Securities

Amortized costs and fair values of securities available for sale at December 31, 2014 and 2013 were as follows:



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	December 31, 2014
	(in thousands)
Obligations of U.S. government corporations and agencies	$	36,911	$	599	$	(299	)	$	37,211
Mortgage-backed securities	15,245		545		(11		)	15,779
Obligations of states and political subdivisions	39,025		1,432		(47		)	40,410
Corporate securities	761		4		—			765
Equity securities	—		—		—			—
	$	91,942	$	2,580	$	(357	)	$	94,165
	December 31, 2013
	(in thousands)
Obligations of U.S. government corporations and agencies	$	35,890	$	439	$	(1,585	)	$	34,744
Mortgage-backed securities	14,896		422		(121		)	15,197
Obligations of states and political subdivisions	42,442		969		(295		)	43,116
Corporate securities	7,495		928		—			8,423
Equity securities	1,044		74		—			1,118
	$	101,767	$	2,832	$	(2,001	)	$	102,598

Carrying amounts of restricted securities at December 31, 2014 and 2013 were as follows:



	December 31, 2014		December 31, 2013
	(in thousands)
Federal Reserve Bank Stock	$	344	$	344
Federal Home Loan Bank Stock	2,324		1,708
Community Bankers’ Bank Stock	140		140
	$	2,808	$	2,192

The amortized cost and fair value of securities available for sale at December 31, 2014, by contractual maturity, are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.



	Amortized Cost		Fair Value
	(in thousands)
Due in one year or less	$	3,680	$	3,712
Due after one year through five years	27,507		28,046
Due after five years through ten years	42,414		43,394
Due after ten years	18,341		19,013
Equity securities	—		—
	$	91,942	$	94,165

During the twelve months ended December 31, 2014, the Company sold $8.5 million in available for sale securities for a net gain of $990 thousand. During the twelve months ended December 31, 2013, the Company sold $4.0 million in available for sale securities for a net gain of $465 thousand. During the twelve months ended December 31, 2012, the Company sold $3.4 million in available for sale securities for a net gain of $45 thousand.

The fair value and gross unrealized losses for securities available for sale, totaled by the length of time that individual securities have been in a continuous gross unrealized loss position, at December 31, 2014 and 2013 were as follows:



	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	December 31, 2014
	(in thousands)
Obligations of U.S. government corporations and agencies	$	1,997	$	1	$	21,615	$	298	$	23,612	$	299
Mortgage-backed securities	—		—		1,444		11		1,444		11
Obligations of states and political subdivisions	2,998		12		2,414		35		5,412		47
Corporate securities	—		—		—		—		—		—
Equity securities	—		—		—		—		—		—
	$	4,995	$	13	$	25,473	$	344	$	30,468	$	357
	December 31, 2013
	(in thousands)
Obligations of U.S. government corporations and agencies	$	23,235	$	1,551	$	1,967	$	34	$	25,202	$	1,585
Mortgage-backed securities	2,828		121		—		—		2,828		121
Obligations of states and political subdivisions	8,439		252		466		43		8,905		295
Corporate securities	—		—		—		—		—		—
Equity securities	—		—		—		—		—		—
	$	34,502	$	1,924	$	2,433	$	77	$	36,935	$	2,001

Gross unrealized losses on available for sale securities included thirty-eight (38) and fifty-one (51) debt securities at December 31, 2014 and December 31, 2013, respectively. The Company evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The Company’s mortgage-backed securities are issued by U.S. government agencies, which guarantee payments to investors regardless of the status of the underlying mortgages. Consideration is given to the length of time and the amount of an unrealized loss, the financial condition of the issuer, and the intent and ability of the Company to retain its investment in the issuer long enough to allow for an anticipated recovery in fair value. The fair value of a security reflects its liquidity as compared to similar instruments, current market rates on similar instruments, and the creditworthiness of the issuer. Absent any change in the liquidity of a security or the creditworthiness of the issuer, prices will decline as market rates rise and vice-versa. The primary cause of the unrealized losses at December 31, 2014 and December 31, 2013 was changes in market interest rates. Since the losses can be primarily attributed to changes in market interest rates and not expected cash flows or an issuer’s financial condition, the unrealized losses are deemed to be temporary. The continuing economic recession involving housing, liquidity and credit were also contributing factors to the unrealized losses on these securities at December 31, 2014 and December 31, 2013. The Company monitors the financial condition of these issuers continuously and will record other-than-temporary impairment if the recovery of value is unlikely.

The Company’s securities are exposed to various risks, such as interest rate, market, currency and credit risks. Due to the level of risk associated with certain securities and the level of uncertainty related to changes in the value of securities, it is at least reasonably possible that changes in risks in the near term would materially affect securities reported in the financial statements. In addition, recent economic uncertainty and market events have led to unprecedented volatility in currency, commodity, credit and equity markets culminating in failures of some banking and financial services firms and government intervention to solidify others. These events underscore the level of investment risk associated with the current economic environment, and accordingly the level of risk in the Company’s securities.

Securities having a carrying value of $3.4 million at December 31, 2014 were pledged to secure securities sold under agreements to repurchase and for other purposes required by law.