(4) Investment Securities

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2014 and December 31, 2013 were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized
(in thousands)	Cost		Gains		Losses		Fair value
March 31, 2014
U.S. Treasury	$	1,000	$	1	$	0	$	1,001
Government sponsored enterprises	71,052		325		566		70,811
Asset-backed securities	111,096		813		2,534		109,375
Obligations of states and political subdivisions	31,597		574		131		32,040
Total available-for-sale securities	$	214,745	$	1,713	$	3,231	$	213,227

December 31, 2013
U.S. Treasury	$	1,000	$	3	$	0	$	1,003
Government sponsored enterprises	61,006		377		767		60,616
Asset-backed securities	112,747		817		3,191		110,373
Obligations of states and political subdivisions	33,637		568		212		33,993
Total available-for-sale securities	$	208,390	$	1,765	$	4,170	$	205,985

All of the Company’s investment securities are classified as available for sale. Agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are U.S. government-sponsored enterprises.

Investment securities that are classified as restricted equity securities primarily consist of Federal Home Loan Bank stock and the Company’s interest in statutory trusts. These securities are reported at cost in the amount of $4.0 million as of both March 31, 2014 and December 31, 2013, respectively.

Debt securities with carrying values aggregating approximately $186.2 million and $145.8 million at March 31, 2014 and December 31, 2013, respectively, were pledged to secure public funds, securities sold under agreements to repurchase, and for other purposes as required or permitted by law.

The amortized cost and fair value of debt securities classified as available-for-sale at March 31, 2014, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay obligations with or without prepayment penalties.

	Amortized		Fair
(in thousands)	Cost		Value
Due in one year or less	$	7,566	$	7,629
Due after one year through five years	55,166		55,592
Due after five years through ten years	39,901		39,653
Due after ten years	1,016		978
Total	103,649		103,852
Asset-backed securities	111,096		109,375
Total available-for-sale securities	$	214,745	$	213,227

Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2014 and December 31, 2013 were as follows:

	Less than 12 months					12 months or more					Total		Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(in thousands)	Value		Losses			Value		Losses			Value		Losses
At March 31, 2014
Government sponsored enterprises	$	42,190	$	(566	)	$	0	$	0		$	42,190	$	(566	)
Asset-backed securities	68,052		(2,013		)	11,736		(521		)	79,788		(2,534		)
Obligations of states and political subdivisions	7,731		(90		)	634		(41		)	8,365		(131		)
Total	$	117,973	$	(2,669	)	$	12,370	$	(562	)	$	130,343	$	(3,231	)

(in thousands)
At December 31, 2013
Government sponsored enterprises	$	25,771	$	(767	)	$	0	$	0		$	25,771	$	(767	)
Asset-backed securities	76,048		(2,940		)	5,941		(251		)	81,989		(3,191		)
Obligations of states and political subdivisions	6,907		(159		)	450		(53		)	7,357		(212		)
Total	$	108,726	$	(3,866	)	$	6,391	$	(304	)	$	115,117	$	(4,170	)

The total available for sale portfolio consisted of approximately 294 securities at March 31, 2014. The portfolio included 97 securities having an aggregate fair value of $130.3 million that were in a loss position at March 31, 2014. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $12.4 million at fair value. The $3.2 million aggregate unrealized loss included in accumulated other comprehensive income at March 31, 2014 was caused by interest rate fluctuations.

The total available for sale portfolio consisted of approximately 348 securities at December 31, 2013. The portfolio included 96 securities having an aggregate fair value of $115.1 million that were in a loss position at December 31, 2013. Securities identified as temporarily impaired which had been in a loss position for 12 months or longer totaled $6.4 million at fair value.

The $4.2 million aggregate unrealized loss included in accumulated other comprehensive income at December 31, 2013 was caused by interest rate fluctuations.

Because the decline in fair value is attributable to changes in interest rates and not credit quality these investments were not considered other-than-temporarily impaired at March 31, 2014 and December 31, 2013, respectively.

In addition, the Company does not have the intent to sell these investments over the period of recovery, and it is not more likely than not that it will be required to sell such investment securities.

The table below presents the components of investment securities gains and losses which have been recognized in earnings.

	Three Months Ended March 31,
(in thousands)	2014		2013
Gains realized on sales	$	0	$	294
Losses realized on sales	0		0
Other-than-temporary impairment recognized	0		0
Investment securities gains	$	0	$	294