NOTE 3 - SECURITIES

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



	December 31, 2014
				Gross		Gross
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
	(In Thousands)
AVAILABLE FOR SALE:
U.S. Government agencies	$	29,289	$	42	$	(356)	$	28,975
States and political subdivisions		52,685		1,750		(103)		54,332
Corporate obligations		6,387		110		(11)		6,486
Mortgage-backed securities-
government sponsored entities		67,032		109		(937)		66,204
Total debt securities		155,393		2,011		(1,407)		155,997
Equity securities-financial services		292		106		-		398
	$	155,685	$	2,117	$	(1,407)	$	156,395



	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
Total debt securities		161,779		815		(4,790)		157,804
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):



	December 31, 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	$	4,965	$	(17)	$	15,051	$	(339)	$	20,016	$	(356)
States and political subdivisions		3,195		(20)		4,633		(83)		7,828		(103)
Corporate obligations		-		-		1,144		(11)		1,144		(11)
Mortgage-backed securities-government sponsored entities		22,090		(189)		26,050		(748)		48,140		(937)

	$	30,250	$	(226)	$	46,878	$	(1,181)	$	77,128	$	(1,407)


	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 entities		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)

The Company has 25 debt securities in the less than twelve month category and 51 debt securities in the twelve months or more category as of December 31, 2014. In management’s opinion, the unrealized losses on securities 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 other unrealized losses represent temporary impairment of the securities, and it is more likely than not that it will not have to sell the securities before recovery of their cost basis.

The amortized cost and fair value of debt securities as of December 31, 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.


	Amortized		Fair
	Cost		Value
		(In Thousands)
Due in one year or less	$	1,249	$	1,275
Due after one year through five years		20,595		20,537
Due after five years through ten years		23,277		23,161
Due after ten years		43,240		44,820
		88,361		89,793

Mortgage-backed securities - government sponsored entities		67,032		66,204
	$	155,393	$	155,997

Gross realized gains and gross realized losses on sales of securities available for sale were $1,199,000 and $29,000, respectively, in 2014, compared to $908,000 and $27,000, respectively, in 2013, and $1,419,000 and $0, respectively, in 2012. The proceeds from the sales of securities totaled $66,263,000, $42,348,000 and $40,914,000 for the years ended December 31, 2014, 2013 and 2012, respectively.

Securities with a carrying value of $102,994,000 and $94,352,000 at December 31, 2014 and 2013, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.