6. Securities

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



	June 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$	23,663	$	-	$	(811)	$	22,852
States and political subdivisions		60,860		1,065		(1,428)		60,497
Corporate obligations		8,186		211		(98)		8,299
Mortgage-backed securities-
government sponsored entities		59,544		396		(1,165)		58,775
Equity securities-financial services		292		38		(3)		327
	$	152,545	$	1,710	$	(3,505)	$	150,750
Held to Maturity:
States and political subdivisions	$	173	$	4	$	-	$	177



	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		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):



	June 30, 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	$	22,853	$	(811)	$	-	$	-	$	22,853	$	(811)
States and political subdivisions		22,084		(1,428)		-		-		22,084		(1,428)
Corporate Obligations		2,496		(98)		-		-		2,496		(98)
Mortgage-backed securities-government sponsored agencies		38,059		(1,150)		924		(15)		38,983		(1,165)
Equity securities–financial services		182		(3)		-		-		182		(3)
	$	85,674	$	(3,490)	$	924	$	(15)	$	86,598	$	(3,505)



	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 June 30, 2013, the Company has 101 debt securities in an unrealized loss position in the less than twelve months category and one debt security in the twelve months or more category. In Management’s opinion the unrealized losses 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 unrealized losses represent temporary impairment of the securities as the Company does not have the intent to sell the securities and it is more likely than not that it will not have to sell the securities before recovery of its cost basis.

The amortized cost and fair value of debt securities as of June 30, 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	$	3,416	$	3,462	$	173	$	177
Due after one year through five years		13,433		13,579		-		-
Due after five years through ten years		36,489		35,831		-		-
Due after ten years		39,371		38,776		-		-

Mortgage-backed securities-government sponsored agencies		59,544		58,775		-		-
	$	152,253	$	150,423	$	173	$	177

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



	Three Months				Six Months
	Ended June 30,				Ended June 30,
	2013		2012		2013		2012
Gross realized gains	$	254	$	285	$	410	$	687
Gross realized losses		-		-		(18)		-
Net realized gain	$	254	$	285	$	392	$	687
Proceeds from sales of securities	$	7,896	$	7,716	$	15,299	$	18,349