Securities Available for Sale

6 Months Ended

Jun. 30, 2015

Available-for-sale Securities [Abstract]

Securities Available for Sale

Note 4- Securities Available for Sale

Amortized costs and fair values of securities available for sale are summarized as follows:

	June 30, 2015
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	285	$	8	$	-	$	293
State, county and municipals		100,067		261		544		99,784
Mortgage-backed securities		54,478		563		498		54,543
Corporate debt securities		1,140		-		-		1,140
Equity securities		2,742		1,213		28		3,927
	$	158,712	$	2,045	$	1,070	$	159,687

	December 31, 2014
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Values
U.S. government sponsored enterprises	$	1,025	$	14	$	-	$	1,039
State, county and municipals		102,472		778		474		102,776
Mortgage-backed securities		61,497		639		459		61,677
Corporate debt securities		220		-		-		220
Equity securities		1,571		1,192		-		2,763
	$	166,785	$	2,623	$	933	$	168,475

The following table represents gross unrealized losses and the related fair value of investment securities available for sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at June 30, 2015 and December 31, 2014.

	June 30, 2015
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
State, county and municipals	$	55,917	$	369	$	10,402	$	175	$	66,319	$	544
Mortgage-backed securities		10,288		71		15,131		427		25,419		498
Equity securities		180		28		-		-		180		28
	$	66,385	$	468	$	25,533	$	602	$	91,918	$	1,070

	December 31, 2014
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized  Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
State, county and municipals	$	48,531	$	288	$	10,338	$	186	$	58,869	$	474
Mortgage-backed securities		5,944		20		19,351		439		25,295		459
	$	54,475	$	308	$	29,689	$	625	$	84,164	$	933

At June 30, 2015 we had $1.1 million of gross unrealized losses related to 184 securities. As of June 30, 2015, the Company does not consider securities with unrealized losses to be other-than-temporarily impaired as the unrealized losses in each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. The Company has the ability and intent to hold its securities to maturity. There were no other-than-temporary impairments charged to earnings during the six-month periods ending June 30, 2015 or June 30, 2014.

The amortized cost and fair values of securities available for sale at June 30, 2015 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Fair values of securities are estimated based on financial models or prices paid for the same or similar securities. It is possible interest rates could change considerably, resulting in a material change in estimated fair value.

	June 30, 2015
(in thousands)	Amortized Cost		Fair Value
Due in less than one year	$	4,814	$	4,857
Due in one year through five years		76,386		76,103
Due after five years through ten years		18,591		18,537
Due after ten years		1,701		1,720
		101,492		101,217
Mortgage-backed securities		54,478		54,543
Equity securities		2,742		3,927
Securities available for sale	$	158,712	$	159,687

Proceeds from sales of securities available for sale during the first six months of 2015 and 2014 were approximately $13.9 million and $0.5 million respectively. Gains of approximately $0.6 million and $0.3 million were realized during the first six months of 2015 and 2014, respectively, and no losses were realized on sales of securities during the first six months of 2015 or 2014.