Note 4. Investment Securities

The following table sets forth the amortized cost and fair values of the Company's investment securities, all of which are reported as available for sale at December 31, 2015 and 2014:

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
		(dollars in thousands)
Obligations of U.S. government agencies	$	47,478	$	269	$	(429	)	$	47,318
Mortgage backed securities
U.S. government sponsored entities and agencies		246,561		986		(2,312	)		245,235
Non-agency		34,645		-		(328	)		34,317
State and municipal securities		105,164		3,486		(244	)		108,406
Asset backed securities		16,183		-		(556	)		15,627
Other investments		100		-		(68	)		32

Total available for sale securities	$	450,131	$	4,741	$	(3,937	)	$	450,935

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
		(dollars in thousands)
Obligations of U.S. government agencies	$	19,562	$	191	$	(89	)	$	19,664
Mortgage backed securities
U.S. government sponsored entities and agencies		216,492		1,092		(2,186	)		215,398
Non-agency		11,891		21		(11	)		11,901
State and municipal securities		79,810		2,843		(61	)		82,592
Asset backed securities		26,216		-		(191	)		26,025

Total available for sale securities	$	353,971	$	4,147	$	(2,538	)	$	355,580

Those investment securities available for sale which have an unrealized loss position at December 31, 2015 and 2014 are detailed below:

	December 31, 2015
	Less Than Twelve Months					Twelve Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
		(dollars in thousands)
Obligations of U.S. government agencies	$	34,533	$	(429	)	$	-	$	-		$	34,533	$	(429	)
Mortgage backed securities
U.S. government sponsored entities and agencies		131,570		(1,485	)		31,558		(827	)		163,128		(2,312	)
Non-agency		31,400		(317	)		2,917		(11	)		34,317		(328	)
State and municipal securities		15,660		(243	)		235		(1	)		15,895		(244	)
Asset backed securities		-		-			15,626		(556	)		15,626		(556	)
Other investments		32		(68	)		-		-			32		(68	)

Total	$	213,195	$	(2,542	)	$	50,336	$	(1,395	)	$	263,531	$	(3,937	)

	December 31, 2014
	Less Than Twelve Months					Twelve Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
		(dollars in thousands)
Obligations of U.S. government agencies	$	2,795	$	(17	)	$	2,607	$	(72	)	$	5,402	$	(89	)
Mortgage backed securities
U.S. government sponsored entities and agencies		50,583		(670	)		58,753		(1,516	)		109,336		(2,186	)
Non-agency		3,000		(7	)		507		(4	)		3,507		(11	)
State and municipal securities		5,899		(47	)		2,245		(14	)		8,144		(61	)
Asset backed securities		-		-			17,153		(191	)		17,153		(191	)

Total	$	62,277	$	(741	)	$	81,265	$	(1,797	)	$	143,542	$	(2,538	)

A total of 104 and 57 securities were in an unrealized loss position as of December 31, 2015 and 2014, respectively. As of December 31, 2015, the Company believes that unrealized losses on its investment securities are not attributable to credit quality, but rather fluctuations in market prices. In the case of the agency mortgage related securities, contractual cash flows are guaranteed by agencies of the U.S. Government. While the Company's investment security holdings have contractual maturity dates that range from 1 to 40 years, they have a much shorter effective duration dependent on the instrument's priority in the overall cash flow structure and the characteristics of the loans underlying the investment security.

Management does not intend to sell and it is unlikely that management will be required to sell the securities prior to their anticipated recovery. As of December 31, 2015, the Company does not believe unrealized losses related to any of its securities are other than temporary.

The proceeds from the sales and calls of securities and the associated gains and losses are listed below:

	For the Years Ended December 31,
	2015			2014			2013
		(dollars in thousands)
Proceeds	$	55,184		$	129,074		$	161,765
Gross gains		815			1,050			5,599
Gross losses		(174	)		(404	)		(1,673	)

The income tax expense related to these net realized gains was $0.3 million, $0.3 million, and $1.6 million, in 2015, 2014 and 2013 respectively.

The table below provides a maturity distribution of available for sale investment securities at December 31, 2015 and 2014. The table reflects the expected lives of mortgage-backed securities, based on the Company's historical prepayment experience, because borrowers have the right to prepay obligations without prepayment penalties. Contractual maturities are reflected for all other security types. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	December 31, 2015				December 31, 2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
		(dollars in thousands)
Due one year or less	$	51,049	$	50,978	$	38,674	$	38,587
Due after one year through five years		153,444		152,916		113,081		112,926
Due after five years through ten years		182,996		184,870		137,909		140,115
Due after ten years		62,642		62,171		64,307		63,952

Total	$	450,131	$	450,935	$	353,971	$	355,580

Securities having an amortized cost and a fair value of $153.9 million and $155.2 million, respectively at December 31, 2015, and $67.3 million and $72.5 million, respectively at December 31, 2014 were pledged to secure public deposits. At year-end 2015 and 2014, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of total securities.

The following table summarizes earnings on investment securities, both taxable, and those that are exempt from federal taxation:

	For the Years Ended December 31,
	2015		2014		2013
		(dollars in thousands)
Taxable earnings on investment securities
Obligations of U.S. government agencies	$	645	$	348	$	106
Mortgage backed securities		3,675		4,433		3,441
State and municipal securities		527		85		5
Corporate debt securities		-		6		-
Asset backed securities		147		353		427
Earnings on investment securities exempt from federal taxation
State and municipal securities		2,317		2,013		1,497

Total	$	7,311	$	7,238	$	5,476