SECURITIES AVAILABLE-FOR-SALE

The following table indicates the composition of the securities available-for-sale portfolio as of the dates presented:



	June 30, 2014									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
Obligations of U.S. government corporations and agencies	$	268,614	$	2,733	$	(1,099	)	$	270,248	$	235,181	$	2,151	$	(2,581	)	$	234,751
Collateralized mortgage obligations of U.S. government corporations and agencies	93,787		1,035		(218		)	94,604		63,776		601		(603		)	63,774
Residential mortgage-backed securities of U.S. government corporations and agencies	44,900		1,720		(231		)	46,389		47,934		1,420		(685		)	48,669
Commercial mortgage-backed securities of U.S. government corporations and agencies	40,098		224		(402		)	39,920		40,357		—		(1,305		)	39,052
Obligations of states and political subdivisions	124,648		4,017		(352		)	128,313		115,572		1,294		(2,602		)	114,264
Debt Securities	572,047		9,729		(2,302		)	579,474		502,820		5,466		(7,776		)	500,510
Marketable equity securities	7,579		1,435		—			9,014		7,579		1,336		—			8,915
Total	$	579,626	$	11,164	$	(2,302	)	$	588,488	$	510,399	$	6,802	$	(7,776	)	$	509,425

Realized gains and losses on the sale of securities are determined using the specific-identification method. The following table shows the composition of gross and net realized gains and losses for the periods presented:



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2014		2013		2014		2013
Gross realized gains	$	40	$	—	$	41	$	2
Gross realized losses	—		—		—		—
Net Realized Gains	$	40	$	—	$	41	$	2

The following tables indicate the fair value and the age of gross unrealized losses by investment category as of the dates presented:



	June 30, 2014
	Less Than 12 Months						12 Months or More						Total
(dollars in thousands)	Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Fair Value		Number of Securities	Unrealized Losses
Obligations of U.S. government corporations and agencies	2	$	19,741	$	(78	)	8	$	63,265	$	(1,021	)	$	83,006	10	$	(1,099	)
Collateralized mortgage obligations of U.S. government corporations and agencies	1	11,420		(218		)	—	—		—			11,420		1	(218		)
Residential mortgage-backed securities of U.S. government corporations and agencies	—	—		—			1	9,414		(231		)	9,414		1	(231		)
Commercial mortgage-backed securities of U.S. government corporations and agencies	1	10,009		(16		)	2	20,837		(386		)	30,846		3	(402		)
Obligations of states and political subdivisions	1	264		(1		)	3	15,975		(351		)	16,239		4	(352		)
Debt Securities	5	41,434		(313		)	14	109,491		(1,989		)	150,925		19	(2,302		)
Marketable equity securities	—	—		—			—	—		—			—		—	—
Total Temporarily Impaired Securities	5	$	41,434	$	(313	)	14	$	109,491	$	(1,989	)	$	150,925	19	$	(2,302	)

	December 31, 2013
	Less Than 12 Months						12 Months or More						Total
(dollars in thousands)	Number of Securities	Fair Value		Unrealized Losses			Number of Securities	Fair Value		Unrealized Losses			Fair Value		Number of Securities	Unrealized Losses
Obligations of U.S. government corporations and agencies	16	$	126,017	$	(2,581	)	—	$	—	$	—		$	126,017	16	$	(2,581	)
Collateralized mortgage obligations of U.S. government corporations and agencies	3	39,522		(603		)	—	—		—			39,522		3	(603		)
Residential mortgage-backed securities of U.S. government corporations and agencies	2	22,822		(685		)	—	—		—			22,822		2	(685		)
Commercial mortgage-backed securities of U.S. government corporations and agencies	4	39,052		(1,305		)	—	—		—			39,052		4	(1,305		)
Obligations of states and political subdivisions	16	47,529		(1,739		)	2	10,088		(863		)	57,617		18	(2,602		)
Debt Securities	41	274,942		(6,913		)	2	10,088		(863		)	285,030		43	(7,776		)
Marketable equity securities	—	—		—			—	—		—			—		—	—
Total Temporarily Impaired Securities	41	$	274,942	$	(6,913	)	2	$	10,088	$	(863	)	$	285,030	43	$	(7,776	)

We do not believe any individual unrealized loss as of June 30, 2014 represents an other than temporary impairment, or OTTI. As of June 30, 2014, the unrealized losses on 19 debt securities were attributable to changes in interest rates and not related to the credit quality of these securities. All debt securities are determined to be investment grade and are paying principal and interest according to the contractual terms of the security. There were no unrealized losses on marketable equity securities as of June 30, 2014. We do not intend to sell and it is not more likely than not that we will be required to sell any of the securities, referenced in the table above, in an unrealized loss position before recovery of their amortized cost.

The following table displays net unrealized gains and losses, net of tax on securities available for sale included in accumulated other comprehensive income/(loss) for the periods presented.



	June 30, 2014							December 31, 2013
(dollars in thousands)	Gross Unrealized Gains		Gross Unrealized Losses			Net Unrealized Gains/ (Losses)		Gross Unrealized Gains		Gross Unrealized Losses			Net Unrealized Gains/ (Losses)
Total unrealized gains/(losses) on securities available-for-sale	$	11,164	$	(2,302	)	$	8,862	$	6,802	$	(7,776	)	$	(974	)
Income tax expense/(benefit)	3,907		(806		)	3,101		2,381		(2,722		)	(341		)
Net unrealized gains/(losses), net of tax included in accumulated other comprehensive income/(loss)	$	7,257	$	(1,496	)	$	5,761	$	4,421	$	(5,054	)	$	(633	)

The amortized cost and fair value of securities available-for-sale at June 30, 2014, by contractual maturity, are included in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	June 30, 2014
(dollars in thousands)	Amortized Cost		Fair Value
Obligations of U.S. government corporations and agencies, and obligations of states and political subdivisions
Due in one year or less	$	24,049	$	24,289
Due after one year through five years	182,816		184,074
Due after five years through ten years	98,068		99,420
Due after ten years	88,329		90,778
	393,262		398,561
Collateralized mortgage obligations of U.S. government corporations and agencies	93,787		94,604
Residential mortgage-backed securities of U.S. government corporations and agencies	44,900		46,389
Commercial mortgage-backed securities of U.S. government corporations and agencies	40,098		39,920
Debt Securities	572,047		579,474
Marketable equity securities	7,579		9,014
Total	$	579,626	$	588,488

At June 30, 2014 and December 31, 2013, securities with carrying values of $273.5 million and $243.2 million were pledged for various regulatory and legal requirements.