The amortized cost and fair values of available-for-sale and held-to-maturity debt securities at December 31, 2014 and 2013 are summarized as follows:

 

					Gross			Gross
		Amortized			Unrealized			Unrealized			Market
		Cost			Gain			Loss			Value
		(In Thousands)
December 31, 2014
Securities Available for Sale
U.S. Treasury and government sponsored agencies		$	50,363		$	775		$	-		$	51,138
Mortgage-backed securities			92,439			3,095			(11)			95,523
State and municipal securities			132,780			3,211			(328)			135,663
Corporate debt			15,821			165			-			15,986
Total		$	291,403		$	7,246		$	(339)		$	298,310
Securities Held to Maturity
Mortgage-backed securities			23,804			449			(320)			23,933
State and municipal securities			5,551			490			-			6,041
Total		$	29,355		$	939		$	(320)		$	29,974
December 31, 2013
Securities Available for Sale
U.S. Treasury and government sponsored agencies		$	31,641		$	674		$	(41)		$	32,274
Mortgage-backed securities			85,272			2,574			(98)			87,748
State and municipal securities			127,083			3,430			(682)			129,831
Corporate debt			15,738			163			(26)			15,875
Total		$	259,734		$	6,841		$	(847)		$	265,728
Securities Held to Maturity
Mortgage-backed securities			26,730			266			(1,422)			25,574
State and municipal securities			5,544			197			-			5,741
Total		$	32,274		$	463		$	(1,422)		$	31,315

  

All mortgage-backed debt securities are with government sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation.

 

At year-end 2014 and 2013, there were no holdings of debt securities of any issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity.

 

The amortized cost and fair value of debt securities as of December 31, 2014 and 2013 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because the issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

		December 31, 2014						December 31, 2013
		Amortized Cost			Market Value			Amortized Cost			Market Value
		(In Thousands)
Debt securities available for sale
Due within one year		$	16,944		$	17,246		$	5,659		$	5,717
Due from one to five years			121,591			123,962			102,535			104,887
Due from five to ten years			60,079			61,221			65,174			66,229
Due after ten years			350			358			1,094			1,147
Mortgage-backed securities			92,439			95,523			85,272			87,748
		$	291,403		$	298,310		$	259,734		$	265,728
Debt securities held to maturity
Due from five to ten years		$	298		$	325		$	-		$	-
Due after ten years			5,253			5,716			5,544			5,741
Mortgage-backed securities			23,804			23,933			26,730			25,574
		$	29,355		$	29,974		$	32,274		$	31,315

 

The following table shows the gross unrealized losses and fair value of debt securities, aggregated by category and length of time that securities have been in a continuous unrealized loss position at December 31, 2014 and 2013. In estimating other-than-temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The unrealized losses shown in the following table are primarily due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be other-than-temporarily impaired at December 31, 2014. There were no other-than-temporary impairments for the years ended December 31, 2014, 2013 and 2012.

  

		Less Than Twelve Months						Twelve Months or More						Total
		Gross						Gross						Gross
		Unrealized						Unrealized						Unrealized
		Losses			Fair Value			Losses			Fair Value			Losses			Fair Value
		(In Thousands)
December 31, 2014
U.S. Treasury and government sponsored agencies		$	-		$	-		$	-		$	-		$	-		$	-
Mortgage-backed securities			-			-			(331)			17,751			(331)			17,751
State and municipal securities			(162)			19,945			(166)			10,820			(328)			30,765
Corporate debt			-			-			-			-			-			-
Total		$	(162)		$	19,945		$	(497)		$	28,571		$	(659)		$	48,516
December 31, 2013
U.S. Treasury and government sponsored agencies		$	(41)		$	5,854		$	-		$	-		$	(41)		$	5,854
Mortgage-backed securities			(852)			21,365			(668)			6,691			(1,520)			28,056
State and municipal securities			(607)			30,666			(75)			3,443			(682)			34,109
Corporate debt			(26)			5,958			-			-			(26)			5,958
Total		$	(1,526)		$	63,843		$	(743)		$	10,134		$	(2,269)		$	73,977

 

At December 31, 2014, 46 of the Company’s 707 debt securities were in an unrealized loss position for more than 12 months. 

 

The following table summarizes information about sales of debt securities available for sale.

 

		Years Ended December 31,
		2014			2013			2012
		(In Thousands)
Sale proceeds		$	173		$	4,140		$	-
Gross realized gains		$	3		$	131		$	-
Gross realized losses			-			-			-
Net realized gain (loss)		$	3		$	131		$	-

 

The carrying value of debt securities pledged to secure public funds on deposits and for other purposes as required by law as of December 31, 2014 and 2013 was $230.6 million and $200.9 million, respectively.

 

Equity securities include (1) a restricted investment in Federal Home Loan Bank of Atlanta stock for membership requirement and to secure available lines of credit, (2) an investment in First National Bankers Bank stock, and (3) an investment in a Community Reinvestment Act (“CRA”)-qualified mutual fund. The amount of investment in the Federal Home Loan Bank of Atlanta stock was $3.2 million and $3.5 million at December 31, 2014 and 2013, respectively. The amount of investment in the First National Bankers Bank stock was $250,000 at December 31, 2014 and 2013. The amount of investment in the CRA-qualified mutual fund was $503,000 and $493,000 at December 31, 2014 and 2013, respectively.