Investment Securities

The carrying values and approximate fair values of investment securities at the periods indicated are presented below:



(In Thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2014
Securities available for sale
U.S. Treasury and government sponsored entities		$226,624		$105		$539		$226,190
Municipal securities	11,843		285		4		12,124
U.S. Agency mortgage-backed securities	1,024		6		1		1,029
Corporate bonds	38,820		415		—		39,235
Preferred stock	2,999		153		—		3,152
Total securities available for sale		$281,310		$964		$544		$281,730
Securities held to maturity
Municipal securities		$2,201		$107		$—		$2,308
Total securities held to maturity		$2,201		$107		$—		$2,308
December 31, 2013
Securities available for sale
U.S. Treasury and government sponsored entities		$168,922		$103		$323		$168,702
Municipal securities	19,825		378		54		20,149
U.S. Agency mortgage-backed securities	25		—		—		25
Corporate bonds	55,798		1,000		20		56,778
Preferred stock	2,999		35		—		3,034
Total securities available for sale		$247,569		$1,516		$397		$248,688
Securities held to maturity
Municipal securities		$2,208		$153		$—		$2,361
Total securities held to maturity		$2,208		$153		$—		$2,361

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2014 and 2013 were as follows:



	Less Than 12 Months				More Than 12 Months				Total
(In Thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
2014:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$165,004		$539		$—		$—		$165,004		$539
Municipal Securities	567		4		—		—		567		4
Mortgage-backed Securities	117		1		—		—		117		1
Total		$165,688		$544		$—		$—		$165,688		$544
2013:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$122,560		$323		$—		$—		$122,560		$323
Municipal Securities	5,613		54		—		—		5,613		54
Corporate Bonds	6,051		20		—		—		6,051		20
Total		$134,224		$397		$—		$—		$134,224		$397

The unrealized losses on investments in government sponsored entities, corporate bonds and municipal securities in both periods were caused by changes in interest rates. At December 31, 2014 and 2013, there were twenty-nine and twenty-six available-for-sale securities in an unrealized loss position, respectively, that have been in a loss position for less than twelve months. There were no securities with unrealized losses at December 31, 2014 and 2013 that have been at a loss position for more than twelve months. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because it is more likely than not that the Company will hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired.

At December 31, 2014 and 2013, $54.1 million and $46.8 million in securities were pledged for deposits and borrowings, respectively.

The amortized cost and fair values of debt securities at December 31, 2014, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Although preferred stock has no stated maturity, it is aggregated in the calculation of weighted average yields presented below in the category of investments that mature in ten years or more.



(In Thousands)	Amortized Cost		Fair Value		Weighted Average Yield
U.S. Treasury and government sponsored entities
1-5 years		$226,144		$225,706	1.18	%
5-10 years	480		484		2.27	%
Total		$226,624		$226,190	1.18	%
U.S. Agency mortgage-backed securities
1-5 years		$54		$54	2.39	%
5-10 years	309		309		3.27	%
Over 10 years	661		666		2.94	%
Total		$1,024		$1,029	3.01	%
Corporate bonds
Within 1 year		$736		$738	0.89	%
1-5 years	36,084		36,490		1.35	%
5-10 years	2,000		2,007		1.02	%
Total		$38,820		$39,235	1.33	%
Preferred stock
Over 10 years		$2,999		$3,152	5.42	%
Total		$2,999		$3,152	5.42	%
Municipal securities
Within 1 year		$3,556		$3,559	0.82	%
1-5 years	5,533		5,720		3.24	%
5-10 years	4,955		5,153		4.54	%
Total		$14,044		$14,432	3.08	%

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the years ending December 31, 2014, 2013, and 2012, respectively, are as follows:



(In Thousands)	Proceeds		Gross Gains		Gross Losses
2014
Available for sale securities		$24,102		$465		$4
2013
Available for sale securities		$23,514		$333		$—
2012
Available for sale securities		$21,382		$419		$—

A summary of interest income for the years ending December 31, 2014, 2013, and 2012 on available for sale investment securities is as follows:



(In Thousands)	2014		2013		2012
U.S. Treasury and government sponsored entities		$1,769		$898		$941
U.S. Agency mortgage-backed securities	25		1		2
Other	857		1,136		1,280
Total taxable interest income		$2,651		$2,035		$2,223
Municipal securities		$391		$568		$573
Total tax-exempt interest income		$391		$568		$573
Total		$3,042		$2,603		$2,796