Note 2: Investments Securities

The amortized cost and estimated fair values of investments available for sale are as follows:

(in thousands)	June 30, 2015								December 31, 2014
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated		Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value		Cost		Gains		Losses		Fair Value
U.S. Government
Agencies	$	32,000	$	15	$	5	$	32,010	$	37,010	$	-	$	29	$	36,981
Treasuries		2,000		-		-		2,000		4,000		-		3		3,997
Mortgage-backed		67		3		-		70		95		6		-		101
Mutual funds		500		1		-		501		-		-		-		-
	$	34,567	$	19	$	5	$	34,581	$	41,105	$	6	$	32	$	41,079

Gross unrealized losses and fair value by investment category and length of time the individual securities have been in a continuous unrealized loss position at June 30, 2015 and December 31, 2014 are presented below:

June 30, 2015
(in thousands)	Less than 12 months				12 months or more				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government
Agencies	$	8,497	$	5	$	-	$	-	$	8,497	$	5
Treasuries		-		-		-		-		-		-
Mortgage-backed		-		-		-		-		-		-
Mutual funds		-		-		-		-		-		-
	$	8,497	$	5	$	-	$	-	$	8,497	$	5

December 31, 2014
(in thousands)	Less than 12 months				12 months or more				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
U.S. Government
Agencies	$	26,477	$	29	$	-	$	-	$	26,477	$	29
Treasuries		3,997		3		-		-		3,997		3
Mortgage-backed		-		-		-		-		-		-
	$	30,474	$	32	$	-	$	-	$	30,474	$	32

The unrealized losses that existed were a result of market changes in interest rates since the original purchase. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) duration and magnitude of the decline in value, (2) the financial condition of the issuer or issuers and (3) structure of the security.

An impairment loss is recognized in earnings if any of the following are true: (1) the Company intends to sell the debt security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. In situations where the Company intends to sell or when it is more likely than not that the Company will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in shareholders’ equity as a component of other comprehensive income, net of deferred tax.

The amortized cost and estimated fair values of investments available for sale by contractual maturity are shown below:

(in thousands)	June 30, 2015				December 31, 2014
	Amortized		Estimated Fair		Amortized		Estimated Fair
	Cost		Value		Cost		Value
Amounts maturing:
One year or less	$	25,498	$	25,498	$	33,516	$	33,506
After one through five years		8,505		8,515		7,508		7,487
After five through ten years		64		67		81		86
After ten years		500		501		-		-
	$	34,567	$	34,581	$	41,105	$	41,079

There were no sales of investment securities during the six months ended June 30, 2015 or in 2014. Because of the composition of the securities portfolio acquired in the NBRS acquisition, management deemed it prudent for interest rate risk management purposes to liquidate the entire acquired portfolio. Thus, in the fourth quarter of 2014, the Bank both acquired and sold nearly $31.7 million in securities, which resulted in a net loss on the sale of the securities of $228 thousand. At June 30, 2015 and December 31, 2014, $20.4 million and $30.9 million fair value of securities, respectively, were pledged as collateral for repurchase agreements and for public funds. No single issuer of securities, except for U. S. Government agency securities, had outstanding balances that exceeded ten percent of shareholders’ equity.