Investment Securities

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at September 30, 2014 and December 31, 2013, by contractual maturity within each type:



	At September 30, 2014									At December 31, 2013
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	15,150	$	178	$	—		$	15,328	$	11,148	$	122	$	—		$	11,270
After 1 year to 5 years	41,326		507		(60		)	41,773		54,855		992		(264		)	55,583
	56,476		685		(60		)	57,101		66,003		1,114		(264		)	66,853
Total	$	56,476	$	685	$	(60	)	$	57,101	$	66,003	$	1,114	$	(264	)	$	66,853
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	4,971	$	—	$	(181	)	$	4,790	$	—	$	—	$	—		$	—
After 5 years to 10 years	—		—		—			—		4,966		—		(258		)	4,708
	4,971		—		(181		)	4,790		4,966		—		(258		)	4,708
U.S. government corporations and agencies:
Within 1 year	—		—		—			—		5,999		16		—			6,015
After 1 year to 5 years	123,207		48		(852		)	122,403		112,989		114		(1,226		)	111,877
After 5 years to 10 years	—		—		—			—		10,816		—		(560		)	10,256
	123,207		48		(852		)	122,403		129,804		130		(1,786		)	128,148
State and political subdivisions:
Within 1 year	600		2		—			602		1,564		13		—			1,577
After 1 year to 5 years	10,443		48		(18		)	10,473		5,305		14		(29		)	5,290
After 5 years to 10 years	49,641		1,658		(124		)	51,175		41,974		710		(698		)	41,986
Over 10 years	42,246		1,921		(10		)	44,157		57,899		1,227		(322		)	58,804
	102,930		3,629		(152		)	106,407		106,742		1,964		(1,049		)	107,657
Residential mortgage-backed securities:
After 1 year to 5 years	5,096		—		(32		)	5,064		—		—		—			—
After 5 years to 10 years	4,860		—		(85		)	4,775		10,008		5		(53		)	9,960
Over 10 years	3,681		45		(12		)	3,714		25,721		20		(221		)	25,520
	13,637		45		(129		)	13,553		35,729		25		(274		)	35,480
Collateralized mortgage obligations:
After 1 year to 5 years	—		—		—			—		73		—		—			73
Over 10 years	6,580		18		(123		)	6,475		7,341		40		(253		)	7,128
	6,580		18		(123		)	6,475		7,414		40		(253		)	7,201
Corporate bonds:
Within 1 year	4,998		34		—			5,032		—		—		—			—
After 1 year to 5 years	17,590		30		(235		)	17,385		18,838		52		(411		)	18,479
After 5 years to 10 years	20,943		4		(389		)	20,558		16,474		4		(1,117		)	15,361
	43,531		68		(624		)	42,975		35,312		56		(1,528		)	33,840
Money market mutual funds:
No stated maturity	6,442		—		—			6,442		16,900		—		—			16,900
	6,442		—		—			6,442		16,900		—		—			16,900
Equity securities:
No stated maturity	854		403		—			1,257		1,679		668		—			2,347
	854		403		—			1,257		1,679		668		—			2,347
Total	$	302,152	$	4,211	$	(2,061	)	$	304,302	$	338,546	$	2,883	$	(5,148	)	$	336,281

Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties. Unrealized losses in investment securities at September 30, 2014 and December 31, 2013 do not represent other-than-temporary impairments.

Securities with a carrying value of $231.5 million and $271.1 million at September 30, 2014 and December 31, 2013, respectively, were pledged to secure public deposits and for other purposes as required by law.

The following table presents information related to sales of securities available-for-sale during the nine months ended September 30, 2014 and 2013:



	Nine Months Ended September 30,
(Dollars in thousands)	2014		2013
Securities available-for-sale:
Proceeds from sales	$	30,286	$	58,148
Gross realized gains on sales	557		2,957
Gross realized losses on sales	—		7
Tax expense related to net realized gains on sales	195		1,032

Management evaluates debt securities, which are comprised of U.S. government, government sponsored agencies, municipalities, corporate bonds and other issuers, for other-than-temporary impairment by considering the current economic conditions, the length of time and the extent to which the fair value has been less than cost, interest rates and the bond rating of each security. All of the debt securities are rated as investment grade and management believes that it will not incur any losses. The unrealized losses on the Corporation’s investments in debt securities are temporary in nature since they are primarily related to market interest rates and are not related to the underlying credit quality of the issuers within our investment portfolio. The Corporation does not have the intent to sell the debt securities and believes it is more likely than not, that it will not have to sell the securities before recovery of their cost basis. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the nine months ended September 30, 2014 and 2013.

At September 30, 2014 and December 31, 2013, there were no investments in any single non-federal issuer representing more than 10% of shareholders’ equity.

The following table shows the fair value of securities that were in an unrealized loss position at September 30, 2014 and December 31, 2013 by the length of time those securities were in a continuous loss position:



	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At September 30, 2014
Securities Held-to-Maturity
Corporate bonds	$	13,189	$	(39	)	$	4,993	$	(21	)	$	18,182	$	(60	)
Total	$	13,189	$	(39	)	$	4,993	$	(21	)	$	18,182	$	(60	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,790	$	(181	)	$	4,790	$	(181	)
U.S. government corporations and agencies	19,948		(52		)	77,353		(800		)	97,301		(852		)
State and political subdivisions	1,883		(4		)	11,146		(148		)	13,029		(152		)
Residential mortgage-backed securities	12,391		(129		)	—		—			12,391		(129		)
Collateralized mortgage obligations	—		—			3,807		(123		)	3,807		(123		)
Corporate bonds	17,407		(233		)	15,775		(391		)	33,182		(624		)
Total	$	51,629	$	(418	)	$	112,871	$	(1,643	)	$	164,500	$	(2,061	)
At December 31, 2013
Securities Held-to-Maturity
Corporate bonds	$	19,942	$	(264	)	$	—	$	—		$	19,942	$	(264	)
Total	$	19,942	$	(264	)	$	—	$	—		$	19,942	$	(264	)
Securities Available-for-Sale
U.S. treasuries	$	4,708	$	(258	)	$	—	$	—		$	4,708	$	(258	)
U.S. government corporations and agencies	101,813		(1,786		)	—		—			101,813		(1,786		)
State and political subdivisions	30,233		(1,049		)	—		—			30,233		(1,049		)
Residential mortgage-backed securities	29,444		(274		)	—		—			29,444		(274		)
Collateralized mortgage obligations	4,091		(253		)	—		—			4,091		(253		)
Corporate bonds	26,557		(1,528		)	—		—			26,557		(1,528		)
Total	$	196,846	$	(5,148	)	$	—	$	—		$	196,846	$	(5,148	)