4. Investment securities:

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


December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale:
U.S. Treasury securities	$	48,393	$	157			$	48,550
U.S. Government-sponsored enterprises		95,990		337	$	82		96,245
State and municipals:
Taxable		16,490		943		26		17,407
Tax-exempt		87,954		4,971		24		92,901
Mortgage-backed securities:
U.S. Government agencies		37,511		132		167		37,476
U.S. Government-sponsored enterprises		46,956		277		226		47,007

Total	$	333,294	$	6,817	$	525	$	339,586

Held-to-maturity:
Tax-exempt state and municipals	$	7,370	$	105	$	38	$	7,437
Mortgage-backed securities:
U.S. Government agencies		100		2				102
U.S. Government-sponsored enterprises		7,195		481				7,676

Total	$	14,665	$	588	$	38	$	15,215


December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale:
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		20,386		113		66		20,433
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:
Tax-exempt state and municipals	$	7,372	$	11	$	777	$	6,606
Mortgage-backed securities:
U.S. Government agencies		117		2				119
U.S. Government-sponsored enterprises		9,806		644				10,450

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

The Company had net unrealized gains of $4,090, net of deferred income taxes of $2,202 at December 31, 2014, and $1,826, net of deferred income taxes of $984, at December 31, 2013. Proceeds from the sale of investment securities available-for-sale amounted to $15,389 in 2014, $4,573 in 2013, and $5,821 in 2012. Gross gains of $919, $163, and $317 were realized on the sale of securities in 2014, 2013, and 2012, respectively. Gross losses of $58 were realized on the sale of securities in 2014. There were no gross losses realized on the sale of securities in 2013 and 2012, respectively. The income tax provision applicable to net realized gains amounted to $301, $55, and $108 in 2014, 2013, 2012, respectively.

The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at December 31, 2014, is summarized as follows:


December 31, 2014	Fair Value
Within one year	$	29,295
After one but within five years		129,867
After five but within ten years		29,803
After ten years		66,138

		255,103
Mortgage-backed securities		84,483

Total	$	339,586

The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at December 31, 2014, is summarized as follows:


December 31, 2014	Amortized Cost		Fair Value
Within one year
After one but within five years	$	325	$	330
After five but within ten years		176		180
After ten years		6,869		6,927

		7,370		7,437
Mortgage-backed securities		7,295		7,778

Total	$	14,665	$	15,215

Securities with a carrying value of $216,192 and $202,407 at December 31, 2014 and 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 December 31, 2014 and 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 OTTI has not been recognized at December 31, 2014 and 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
December 31, 2014	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Government-sponsored enterprises	$	21,228	$	33	$	7,954	$	49	$	29,182	$	82
State and municipals:
Taxable						544		26		544		26
Tax-exempt		4,702		23		2,423		39		7,125		62
Mortgage-backed securities:
U.S. Government agencies		20,148		167						20,148		167
U.S. Government-sponsored enterprises		22,870		226						22,870		226

Total	$	68,948	$	449	$	10,921	$	114	$	79,869	$	563


	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-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		12,978		66						12,978		66
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 52 investment securities, consisting of 16 tax-exempt state and municipal obligations, one taxable state and municipal obligation, nine U.S. Government-sponsored enterprise securities and 26 mortgage-backed securities that were in unrealized loss positions at December 31, 2014. Of these securities, two U.S. Government-sponsored enterprise securities, four tax-exempt state and municipal securities and one taxable state and municipal obligation were in a continuous unrealized loss position for twelve months or more. 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 December 31, 2014.

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, 16 mortgage-backed securities, one corporate debt security, 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 positions for 12 months or more. There was no OTTI recognized for each of the years in the three-year period ended December 31, 2014.