4. Investment securities:

The amortized cost and fair value of investment securities aggregated by investment category at June 30, 2014 and December 31, 2013 are summarized as follows:


June 30, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale:
U.S. Government agencies	$	190			$	1	$	189
U.S. Government-sponsored enterprises		107,600	$	339		145		107,794
State and municipals:
Taxable		16,577		605		26		17,156
Tax-exempt		91,891		4,922		45		96,768
Corporate debt securities
Mortgage-backed securities:
U.S. Government agencies		35,192		102		224		35,070
U.S. Government-sponsored enterprises		54,278		791		264		54,805
Common equity securities		309		237		5		541

Total	$	306,037	$	6,996	$	710	$	312,323


Held-to-maturity:
U.S. Government-sponsored enterprises State and municipals:
Taxable
Tax-exempt	$	7,371	$	9	$	366	$	7,014
Corporate debt securities
Mortgage-backed securities:
U.S. Government agencies		108		1				109
U.S. Government-sponsored enterprises		8,436		513				8,949
Common equity securities

Total	$	15,915	$	523	$	366	$	16,072


December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale:
U.S. Government agencies	$	207			$	3	$	204
U.S. Government-sponsored enterprises		113,221	$	296		472		113,045
State and municipals:
Taxable		16,664		160		126		16,698
Tax-exempt		96,194		2,267		380		98,081
Corporate debt securities		4,433		32		78		4,387
Mortgage-backed securities:
U.S. Government agencies		20,179		113		63		20,229
U.S. Government-sponsored enterprises		45,251		763		40		45,974
Common equity securities		756		351		10		1,097

Total	$	296,905	$	3,982	$	1,172	$	299,715


Held-to-maturity:
U.S. Government-sponsored enterprises
State and municipals:
Taxable
Tax-exempt	$	7,372	$	11	$	777	$	6,606
Corporate debt securities
Mortgage-backed securities:
U.S. Government agencies		117		2				119
U.S. Government-sponsored enterprises		9,806		644				10,450
Common equity securities

Total	$	17,295	$	657	$	777	$	17,175

The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at June 30, 2014, is summarized as follows:


June 30, 2014	Fair Value
Within one year	$	28,554
After one but within five years		93,270
After five but within ten years		28,180
After ten years		71,903

		221,907
Mortgage-backed securities		89,875

Total	$	311,782

The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at June 30, 2014, is summarized as follows:


June 30, 2014	Amortized Cost		Fair Value
Within one year
After one but within five years	$	158	$	160
After five but within ten years		343		350
After ten years		6,870		6,504

		7,371		7,014
Mortgage-backed securities		8,544		9,058

Total	$	15,915	$	16,072

Securities with a carrying value of $219,582 and $202,407 at June 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits and repurchase agreements as required or permitted by law.

Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At June 30, 2014 and December 31, 2013, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. Government agencies and sponsored enterprises, that exceeded 10.0 percent of stockholders’ equity.

The fair value and gross unrealized losses of investment securities with unrealized losses for which an other-than-temporary impairment (“OTTI”) has not been recognized at June 30, 2014 and December 31, 2013, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows:


	Less Than 12 Months				12 Months or More				Total
June 30, 2014	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Government agencies	$	189	$	1					$	189	$	1
U.S. Government-sponsored enterprises		17,024		23	$	20,983	$	122		38,007		145
State and municipals:
Taxable		548		26						548		26
Tax-exempt		15,669		53		4,607		358		20,276		411
Corporate debt securities
Mortgage-backed securities:
U.S. Government agencies		25,233		224						25,233		224
U.S. Government-sponsored enterprises		18,255		264						18,255		264
Common equity securities		72		5						72		5

Total	$	76,990	$	596	$	25,590	$	480	$	102,580	$	1,076


	Less Than 12 Months				12 Months or More				Total
December 31, 2013	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Government agencies	$	204	$	3					$	204	$	3
U.S. Government-sponsored enterprises		66,391		468	$	3,114	$	4		69,505		472
State and municipals:
Taxable		10,621		126						10,621		126
Tax-exempt		36,471		1,157						36,471		1,157
Corporate debt securities		1,095		78						1,095		78
Mortgage-backed securities:
U.S. Government agencies		12,774		63						12,774		63
U.S. Government-sponsored enterprises		5,624		40						5,624		40
Common equity securities		137		10						137		10

Total	$	133,317	$	1,945	$	3,114	$	4	$	136,431	$	1,949

The Company had 90 investment securities, consisting of 49 tax-exempt state and municipal obligations, one taxable state and municipal obligation, 18 U.S. Government-sponsored enterprise securities, 20 mortgage-backed securities, one U.S. Government agency security and one common equity security that were in unrealized loss positions at June 30, 2014. Of these securities, seven U.S. Government-sponsored enterprise securities and nine tax-exempt state and municipal securities were in a continuous unrealized loss position for twelve months or more. The unrealized loss on the common equity securities was not material, and was not a result of credit or other issues that would cause the Company to realize an OTTI charge. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at June 30, 2014. There was no OTTI recognized for the six months ended June 30, 2014 and 2013.

The Company had 153 investment securities, consisting of 79 tax-exempt state and municipal obligations, 16 taxable state and municipal obligations, 39 U.S. Government-sponsored enterprise securities, 15 mortgage-backed securities, one corporate debt security, one U.S. Government agency and two common equity securities that were in unrealized loss positions at December 31, 2013. Of these securities, one U.S. Government-sponsored enterprise security was in continuous unrealized loss position for twelve months or more.