(3)	Investment Securities

Investment securities available-for-sale at December 31, 2014 and 2013 are as follows:

 

						Gross				Gross				Estimated
		Amortized				Unrealized				Unrealized				Fair
December 31, 2014		Cost				Gains				Losses				Value
U.S. Treasury securities		$	1,501				—				—				1,501
Mortgage-backed securities			27,723				1,138				111				28,750
Municipal securities			4,408				279				6				4,681
Total investment securities available-for-sale		$	33,632				1,417				117				34,932
						Gross				Gross				Estimated
		Amortized				Unrealized				Unrealized				Fair
December 31, 2013		Cost				Gains				Losses				Value
Mortgage-backed securities		$	33,123				1,022				403				33,742
Municipal securities			4,409				59				198				4,270
Mutual fund			10,000				—				33				9,967
Total investment securities available-for-sale		$	47,532				1,081				634				47,979

 

Management evaluates securities for other-than-temporary impairment on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Details concerning investment securities with unrealized losses as of December 31, 2014 and 2013 are as follows:

 

		December 31, 2014
		Less than 12 Months								12 Months or More								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
U.S. Treasury securities		$	—				—				—				—				—				—
Mortgage-backed securities			—				—				7,705				111				7,705				111
Municipal securities			—				—				494				6				494				6
		$	—				—				8,199				117				8,199				117
		December 31, 2013
		Less than 12 Months								12 Months or More								Total
		Fair				Unrealized				Fair				Unrealized				Fair				Unrealized
		Value				Losses				Value				Losses				Value				Losses
Mortgage-backed securities		$	8,409				403				—				—				8,409				403
Municipal securities			2,086				198				—				—				2,086				198
Mutual fund			9,967				33				—				—				9,967				33
		$	20,462				634				—				—				20,462				634

At December 31, 2014, three out of thirteen mortgage-backed securities and one out of nine municipal securities were in a loss position. At December 31, 2013, three out of fourteen mortgage-backed securities, four out of nine municipal securities and the sole mutual fund were in a loss position. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. As management had the ability and intent to hold debt securities until maturity, no declines were deemed to be other than temporary as of December 31, 2014 and 2013.

During 2014, the Company sold investment securities for proceeds of $35,377,000 and realized a gross loss of $33,000 on those sales. During 2013, the Company sold investment securities for proceeds of $952,000 and realized a gross gain of $47,000 on those sales. During 2012, the Company did not sell any investment securities.

At December 31, 2014 and 2013, securities with a carrying value of approximately $34,633,000 and $35,206,000, respectively, were pledged to secure public deposits as required by law and for other purposes.

The amortized cost and estimated fair value of securities available-for-sale at December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

		Amortized				Fair
		Cost				Value
Municipal & U.S. Treasury securities:
0 to 5 years		$	1,501				1,501
5 to 10 years			1,047				1,101
Over 10 years			3,361				3,580
Mortgage-backed securities			27,723				28,750
		$	33,632				34,932