SECURITIES AVAILABLE FOR SALE

At March 31, 2015 and December 31, 2014, the investment securities portfolio was comprised exclusively of securities classified as “available for sale,” resulting in investment securities being carried at fair value. The amortized cost and fair values of investment securities available for sale at March 31, 2015 and December 31, 2014 were:



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2015
U.S. Government Agencies	$	28,282	$	97	$	29	$	28,350
States and political subdivisions	57,826		1,046		393		58,479
U.S. Government Sponsored Enterprises (GSE) residential mortgage-backed securities	158,610		2,599		0		161,209
GSE residential collateralized mortgage obligations (CMOs)	30,071		492		85		30,478
GSE commercial CMOs	69,570		1,742		69		71,243
Total debt securities	344,359		5,976		576		349,759
Equity securities	50		18		0		68
Totals	$	344,409	$	5,994	$	576	$	349,827
December 31, 2014
U.S. Government Agencies	$	23,910	$	71	$	23	$	23,958
States and political subdivisions	52,578		819		996		52,401
GSE residential mortgage-backed securities	174,220		1,573		197		175,596
GSE residential CMOs	57,976		857		128		58,705
GSE commercial CMOs	65,041		1,017		586		65,472
Total debt securities	373,725		4,337		1,930		376,132
Equity securities	50		17		0		67
Totals	$	373,775	$	4,354	$	1,930	$	376,199

The following table shows gross unrealized losses and fair value of the Company’s available for sale securities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2015 and December 31, 2014:



	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2015
U.S. Government Agencies	$	10,726	$	26	$	3,546	$	3	$	14,272	$	29
States and political subdivisions	8,834		22		14,426		371		23,260		393
GSE residential collateralized mortgage obligations (CMOs)	3,321		29		5,449		56		8,770		85
GSE commercial CMOs	24,638		69		0		0		24,638		69
Total temporarily impaired securities	$	47,519	$	146	$	23,421	$	430	$	70,940	$	576
December 31, 2014
U.S. Government Agencies	$	0	$	0	$	9,012	$	23	$	9,012	$	23
States and political subdivisions	0		0		35,833		996		35,833		996
GSE residential mortgage-backed securities	65,474		197		0		0		65,474		197
GSE residential CMOs	11,930		128		0		0		11,930		128
GSE commercial CMOs	0		0		29,969		586		29,969		586
Total temporarily impaired securities	$	77,404	$	325	$	74,814	$	1,605	$	152,218	$	1,930

The Company had 23 securities and 37 securities at March 31, 2015 and December 31, 2014 in which the amortized cost exceed their values, as discussed below.

U.S. Agencies and Government Sponsored Enterprises (GSE). Thirteen U.S. Agencies and GSE securities, including mortgage-backed securities and collateralized mortgage obligations, have amortized costs which exceed their fair values, 8 of which are in the less than 12 months category at March 31, 2015. At December 31, 2014, the Company had 21 U.S. Government Agencies and GSE securities, including mortgage-backed and collateralized mortgage obligations with unrealized losses, 13 GSE securities have amortized costs which exceed their fair values for less than 12 months, and eight have amortized costs which exceed their fair values for more than 12 months. These unrealized losses have been caused by a rise in interest rates or widening of spreads from the time the securities were purchased. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the par value basis of the investments. Because the Company did not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2015 or at December 31, 2014.

State and Political Subdivisions. Ten state and political subdivision securities have amortized costs which exceeded their fair values, 5 of which are in the less than 12 months category at March 31, 2015. At December 31, 2014, 16 state and political subdivision securities have an amortized cost which exceeds their fair value for more than 12 months. These unrealized losses have been caused by a rise in interest rates from the time the securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is other-than-temporarily impaired. Because the Company did not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2015 or at December 31, 2014.

The amortized cost and fair values of securities available for sale at March 31, 2015 by contractual maturity are shown below. Contractual maturities will differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Available for Sale
(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	0	$	0
Due after one year through five years	875		918
Due after five years through ten years	37,787		38,272
Due after ten years	47,446		47,639
Mortgage-backed securities and collateralized mortgage obligations	258,251		262,930
Total debt securities	344,359		349,759
Equity securities	50		68
	$	344,409	$	349,827

Gross gains on the sales of securities were $1,553,000 and $646,000 for the three months ended March 31, 2015 and 2014. Gross losses on securities available for sale were $24,000 and $49,000 for the three months ended March 31, 2015 and 2014.

Securities with a fair value of $244,614,000 and $261,034,000 at March 31, 2015 and December 31, 2014 were pledged to secure public funds and for other purposes as required or permitted by law.