Securities

The carrying values, unrealized gains, unrealized losses, and approximate fair values of available-for-sale and held-to-maturity investment securities at March 31, 2014 are shown in the tables below. As of March 31, 2014, investments (including both available-for-sale and held-to-maturity) and restricted equity securities with amortized costs and fair values of $110,006 and $108,087 respectively, were pledged as collateral for public deposits, a line of credit available from the Federal Home Loan Bank, customer sweep accounts, and for other purposes as required or permitted by law.

The amortized costs, gross unrealized gains and losses, and approximate fair values of securities available-for-sale (“AFS”) as of March 31, 2014 and December 31, 2013 were as follows:



	Amortized		Unrealized		Unrealized
March 31, 2014	Cost		Gains		Losses			Fair Values
U.S. Government and federal agency	$	13,715	$	70	$	(454	)	$	13,331
Government-sponsored enterprises *	33,577		0		(1,724		)	31,853
Mortgage-backed securities	86,549		192		(1,418		)	85,323
Collateralized mortgage obligations	10,780		57		(74		)	10,763
States and political subdivisions	40,476		143		(1,235		)	39,384
	$	185,097	$	462	$	(4,905	)	$	180,654



December 31, 2013
U.S. Government and federal agency	$	10,844	$	13	$	(550	)	$	10,307
Government-sponsored enterprises *	33,580		0		(2,269		)	31,311
Mortgage-backed securities	74,375		132		(2,118		)	72,389
Collateralized mortgage obligations	9,261		40		(107		)	9,194
States and political subdivisions	38,896		0		(2,236		)	36,660
	$	166,956	$	185	$	(7,280	)	$	159,861

* Such as FNMA, FHLMC and FHLB.

The amortized costs, gross unrealized gains and losses, and approximate fair values of securities held-to-maturity (“HTM”) as of March 31, 2014 and December 31, 2013 were as follows:



	Amortized		Unrealized		Unrealized
March 31, 2014	Cost		Gains		Losses			Fair Values
U.S. Government and federal agency	$	7,066	$	168	$	(57	)	$	7,177
Mortgage-backed securities	134		9		0			143
Collateralized mortgage obligations	82		4		0			86
States and political subdivisions	14,225		562		0			14,787
	$	21,507	$	743	$	(57	)	$	22,193



December 31, 2013
U.S. Government and federal agency	$	7,470	$	161	$	(76	)	$	7,555
Mortgage-backed securities	147		9		0			156
Collateralized mortgage obligations	93		5		0			98
States and political subdivisions	14,282		407		(27		)	14,662
	$	21,992	$	582	$	(103	)	$	22,471

The amortized costs and approximate fair values of our total private-label collateralized mortgage obligations were $4 and $4, respectively, as of March 31, 2014. The amortized costs and approximate fair values of our total private-label collateralized mortgage obligations were $5 and $5, respectively, as of December 31, 2013.

The following tables present the maturity ranges of securities available-for-sale and held-to-maturity as of March 31, 2014 and the weighted average yields of such securities. Maturities may differ from scheduled maturities on mortgage-backed securities and collateralized mortgage obligations because the mortgages underlying the securities may be repaid prior to the scheduled maturity date. Maturities on all other securities are based on the contractual maturity. The weighted average yields are calculated on the basis of the cost and effective yields weighted for the scheduled maturity of each security. Weighted average yields on tax-exempt obligations have been computed on a taxable equivalent basis using a tax rate of 34%.



Investment Portfolio Maturity Distribution
	Available-for-Sale						Held-to-Maturity
	Amortized		Fair				Amortized		Fair
In thousands	Costs		Value		Yield		Costs		Value		Yield
U.S. Government and federal agency:
After five but within ten years	$	9,445	$	9,277	2.61	%	$	3,701	$	3,825	3.43	%
After ten years	4,270		4,054		2.32	%	3,365		3,352		3.21	%
Government-sponsored enterprises:
After one but within five years	5,000		4,890		1.25	%	0		0		0.00	%
After five but within ten years	18,605		17,975		1.72	%	0		0		0.00	%
After ten years	9,972		8,988		2.82	%	0		0		0.00	%
Obligations of states and subdivisions:
After one but within five years	5,039		5,080		1.90	%	499		527		3.35	%
After five but within ten years	12,476		12,155		2.38	%	2,836		2,960		3.98	%
After ten years	22,961		22,149		3.13	%	10,890		11,300		4.58	%
Mortgage-backed securities	86,549		85,323		2.27	%	134		143		4.76	%
Collateralized mortgage obligations	10,780		10,763		2.17	%	82		86		4.12	%
Total	$	185,097	$	180,654			$	21,507	$	22,193

Total Securities by Maturity Period
After one but within five years	$	10,039	$	9,970			$	499	$	527
After five but within ten years	40,526		39,407				6,537		6,785
After ten years	37,203		35,191				14,255		14,652
Mortgage-backed securities*	86,549		85,323				134		143
Collateralized mortgage obligations*	10,780		10,763				82		86
Total by Maturity Period	$	185,097	$	180,654			$	21,507	$	22,193

* Maturities on mortgage-backed securities and collateralized mortgage obligations are not presented in this table because maturities may differ substantially from contractual terms due to early repayments of principal.

The following tables detail unrealized losses and related fair values in the Company’s available-for-sale and held-to-maturity investment securities portfolios. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2014 and December 31, 2013, respectively.



	Temporarily Impaired Securities in AFS Portfolio
In thousands	Less than 12 months					Greater than 12 months					Total
			Unrealized					Unrealized					Unrealized
March 31, 2014	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
U.S. Government and federal agency	$	9,271	$	(454	)	$	0	$	0		$	9,271	$	(454	)
Government-sponsored enterprises	20,509		(972		)	11,344		(752		)	31,853		(1,724		)
Mortgage-backed securities	56,338		(1,107		)	9,848		(311		)	66,186		(1,418		)
Collateralized mortgage obligations	3,627		(54		)	1,214		(20		)	4,841		(74		)
States and political subdivisions	22,771		(887		)	5,257		(348		)	28,028		(1,235		)
	$	112,516	$	(3,474	)	$	27,663	$	(1,431	)	$	140,179	$	(4,905	)



December 31, 2013
U.S. Government and federal agency	$	9,287	$	(550	)	$	0	$	0		$	9,287	$	(550	)
Government-sponsored enterprises	16,797		(1,236		)	11,064		(1,033		)	27,861		(2,269		)
Mortgage-backed securities	62,336		(2,019		)	1,777		(99		)	64,113		(2,118		)
Collateralized mortgage obligations	5,050		(107		)	5		0			5,055		(107		)
States and political subdivisions	30,950		(1,744		)	4,838		(492		)	35,788		(2,236		)
	$	124,420	$	(5,656	)	$	17,684	$	(1,624	)	$	142,104	$	(7,280	)



	Temporarily Impaired Securities in HTM Portfolio
In thousands	Less than 12 months				Greater than 12 months				Total
			Unrealized				Unrealized				Unrealized
March 31, 2014	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Government and federal agency	2,343		57		0		0		2,343		57
States and political subdivisions	377		0		0		0		377		0
	$	2,720	$	57	$	0	$	0	$	2,720	$	57



December 31, 2013
U.S. Government and federal agency	2,387		(76		)	0		0		2,387		(76		)
States and political subdivisions	1,842		(27		)	0		0		1,842		(27		)
	$	4,229	$	(103	)	$	0	$	0	$	4,229	$	(103	)

Management considers the nature of the investment, the underlying causes of the decline in the market value and the severity and duration of the decline in market value in determining if impairment is other than temporary. Consideration is given to (1)the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2014, there were seventeen securities in the AFS portfolio with an unrealized loss for a period greater than 12 months of $1,431. As of March 31, 2014, management believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe such securities are other-than-temporarily impaired due to reasons of credit quality. Accordingly, as of March 31, 2014, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in the Company's consolidated income statement.