Note 3 – Investments

Amortized cost and fair values of investment securities held-to-maturity at September 30, 2014, including gross unrealized gains and losses, are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
Municipal securities	$	55,633	$	1,305	$	(610)	$	56,328
Total investment securities held-to-maturity	$	55,633	$	1,305	$	(610)	$	56,328

Amortized cost and fair values of investment securities held-to-maturity at December 31, 2013, including gross unrealized gains and losses, are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
Municipal securities	$	56,670	$	367	$	(2,919)	$	54,118
Total investment securities held–to-maturity	$	56,670	$	367	$	(2,919)	$	54,118

Amortized cost and fair values of investment securities available-for-sale at September 30, 2014 are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
U.S. Agency securities	$	44,809	$	27	$	(790)	$	44,046
U.S. Sponsored Mortgage-backed securities		26,774		31		(489)		26,316
Total debt securities		71,583		58		(1,279)		70,362
Equity and other securities		810		220		—		1,030
Total investment securities available-for-sale	$	72,393	$	278	$	(1,279)	$	71,392

Amortized cost and fair values of investment securities available-for-sale at December 31, 2013 are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value
U.S. Agency securities	$	60,744	$	—	$	(1,922)	$	58,822
U.S. Sponsored Mortgage-backed securities		47,317		118		(843)		46,592
Total debt securities		108,061		118		(2,765)		105,414
Equity and other securities		810		187		—		997
Total investment securities available-for-sale	$	108,871	$	305	$	(2,765)	$	106,411

The following tables summarize amortized cost and fair values of debt securities by maturity:


	September 30, 2014
	Held to Maturity				Available for sale
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Within one year	$	—	$	—	$	—	$	—
After one year, but within five		2,422		2,475		27,064		26,863
After five years, but within ten		15,304		15,628		23,197		22,643
After ten years		37,907		38,225		21,322		20,856
Total	$	55,633	$	56,328	$	71,583	$	70,362

Investment securities with a carrying value of $121,327 at September 30, 2014, 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, 2014, the details of which are included in the following table. Although these securities, if sold at September 30, 2014 would result in a pretax loss of $1,889, 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, 2014, 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 at September 30, 2014:


Description and number of positions	Less than 12 months				12 months or more
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Agency securities (11)	$	6,904	$	(19)	$	28,374	$	(771)
U.S. Sponsored Mortgage-backed securities (10)		3,809		(15)		16,089		(474)
Municipal securities (57)		3,352		(12)		20,323		(598)
	$	14,065	$	(46)	$	64,786	$	(1,843)

The following table discloses investments in an unrealized loss position at December 31, 2013:


Description and number of positions	Less than 12 months				12 months or more
(in thousands)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Agency securities (19)	$	58,822	$	(1,922)	$	—	$	—
U.S. Sponsored Mortgage-backed securities (18)		14,969		(113)		19,781		(730)
Municipal securities (103)		35,502		(2,535)		4,471		(384)
	$	109,293	$	(4,570)	$	24,252	$	(1,114)

For the nine month period ended September 30, 2014 and 2013, the Company sold investments available-for-sale of $54.3 million and $3.7 million, respectively, resulting in net gains of $396 and $82.

For the three month period ended September 30, 2014 and 2013, the Company sold investments available-for-sale of $17.1 million and $0, respectively, resulting in net gains of $271 and $0.