(4) SECURITIES

The following table summarizes securities held for investment and securities available for sale:


	December 31,
	2013		2012
	(Dollars in thousands)
Held for investment at cost (fair value: $12,094 and $16,689, respectively)	$	11,986	$	16,416
Available for sale, at fair value		515,641		546,126

Total	$	527,627	$	562,542

The following table summarizes the amortized cost and estimated fair values of securities held for investment:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
December 31, 2013
U.S. Treasury and other Federal agencies	$	607	$	48	$	—		$	655
States and political subdivisions		11,379		67		(7	)		11,439

Total	$	11,986	$	115	$	(7	)	$	12,094

December 31, 2012
U.S. Treasury and other Federal agencies	$	781	$	59	$	—		$	840
States and political subdivisions		15,635		222		(8	)		15,849

Total	$	16,416	$	281	$	(8	)	$	16,689

The following table summarizes the amortized cost and estimated fair values of securities available for sale:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in thousands)
December 31, 2013
U.S. treasuries	$	29,946	$	—	$	(85	)	$	29,861
U.S. Federal agencies		386,391		1,399		(505	)		387,285
Mortgage backed securities (1)		32,057		625		(4	)		32,678
States and political subdivisions		49,116		1,290		(72	)		50,334
Other securities (2)		12,121		3,503		(141	)		15,483

Total	$	509,631	$	6,817	$	(807	)	$	515,641

December 31, 2012
U.S. Federal agencies	$	452,554	$	3,654	$	(164	)	$	456,044
Mortgage backed securities (1)		19,100		825		(1	)		19,924
States and political subdivisions		53,912		2,875		(20	)		56,767
Other securities (2)		10,843		2,562		(14	)		13,391

Total	$	536,409	$	9,916	$	(199	)	$	546,126

(1)	Primarily consists of FHLMC, FNMA, GNMA and mortgage backed securities through U.S. agencies.

(2)	Primarily consists of equity securities.

The maturities of securities held for investment and available for sale are summarized in the following table using contractual maturities. Actual maturities may differ from contractual maturities due to obligations that are called or prepaid. For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been presented at their contractual maturity.


	December 31,
	2013				2012
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in thousands)
Held for Investment
Contractual maturity of debt securities:
Within one year	$	3,640	$	3,649	$	4,180	$	4,227
After one year but within five years		7,277		7,321		10,360		10,496
After five years but within ten years		837		865		1,400		1,438
After ten years		232		259		476		528

Total	$	11,986	$	12,094	$	16,416	$	16,689

Available for Sale
Contractual maturity of debt securities:
Within one year	$	208,625	$	209,065	$	144,666	$	145,027
After one year but within five years		167,554		168,210		256,890		259,475
After five years but within ten years		27,195		27,797		36,764		38,306
After ten years		97,542		98,551		90,626		93,293

Total debt securities		500,916		503,623		528,946		536,101
Equity securities		8,715		12,018		7,463		10,025

Total	$	509,631	$	515,641	$	536,409	$	546,126

The following is a detail of proceeds from sales and realized securities gains and losses, on available for sale securities:


	Year Ended December 31,
	2013		2012		2011
	(Dollars in thousands)
Proceeds	$	521	$	6,025	$	61,668
Gross gains realized		456		5,575		1,940
Gross losses realized		36		660		342

The following table is a summary of the Company’s book value of securities that were pledged as collateral for public funds on deposit, repurchase agreements and for other purposes as required or permitted by law:


	Year Ended December 31,
	2013		2012
	(Dollars in thousands)
Book value of pledged securities	$	443,835	$	499,244

The following table summarizes securities with unrealized losses, segregated by the duration of the unrealized loss, at December 31, 2013 and 2012 respectively:


	Less than 12 Months				More than 12 Months				Total
	Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses		Estimated Fair Value		Unrealized Losses
	(Dollars in thousands)
December 31, 2013
Held for Investment
U.S. Federal agencies	$	1	$	—	$	1	$	—	$	2	$	—
States and political subdivisions		—		—		1,328		7		1,328		7

Total	$	1	$	—	$	1,329	$	7	$	1,330	$	7

Available for Sale
U.S. treasuries	$	29,861	$	85	$	—	$	—	$	29,861	$	85
U.S. Federal agencies		79,477		250		150,188		259		229,665		509
States and political subdivisions		2,459		72		—		—		2,459		72
Other		160		141		—		—		160		141

Total	$	111,957	$	548	$	150,188	$	259	$	262,145	$	807

December 31, 2012
Held for Investment
U.S. Federal agencies	$	1	$	—	$	5	$	—	$	6	$	—
States and political subdivisions		1,442		8		—		—		1,442		8

Total	$	1,443	$	8	$	5	$	—	$	1,448	$	8

Available for Sale
U.S. Federal agencies	$	45,905	$	54	$	125,868	$	111	$	171,773	$	165
States and political subdivisions		1,545		18		888		2		2,433		20
Other		3,366		14		—		—		3,366		14

Total	$	50,816	$	86	$	126,756	$	113	$	177,572	$	199

Declines in the fair value of held for investment and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) 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.

Management has the ability and intent to hold the securities classified as held for investment until they mature, at which time the Company will receive full value for the securities. Furthermore, as of December 31, 2013 and 2012, the Company also had the ability and intent to hold the securities classified as available for sale for a period of time sufficient for 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 debt securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality, and has no intent or requirement to sell before the recovery of the unrealized loss; therefore, the Company has not recognized any impairment in the Company’s consolidated statement of comprehensive income.