Note 6 – Securities

The book values and approximate fair values of investment securities at September 30, 2015 and December 31, 2014 are summarized as follows:

	September 30, 2015									December 31, 2014
	Amortized		Fair		Unrealized					Amortized		Fair		Unrealized
($ in thousands)	Cost		Value		Gains		(Losses)			Cost		Value		Gains		(Losses)

Securities available for sale:
Government-sponsored enterprise securities	$	27,789		27,850		69		(8	)		27,546		27,521		33		(58	)
Mortgage-backed securities		126,508		125,836		520		(1,192	)		130,073		129,510		751		(1,314	)
Corporate bonds		25,223		24,948		4		(279	)		1,000		865		—		(135	)
Equity securities		88		131		54		(11	)		89		122		46		(13	)
Total available for sale	$	179,608		178,765		647		(1,490	)		158,708		158,018		830		(1,520	)

Securities held to maturity:
Mortgage-backed securities	$	107,787		107,360		—		(427	)		124,924		124,861		45		(108	)
State and local governments		52,261		55,498		3,258		(21	)		53,763		57,550		3,787		—
Total held to maturity	$	160,048		162,858		3,258		(448	)		178,687		182,411		3,832		(108	)

Included in mortgage-backed securities at September 30, 2015 were collateralized mortgage obligations with an amortized cost of $56,000 and a fair value of $57,000. Included in mortgage-backed securities at December 31, 2014 were collateralized mortgage obligations with an amortized cost of $108,000 and a fair value of $111,000. All of the Company's mortgage-backed securities, including the collateralized mortgage obligations, were issued by government-sponsored corporations.

The following table presents information regarding securities with unrealized losses at September 30, 2015:

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	—		—		2,991		8		2,991		8
Mortgage-backed securities		141,334		685		31,578		934		172,912		1,619
Corporate bonds		21,991		219		940		60		22,931		279
Equity securities		—		—		22		11		22		11
State and local governments		829		21		—		—		829		21
Total temporarily impaired securities	$	164,154		925		35,531		1,013		199,685		1,938

The following table presents information regarding securities with unrealized losses at December 31, 2014:

($ in thousands)	Securities in an Unrealized Loss Position for Less than 12 Months				Securities in an Unrealized Loss Position for More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Government-sponsored enterprise securities	$	5,489		11		2,953		47		8,442		58
Mortgage-backed securities		69,985		318		33,557		1,104		103,542		1,422
Corporate bonds		—		—		865		135		865		135
Equity securities		—		—		17		13		17		13
State and local governments		—		—		—		—		—		—
Total temporarily impaired securities	$	75,474		329		37,392		1,299		112,866		1,628

In the above tables, all of the non-equity securities that were in an unrealized loss position at September 30, 2015 and December 31, 2014 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. The Company has evaluated the collectability of each of these bonds and has concluded that there is no other-than-temporary impairment. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. The Company has also concluded that each of the equity securities in an unrealized loss position at September 30, 2015 and December 31, 2014 was in such a position due to temporary fluctuations in the market prices of the securities. The Company's policy is to record an impairment charge for any of these equity securities that remains in an unrealized loss position for twelve consecutive months unless the amount is insignificant.

The book values and approximate fair values of investment securities at September 30, 2015, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
($ in thousands)	Cost		Value		Cost		Value

Debt securities
Due within one year	$	—		—		772		780
Due after one year but within five years		27,789		27,850		12,734		13,446
Due after five years but within ten years		20,223		20,088		37,320		39,847
Due after ten years		5,000		4,860		1,435		1,425
Mortgage-backed securities		126,508		125,836		107,787		107,360
Total debt securities		179,520		178,634		160,048		162,858

Equity securities		88		131		—		—
Total securities	$	179,608		178,765		160,048		162,858

At September 30, 2015 and December 31, 2014 investment securities with carrying values of $135,652,000 and $100,113,000, respectively, were pledged as collateral for public deposits.

The Company recorded insignificant losses on securities during the three and nine month periods ended September 30, 2015. During the nine months ended September 30, 2014, the Company sold approximately $47,473,000 in securities and recorded a net gain of $786,000 related to the sale.

The aggregate carrying amount of cost-method investments was $15,468,000 and $6,016,000 at September 30, 2015 and December 31, 2014, respectively, which is recorded within the line item “other assets” on the Company's Consolidated Balance Sheets. These investments are comprised of both Federal Home Loan Bank (“FHLB”) stock and Federal Reserve Bank of Richmond (“FRB”) stock. The FHLB stock had a cost and fair value of $8,421,000 at September 30, 2015 and $6,016,000 at December 31, 2014, and serves as part of the collateral for the Company's line of credit with the FHLB and is also a requirement for membership in the FHLB system. Periodically the FHLB recalculates the Company's required level of holdings, and the Company either buys more stock or the FHLB redeems a portion of the stock at cost. The FRB stock had a cost and fair value of $7,047,000 at September 30, 2015. The Company was required to purchase this stock when it became a member of the Federal Reserve System in the second quarter of 2015. The Company determined that neither stock was impaired at either period end.