Investment Securities

The amortized cost and fair values of investment securities at March 31, 2014 and December 31, 2013 are as follows:



	March 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(In Thousands)	Cost		Gains		Losses			Value
Available for sale (AFS)
U.S. Government and agency securities	$	9,403	$	34	$	(191	)	$	9,246
Mortgage-backed securities	13,037		644		(59		)	13,622
Asset-backed securities	2,629		38		(5		)	2,662
State and political securities	132,585		3,155		(2,757		)	132,983
Other debt securities	104,802		872		(1,851		)	103,823
Total debt securities	262,456		4,743		(4,863		)	262,336
Financial institution equity securities	8,079		1,760		(1		)	9,838
Other equity securities	3,849		92		(82		)	3,859
Total equity securities	11,928		1,852		(83		)	13,697
Total investment securities AFS	$	274,384	$	6,595	$	(4,946	)	$	276,033



	December 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(In Thousands)	Cost		Gains		Losses			Value
Available for sale (AFS)
U.S. Government and agency securities	$	9,989	$	17	$	(83	)	$	9,923
Mortgage-backed securities	9,966		694		(68		)	10,592
Asset-backed securities	6,700		43		(179		)	6,564
State and political securities	145,121		2,120		(5,446		)	141,795
Other debt securities	108,939		879		(3,045		)	106,773
Total debt securities	280,715		3,753		(8,821		)	275,647
Financial institution equity securities	8,842		1,820		—			10,662
Other equity securities	2,342		28		(67		)	2,303
Total equity securities	11,184		1,848		(67		)	12,965
Total investment securities AFS	$	291,899	$	5,601	$	(8,888	)	$	288,612

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at March 31, 2014 and December 31, 2013.



	March 31, 2014
	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. Government and agency securities	$	3,696	$	(32	)	$	3,837	$	(159	)	$	7,533	$	(191	)
Mortgage-backed securities	6,386		(59		)	—		—			6,386		(59		)
Asset-backed securities	—		—			660		(5		)	660		(5		)
State and political securities	22,563		(674		)	11,217		(2,083		)	33,780		(2,757		)
Other debt securities	57,270		(1,262		)	12,032		(589		)	69,302		(1,851		)
Total debt securities	89,915		(2,027		)	27,746		(2,836		)	117,661		(4,863		)
Financial institution equity securities	182		(1		)	—		—			182		(1		)
Other equity securities	1,373		(40		)	800		(42		)	2,173		(82		)
Total equity securities	1,555		(41		)	800		(42		)	2,355		(83		)
Total	$	91,470	$	(2,068	)	$	28,546	$	(2,878	)	$	120,016	$	(4,946	)



	December 31, 2013
	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. Government and agency securities	$	7,740	$	(83	)	$	—	$	—		$	7,740	$	(83	)
Mortgage-backed securities	2,483		(68		)	—		—			2,483		(68		)
Asset-backed securities	3,847		(177		)	712		(2		)	4,559		(179		)
State and political securities	42,577		(2,558		)	8,233		(2,888		)	50,810		(5,446		)
Other debt securities	73,254		(3,045		)	—		—			73,254		(3,045		)
Total debt securities	129,901		(5,931		)	8,945		(2,890		)	138,846		(8,821		)
Financial institution equity securities	—		—			—		—			—		—
Other equity securities	274		(22		)	655		(45		)	929		(67		)
Total equity securities	274		(22		)	655		(45		)	929		(67		)
Total	$	130,175	$	(5,953	)	$	9,600	$	(2,935	)	$	139,775	$	(8,888	)

At March 31, 2014 there were a total of 86 securities in a continuous unrealized loss position for less than twelve months and 35 individual securities that were in a continuous unrealized loss position for twelve months or greater.

The Company reviews its position quarterly and has determined that, at March 31, 2014, the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe it will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that the unrealized losses disclosed above are not other than temporary but are the result of interest rate changes, sector credit ratings changes, or company-specific ratings changes that are not expected to result in the non-collection of principal and interest during the period.

The amortized cost and fair value of debt securities at March 31, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



(In Thousands)	Amortized Cost		Fair Value
Due in one year or less	$	2,287	$	2,293
Due after one year to five years	31,363		31,641
Due after five years to ten years	122,156		121,061
Due after ten years	106,650		107,341
Total	$	262,456	$	262,336

Total gross proceeds from sales of securities available for sale were $43,794,000 and $20,492,000 for the three months ended March 31, 2014 and 2013, respectively. The following table represents gross realized gains and losses on those transactions:



	Three Months Ended March 31,
(In Thousands)	2014		2013
Gross realized gains:
State and political securities	$	345	$	579
Other debt securities	307		121
Financial institution equity securities	112		130
Other equity securities	55		216
Total gross realized gains	$	819	$	1,046

Gross realized losses:
U.S. Government and agency securities	$	31	$	—
State and political securities	320		60
Other debt securities	75		—
Total gross realized losses	$	426	$	60

There were no impairment charges included in gross realized losses for the three months ended March 31, 2014 and 2013, respectively.