Note 2.

Securities

The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities available for sale at March 31, 2015 and December 31, 2014 were as follows (in thousands):


	March 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. agency and mortgage-backed securities	$	74,540	$	650	$	(354	)	$	74,836
Obligations of states and political subdivisions		15,600		435		(22	)		16,013
Corporate equity securities		1		5		—			6

	$	90,141	$	1,090	$	(376	)	$	90,855


	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
U.S. agency and mortgage-backed securities	$	67,462	$	374	$	(807	)	$	67,029
Obligations of states and political subdivisions		16,031		325		(99	)		16,257
Corporate equity securities		1		5		—			6

	$	83,494	$	704	$	(906	)	$	83,292

At March 31, 2015 and December 31, 2014, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands):


	March 31, 2015
	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)
U.S. agency and mortgage-backed securities	$	7,438	$	(18	)	$	21,024	$	(336	)	$	28,462	$	(354	)
Obligations of states and political subdivisions		—		—			1,079		(22	)		1,079		(22	)

	$	7,438	$	(18	)	$	22,103	$	(358	)	$	29,541	$	(376	)


	December 31, 2014
	Less than 12 months					12 months or more					Total
	Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)			Fair Value		Unrealized (Loss)
U.S. agency and mortgage-backed securities	$	8,677	$	(60	)	$	32,527	$	(747	)	$	41,204	$	(807	)
Obligations of states and political subdivisions		715		(1	)		2,841		(98	)		3,556		(99	)

	$	9,392	$	(61	)	$	35,368	$	(845	)	$	44,760	$	(906	)

The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities.

At March 31, 2015, there were nineteen U.S. agency and mortgage-backed securities and two obligations of state and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 3.7 years at March 31, 2015. At December 31, 2014, there were twenty-nine U.S. agency and mortgage-backed securities and seven obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2014. The weighted-average re-pricing term of the portfolio was 3.9 years at December 31, 2014. The unrealized losses at March 31, 2015 in the U.S. agency and mortgage-backed securities portfolio and the obligation of states and political subdivisions portfolio were related to changes in market interest rates and not credit concerns of the issuers.

The amortized cost and fair value of securities available for sale at March 31, 2015 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date.


	Amortized		Fair
	Cost		Value
Due within one year	$	—	$	—
Due after one year through five years		6,661		6,717
Due after five years through ten years		21,289		21,457
Due after ten years		62,190		62,675
Corporate equity securities		1		6

	$	90,141	$	90,855

Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at March 31, 2015, and no impairment has been recognized. Restricted securities are not part of the available for sale securities portfolio.

The composition of restricted securities at March 31, 2015 and December 31, 2014 was as follows (in thousands):


	March 31, 2015		December 31, 2014
Federal Home Loan Bank stock	$	1,103	$	470
Federal Reserve Bank stock		846		846
Community Bankers’ Bank stock		50		50

	$	1,999	$	1,366