4.	Securities

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

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

Available for sale:
December 31, 2015:
U.S. Treasury and federal agency	$	1,493	$	-	$	(27)	$	1,466
U.S. government sponsored entities and agencies		8,998		2		(47)		8,953
U.S. agency mortgage-backed securities: residential		32,947		256		(53)		33,150
U.S. agency collateralized mortgage obligations: residential		32,289		23		(872)		31,440
State and political subdivision		28,352		264		(25)		28,591
Corporate debt securities		7,507		1		(21)		7,487
Equity securities		1,769		188		(63)		1,894
	$	113,355	$	734	$	(1,108)	$	112,981
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 subdivision		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

Securities with carrying values of $75.0 million and $91.4 million as of December 31, 2015 and 2014, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.

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

(Dollar amounts in thousands)	2015		2014
Proceeds	$	36,314	$	24,452
Gains		876		850
Losses		(22)		(92)
Tax provision related to gains		290		258

The following table summarizes scheduled maturities of the Corporation’s debt securities as of December 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.

	Available for sale
	Amortized		Fair
(Dollar amounts in thousands)	Cost		Value
Due in one year or less	$	1,210	$	1,222
Due after one year through five years		20,954		20,923
Due after five through ten years		23,447		23,610
Due after ten years		739		742
U.S. agency mortgage-backed securities: residential		32,947		33,150
U.S. agency collateralized mortgage obligations: residential		32,289		31,440
	$	111,586	$	111,087

Information pertaining to securities with gross unrealized losses at December 31, 2015 and 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
December 31, 2015:
U.S. Treasury and federal agency	$	-	$	-	$	1,466	$	(27)	$	1,466	$	(27)
U.S. government sponsored entities and agencies		4,962		(36)		1,989		(11)		6,951		(47)
U.S. agency mortgage-backed securities: residential		6,710		(53)		-		-		6,710		(53)
U.S. agency collateralized mortgage obligations: residential		4,283		(41)		25,336		(831)		29,619		(872)
State and political subdivision		1,028		(2)		1,819		(23)		2,847		(25)
Corporate debt securities		3,484		(20)		500		(1)		3,984		(21)
Equity securities		1,137		(63)		-		-		1,137		(63)
	$	21,604	$	(215)	$	31,110	$	(893)	$	52,714	$	(1,108)

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 subdivision		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)

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 were two equity securities in an unrealized loss position for less than 12 months as of December 31, 2015. Equity securities owned by the Corporation consist of common stock of various financial service providers. These investment securities are in unrealized loss positions 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 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, 2015 to be other-than-temporarily impaired.

There were 57 debt securities in an unrealized loss position as of December 31, 2015, of which 35 were in an unrealized loss position for more than 12 months. Of these 35 securities, 22 were collateralized mortgage obligations (issued by U.S. government sponsored entities), 9 were state and political subdivisions securities, 2 were U.S. Treasury securities, 1 was a U.S. government sponsored entities and agencies security and 1 was a corporate 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, 2015 to be other-than-temporarily impaired.