NOTE 2. INVESTMENT SECURITIES

Amortized cost and fair values of investment securities held-to-maturity at December 31, 2014, including gross unrealized gains and losses, are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value

Municipal securities	$	54,538	$	1,600	$	(267)	$	55,871
Total investment securities held-to-maturity	$	54,538	$	1,600	$	(267)	$	55,871

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 December 31, 2014 are summarized as follows:


	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gain		Loss		Value

U. S. Agency securities	$	37,926	$	73	$	(465)	$	37,534
U.S. Sponsored Mortgage-backed securities		30,293		58		(419)		29,932
Total debt securities		68,219		131		(884)		67,466
Equity and other securities		670		77		—		747
Total investment securities available-for-sale	$	68,889	$	208	$	(884)	$	68,213

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:


	December 31, 2014
	Held to Maturity				Available for sale

	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value

Within one year	$	—	$	—	$	—	$	—
After one year, but within five		2,411		2,453		20,185		20,117
After five years, but within ten		16,564		16,940		22,832		22,534
After ten Years		35,563		36,478		25,202		24,815
Total	$	54,538	$	55,871	$	68,219	$	67,466

Investment securities with a carrying value of $118,734 and $152,193 at December 31, 2014 and 2013, 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 December 31, 2014, the details of which are included in the following table. Although these securities, if sold at December 31, 2014 would result in a pretax loss of $1,151, the Company has no intent to sell the applicable securities at such fair values, and maintains the Company has the ability to hold these securities until all principal has been recovered. Declines in the fair 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 December 31, 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 fair value.

The following table discloses investments in an unrealized loss position at December 31, 2014:


(in thousands)	Less than 12 months				12 months or more
Description and			Unrealized				Unrealized
number of positions	Fair Value		Loss		Fair Value		Loss

U.S. Agency securities (9)	$	996	$	(3)	$	26,900	$	(462)
U.S. Sponsored Mortgage-backed securities (8)		678		(3)		14,824		(416)
Municipal securities (42)		528		(3)		16,489		(264)
	$	2,202	$	(9)	$	58,213	$	(1,142)

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


(in thousands)	Less than 12 months				12 months or more
Description and			Unrealized				Unrealized
number of positions	Fair Value		Loss		Fair Value		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)

The Company sold investments available-for-sale of $61.3 million and $15.2 million in 2014 and 2013, respectively. These sales resulted in gross gains of $553 and $145 and gross losses of $140 and $0 in 2014 and 2013, respectively.