(3) Securities

The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:


March 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	52,816	$	124	$	(534	)	$	52,406
Obligations of states and political subdivisions		81,073		3,247		(1,010	)		83,310
Mortgage-backed securities in government sponsored entities		67,116		1,081		(397	)		67,800

Total debt securities		201,005		4,452		(1,941	)		203,516
Equity securities in financial institutions		481		—		—			481

Total	$	201,486	$	4,452	$	(1,941	)	$	203,997


December 31, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	52,229	$	95	$	(764	)	$	51,560
Obligations of states and political subdivisions		79,975		2,327		(1,677	)		80,625
Mortgage-backed securities in government sponsored entities		66,409		1,127		(557	)		66,979

Total debt securities		198,613		3,549		(2,998	)		199,164
Equity securities in financial institutions		481		—		(32	)		449

Total	$	199,094	$	3,549	$	(3,030	)	$	199,613

The amortized cost and fair value of securities at March 31, 2014, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities are shown separately.


Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	3,295	$	3,301
Due after one year through five years		21,404		21,295
Due after five years through ten years		33,930		34,409
Due after ten years		75,260		76,711
Mortgage-backed securities		67,116		67,800
Equity securities		481		481

Total securities available for sale	$	201,486	$	203,997

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.


	Three months ended March 31,
	2014		2013

Sale proceeds	$	15,013	$	516
Gross realized gains		4		14
Gross realized losses		—		—
Gains from securities called or settled by the issuer		—		3

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $148,803 and $147,625 as of March 31, 2014 and December 31, 2013, respectively.

Securities with unrealized losses at March 31, 2014 and December 31, 2013 not recognized in income are as follows:


March 31, 2014	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Treasury securities and obligations of U.S. government agencies	$	34,017	$	(534	)	$	—	$	—		$	34,017	$	(534	)
Obligations of states and political subdivisions		18,620		(824	)		2,890		(186	)		21,510		(1,010	)
Mortgage-backed securities in gov’t sponsored entities		29,723		(379	)		3,049		(18	)		32,772		(397	)


Total temporarily impaired	$	82,360	$	(1,737	)	$	5,939	$	(204	)	$	88,299	$	(1,941	)


December 31, 2013	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Treasury securities and obligations of U.S. government agencies	$	30,800	$	(764	)	$	—	$	—		$	30,800	$	(764	)
Obligations of states and political subdivisions		28,428		(1,556	)		968		(121	)		29,396		(1,677	)
Mortgage-backed securities in gov’t sponsored entities		32,557		(553	)		279		(4	)		32,836		(557	)
Equity securities in financial institutions		449		(32	)		—		—			449		(32	)


Total temporarily impaired	$	92,234	$	(2,905	)	$	1,247	$	(125	)	$	93,481	$	(3,030	)

At March 31, 2014 there were seventy-two securities in the portfolio with unrealized losses mainly due to higher market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to market yields increasing across the municipal sector. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.