6. Securities

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



	June 30, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Available for Sale:
U.S. Government agencies	$	26,941	$	23	$	(438)	$	26,526
States and political subdivisions		58,785		1,485		(378)		59,892
Corporate obligations		6,457		137		(11)		6,583
Mortgage-backed securities-
government sponsored entities		62,437		208		(1,074)		61,571
Equity securities-financial services		292		63		(2)		353
	$	154,912	$	1,916	$	(1,903)	$	154,925



	December 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

	(In Thousands)
Available for Sale:
U.S. Government agencies	$	34,471	$	-	$	(1,058)	$	33,413
States and political subdivisions		60,174		650		(1,794)		59,030
Corporate obligations		3,667		84		(40)		3,711
Mortgage-backed securities-government
sponsored entities		63,467		81		(1,898)		61,650
Equity securities-financial services		293		50		(15)		328
	$	162,072	$	865	$	(4,805)	$	158,132
Held to Maturity:
States and political subdivisions	$	174	$	3	$	-	$	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, 2014
	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	$	998	$	(2)	$	19,002	$	(436)	$	20,000	$	(438)
States and political subdivisions		3,903		(20)		12,201		(358)		16,104		(378)
Corporate Obligations		-		-		1,159		(11)		1,159		(11)
Mortgage-backed securities-government sponsored agencies		8,929		(74)		25,672		(1,000)		34,601		(1,074)
Equity securities - financial services		183		(2)		-		-		183		(2)
	$	14,013	$	(98)	$	58,034	$	(1,805)	$	72,047	$	(1,903)



	December 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	$	32,481	$	(990)	$	932	$	(68)	$	33,413	$	(1,058)
States and political subdivisions		26,281		(1,415)		4,228		(379)		30,509		(1,794)
Corporate obligations		1,145		(40)		-		-		1,145		(40)
Mortgage-backed securities-government sponsored agencies		47,014		(1,524)		7,478		(374)		54,492		(1,898)
Equity securities - financial services		170		(15)		-		-		170		(15)
	$	107,091	$	(3,984)	$	12,638	$	(821)	$	119,729	$	(4,805)

At June 30, 2014, the Company has 15 debt securities in an unrealized loss position in the less than twelve months category and 67 debt securities in the twelve months or more category. Additionally, the Company holds one equity security in an unrealized loss position in the less than twelve months 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 2014. 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, 2014 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
(In Thousands)	Amortized Cost		Fair Value


Due in one year or less	$	250	$	254
Due after one year through five years		17,721		17,693
Due after five years through ten years		26,137		25,964
Due after ten years		48,075		49,090

Mortgage-backed securities-government sponsored agencies		62,437		61,571
	$	154,620	$	154,572

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,
	2014		2013		2014		2013
Gross realized gains	$	523	$	254	$	617	$	410
Gross realized losses		(14)		-		(14)		(18)
Net realized gain	$	509	$	254	$	603	$	392
Proceeds from sales of securities	$	19,785	$	7,896	$	31,865	$	15,299