6. Securities

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



	September 30, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	965	$	-	$	(2)	$	963
U.S. Government agencies		27,900		3		(548)		27,355
States and political subdivisions		52,895		1,563		(159)		54,299
Corporate obligations		6,422		93		(30)		6,485
Mortgage-backed securities-
government sponsored entities		70,329		139		(1,229)		69,239
Equity securities-financial services		292		68		-		360
	$	158,803	$	1,866	$	(1,968)	$	158,701



	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):



	September 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. Treasury securities	$	963	$	(2)	$	-	$	-	$	963	$	(2)
U.S. government agencies		7,291		(32)		17,902		(516)		25,193		(548)
States and political subdivisions		1,379		(2)		7,835		(157)		9,214		(159)
Corporate obligations		2,806		(13)		1,146		(17)		3,952		(30)
Mortgage-backed securities-government sponsored agencies		27,385		(180)		26,487		(1,049)		53,872		(1,229)
	$	39,824	$	(229)	$	53,370	$	(1,739)	$	93,194	$	(1,968)



	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 September 30, 2014, the Company has 32 debt securities in an unrealized loss position in the less than twelve months category and 60 debt securities 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 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 September 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	$	747	$	764
Due after one year through five years		21,635		21,490
Due after five years through ten years		22,090		21,797
Due after ten years		43,710		45,051

Mortgage-backed securities-government sponsored agencies		70,329		69,239
	$	158,511	$	158,341

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



	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Gross realized gains	$	301	$	198	$	918	$	608
Gross realized losses		-		-		(14)		(18)
Net realized gain	$	301	$	198	$	904	$	590
Proceeds from sales of securities	$	7,252	$	14,663	$	39,117	$	29,962