6.	INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity as of June 30, 2014 and December 31, 2013 are as follows:


	Available-for-Sale
	June 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	110,284	$	1,901	$	(289	)	$	111,896
Commercial		36,084		259		(110	)		36,233
Obligations of states and political subdivisions		15,533		1,108		—			16,641
U.S. treasury securities		4,157		—		(228	)		3,929
Obligations of U.S. government sponsored agencies		413		—		(2	)		411

Total	$	166,471	$	3,268	$	(629	)	$	169,110


	Held-to-Maturity
	June 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)

U.S. Agencies	$	37,366	$	—	$	(639	)	$	36,727
Mortgage-backed securities:
Commercial		2,880		24		—			2,904
Obligations of states and political subdivisions		589		—		—			589

Total	$	40,835	$	24	$	(639	)	$	40,220


	Available-for-Sale
	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	82,840	$	1,479	$	(885	)	$	83,434
Commercial		30,677		143		(355	)		30,465
Obligations of states and political subdivisions		16,230		799		(2	)		17,027
U.S. treasury securities		4,161		—		(334	)		3,827
Obligations of U.S. government sponsored agencies		1,000		1		—			1,001

Total	$	134,908	$	2,422	$	(1,576	)	$	135,754


	Held-to-Maturity
	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Obligations of U.S. government sponsored agencies	$	35,050	$	—	$	(1,685	)	$	33,365

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of June 30, 2014 are presented in the following table:


	Available-for-Sale				Held-to-Maturity
	Amortized		Estimated Fair		Amortized		Estimated Fair
	Cost		Value		Cost		Value
	(Dollars in Thousands)
Maturing within one year	$	413	$	411	$	—	$	—
Maturing after one to five years		8,223		8,665		—		—
Maturing after five to ten years		84,001		84,906		18,159		18,061
Maturing after ten years		73,834		75,128		22,676		22,159

Total	$	166,471	$	169,110	$	40,835	$	40,220

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) whether the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. At June 30, 2014 and December 31, 2013, based on the aforementioned considerations, management did not record an other-than-temporary impairment on any security that was in an unrealized loss position.

The following table reflects the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2014 and December 31, 2013.


	Available-for-Sale
	June 30, 2014
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)

Mortgage-backed securities:
Residential	$	5,156	$	(43	)	$	18,839	$	(246	)
Commercial		10,053		(56	)		3,424		(54	)
Obligations of U.S. government sponsored agencies		411		(2	)		—		—
U.S. treasury securities		—		—			3,849		(228	)

Total	$	15,620	$	(101	)	$	26,112	$	(528	)


	Held-to-Maturity
	June 30, 2014
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Obligations of U.S. government sponsored agencies	$	5,356	$	(16	)	$	31,370	$	(623	)


	Available-for-Sale
	December 31, 2013
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)

Mortgage-backed securities:
Residential	$	43,091	$	(885	)	$	—	$	—
Commercial		21,231		(337	)		271		(18	)
Obligations of states and political subdivisions		1,050		(2	)		—		—
U.S. treasury securities		3,748		(334	)		—		—

Total	$	69,120	$	(1,558	)	$	271	$	(18	)


	Held-to-Maturity
	December 31, 2013
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Obligations of U.S. government sponsored agencies	$	33,365	$	(1,685	)	$	—	$	—

As of June 30, 2014, 24 debt securities had been in a loss position for more than twelve months, and 13 debt securities had been in a loss position for less than twelve months. The losses for all securities are considered to be a direct result of the effect that the current interest rate environment has on the value of debt securities and not related to the creditworthiness of the issuers. Further, the Company has the current intent and ability to retain its investments in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Therefore, the Company has not recognized any other-than-temporary impairments.

Investment securities available-for-sale with a carrying value of $73.6 million and $72.7 million as of June 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits and for other purposes.

Gains realized on sales of securities available-for-sale were approximately $0.1 million and $0.5 million as of June 30, 2014 and December 31, 2013, respectively. The gains on sales as of December 31, 2013 resulted from a non-recurring fee received by the Bank in connection with the early payoff of a mortgage-backed pool. There were no losses on sales of securities as of both June 30, 2014 and December 31, 2013.