(3) Securities

The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:


June 30, 2016	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	41,272	$	326	$	(20	)	$	41,578
Obligations of states and political subdivisions		87,990		7,240		(12	)		95,218
Mortgage-backed securities in government sponsored entities		62,016		1,244		(13	)		63,247

Total debt securities		191,278		8,810		(45	)		200,043

Equity securities in financial institutions		481		119		—			600

Total	$	191,759	$	8,929	$	(45	)	$	200,643


December 31, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	40,992	$	74	$	(129	)	$	40,937
Obligations of states and political subdivisions		87,255		4,959		(62	)		92,152
Mortgage-backed securities in government sponsored entities		62,135		681		(243	)		62,573

Total debt securities		190,382		5,714		(434	)		195,662

Equity securities in financial institutions		481		106		—			587

Total	$	190,863	$	5,820	$	(434	)	$	196,249

The amortized cost and fair value of securities at June 30, 2016, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities are shown separately.


Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	9,728	$	9,744
Due after one year through five years		27,019		27,398
Due after five years through ten years		31,857		34,003
Due after ten years		60,658		65,651
Mortgage-backed securities		62,016		63,247
Equity securities		481		600

Total securities available for sale	$	191,759	$	200,643

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:


	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015

Sale proceeds	$	1,994	$	—	$	1,994	$	—
Gross realized gains		—		—		—		—
Gross realized losses		—		—		—		—
Gains from securities called or settled by the issuer		6		—		1		—

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $150,444 and $142,888 as of June 30, 2016 and December 31, 2015, respectively.

Securities with unrealized losses at June 30, 2016 and December 31, 2015 not recognized in income are as follows:


June 30, 2016	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Treasury securities and obligations of U.S. government agencies	$	727	$	(1	)	$	979	$	(19	)	$	1,706	$	(20	)
Obligations of states and political subdivisions		—		—			531		(12	)		531		(12	)
Mortgage-backed securities in gov’t sponsored entities		—		—			1,882		(13	)		1,882		(13	)


Total temporarily impaired	$	727	$	(1	)	$	3,392	$	(44	)	$	4,119	$	(45	)


December 31, 2015	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Treasury securities and obligations of U.S. government agencies	$	25,464	$	(112	)	$	1,132	$	(17	)	$	26,596	$	(129	)
Obligations of states and political subdivisions		2,932		(20	)		1,469		(42	)		4,401		(62	)
Mortgage-backed securities in gov’t sponsored entities		27,263		(172	)		5,041		(71	)		32,304		(243	)


Total temporarily impaired	$	55,659	$	(304	)	$	7,642	$	(130	)	$	63,301	$	(434	)

At June 30, 2016, there were nine securities in the portfolio with unrealized losses mainly due to higher market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to market yields increasing across the municipal sector. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.