5.	SECURITIES

Securities available for sale at March 31, 2016 and December 31, 2015 are as follows:


			March 31, 2016									December 31, 2015
	Amortized		Unrealized					Fair		Amortized		Unrealized					Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. Gov’t sponsored entities	$	139,178	$	2,372	$	(48	)	$	141,502	$	141,300	$	1,579	$	(1,128	)	$	141,751
State & political subdivisions		163,663		7,572		(194	)		171,041		165,828		6,234		(243	)		171,819
Residential & multi-family mortgage		153,587		1,463		(1,523	)		153,527		160,316		1,060		(3,394	)		157,982
Corporate notes & bonds		19,788		199		(1,886	)		18,101		19,794		165		(1,271	)		18,688
Pooled trust preferred		800		2,309		0			3,109		800		2,613		0			3,413
Pooled SBA		50,000		913		(465	)		50,448		51,556		760		(907	)		51,409
Other equity securities		1,020		0		(27	)		993		1,020		0		(39	)		981

Total	$	528,036	$	14,828	$	(4,143	)	$	538,721	$	540,614	$	12,411	$	(6,982	)	$	546,043

At March 31, 2016 and December 31, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity. The Corporation’s residential and multi-family mortgage securities are issued by government sponsored entities.

Trading securities at March 31, 2016 and December 31, 2015 are as follows:


	March 31, 2016		December 31, 2015
Corporate equity securities	$	3,356	$	3,389
Mutual funds		851		750
Certificates of deposit		255		253
Corporate notes and bonds		175		130
U.S. Government sponsored entities		55		54

Total	$	4,692	$	4,576

Securities with unrealized losses at March 31, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands):

March 31, 2016


	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	12,014	$	(21	)	$	10,385	$	(27	)	$	22,399	$	(48	)
State & political subdivisions		1,871		(194	)		0		0			1,871		(194	)
Residential & multi-family mortgage		43,223		(488	)		53,225		(1,035	)		96,448		(1,523	)
Corporate notes & bonds		0		0			7,525		(1,886	)		7,525		(1,886	)
Pooled SBA		1,379		(1	)		26,940		(464	)		28,319		(465	)
Other equity securities		0		0			993		(27	)		993		(27	)

	$	58,487	$	(704	)	$	99,068	$	(3,439	)	$	157,555	$	(4,143	)

December 31, 2015


	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	65,675	$	(640	)	$	31,923	$	(488	)	$	97,598	$	(1,128	)
State & political subdivisions		9,103		(234	)		2,478		(9	)		11,581		(243	)
Residential & multi-family mortgage		69,631		(1,562	)		50,351		(1,832	)		119,982		(3,394	)
Corporate notes & bonds		5,027		(2	)		8,144		(1,269	)		13,171		(1,271	)
Pooled SBA		2,908		(28	)		27,127		(879	)		30,035		(907	)
Other equity securities		0		0			981		(39	)		981		(39	)

	$	152,344	$	(2,466	)	$	121,004	$	(4,516	)	$	273,348	$	(6,982	)

The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

A roll-forward of the other-than-temporary impairment amount related to credit losses for the three months ended March 31, 2016 and 2015 is as follows:


Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period	$	4,054
Additional credit loss for which other-than-temporary impairment was not previously recognized		0
Additional credit loss for which other-than-temporary impairment was previously recognized		0

Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period	$	4,054

Due to the insignificance of the adjusted amortized cost balance, no further disclosures are required with respect to the Corporation’s structured pooled trust preferred securities.

For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed, as appropriate given the following considerations. When reviewing securities for other-than-temporary impairment, management considers the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred. Management also considers the length of time and extent to which fair value has been less than cost, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

As of March 31, 2016 and December 31, 2015, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:

•

There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.

•

All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis.

Information pertaining to security sales on available for sale securities is as follows:


	Proceeds		Gross Gains		Gross Losses
Three months ended March 31, 2016	$	0	$	0	$	0
Three months ended March 31, 2015	$	32,949	$	136	$	117

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at March 31, 2016:


	Amortized		Fair
	Cost		Value
1 year or less	$	30,700	$	30,547
1 year – 5 years		192,864		199,213
5 years – 10 years		76,842		79,312
After 10 years		23,023		24,681

		323,429		333,753
Residential and multi-family mortgage		153,587		153,527
Pooled SBA		50,000		50,448

Total debt securities	$	527,016	$	537,728

Mortgage and asset backed securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.

On March 31, 2016 and December 31, 2015, securities carried at $315,987 and $312,669, respectively, were pledged to secure public deposits and for other purposes as provided by law.