5. Investments

Investments consist principally of U.S. government and government agency obligations, mortgage-backed securities, municipal bonds, asset-backed securities and corporate bonds and they are classified as available-for-sale at December 31, 2013 and September 30, 2013. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of tax, excluded from the condensed consolidated statements of income and reported in the condensed consolidated statements of comprehensive income as well as a separate component of stockholders’ equity in the condensed consolidated balance sheets, except for other-than-temporary impairments, which are reported as a charge to current earnings. A loss would be recognized when there is an other-than-temporary impairment in the fair value of any individual security classified as available-for-sale, with the associated net unrealized loss reclassified out of accumulated other comprehensive income with a corresponding adjustment to other income. This adjustment results in a new cost basis for the investment. Interest earned on debt securities, including amortization of premiums and accretion of discounts, is included in other income. Realized gains and losses from the sales of debt securities, which are included in other income, are determined using the specific identification method.

The amortized cost, unrealized holding gains and losses, and fair value of available-for-sale securities as of December 31, 2013 and September 30, 2013 were as follows:


	December 31, 2013
*(Dollars in thousands)*	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	21,783	$	22	$	(38	)	$	21,767
Mortgage-backed securities		7,939		101		(63	)		7,977
Municipal bonds		2,865		17		(5	)		2,877
Asset-backed securities		5,348		8		(8	)		5,348
Corporate bonds		4,657		24		(20	)		4,661

Total	$	42,592	$	172	$	(134	)	$	42,630


	September 30, 2013
*(Dollars in thousands)*	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and government agency obligations	$	22,889	$	28	$	(27	)	$	22,890
Mortgage-backed securities		8,149		118		(51	)		8,216
Municipal bonds		3,049		15		(5	)		3,059
Asset-backed securities		3,539		6		(8	)		3,537
Corporate bonds		4,896		17		(6	)		4,907

Total	$	42,522	$	184	$	(97	)	$	42,609

As of December 31, 2013 and September 30, 2013, the Company concluded that the unrealized losses related to the available-for-sale securities shown above were not other-than-temporary as the Company does not have the intent to sell, nor is it more likely than not that the Company will be required to sell, before recovery of their amortized cost.

The amortized cost and fair value of investments by contractual maturity at December 31, 2013 were as follows:


*(Dollars in thousands)*	Amortized Cost		Fair Value
Debt securities due within:
One year	$	12,470	$	12,481
One to five years		21,046		21,046
Five years or more		9,076		9,103

Total	$	42,592	$	42,630

The following table summarizes sales of available-for-sale securities :


	Three months ended December 31,
*(Dollars in thousands)*	2013		2012
Proceeds from sales	$	2,867	$	805
Gross realized gains	$	—	$	4
Gross realized losses	$	—	$	—