Note 6 – Securities

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

	June 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	$	58,291		58,276		53		(68)		27,546		27,521		33		(58	)
Mortgage-backed securities		132,272		131,309		461		(1,424)		130,073		129,510		751		(1,314	)
Corporate bonds		25,231		24,733		40		(538)		1,000		865		—		(135	)
Equity securities		89		132		55		(12)		89		122		46		(13	)
Total available for sale	$	215,883		214,450		609		(2,042)		158,708		158,018		830		(1,520	)

Securities held to maturity:
Mortgage-backed securities	$	112,923		112,235		—		(688)		124,924		124,861		45		(108	)
State and local governments		52,322		55,524		3,224		(22)		53,763		57,550		3,787		—
Total held to maturity	$	165,245		167,759		3,244		(710)		178,687		182,411		3,832		(108	)

Included in mortgage-backed securities at June 30, 2015 were collateralized mortgage obligations with an amortized cost of $77,000 and a fair value of $79,000. 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 June 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	$	13,955		45		2,977		23		16,932		68
Mortgage-backed securities		161,589		1,102		29,740		1,010		191,329		2,112
Corporate bonds		19,773		458		920		80		20,693		538
Equity securities		—		—		20		12		20		12
State and local governments		832		22		—		—		832		22
Total temporarily impaired securities	$	196,149		1,627		33,657		1,125		229,806		2,752

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 June 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 June 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 June 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	$	—		—		773		787
Due after one year but within five years		50,291		50,276		12,755		13,502
Due after five years but within ten years		28,231		27,773		36,098		38,458
Due after ten years		5,000		4,960		2,696		2,777
Mortgage-backed securities		132,272		131,309		112,923		112,235
Total debt securities		215,794		214,318		165,245		167,759

Equity securities		89		132		—		—
Total securities	$	215,883		214,450		165,245		167,759

At June 30, 2015 and December 31, 2014 investment securities with carrying values of $87,087,000 and $100,113,000, respectively, were pledged as collateral for public deposits.

The Company recorded no gains or losses on securities during the three or six month periods ended June 30, 2015. During the second quarter of 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 $15,453,000 and $6,016,000 at June 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 June 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 $7,032,000 at June 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.