Note 3 — Investments

Amortized cost and fair values of investment securities held-to-maturity at December 31, 2012, including gross unrealized gains and losses, are summarized (with dollars in thousands) as follows:

	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value

Municipal securities	$	35,370	$	988	$	(140	)	$	36,218
	$	35,370	$	988	$	(140	)	$	36,218

Amortized cost and fair values of investment securities held-to-maturity at September 30, 2013, including gross unrealized gains and losses, are summarized (with dollars in thousands) as follows:

	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value

Municipal securities	$	55,208	$	458	$	(2,783	)	$	52,883
	$	55,208	$	458	$	(2,783	)	$	52,883

Amortized cost and fair values of investment securities available-for-sale at December 31, 2012 are summarized (with dollars in thousands) as follows:

	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value

U. S. Agency securities	$	21,951	$	247	$	(6	)	$	22,192
Mortgage-backed securities	56,217		328		(169		)	56,376
Other securities	934		—		—			934
	$	79,102	$	575	$	(175	)	$	79,502

Amortized cost and fair values of investment securities available-for-sale at September 30, 2013 are summarized (with dollars in thousands) as follows:

	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value

U. S. Agency securities	$	61,078	$	73	$	(1,362	)	$	59,789
Mortgage-backed securities	49,756		123		(773		)	49,106
Other securities	934		—		—			934
	$	111,768	$	196	$	(2,135	)	$	109,829

The following tables summarize amortized cost and fair values of securities (with dollars in thousands) by maturity:

	September 30, 2013
	Held to Maturity				Available for sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Within one year	$	755	$	769	$	—	$	—
After one year, but within five	3,211		3,311		25,439		25,261
After five years, but within ten	10,844		10,873		48,330		47,239
After ten Years	40,398		37,930		37,999		37,329
Total	$	55,208	$	52,883	$	111,768	$	109,829

Investment securities with a carrying value of $159,537 and $84,301 at September 30, 2013 and 2012, respectively, were pledged to secure public funds, repurchase agreements and potential borrowings at the Federal Reserve discount window.

The Company’s investment portfolio includes securities that are in an unrealized loss position as of September 30, 2013, the details of which are included in the following table. Although these securities, if sold at September 30, 2013 would result in a pretax loss of $4,918, the Company has no intent to sell the applicable securities at such market values, and maintains the Company has the ability to hold these securities until all principal has been recovered. Declines in the market values of these securities can be traced to general market conditions which reflect the prospect for the economy as a whole. When determining other-than-temporary impairment on securities, the Company considers such factors as adverse conditions specifically related to a certain security or to specific conditions in an industry or geographic area, the time frame securities have been in an unrealized loss position, the Company’s ability to hold the security for a period of time sufficient to allow for anticipated recovery in value, whether or not the security has been downgraded by a rating agency, and whether or not the financial condition of the security issuer has severely deteriorated. As of September 30, 2013, the Company considers all securities with unrealized loss positions to be temporarily impaired, and consequently, does not believe the Company will sustain any material realized losses as a result of the current temporary decline in market value.

The following table discloses investments in an unrealized loss position: (with dollars in thousands)

At December 31, 2012, total temporary impairment totaled $315.

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Agencies(3)	$	9,676	$	(6	)	$	—	$	—
Mortgage-backed securities(11)	28,688		(169		)	—		—
Municipal securities(28)	11,216		(140		)	—		—
	$	49,580	$	(315	)	$	—	$	—

At September 30, 2013, total temporary impairment (with dollars in thousands) totaled $4,918.

Description and number	Less than 12 months					12 months or more
of positions	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Agencies(16)	$	52,619	$	(1,362	)	$	—	$	—
Mortgage-backed securities(14)	24,746		(600		)	6,203		(173		)
Municipal securities(98)	33,659		(2,461		)	3,740		(322		)
	$	111,024	$	(4,423	)	$	9,943	$	(495	)