Financial Instruments

Certain financial assets and liabilities are accounted for at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes the inputs used to measure fair value:

Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies.

Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value from the perspective of a market participant.

The following table represents cash and the available-for-sale securities adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or investment securities as of:

	March 31, 2016
	Cost		Unrealized Gains		Unrealized Losses		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	46,412	$	-	$	-	$	-	$	46,412	$	46,412	$	-

Level 1:
Money Market Accounts		904		-		-		-		904		904		-
Mutual Funds		9,640		23		(478)		-		9,185		-		9,185
Corporate Equity Securities		1,517		233		(25)		-		1,725		-		1,725
Government & Agency Securities		4,720		64		(1)		15		4,798		-		4,798
		16,781		320		(504)		15		16,612		904		15,708

Level 2:
Municipal Bonds		2,732		39		(3)		16		2,784		-		2,784
Corporate Bonds		5,732		83		(12)		38		5,841		-		5,841
		8,464		122		(15)		54		8,625		-		8,625

Total	$	71,657	$	442	$	(519)	$	69	$	71,649	$	47,316	$	24,333

	December 31, 2015
	Cost		Unrealized Gains		Unrealized Losses		Accrued Interest		Estimated Fair Value		Cash & Cash Equivalents		Investment Securities

Cash	$	38,276	$	-	$	-	$	-	$	38,276	$	38,276	$	-

Level 1:
Money Market Accounts		3,761		-		-		-		3,761		3,761		-
Mutual Funds		9,654		37		(444)		-		9,247		-		9,247
Corporate Equity Securities		1,332		246		(76)		-		1,502		-		1,502
Government & Agency Securities		5,425		25		(19)		17		5,448		-		5,448
		20,172		308		(539)		17		19,958		3,761		16,197

Level 2:
Municipal Bonds		2,735		42		(3)		20		2,794		-		2,794
Corporate Bonds		6,054		22		(41)		46		6,081		-		6,081
		8,789		64		(44)		66		8,875		-		8,875

Total	$	67,237	$	372	$	(583)	$	83	$	67,109	$	42,037	$	25,072

The Company had a realized loss of $44 thousand for the three months ended March 31, 2016 and a realized gain of $118 thousand for the three months ended March 31, 2015. As of March 31, 2016 and 2015, gross unrealized losses related to individual securities that had been in a continuous loss position for 12 months or longer were not significant. The maturities of the Company’s investment securities generally range up to 30 years for corporate bonds, up to 5 years for municipal bonds, and up to 10 years for government and agency securities.