Note 2. Securities

The amortized cost and fair values of securities available for sale as of March 31, 2014 and December 31, 2013 were as follows:

March 31, 2014	Amortized		Gross Unrealized		Gross Unrealized			Fair
(dollars in thousands)	Cost		Gains		(Losses)			Value
U.S. Government agencies	$	37,260	$	689	$	(85	)	$	37,864
Corporate bonds		9,060		36		(28	)		9,068
Asset-backed securities		2,147		-		(37	)		2,110
Mortgage-backed securities/CMOs		65,483		102		(979	)		64,606
Municipal bonds		24,540		11		(1,022	)		23,529
	$	138,490	$	838	$	(2,151	)	$	137,177

December 31, 2013	Amortized		Gross Unrealized		Gross Unrealized			Fair
(dollars in thousands)	Cost		Gains		(Losses)			Value
U.S. Government agencies	$	43,268	$	828	$	(91	)	$	44,005
Corporate bonds		9,066		37		(50	)		9,053
Asset-backed securities		2,151		-		(51	)		2,100
Mortgage-backed securities/CMOs		56,815		34		(1,252	)		55,597
Municipal bonds		23,896		5		(1,629	)		22,272
	$	135,196	$	904	$	(3,073	)	$	133,027

The Company's securities portfolio is comprised of fixed rate and adjustable rate bonds, whose prices move inversely with interest rates. At the end of any accounting period, the portfolio may have both unrealized gains and losses. Unrealized losses within the Company's portfolio typically occur as market interest rates rise. Such unrealized losses are considered temporary in nature. An "other-than-temporary impairment" ("OTTI") is considered to exist if any of the following conditions are met: it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, or the Company does not expect to recover the security's entire amortized cost basis (even if the Company does not intend to sell). In the event that a security would suffer impairment for a reason that was "other than temporary," the Company would be expected to write down the security's value to its new fair value, and the amount of the write down would be included in earnings as a realized loss. As of March 31, 2014, management has concluded that none of its investment securities have an OTTI based upon the information available, at this time. Additionally, management has the ability to hold any security with an unrealized loss until maturity or until such time as the value of the security has recovered from its unrealized loss position.

The following table recaps all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, at March 31, 2014 and December 31, 2013:

March 31, 2014	Less than 12 Months					12 Months or more					Total
(dollars in thousands)	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		(Losses)			Fair Value		(Losses)			Fair Value		(Losses)
U.S. Government agencies	$	2,889	$	(41	)	$	956	$	(44	)	$	3,845	$	(85	)
Corporate bonds		5,033		(28	)		-		-			5,033		(28	)
Asset-backed securities		959		(32	)		1,151		(5	)		2,110		(37	)
Mortgage-backed/CMOs		32,821		(649	)		11,422		(330	)		44,243		(979	)
Municipal bonds		14,225		(520	)		7,393		(502	)		21,618		(1,022	)
	$	55,927	$	(1,270	)	$	20,922	$	(881	)	$	76,849	$	(2,151	)

December 31, 2013	Less than 12 Months					12 Months or more					Total
(dollars in thousands)	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		(Losses)			Fair Value		(Losses)			Fair Value		(Losses)
U.S. Government agencies	$	2,889	$	(39	)	$	948	$	(52	)	$	3,837	$	(91	)
Corporate bonds		5,016		(50	)		-		-			5,016		(50	)
Asset-backed securities		960		(36	)		1,140		(15	)		2,100		(51	)
Mortgage-backed/CMOs		39,061		(1,079	)		8,609		(173	)		47,670		(1,252	)
Municipal bonds		18,433		(1,451	)		2,280		(178	)		20,713		(1,629	)
	$	66,359	$	(2,655	)	$	12,977	$	(418	)	$	79,336	$	(3,073	)

Securities having carrying values of $27,708,000 at March 31, 2014 were pledged as collateral to secure public deposits and for balances held in the repurchase sweeps product. At December 31, 2013, securities having carrying values of $17,547,000 were similarly pledged.

Restricted securities are securities with limited marketability and consist of stock in the Federal Reserve Bank of Richmond ("FRB") and the Federal Home Loan Bank of Atlanta ("FHLB") totaling $1,501,000 as of March 31, 2014 and $1,645,000 as of December 31, 2013. These restricted securities are carried at cost.