9.	INVESTMENT SECURITIES

The amortized cost, unrealized gains and losses and estimated fair values of investments in debt and other securities at September 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	$	35,299	$	7	$	(530	)	$	34,776
Obligations of states and political subdivisions		20,993		520		(78	)		21,435
Collateralized mortgage obligations		10,096		42		(23	)		10,115
Mortgage-backed securities		76,716		944		(197	)		77,463

Total debt securities	$	143,104	$	1,513	$	(828	)	$	143,789

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

The Company had $12,140,000 in proceeds from sales of available-for-sale securities for the nine-month and three-month periods September 30, 2014. The Company had no proceeds from sales of available-for-sale securities for the nine-month and three-month periods September 30, 2013. Gross realized gains from sales or a calls of available-for-sale securities were $292,000 for the nine-month and three-month periods ended September 30, 2014. Gross realized gains from sales or a calls of available-for-sale securities were $4,000 and $0 for the nine-month and three-month periods ended September 30, 2013. Gross realized losses from sales or a calls of available-for-sale securities were $239,000 for the nine-month and three-month periods ended September 30, 2014. There were no gross realized losses from sales or calls of available-for-sale securities for the nine-month and three-month periods ended September 30, 2013. For the nine-month and three-month periods ended September 30, 2014, there was $50,000 and $0, respectively, gross realized loss from other equity securities.

The amortized cost and estimated market value of debt and other securities at September 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	$	7,688	$	7,695
Due after one year through five years		109,683		110,167
Due after five years through ten years		23,796		23,893
Due after ten years		1,937		2,034

	$	143,104	$	143,789

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 $82,300,000. 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 September 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	$	4,629	$	(6	)	$	21,574	$	(524	)	$	26,203	$	(530	)
Obligations of states and political subdivisions		1,588		(27	)		4,790		(51	)		6,378		(78	)
Collateralized Mortgage obligations		4,048		(23	)		—		—			4,048		(23	)
Mortgaged-backed securities		3,703		(12	)		11,130		(185	)		14,833		(197	)

Total	$	13,968	$	(68	)	$	37,494	$	(760	)	$	51,462	$	(828	)

No decline in value was considered “other-than-temporary” during 2014. Twelve securities, all considered investment grade, which had a fair value of $13,968,000 and a total unrealized loss of $68,000 have been in an unrealized loss position for less than twelve months as of September 30, 2014. Thirty two securities, all considered investment grade, which had a fair value of $37,494,000 and a total unrealized loss of $760,000 had been in an unrealized loss position for more than twelve months as of September 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	)
Collateralized Mortgage obligations		—		—			—		—			—		—
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 $28,989,000 and $28,773,000 at September 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits or for other purposes as required or permitted by law.