Southwest Bancorporation of Texas, Inc. and Subsidiaries
Notes to Consolidated Financial Statements— (Continued)

In connection with the Citizens merger, the Company transferred all of Citizens ’ held to maturity debt securities to the available for sale category. The amortized cost of these securities at the time of transfer was $55,800 and the unrealized gain was $267 ($174 net of income taxes) . In connection with the Fort Bend merger, the Company transferred all of Fort Bend' s held to maturity debt securities to the available for sale category in 1999. The amortized cost of these securities at the time of transfer was $57,800 and the unrealized gain was $80 ($52 net of income taxes) . The Company does not intend to sell these securities in the near term.

Gross gains of $307, $286 and $996 and gross losses of $774, $420 and $63 were recognized on sales of investment securities for the years ended December 31, 2000, 1999 and 1998, respectively.

4. Loans:

A summary of loans outstanding follows:

An analysis of the allowance for loan losses is as follows:

The Company’s impaired loans were approximately $10,800 and $13,700 at December 31, 2000 and 1999 respectively. The average recorded investment in impaired loans during 2000, 1999 and 1998 was $9,300, $13,900 and $6,300, respectively. The total required allowance for loan losses related to these loans was $1,000 and $0 at December 31, 2000 and 1999, respectively. Interest income on impaired loans of $1,100, $1,500 and $415 was recognized for cash payments received in 2000, 1999 and 1998, respectively.

The Bank is not committed to lend additional funds to debtors whose loans have been modified.