4.	Securities

The following table summarizes the Corporation’s securities as of March 31, 2015 and December 31, 2014:

(Dollar amounts in thousands)			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

Available for sale:
March 31, 2015:
U.S. Treasury and federal agency	$	1,491	$	-	$	(11)	$	1,480
U.S. government sponsored entities and agencies		38,455		67		(41)		38,481
U.S. agency mortgage-backed securities: residential		36,964		968		-		37,932
U.S. agency collateralized mortgage obligations: residential		36,356		58		(598)		35,816
State and political subdivisions		31,587		665		(55)		32,197
Corporate debt securities		3,005		4		(1)		3,008
Equity securities		2,356		317		(34)		2,639
	$	150,214	$	2,079	$	(740)	$	151,553
December 31, 2014:
U.S. Treasury and federal agency	$	1,491	$	-	$	(35)	$	1,456
U.S. government sponsored entities and agencies		35,452		10		(238)		35,224
U.S. agency mortgage-backed securities: residential		38,026		745		-		38,771
U.S. agency collateralized mortgage obligations: residential		37,564		16		(963)		36,617
State and political subdivisions		32,665		550		(191)		33,024
Corporate debt securities		2,006		-		(8)		1,998
Equity securities		2,356		415		-		2,771
	$	149,560	$	1,736	$	(1,435)	$	149,861

The following table summarizes scheduled maturities of the Corporation’s debt securities as of March 31, 2015. 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 and collateralized mortgage obligations are not due at a single maturity and are shown separately.

(Dollar amounts in thousands)

	Available for sale
	Amortized		Fair
	Cost		Value

Due in one year or less	$	55	$	55
Due after one year through five years		43,942		44,095
Due after five through ten years		24,042		24,492
Due after ten years		6,499		6,524
Mortgage-backed securities: residential		36,964		37,932
Collateralized mortgage obligations: residential		36,356		35,816
	$	147,858	$	148,914

Information pertaining to securities with gross unrealized losses at March 31, 2015 and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position are included in the table below:

(Dollar amounts in thousands)	Less than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Description of Securities	Value		Loss		Value		Loss		Value		Loss

March 31, 2015:
U.S. Treasury and federal agency	$	-	$	-	$	1,480	$	(11)	$	1,480	$	(11)
U.S. government sponsored entities and agencies		2,992		(8)		9,965		(33)		12,957		(41)
U.S. agency collateralized mortgage obligations: residential		1,818		(8)		26,917		(590)		28,735		(598)
State and political subdivisions		559		(1)		3,228		(54)		3,787		(55)
Corporate debt securities		1,001		(1)		-		-		1,001		(1)
Equity securities		916		(34)		-		-		916		(34)
	$	7,286	$	(52)	$	41,590	$	(688)	$	48,876	$	(740)

December 31, 2014:
U.S. Treasury and federal agency	$	-	$	-	$	1,456	$	(35)	$	1,456	$	(35)
U.S. government sponsored entities and agencies		11,412		(51)		16,805		(187)		28,217		(238)
U.S. agency collateralized mortgage obligations: residential		2,715		(14)		30,594		(949)		33,309		(963)
State and political subdivisions		5,154		(22)		10,221		(169)		15,375		(191)
Corporate debt securities		1,998		(8)		-		-		1,998		(8)
	$	21,279	$	(95)	$	59,076	$	(1,340)	$	80,355	$	(1,435)

Gains on sales of available for sale securities for the three months ended March 31 were as follows:

(Dollar amounts in thousands)	For the three months
	ended March 31,
	2015		2014

Proceeds	$	-	$	21,559
Gains		-		658
Tax provision related to gains		-		224

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 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 was one equity security in an unrealized loss position for less than 12 months as of March 31, 2015. Equity securities owned by the Corporation consist of common stock of various financial service providers. The investment security is in an unrealized loss position as a result of recent market volatility. 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, capital adequacy and other relevant 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 security and it is more likely than not it will not be required to sell this security before the recovery of its amortized cost basis, the Corporation does not consider the equity security with an unrealized loss as of March 31, 2015 to be other-than-temporarily impaired.

There were 53 debt securities in an unrealized loss position as of March 31, 2015, of which 46 were in an unrealized loss position for more than 12 months. Of these 53 securities, 2 were U.S. Treasury securities, 10 were U.S. government sponsored entity and agency securities, 22 were government-backed collateralized mortgage obligations, 17 were state and political subdivision securities and 2 were corporate debt securities. The unrealized losses associated with these securities were not due to the deterioration in the credit quality of the issuer that would likely 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 March 31, 2015 to be other-than-temporarily impaired.