9. INVESTMENT SECURITIES

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at June 30, 2014 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value

Investment securities available-for-sale:
Securities of U.S. government agencies and corporations	$	46,862	$	42	$	(600	)	$	46,304
Obligations of states and political subdivisions		27,455		768		(129	)		28,094
Collateralized mortgage obligations		6,539		52		—			6,591
Mortgage-backed securities		80,059		1,106		(174	)		80,991

Total debt securities	$	160,915	$	1,968	$	(903	)	$	161,980

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at December 31, 2013 are summarized as follows:

(in thousands)	Amortized cost		Unrealized gains		Unrealized losses			Estimated fair value

Investment securities available-for-sale:
Securities of U.S. government agencies and corporations	$	53,960	$	8	$	(1,283	)	$	52,685
Obligations of states and political subdivisions		27,528		409		(550	)		27,387
Collateralized mortgage obligations		5,359		46		—			5,405
Mortgage-backed securities		87,486		718		(412	)		87,792

Total debt securities	$	174,333	$	1,181	$	(2,245	)	$	173,269

There were no proceeds from sales of available-for-sale securities for the six-month and three-month periods ended June 30, 2014 and June 30, 2013. There were no gross realized gains from sales or calls of available-for-sale securities for the six-month and three-month periods ended June 30, 2014. Gross realized gains from calls of available-for-sale securities were $4 and $0 for the six-month and three-month periods ended June 30, 2013, respectively. There was a $50 gross realized loss from other equity securities for the six-month and three-month periods ended June 30, 2014. There were no gross realized losses from sales of available-for-sale securities for the six-month and three-month periods ended June 30, 2013.

The amortized cost and estimated market value of debt and other securities at June 30, 2014, by contractual and expected maturity, are shown in the following table.

(in thousands)	Amortized cost		Estimated fair value

Due in one year or less	$	12,128	$	12,143
Due after one year through five years		109,097		109,884
Due after five years through ten years		35,329		35,379
Due after ten years		4,361		4,574

	$	160,915	$	161,980

Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities due after one year through five years included mortgage-backed securities and collateralized mortgage obligations with expected maturities totaling $83,361,000. The maturities on these securities were based on the average lives of the securities.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of June 30, 2014, follows:

	Less than 12 months					12 months or more					Total
(in thousands)	Fair Value		Unrealized losses			Fair Value		Unrealized losses			Fair Value		Unrealized losses

Securities of U.S. government agencies and corporations	$	2,007	$	(1	)	$	29,532	$	(599	)	$	31,539	$	(600	)
Obligations of states and political subdivisions		2,977		(22	)		5,970		(107	)		8,947		(129	)
Mortgaged-backed securities		—		—			11,807		(174	)		11,807		(174	)

Total	$	4,984	$	(23	)	$	47,309	$	(880	)	$	52,293	$	(903	)

No decline in value was considered “other-than-temporary” during 2014. Six securities, all considered investment grade, which had a fair value of $4,984,000 and a total unrealized loss of $23,000 have been in an unrealized loss position for less than twelve months as of June 30, 2014. Thirty eight securities, all considered investment grade, which had a fair value of $47,309,000 and a total unrealized loss of $880,000 had been in an unrealized loss position for more than twelve months as of June 30, 2014. The declines in fair value were attributable to changes in interest rates. We have evaluated the credit ratings of our investment securities and their issuer and/or insurers, and based on this evaluation have determined that no investment security in our investment portfolio is other-than-temporarily impaired. As the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities prior to their anticipated recovery, these investments are not considered other-than-temporarily impaired.

An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of December 31, 2013, follows:


	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized losses			Fair Value		Unrealized losses			Fair Value		Unrealized losses

Securities of U.S. government agencies and corporations	$	46,654	$	(1,283	)	$	—	$	—		$	46,654		(1,283	)
Obligations of states and political subdivisions		11,871		(550	)		—		—			11,871		(550	)
Mortgage-backed securities		19,155		(243	)		6,932		(169	)		26,087		(412	)


Total	$	77,680	$	(2,076	)	$	6,932	$	(169	)	$	84,612	$	(2,245	)

Investment securities carried at $29,026,000 and $28,773,000 at June 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.