securities in a loss position, aggregated by investment category and length of time that individual holdings have been in a continuous unrealized loss position at December 31, 2015 and 2014:



	Unrealized Loss Position
	Less than 12 months					12 months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(In thousands)
December 31, 2015
Available for sale:
Mortgage backed securities	$	223,464	$	(2,138	)	$	74,678	$	(2,039	)	$	298,142	$	(4,177	)
Held to maturity:
Corporate bonds	$	15,422	$	(70	)	$	—	$	—		$	15,422	$	(70	)

December 31, 2014
Available for sale:
Mortgage backed securities	$	81,135	$	(339	)	$	106,433	$	(2,903	)	$	187,568	$	(3,242	)

Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. To determine if an other-than-temporary impairment exists on a debt security, the Company first determines if (a) it intends to sell the security or (b) it is more likely than not that it will be required to sell the security before its anticipated recovery.

Unrealized losses on available for sale investment securities as of December 31, 2015 and 2014 due to changes in interest rates and other non-credit related factors totaled $4.2 million and $3.2 million, respectively. The number of individual available for sale securities in the tables above totaled 63 at December 31, 2015 and 34 at December 31, 2014 and the number of individual held to maturity securities totaled 4 at December 31, 2015. The Company has analyzed these securities for evidence of other-than-temporary impairment and concluded that no other-than-temporary impairment ("OTTI") exists and that the unrealized losses are properly classified in accumulated other comprehensive income (loss).

At December 31, 2015 and 2014, there were no securities classified as other-than-temporarily impaired. Unrealized other-than-temporary impairment due to credit losses of $64,000 and $23,000 was included in earnings for the year ended December 31, 2014 and for the nine months ended December 31, 2013, respectively. For the year ended December 31, 2014 and for the nine months ended December 31, 2013, respectively, realized losses of $221,000 and $224,000 related to credit issues (i.e. – principal reduced without a receipt of cash) were incurred that were previously recognized in earnings as unrealized OTTI. During 2014, these other-than-temporarily impaired securities were sold at a loss of $37,000.

The following table is a roll forward of the amount of OTTI related to credit losses that have been recognized in earnings for which a portion of impairment was deemed temporary and recognized in other comprehensive income (loss) for the periods presented:



	Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(In thousands)
Beginning balance of unrealized OTTI related to credit losses	$	801		$	1,002
Additional unrealized OTTI related to credit losses for which OTTI was previously recognized	64			23
Additional debit related OTTI previously recognized for OTTI recovery during the period	4			5
Credit related OTTI previously recognized for securities sold during the period	(644		)	—
Decrease for realized amount of credit losses for which unrealized credit related OTTI was previously recognized	(225		)	(229		)
Ending balance of unrealized OTTI related to credit losses	$	—		$	801

The cost of investment securities sold is determined using the specific identification method. Sales of investment securities available for sale are summarized below:



	Year Ended December 31, 2015			Year Ended December 31, 2014			Nine Months Ended December 31, 2013
	(In thousands)
Proceeds from sales	$	14,647		$	17,557		$	356
Gross gains	$	65		$	825		$	292
Gross losses	(2		)	(79		)	—
Net gain on sales	$	63		$	746		$	292

At December 31, 2015 and 2014, investment securities with a fair value of approximately $92.3 million and $121.5 million, respectively, were pledged to secure deposits, borrowings and for other purposes as permitted or required by law.

The fair values of investment securities by contractual maturity at December 31, 2015 are shown below. Actual maturities may differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.



	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Within 1 Year	$	3	$	3	$	—	$	—
After 1 Year through 5 Years	3,254		3,263		—		—
After 5 Years through 10 Years	9,736		9,675		15,492		15,422
After Ten Years	332,349		328,582		—		—
Total	$	345,342	$	341,523	$	15,492	$	15,422

In 2008, the Company received proceeds in connection with shares redeemed as part of the Visa, Inc. initial public offering. The Bank was a member of the former Visa, Inc. payments organization and was issued shares when Visa, Inc. was organized. Approximately 39% of those shares were redeemed in connection with the public offering. The remaining shares are restricted because of unsettled litigation pending against Visa, Inc. At its discretion, Visa, Inc. may redeem additional shares in order to resolve pending litigation. The restriction expires upon resolution of the pending litigation. Accordingly, the Company has recorded these shares at zero in the consolidated balance sheets. Upon expiration of the restriction, the Company expects to record the fair value of the remaining shares.