Securities

Securities at December 31, 2015 and 2014 are as follows:



	December 31, 2015
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	38,093	$	139	$	(482	)	$	37,750
Municipal securities	21,091		385		(7		)	21,469
Mortgage-backed securities	113,948		110		(1,006		)	113,052
Asset-backed securities	19,444		—		(83		)	19,361
Corporate securities	20,000		—		(913		)	19,087
Other securities	3,000		—		(21		)	2,979
Total available for sale	$	215,576	$	634	$	(2,512	)	$	213,698



	December 31, 2014
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	13,680	$	129	$	(257	)	$	13,552
Mortgage-backed securities	117,134		282		(368		)	117,048
Asset-backed securities	4,913		—		(1		)	4,912
Other securities	2,000		6		—			2,006
Total available for sale	$	137,727	$	417	$	(626	)	$	137,518

The carrying value of securities at December 31, 2015 is shown below by their contractual maturity date. Actual maturities will differ because borrowers 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	487		451
Five to ten years	25,358		24,935
After ten years	53,339		52,920
	79,184		78,306
Mortgage-backed securities	113,948		113,052
Asset-backed securities	19,444		19,361
Other securities	3,000		2,979
Totals	$	215,576	$	213,698

Gross realized gains of $0, $2.7 million, and $0.5 million and gross realized losses of $0, $2.2 million, and $0.5 million resulting from sales of available-for-sale securities were recognized during the twelve months ended December 31, 2015, 2014, and 2013, respectively.

As of December 31, 2015, the fair value of available-for-sale investment securities pledged as collateral was $150.8 million. The Company pledged the securities for various types of transactions, including FHLB advances and derivative financial instruments.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2015 and 2014 was $166.1 million and $86.9 million, which is approximately 78% and 63%, respectively, of the Company’s available-for-sale securities portfolio. These declines primarily resulted from fluctuations in market interest rates after purchase.

Management believes the declines in fair value for these securities are temporary.

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

The following tables show the securities portfolio’s 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 December 31, 2015 and 2014:



	December 31, 2015
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	18,289	$	(237	)	$	8,537	$	(245	)	$	26,826	$	(482	)
Municipal securities	1,026		(7		)	—		—			1,026		(7		)
Mortgage-backed securities	74,198		(562		)	22,655		(444		)	96,853		(1,006		)
Asset-backed securities	19,361		(83		)	—		—			19,361		(83		)
Corporate securities	19,087		(913		)	—		—			19,087		(913		)
Other securities	2,979		(21		)	—		—			2,979		(21		)
	$	134,940	$	(1,823	)	$	31,192	$	(689	)	$	166,132	$	(2,512	)



	December 31, 2014
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	801	$	(10	)	$	8,719	$	(247	)	$	9,520	$	(257	)
Mortgage-backed securities	51,204		(57		)	21,237		(311		)	72,441		(368		)
Asset-backed securities	4,912		(1		)	—		—			4,912		(1		)
	$	56,917	$	(68	)	$	29,956	$	(558	)	$	86,873	$	(626	)

U.S. Government-Sponsored Agencies, Municipal Securities, and Corporate Securities

The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments, and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2015.

Mortgage-Backed and Asset-Backed Securities

The unrealized losses on the Company’s investments in mortgage-backed and asset-backed securities were caused by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments, and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2015.

Other Securities

The unrealized losses on the Company’s investments in other securities were caused by the investment in the Community Reinvestment Act Qualified Fund. Because the Company does not intend to sell the investment and it is not likely that the Company will be required to sell the investment before recovery of its amortized cost basis, the Company does not consider this investment to be other-than-temporarily impaired at December 31, 2015.

Credit Losses Recognized on Investments

Certain debt securities have experienced fair value deterioration due to credit losses and other market factors, but are not considered other-than-temporarily impaired.

The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in accumulated other comprehensive loss. The Company did not own any securities categorized as OTTI securities during the year ended December 31, 2015.



	Accumulated Credit Losses
Credit losses on debt securities held
January 1, 2013	$	1,737
Realized losses related to OTTI	(603		)
Additions related to OTTI losses not previously recognized	31
Additions related to increases in previously recognized OTTI losses	18
December 31, 2013	1,183
Realized losses related to OTTI	(1,139		)
Recoveries related to OTTI	(44		)
December 31, 2014	$	—

There were no amounts reclassified from accumulated other comprehensive loss in the year ended December 31, 2015. Amounts reclassified from accumulated other comprehensive loss and the affected line items in the consolidated statements of income during the years ended December 31, 2014 and 2013 were as follows:



Details About Accumulated Other Comprehensive Loss Components	Amounts Reclassified from Accumulated Other Comprehensive Loss for the Year Ended December 31,					Affected Line Item in the Statements of Income
	2014		2013			Affected Line Item in the Statements of Income
Unrealized gains and losses on securities available for sale
Gain (loss) realized in earnings	$	538	$	(63	)	Gain (loss) on sale of securities
OTTI losses recognized in earnings	—		(49		)	Other-than-temporary impairment loss recognized in net income
Total reclassified amount before tax	538		(112		)	Income Before Income Taxes
Tax expense (benefit)	191		(38		)	Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss	$	347	$	(74	)	Net Income