The following table summarizes the Corporation’s securities as of December 31:


(Dollar amounts in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
December 31, 2011:
U.S. Treasury and federal agency	$	3,944	$	516	$	—		$	4,460
U.S. government sponsored entities and agencies		41,425		102		(7	)		41,520
Mortgage-backed securities: residential		35,651		1,827		—			37,478
State and political subdivision		35,073		1,928		(1	)		37,000
Equity securities		2,595		308		(207	)		2,696
	$	118,688	$	4,681	$	(215	)	$	123,154
December 31, 2010:
U.S. Treasury and federal agency	$	6,839	$	6	$	(116	)	$	6,729
U.S. government sponsored entities and agencies		62,770		79		(487	)		62,362
Mortgage-backed securities: residential		19,015		370		(5	)		19,380
Collateralized mortgage obligations: residential		917		5		—			922
State and political subdivision		33,477		589		(164	)		33,902
Equity securities		2,542		—		(17	)		2,525
	$	125,560	$	1,049	$	(789	)	$	125,820

Gains on sales of available for sale securities for the years ended December 31 were as follows:

The following table summarizes scheduled maturities of the Corporation’s debt securities as of December 31, 2011. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities are not due at a single maturity and are shown separately.


	Available for sale
(Dollar amounts in thousands)	Amortized Cost		Fair Value
Due after one year through five years	$	5,343	$	5,538
Due after five through ten years		25,371		27,040
Due after ten years		49,728		50,402
Mortgage-backed securities		35,651		37,478
	$	116,093	$	120,458

Securities with carrying values of $62.2 million and $48.2 million as of December 31, 2011 and 2010, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

Information pertaining to securities with gross unrealized losses at December 31, 2011 and 2010 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:


	Less than 12 Months					12 Months or More					Total
*(Dollar amounts in thousands)* Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
December 31, 2011:
U.S. government sponsored entities and agencies	$	4,490	$	(7	)	$	—	$	—		$	4,490	$	(7	)
State and political subdivision		99		(1	)		—		—			99		(1	)
Equity securities		881		(185	)		187		(22	)		1,068		(207	)
	$	5,470	$	(193	)	$	187	$	(22	)	$	5,657	$	(215	)
December 31, 2010:
U.S. Treasury and federal agency	$	4,814	$	(116	)	$	—	$	—		$	4,814	$	(116	)
U.S. government sponsored entities and agencies		43,291		(487	)		—		—			43,291		(487	)
Mortgage-backed securities: residential		1,994		(5	)		—		—			1,994		(5	)
State and political subdivision		8,685		(164	)		—		—			8,685		(164	)
Equity securities		14		(2	)		152		(15	)		166		(17	)
	$	58,798	$	(774	)	$	152	$	(15	)	$	58,950	$	(789	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic, market or other conditions warrant such evaluation. Consideration is given to: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions and (4) whether the Corporation has the intent to sell the debt security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the Corporation intends to sell an impaired security, or if it is more likely than not the Corporation will be required to sell the security before its anticipated recovery, the Corporation records an other-than-temporary loss in an amount equal to the entire difference between fair value and amortized cost. Otherwise, only the credit portion of the estimated loss on debt securities is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. For equity securities determined to be other-than-temporarily impaired, the entire amount of impairment is recognized through earnings.

There were six equity securities in an unrealized loss position as of December 31, 2011. Equity securities owned by the Corporation consist of common stock of various financial service providers. These investment securities are in an unrealized loss position as a result of recent market volatility and depressed pricing of the financial services sector. The Corporation does not invest in these securities with the intent to sell them for a profit in the near term. For investments in equity securities, in addition to the general factors mentioned above for determining whether the decline in market value is other-than-temporary, the analysis of whether an equity security is other-than-temporarily impaired includes a review of the profitability and capital adequacy and all other information available to determine the financial position and near term prospects of each issuer. The results of analyzing the aforementioned metrics and financial fundamentals suggest recovery of amortized cost as the sector improves. Based on that evaluation, and given that the Corporation’s current intention is not to sell any impaired securities and it is more likely than not it will not be required to sell these securities before the recovery of its amortized cost basis, the Corporation does not consider the equity securities with unrealized losses as of December 31, 2011 to be other-than-temporarily impaired.

There were five debt securities in an unrealized loss position as of December 31, 2011, all of which were in an unrealized loss position for less than 12 months. Of these securities, four were U.S. government sponsored entities and agencies securities and one was a state and political subdivisions security. The unrealized losses associated with these securities were not due to the deterioration in the credit quality of the issuer that is likely to result in the non-collection of contractual principal and interest, but rather have been caused by a rise in interest rates from the time the securities were purchased. Based on that evaluation and other general considerations, and given that the Corporation’s current intention is not to sell any impaired securities and it is more likely than not it will not be required to sell these securities before the recovery of its amortized cost basis, the Corporation does not consider the debt securities with unrealized losses as of December 31, 2011 to be other-than-temporarily impaired.

During 2010, after evaluation of the securities portfolio, management determined that OTTI existed on three financial institution equity securities. The impairment of these securities was considered to be other-than-temporary due to continued concerns related to the financial condition and near-term prospects of the issuers, economic conditions of the financial services industry and deteriorating market values. These securities were written down to their fair market values as of December 31, 2010 and the resulting impairment losses of $55,000 were recognized in earnings during the fourth quarter of 2010.

The following table presents information related to the Corporation’s gains and losses on the sales of equity and debt securities, and losses recognized for the OTTI of investments:


(Dollar amounts in thousands)	Gross Realized Gains		Gross Realized Losses			Other-than- temporary Impairment Losses			Net Gains (Losses)
Year ended December 31, 2011:
Debt securities	$	523	$	(41	)	$	—		$	482
Year ended December 31, 2010:
Equity securities	$	87	$	—		$	(55	)	$	32
Debt securities		943		—			—			943
	$	1,030	$	—		$	(55	)	$	975

4. Securities