Note 2. Securities

The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities at March 31, 2016 and December 31, 2015 were as follows (in thousands):


	March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available for sale:
U.S. agency and mortgage-backed securities	$	83,151	$	694	$	(205	)	$	83,640
Obligations of states and political subdivisions		15,029		355		(16	)		15,368
Corporate equity securities		1		10		—			11

Total securities available for sale	$	98,181	$	1,059	$	(221	)	$	99,019

Securities held to maturity:
U.S. agency and mortgage-backed securities	$	48,126	$	308	$	(53	)	$	48,381
Obligations of states and political subdivisions		15,337		316		(4	)		15,649
Corporate debt securities		1,500		38		—			1,538

Total securities held to maturity	$	64,963	$	662	$	(57	)	$	65,568

Total securities	$	163,144	$	1,721	$	(278	)	$	164,587


	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
Securities available for sale:
U.S. agency and mortgage-backed securities	$	89,919	$	261	$	(843	)	$	89,337
Obligations of states and political subdivisions		15,931		333		(50	)		16,214
Corporate equity securities		1		7		—			8

Total securities available for sale	$	105,851	$	601	$	(893	)	$	105,559

Securities held to maturity:
U.S. agency and mortgage-backed securities	$	49,662	$	36	$	(326	)	$	49,372
Obligations of states and political subdivisions		15,357		228		(19	)		15,566
Corporate debt securities		1,500		—		—			1,500

Total securities held to maturity	$	66,519	$	264	$	(345	)	$	66,438

Total securities	$	172,370	$	865	$	(1,238	)	$	171,997

At March 31, 2016 and December 31, 2015, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands):


	March 31, 2016
	Less than 12 months					12 months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		(Loss)			Fair Value		(Loss)			Fair Value		(Loss)
Securities available for sale:
U.S. agency and mortgage-backed securities	$	12,958	$	(36	)	$	11,779	$	(169	)	$	24,737	$	(205	)
Obligations of states and political subdivisions		551		(1	)		517		(15	)		1,068		(16	)

Total securities available for sale	$	13,509	$	(37	)	$	12,296	$	(184	)	$	25,805	$	(221	)

Securities held to maturity:
U.S. agency and mortgage-backed securities	$	8,935	$	(53	)	$	—	$	—		$	8,935	$	(53	)
Obligations of states and political subdivisions		1,848		(4	)		—		—			1,848		(4	)

Total securities held to maturity	$	10,783	$	(57	)	$	—	$	—		$	10,783	$	(57	)

Total securities	$	24,292	$	(94	)	$	12,296	$	(184	)	$	36,588	$	(278	)


	December 31, 2015
	Less than 12 months					12 months or more					Total
			Unrealized					Unrealized					Unrealized
	Fair Value		(Loss)			Fair Value		(Loss)			Fair Value		(Loss)
Securities available for sale:
U.S. agency and mortgage-backed securities	$	50,185	$	(464	)	$	13,409	$	(379	)	$	63,594	$	(843	)
Obligations of states and political subdivisions		2,395		(15	)		1,053		(35	)		3,448		(50	)

Total securities available for sale	$	52,580	$	(479	)	$	14,462	$	(414	)	$	67,042	$	(893	)

Securities held to maturity:
U.S. agency and mortgage-backed securities	$	32,791	$	(326	)	$	—	$	—		$	32,791	$	(326	)
Obligations of states and political subdivisions		3,052		(19	)		—		—			3,052		(19	)

Total securities held to maturity	$	35,843	$	(345	)	$	—	$	—		$	35,843	$	(345	)

Total securities	$	88,423	$	(824	)	$	14,462	$	(414	)	$	102,885	$	(1,238	)

The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities.

At March 31, 2016, there were twenty-one U.S. agency and mortgage-backed securities and six obligations of state and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 4.2 years at March 31, 2016. At December 31, 2015, there were fifty-two U.S. agency and mortgage-backed securities and thirteen obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2015. The weighted-average re-pricing term of the portfolio was 4.6 years at December 31, 2015. The unrealized losses at March 31, 2016 in the U.S. agency and mortgage-backed securities portfolio and the obligation of states and political subdivisions portfolio were related to changes in market interest rates and not credit concerns of the issuers.

The amortized cost and fair value of securities available for sale at March 31, 2016 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date.


	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due within one year	$	375	$	376	$	—	$	—
Due after one year through five years		9,661		9,737		631		638
Due after five years through ten years		13,684		13,931		19,490		19,786
Due after ten years		74,460		74,964		44,842		45,144
Corporate equity securities		1		11		—		—

	$	98,181	$	99,019	$	64,963	$	65,568

Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at March 31, 2016, and no impairment has been recognized.

The composition of restricted securities at March 31, 2016 and December 31, 2015 was as follows (in thousands):


	March 31, 2016		December 31, 2015
Federal Home Loan Bank stock	$	623	$	466
Federal Reserve Bank stock		875		875
Community Bankers’ Bank stock		50		50

	$	1,548	$	1,391