6. Securities

The amortized cost and fair value of securities were as follows:


	March 31, 2013
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$17,290	$34	$(29)	$17,295
States and political subdivisions	56,125	2,384	(182)	58,327
Corporate obligations	8,502	328	-	8,830
Mortgage-backed securities- government sponsored entities	63,151	878	(196)	63,833
Equity securities-financial services	292	28	(7)	313
	$145,360	$3,652	$(414)	$148,598
Held to Maturity:
States and political subdivisions	$173	$2	$-	$175


	December 31, 2012
	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$13,076	$36	$(20)	$13,092
States and political subdivisions	55,864	2,995	(73)	58,786
Corporate obligations	8,521	347	-	8,868
Mortgage-backed securities-government sponsored entities	63,397	1,041	(113)	64,325

Equity securities-financial services	292	27	-	319
	$141,150	$4,446	$(206)	$145,390
Held to Maturity:
States and political subdivisions	$173	$4	$-	$177

The following tables show the Company's investments' gross unrealized losses and fair value aggregated by length of time that individual securities have been in a continuous unrealized loss position (in thousands):


	March 31, 2013
	Less than 12 Months 12 Months or More __Total__ ___
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. government agencies	$9,070	$(29)	$-	$-	$9,070	$(29)
States and political subdivisions	8,814	(182)	-	-	8,814	(182)
Mortgage-backed securities - government sponsored agencies	28,321	(196)	-	-	28,321	(196)
Equity securities-financial services	178	(7)	-	-	178	(7)
	$46,383	$(414)	$-	$-	$46,383	$(414)


	December 31, 2012
	Less than 12 Months 12 Months or More Total
	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
U.S. government agencies	$7,056	$ (20)	$-	$-	$7,056	$ (20)
States and political subdivisions	5,821	(73)	-	-	5,821	(73)
Mortgage-backed securities-government sponsored agencies	17,199	(113)	-	-	17,199	(113)
	$30,076	$ (206)	$-	$-	$30,076	($206)

At March 31, 2013, the Company has 48 debt securities in an unrealized loss position in the less than twelve months category and no debt securities in the twelve months or more category. In Management's opinion the unrealized losses less than twelve months principally reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2013. Management believes that all other unrealized loss represents temporary impairment of the security as the Company does not have the intent to sell the security and it is more likely than not that it will not have to sell the security before recovery of its cost basis.

The amortized cost and fair value of debt securities as of March 31, 2013 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.


	Available for Sale Held to Maturity
	Amortized Cost	Fair Value	Amortized Cost	Fair Value
	(In Thousands)

Due in one year or less	$5,474	$5,542	$-	$-
Due after one year through five years	14,147	14,433	173	175
Due after five years through ten years	29,990	30,844	-	-
Due after ten years	32,306	33,633	-	-

Mortgage-backed securities-government sponsored agencies	63,151	63,833	-	-
	$145,068	$148,285	$173	$175

Gross realized gains and gross realized losses on sales of securities available for sale were as follows (in thousands):


	Three Months
	Ended March 31,
	2013	2012
Gross realized gains	$156	$402
Gross realized losses	(18)	-
Net realized gain	$138	$402
Proceeds from sales of securities	$7,403	$10,633