NOTE B – SECURITIES:

The amortized cost and fair value of securities at December 31, 2014, 2013 and 2012, respectively, are as follows (in thousands):


December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value


Available for sale securities:

Debt securities:

U.S. Treasuries	$	29,787	$	27	$	(160	)	$	29,654

U.S. Government agencies		119,805		115		(1,931	)		117,989

Mortgage-backed securities		35,671		282		(136	)		35,817

States and political subdivisions		29,832		1,180					31,012


Total debt securities		215,095		1,604		(2,227	)		214,472

Equity securities		650							650


Total available for sale securities	$	215,745	$	1,604	$	(2,227	)	$	215,122


Held to maturity securities:

States and political subdivisions	$	17,784	$	132	$	(57	)	$	17,859


Total held to maturity securities	$	17,784	$	132	$	(57	)	$	17,859


December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value


Available for sale securities:

Debt securities:

U.S. Treasuries	$	44,636	$	54	$	(1,042	)	$	43,648

U.S. Government agencies		155,772		734		(10,701	)		145,805

Mortgage-backed securities		51,454		141		(1,269	)		50,326

States and political subdivisions		33,764		1,248		(1	)		35,011


Total debt securities		285,626		2,177		(13,013	)		274,790

Equity securities		650							650


Total available for sale securities	$	286,276	$	2,177	$	(13,013	)	$	275,440


Held to maturity securities:

States and political subdivisions	$	11,142	$	13	$	(469	)	$	10,686


Total held to maturity securities	$	11,142	$	13	$	(469	)	$	10,686


December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value


Available for sale securities:

Debt securities:

U.S. Treasuries	$	53,661	$	490	$	(55	)	$	54,096

U.S. Government agencies		147,652		1,810		(364	)		149,098

Mortgage-backed securities		16,903		538					17,441

States and political subdivisions		35,433		2,158					37,591


Total debt securities		253,649		4,996		(419	)		258,226

Equity securities		650							650


Total available for sale securities	$	254,299	$	4,996	$	(419	)	$	258,876


Held to maturity securities:

States and political subdivisions	$	7,125	$	112	$	(12	)	$	7,225


Total held to maturity securities	$	7,125	$	112	$	(12	)	$	7,225

The amortized cost and fair value of debt securities at December 31, 2014, (in thousands) by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Fair Value

Available for sale securities:
Due in one year or less	$	5,715	$	5,762
Due after one year through five years		61,539		61,738
Due after five years through ten years		52,867		52,627
Due after ten years		59,303		58,528
Mortgage-backed securities		35,671		35,817

Totals	$	215,095	$	214,472


Held to maturity securities:
Due in one year or less	$	211	$	211
Due after one year through five years		3,964		3,976
Due after five years through ten years		8,118		8,179
Due after ten years		5,491		5,493

Totals	$	17,784	$	17,859

Available for sale and held to maturity securities with gross unrealized losses at December 31, 2014, 2013 and 2012, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows (in thousands):


	Less Than Twelve Months				Over Twelve Months				Total

December 31, 2014:	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

U.S. Treasuries	$	4,968	$	15	$	14,795	$	145	$	19,763	$	160

U.S. Government agencies		9,954		22		92,923		1,909		102,877		1,931

Mortgage-backed securities						19,436		136		19,436		136

States and political subdivisions		5,485		32		1,444		25		6,929		57


TOTAL	$	20,407	$	69	$	128,598	$	2,215	$	149,005	$	2,284


December 31, 2013:
U.S. Treasuries	$	29,708	$	1,042	$		$		$	29,708	$	1,042

U.S. Government agencies		113,446		10,322		4,621		379		118,067		10,701

Mortgage-backed securities		44,269		1,269						44,269		1,269

States and political subdivisions		7,690		470						7,690		470


TOTAL	$	195,113	$	13,103	$	4,621	$	379	$	199,734	$	13,482


December 31, 2012:
U.S. Treasuries	$	9,887	$	55	$		$		$	9,887	$	55

U.S. Government agencies		30,335		364						30,335		364

States and political subdivisions		1,451		12						1,451		12


TOTAL	$	41,673	$	431	$		$		$	41,673	$	431

At December 31, 2014, 4 of the 8 securities issued by the U.S. Treasury, 19 of the 24 securities issued by U.S. Government agencies, 5 of the 10 mortgage-backed securities and 20 of the 152 securities issued by states and political subdivisions contained unrealized losses.

Management evaluates securities for other-than-temporary impairment on a monthly basis. In performing this evaluation, the length of time and the extent to which the fair value has been less than cost, the fact that the Company’s securities are primarily issued by U.S. Treasury and U.S. Government Agencies and the cause of the decline in value are considered. In addition, the Company does not intend to sell and it is not more likely than not that we will be required to sell these securities before maturity. While some available for sale securities have been sold for liquidity purposes or for gains, the Company has traditionally held its securities, including those classified as available for sale, until maturity. As a result of this evaluation, the Company has determined that the declines summarized in the tables above are not deemed to be other-than-temporary.

Proceeds from sales of available for sale debt securities were $44,279,605, $26,075,225 and $77,605,104 during 2014, 2013 and 2012, respectively. Available for sale debt securities were sold and called for realized gains of $98,859, $257,997 and $1,363,802 during 2014, 2013 and 2012, respectively. The Company recorded a loss from the impairment of its other investments of $360,000 in 2012.

Securities with a fair value of $200,474,637, $262,830,011 and $241,879,775 at December 31, 2014, 2013 and 2012, respectively, were pledged to secure public deposits, federal funds purchased and other balances required by law.