SECURITIES

Amortized cost and estimated fair value of securities available for sale are as follows (in thousands):



	September 30, 2015
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	124,565	$	1,463	$	—	$	126,028
Mortgage-backed securities, residential	162,007		917		344		162,580
Obligations of states and political subdivisions	43,907		683		17		44,573
Corporate bonds and notes	1,247		13		—		1,260
SBA loan pools	663		7		1		669
Corporate stocks	285		176		—		461
Total	$	332,674	$	3,259	$	362	$	335,571



	December 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	180,535	$	1,300	$	162	$	181,673
Mortgage-backed securities, residential	60,787		892		19		61,660
Collateralized mortgage obligations	335		3		—		338
Obligations of states and political subdivisions	30,677		802		28		31,451
Corporate bonds and notes	1,502		35		4		1,533
SBA loan pools	1,296		11		3		1,304
Trust preferred securities	1,906		122		—		2,028
Corporate stocks	285		235		—		520
Total	$	277,323	$	3,400	$	216	$	280,507

Amortized cost and estimated fair value of securities held to maturity are as follows (in thousands):



	September 30, 2015
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	4,409	$	293	$	—	$	4,702
Time deposits with other financial institutions	195		—		—		195
Total	$	4,604	$	293	$	—	$	4,897



	December 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Obligations of states and political subdivisions	$	5,175	$	360	$	—	$	5,535
Time deposits with other financial institutions	656		6		—		662
Total	$	5,831	$	366	$	—	$	6,197

The amortized cost and estimated fair value of debt securities are shown below by expected maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately (in thousands):



	September 30, 2015
	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Within one year	$	50,363	$	50,779	$	2,464	$	2,505
After one, but within five years	95,370		96,694		1,924		2,143
After five, but within ten years	23,687		24,089		216		249
After ten years	299		299		—		—
	169,719		171,861		4,604		4,897
Mortgage-backed securities, residential	162,007		162,580		—		—
SBA loan pools	663		669		—		—
Total	$	332,389	$	335,110	$	4,604	$	4,897

The proceeds from sales and calls of securities resulting in gains or losses for the three months ended September 30, 2015 and 2014 are listed below (in thousands):



	2015			2014
Proceeds	$	2,936		$	5,845
Gross gains	$	24		$	—
Gross losses	$	(35	)	$	—
Tax benefit	$	(5	)	$	—

The proceeds from sales and calls of securities resulting in gains or losses for the nine months ended September 30, 2015 and 2014 are listed below (in thousands):



	2015			2014
Proceeds	$	58,035		$	55,610
Gross gains	$	326		$	522
Gross losses	$	(35	)	$	—
Tax expense	$	111		$	201

The following tables summarize the investment securities available for sale with unrealized losses at September 30, 2015 and December 31, 2014 by aggregated major security type and length of time in a continuous unrealized loss position (in thousands):



	Less than 12 months				12 months or longer				Total
September 30, 2015	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Mortgage-backed securities, residential	$	65,248	$	344	$	—	$	—	$	65,248	$	344
Obligations of states and political subdivisions	4,545		15		921		2		5,466		17
SBA loan pools	—		—		257		1		257		1
Total temporarily impaired securities	$	69,793	$	359	$	1,178	$	3	$	70,971	$	362



	Less than 12 months				12 months or longer				Total
December 31, 2014	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government and U.S. Government sponsored enterprises	$	57,512	$	108	$	4,945	$	54	$	62,457	$	162
Mortgage-backed securities, residential	11,051		19		—		—		11,051		19
Obligations of states and political subdivisions	4,625		22		1,056		6		5,681		28
Corporate bonds and notes	—		—		243		4		243		4
SBA loan pools	276		1		316		2		592		3
Total temporarily impaired securities	$	73,464	$	150	$	6,560	$	66	$	80,024	$	216

Other-Than-Temporary Impairment

As of September 30, 2015, the majority of the Corporation’s unrealized losses in the investment securities portfolio related to mortgage backed securities. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because it is not likely that the Corporation will be required to sell these securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired at September 30, 2015.

During the first quarter of 2014, the Corporation received notice that one CDO consisting of a pool of trust preferred securities was liquidated and recorded $500 thousand in other operating income during the first quarter of 2014. The Corporation does not own any other CDO’s in its investment securities portfolio.

There were no cumulative credit losses recognized in earnings for the three month periods ended September 30, 2015 and 2014. The table below presents a roll forward of the cumulative credit losses recognized in earnings for the nine month periods ended September 30, 2015 and 2014 (in thousands):



	2015		2014
Beginning balance, January 1,	$	—	$	1,939
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized	—		—
Additions/Subtractions:
Amounts realized for securities sold during the period	—		—
Amounts related to securities for which the Corporation intends to sell or that it will be more likely than not that the Corporation will be required to sell prior to recovery of amortized cost basis	—		—
Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security	—		—
Reductions for previous credit losses realized in securities liquidated during the period	—		(1,939		)
Increases to the amount related to the credit loss for which other-than-temporary impairment was previously recognized	—		—
Ending balance, September 30,	$	—	$	—