6. Securities

The amortized cost, gross unrealized gains and losses, and fair value of securities were as follows:



	September 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Available for Sale:
U.S. Treasury securities	$	2,006	$	-	$	(2)	$	2,004
U.S. Government agencies		2,001		-		-		2,001
States and political subdivisions		127,694		3,050		(172)		130,572
Corporate obligations		10,301		101		(17)		10,385
Mortgage-backed securities-
government sponsored entities		164,158		845		(223)		164,780
Total debt securities		306,160		3,996		(414)		309,742
Equity securities-financial services		320		64		-		384
	$	306,480	$	4,060	$	(414)	$	310,126



	December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value

	(In Thousands)
Available for Sale:
U.S. Government agencies	$	9,275	$	2	$	(108)	$	9,169
States and political subdivisions		59,120		1,747		(112)		60,755
Corporate obligations		4,933		45		(4)		4,974
Mortgage-backed securities-government
sponsored entities		64,491		23		(945)		63,569
Total debt securities		137,819		1,817		(1,169)		138,467
Equity securities-financial services		292		92		-		384
	$	138,111	$	1,909	$	(1,169)	$	138,851

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, 2016
	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	$	2,004	$	(2)	$	-	$	-	$	2,004	$	(2)
States and political subdivisions		33,918		(170)		210		(2)		34,128		(172)
Corporate obligations		3,312		(17)		-		-		3,312		(17)
Mortgage-backed securities-government sponsored entities		49,341		(156)		9,885		(67)		59,226		(223)
	$	88,575	$	(345)	$	10,095	$	(69)	$	98,670	$	(414)



	December 31, 2015
	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	$	6,058	$	(71)	$	2,109	$	(37)	$	8,167	$	(108)
States and political subdivisions		9,086		(99)		1,417		(13)		10,503		(112)
Corporate obligations		2,221		(4)		-		-		2,221		(4)
Mortgage-backed securities-government sponsored entities		40,300		(432)		16,595		(513)		56,895		(945)
	$	57,665	$	(606)	$	20,121	$	(563)	$	77,786	$	(1,169)

At September 30, 2016, the Company has 76 debt securities in an unrealized loss position in the less than twelve months category and 11 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 2016. 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, 2016 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
	Amortized Cost		Fair Value
		(In Thousands)

Due in one year or less	$	983	$	991
Due after one year through five years		20,978		21,097
Due after five years through ten years		53,744		54,044
Due after ten years		66,297		68,830

Mortgage-backed securities-government sponsored agencies		164,158		164,780
	$	306,160	$	309,742

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,
	2016		2015		2016		2015
Gross realized gains	$	-	$	63	$	269	$	508
Gross realized losses		-		-		-		-
Net realized gain	$	-	$	63	$	269	$	508
Proceeds from sales of securities	$	70,028	$	5,466	$	101,804	$	28,850