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, 2015 and December 31, 2014, by contractual maturity within each type:



	At September 30, 2015									At December 31, 2014
(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	$	17,066	$	176	$	—		$	17,242	$	13,088	$	82	$	—		$	13,170
After 1 year to 5 years	23,992		111		(22		)	24,081		41,259		388		(52		)	41,595
	41,058		287		(22		)	41,323		54,347		470		(52		)	54,765
Total	$	41,058	$	287	$	(22	)	$	41,323	$	54,347	$	470	$	(52	)	$	54,765
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	4,977	$	—	$	(32	)	$	4,945	$	4,972	$	—	$	(127	)	$	4,845
	4,977		—		(32		)	4,945		4,972		—		(127		)	4,845
U.S. government corporations and agencies:
After 1 year to 5 years	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
	104,893		491		(13		)	105,371		122,328		48		(532		)	121,844
State and political subdivisions:
Within 1 year	—		—		—			—		600		2		—			602
After 1 year to 5 years	15,664		91		(15		)	15,740		12,326		17		(59		)	12,284
After 5 years to 10 years	51,605		1,446		(34		)	53,017		49,554		1,616		(77		)	51,093
Over 10 years	38,428		1,285		(50		)	39,663		37,004		1,792		(1		)	38,795
	105,697		2,822		(99		)	108,420		99,484		3,427		(137		)	102,774
Residential mortgage-backed securities:
After 1 year to 5 years	9,767		110		—			9,877		5,066		17		—			5,083
After 5 years to 10 years	—		—		—			—		4,856		—		(32		)	4,824
Over 10 years	3,598		69		—			3,667		3,661		75		—			3,736
	13,365		179		—			13,544		13,583		92		(32		)	13,643
Collateralized mortgage obligations:
Over 10 years	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
	3,352		—		(49		)	3,303		3,810		—		(85		)	3,725
Corporate bonds:
Within 1 year	—		—		—			—		4,998		22		—			5,020
After 1 year to 5 years	19,768		80		(165		)	19,683		29,505		88		(244		)	29,349
After 5 years to 10 years	10,403		1		(157		)	10,247		20,442		—		(371		)	20,071
Over 10 years	60,000		88		(2,105		)	57,983		—		—		—			—
	90,171		169		(2,427		)	87,913		54,945		110		(615		)	54,440
Money market mutual funds:
No stated maturity	9,020		—		—			9,020		11,675		—		—			11,675
	9,020		—		—			9,020		11,675		—		—			11,675
Equity securities:
No stated maturity	556		428		—			984		854		483		—			1,337
	556		428		—			984		854		483		—			1,337
Total	$	332,031	$	4,089	$	(2,620	)	$	333,500	$	311,651	$	4,160	$	(1,528	)	$	314,283

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, 2015 and December 31, 2014 do not represent other-than-temporary impairments.

Securities with a carrying value of $204.5 million and $230.9 million at September 30, 2015 and December 31, 2014, 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, 2015 and 2014:



	Nine Months Ended September 30,
(Dollars in thousands)	2015		2014
Securities available-for-sale:
Proceeds from sales	$	56,005	$	30,286
Gross realized gains on sales	591		557
Gross realized losses on sales	23		—
Tax expense related to net realized gains on sales	199		195

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, market 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. 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, 2015 and 2014.

The Corporation evaluates its equity securities for other-than-temporary impairment and recognizes other-than-temporary impairment charges when it has determined that it is probable that the fair value of certain equity securities will not recover to the Corporation’s cost basis in the individual securities within a reasonable period of time due to a decline in the financial stability of the underlying companies. Management evaluates the near-term prospects of the issuers in relation to the severity and duration of the impairment. The Corporation has the intent and ability to hold these securities until recovery of the Corporation’s cost basis occurs. The Corporation realized other-than-temporary impairment charges to noninterest income of $5 thousand on its equity portfolio during the three and nine months ended September 30, 2015.

At September 30, 2015 and December 31, 2014, 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, 2015 and December 31, 2014 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, 2015
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Total	$	—	$	—		$	4,987	$	(22	)	$	4,987	$	(22	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,945	$	(32	)	$	4,945	$	(32	)
U.S. government corporations and agencies	3,004		(8		)	4,995		(5		)	7,999		(13		)
State and political subdivisions	11,924		(90		)	1,340		(9		)	13,264		(99		)
Collateralized mortgage obligations	—		—			3,304		(49		)	3,304		(49		)
Corporate bonds	49,961		(2,228		)	10,799		(199		)	60,760		(2,427		)
Total	$	64,889	$	(2,326	)	$	25,383	$	(294	)	$	90,272	$	(2,620	)
At December 31, 2014
Securities Held-to-Maturity
Corporate bonds	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Total	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,845	$	(127	)	$	4,845	$	(127	)
U.S. government corporations and agencies	39,607		(80		)	62,140		(452		)	101,747		(532		)
State and political subdivisions	10,246		(31		)	9,303		(106		)	19,549		(137		)
Residential mortgage-backed securities	4,824		(32		)	—		—			4,824		(32		)
Collateralized mortgage obligations	—		—			3,725		(85		)	3,725		(85		)
Corporate bonds	21,949		(328		)	15,805		(287		)	37,754		(615		)
Total	$	76,626	$	(471	)	$	95,818	$	(1,057	)	$	172,444	$	(1,528	)