SECURITIES

The amortized cost, unrealized gains, unrealized losses and estimated fair values of securities at March 31, 2015, December 31, 2014, and March 31, 2014 are summarized as follows:



	March 31, 2015
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	21,650	$	1,227	$	40	$	22,837
Residential mortgage-backed securities:
Government-sponsored agencies	153,904		3,412		501		156,815
Nongovernment-sponsored entities	11,034		105		71		11,068
State and political subdivisions
General obligations	1,617		34		—		1,651
Water and sewer revenues	1,969		21		—		1,990
Lottery/casino revenues	3,084		9		28		3,065
Other revenues	1,697		67		—		1,764
Corporate debt securities	6,675		—		10		6,665
Total taxable debt securities	201,630		4,875		650		205,855
Tax-exempt debt securities
State and political subdivisions
General obligations	47,947		2,050		136		49,861
Water and sewer revenues	10,302		278		1		10,579
Special tax revenues	2,272		53		—		2,325
Lottery/casino revenues	2,800		163		—		2,963
Other revenues	10,246		313		14		10,545
Total tax-exempt debt securities	73,567		2,857		151		76,273
Equity securities	7		—		—		7
Total available for sale securities	$	275,204	$	7,732	$	801	$	282,135



	December 31, 2014
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	22,153	$	1,073	$	52	$	23,174
Residential mortgage-backed securities:
Government-sponsored agencies	147,951		2,599		773		149,777
Nongovernment-sponsored entities	12,051		142		48		12,145
State and political subdivisions
General obligations	1,975		2		33		1,944
Water and sewer revenues	1,976		14		7		1,983
Other revenues	4,696		73		2		4,767
Corporate debt securities	3,776		—		—		3,776
Total taxable debt securities	194,578		3,903		915		197,566
Tax-exempt debt securities
State and political subdivisions
General obligations	49,515		2,338		12		51,841
Water and sewer revenues	11,258		244		3		11,499
Lease revenues	4,617		75		10		4,682
Lottery/casino revenues	3,811		206		9		4,008
Other revenues	12,845		404		18		13,231
Total tax-exempt debt securities	82,046		3,267		52		85,261
Equity securities	7		—		—		7
Total available for sale securities	$	276,631	$	7,170	$	967	$	282,834



	March 31, 2014
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities:
U.S. Government and agencies and corporations	$	27,658	$	736	$	78	$	28,316
Residential mortgage-backed securities:
Government-sponsored agencies	142,644		2,230		1,060		143,814
Nongovernment-sponsored agencies	10,429		377		19		10,787
State and political subdivisions:
General obligations	5,681		7		209		5,479
Water and sewer revenues	2,389		8		60		2,337
Other revenues	3,021		—		106		2,915
Corporate debt securities	3,977		25		4		3,998
Total taxable debt securities	195,799		3,383		1,536		197,646
Tax-exempt debt securities:
State and political subdivisions:
General obligations	45,761		1,109		504		46,366
Water and sewer revenues	14,033		64		110		13,987
Lease revenues	9,079		47		168		8,958
Lottery/casino revenues	4,428		102		79		4,451
Other revenues	10,334		115		69		10,380
Total tax-exempt debt securities	83,635		1,437		930		84,142
Equity securities	77		—		—		77
Total available for sale securities	$	279,511	$	4,820	$	2,466	$	281,865

The below information is relative to the five states where issuers with the highest volume of state and political subdivision securities held in our portfolio are located. We own no such securities of any single issuer which we deem to be a concentration.



	March 31, 2015
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value

West Virginia	$	13,083	$	314	$	1	$	13,396
Illinois	12,503		378		26		12,855
California	10,999		527		25		11,501
Ohio	7,621		39		26		7,634
Washington	5,845		283		40		6,088

Management performs pre-purchase and ongoing analysis to confirm that all investment securities meet applicable credit quality standards. Prior to July 1, 2013, we principally used credit ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”) to support analyses of our portfolio of securities issued by state and political subdivisions, as we generally do not purchase securities that are rated below the six highest NRSRO rating categories. Beginning July 1, 2013, in addition to considering a security’s NRSRO rating, we now also assess or confirm through an internal review of an issuer’s financial information and other applicable information that: 1) the issuer’s risk of default is low; 2) the characteristics of the issuer’s demographics and economic environment are satisfactory; and 3) the issuer’s budgetary position and stability of tax or other revenue sources are sound.

The maturities, amortized cost and estimated fair values of securities at March 31, 2015, are summarized as follows:



Dollars in thousands	Amortized Cost		Estimated Fair Value
Due in one year or less	$	63,900	$	65,018
Due from one to five years	98,613		100,486
Due from five to ten years	24,470		25,230
Due after ten years	88,214		91,394
Equity securities	7		7
	$	275,204	$	282,135

The proceeds from sales, calls and maturities of available for sale securities, including principal payments received on mortgage-backed obligations, and the related gross gains and losses realized, for the three months ended March 31, 2015 are as follows:



	Proceeds from						Gross realized
Dollars in thousands	Sales		Calls and Maturities		Principal Payments		Gains		Losses
Securities available for sale	$	26,835	$	365	$	8,621	$	549	$	69

We held 44 available for sale securities having an unrealized loss at March 31, 2015. We do not intend to sell these securities, and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost bases. We believe that this decline in value is primarily attributable to the lack of market liquidity and to changes in market interest rates and not due to credit quality. Accordingly, no additional other-than-temporary impairment charge to earnings is warranted at this time.

Provided below is a summary of securities available for sale which were in an unrealized loss position at March 31, 2015 and December 31, 2014, including debt securities for which a portion of other-than-temporary impairment has been recognized in other comprehensive income.



	March 31, 2015
	Less than 12 months				12 months or more				Total
Dollars in thousands	Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss		Estimated Fair Value		Unrealized Loss
Temporarily impaired securities
Taxable debt securities
U.S. Government agencies and corporations	$	—	$	—	$	3,599	$	40	$	3,599	$	40
Residential mortgage-backed securities:
Government-sponsored agencies	26,814		457		4,080		44		30,894		501
Nongovernment-sponsored entities	6,718		71		—		—		6,718		71
State and political subdivisions:
Lottery/casino revenues	1,834		28		—		—		1,834		28
Corporate debt securities	2,875		10		—		—		2,875		10
Tax-exempt debt securities
State and political subdivisions:
General obligations	10,165		136		—		—		10,165		136
Water and sewer revenues	284		1		—		—		284		1
Other revenues	573		8		267		6		840		14
Total temporarily impaired securities	49,263		711		7,946		90		57,209		801
Total other-than-temporarily
impaired securities	—		—		—		—		—		—
Total	$	49,263	$	711	$	7,946	$	90	$	57,209	$	801



	December 31, 2014
	Less than 12 months					12 months or more					Total
Dollars in thousands	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
Temporarily impaired securities
Taxable debt securities
U.S. Government agencies and corporations	$	—	$	—		$	3,912	$	(52	)	$	3,912	$	(52	)
Residential mortgage-backed securities:
Government-sponsored agencies	36,825		(535		)	21,915		(238		)	58,740		(773		)
Nongovernment-sponsored entities	5,488		(44		)	2,163		(4		)	7,651		(48		)
State and political subdivisions:
General obligations	—		—			316		(33		)	316		(33		)
Water and sewer revenues	—		—			817		(7		)	817		(7		)
Other revenues	1,098		(2		)	—		—			1,098		(2		)
Tax-exempt debt securities
State and political subdivisions:
General obligations	3,708		(8		)	438		(4		)	4,146		(12		)
Water and sewer revenues	721		(3		)	—		—			721		(3		)
Lease revenues	—		—			1,168		(10		)	1,168		(10		)
Lottery/casino revenues	—		—			1,126		(9		)	1,126		(9		)
Other revenues	1,247		(8		)	846		(10		)	2,093		(18		)
Total temporarily impaired securities	49,087		(600		)	32,701		(367		)	81,788		(967		)
Total other-than-temporarily
impaired securities	—		—			—		—			—		—
Total	$	49,087	$	(600	)	$	32,701	$	(367	)	$	81,788	$	(967	)