(4) 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:


June 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	39,794	$	183	$	(38	)	$	39,939
Obligations of states and political subdivisions		87,277		3,947		(510	)		90,714
Mortgage-backed securities in government sponsored entities		65,320		996		(110	)		66,206

Total debt securities		192,391		5,126		(658	)		196,859

Equity securities in financial institutions		481		89		—			570

Total	$	192,872	$	5,215	$	(658	)	$	197,429



December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of
U.S. government agencies	$	42,910	$	115	$	(123	)	$	42,902
Obligations of states and political subdivisions		83,215		5,112		(306	)		88,021
Mortgage-backed securities in government sponsored entities		65,646		976		(180	)		66,442

Total debt securities		191,771		6,203		(609	)		197,365

Equity securities in financial institutions		481		59		—			540

Total	$	192,252	$	6,262	$	(609	)	$	197,905

The amortized cost and fair value of securities at June 30, 2015, 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	$	632	$	632
Due after one year through five years		29,651		29,782
Due after five years through ten years		30,734		32,123
Due after ten years		66,054		68,116
Mortgage-backed securities		65,320		66,206
Equity securities		481		570

Total securities available for sale	$	192,872	$	197,429

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


	Three months ended				Six months ended
	June 30,				June 30,
	2015		2014		2015		2014
Sale proceeds	$	—	$	3,075	$	—	$	18,088
Gross realized gains		—		107		—		112
Gross realized losses		—		—		—		—

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $146,106 and $137,898 as of June 30, 2015 and December 31, 2014, respectively.

Securities with unrealized losses at June 30, 2015 and December 31, 2014 not recognized in income are as follows:


June 30, 2015	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	$	7,481	$	(24	)	$	3,276	$	(14	)	$	10,757	$	(38	)
Obligations of states and political subdivisions		17,279		(310	)		2,982		(200	)		20,261		(510	)
Mortgage-backed securities in gov’t sponsored entities		8,475		(46	)		8,180		(64	)		16,655		(110	)


Total temporarily impaired	$	33,235	$	(380	)	$	14,438	$	(278	)	$	47,673	$	(658	)


December 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	$	7,664	$	(17	)	$	11,888	$	(106	)	$	19,552	$	(123	)
Obligations of states and political subdivisions		853		(11	)		5,647		(295	)		6,500		(306	)
Mortgage-backed securities in gov’t sponsored entities		12,289		(29	)		11,492		(151	)		23,781		(180	)


Total temporarily impaired	$	20,806	$	(57	)	$	29,027	$	(552	)	$	49,833	$	(609	)

At June 30, 2015, there were fifty-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.