INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale:



	June 30, 2014
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	92,289	$	806	$	(124	)	$	92,971
Obligations of states and political subdivisions	49,301		1,474		(842		)	49,933
Agency mortgage-backed securities	305,396		3,852		(4,103		)	305,145
	$	446,986	$	6,132	$	(5,069	)	$	448,049

	December 31, 2013
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Obligations of U.S. Government-sponsored enterprises	$	93,218	$	700	$	(388	)	$	93,530
Obligations of states and political subdivisions	49,721		983		(1,761		)	48,943
Agency mortgage-backed securities	298,623		2,675		(9,184		)	292,114
	$	441,562	$	4,358	$	(11,333	)	$	434,587

At June 30, 2014, and December 31, 2013, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. government agencies and sponsored enterprises. The residential mortgage-backed securities are all issued by U.S. government sponsored enterprises. Available for sale securities having a fair value of $244.6 million and $270.1 million at June 30, 2014, and December 31, 2013, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities classified as available for sale at June 30, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 5 years.



(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,214	$	2,248
Due after one year through five years	108,727		110,065
Due after five years through ten years	22,425		22,767
Due after ten years	8,224		7,824
Mortgage-backed securities	305,396		305,145
	$	446,986	$	448,049

The following table represents a summary of available-for-sale investment securities that had an unrealized loss:



	June 30, 2014
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	—	$	—	$	24,870	$	124	$	24,870	$	124
Obligations of states and political subdivisions	$	1,180	$	3	$	17,047	$	839	$	18,227	$	842
Agency mortgage-backed securities	4,152		11		136,626		4,092		140,778		4,103
	$	5,332	$	14	$	178,543	$	5,055	$	183,875	$	5,069

	December 31, 2013
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	30,221	$	388	$	—	$	—	$	30,221	$	388
Obligations of states and political subdivisions	17,141		952		7,168		809		24,309		1,761
Agency mortgage-backed securities	159,999		7,338		21,437		1,846		181,436		9,184
	$	207,361	$	8,678	$	28,605	$	2,655	$	235,966	$	11,333

The unrealized losses at both June 30, 2014, and December 31, 2013, were primarily attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security and (5) the intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value. At June 30, 2014, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.

The gross gains and gross losses realized from sales of available-for-sale investment securities were as follows:



	Three months ended June 30,				Six months ended June 30,
(in thousands)	2014		2013		2014		2013
Gross gains realized	$	—	$	—	$	—	$	866
Gross losses realized	—		—		—		(182		)
Proceeds from sales	—		—		—		122,894