Investment Securities

The following table shows the amortized cost and the estimated fair value of the held-to-maturity securities and available-for-sale securities at June 30, 2015 and December 31, 2014, by contractual maturity within each type:



	At June 30, 2015									At December 31, 2014
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Held-to-Maturity
Corporate bonds:
Within 1 year	$	10,082	$	79	$	—		$	10,161	$	13,088	$	82	$	—		$	13,170
After 1 year to 5 years	33,053		236		(19		)	33,270		41,259		388		(52		)	41,595
	43,135		315		(19		)	43,431		54,347		470		(52		)	54,765
Total	$	43,135	$	315	$	(19	)	$	43,431	$	54,347	$	470	$	(52	)	$	54,765
Securities Available-for-Sale
U.S. treasuries:
After 1 year to 5 years	$	4,975	$	—	$	(79	)	$	4,896	$	4,972	$	—	$	(127	)	$	4,845
	4,975		—		(79		)	4,896		4,972		—		(127		)	4,845
U.S. government corporations and agencies:
After 1 year to 5 years	115,037		216		(157		)	115,096		122,328		48		(532		)	121,844
After 5 years to 10 years	4,881		46		—			4,927		—		—		—			—
	119,918		262		(157		)	120,023		122,328		48		(532		)	121,844
State and political subdivisions:
Within 1 year	—		—		—			—		600		2		—			602
After 1 year to 5 years	13,233		62		(41		)	13,254		12,326		17		(59		)	12,284
After 5 years to 10 years	54,220		1,375		(210		)	55,385		49,554		1,616		(77		)	51,093
Over 10 years	39,984		1,264		(242		)	41,006		37,004		1,792		(1		)	38,795
	107,437		2,701		(493		)	109,645		99,484		3,427		(137		)	102,774
Residential mortgage-backed securities:
After 1 year to 5 years	9,820		41		(4		)	9,857		5,066		17		—			5,083
After 5 years to 10 years	—		—		—			—		4,856		—		(32		)	4,824
Over 10 years	3,619		57		—			3,676		3,661		75		—			3,736
	13,439		98		(4		)	13,533		13,583		92		(32		)	13,643
Collateralized mortgage obligations:
Over 10 years	3,501		—		(91		)	3,410		3,810		—		(85		)	3,725
	3,501		—		(91		)	3,410		3,810		—		(85		)	3,725
Corporate bonds:
Within 1 year	5,000		—		—			5,000		4,998		22		—			5,020
After 1 year to 5 years	19,845		55		(114		)	19,786		29,505		88		(244		)	29,349
After 5 years to 10 years	10,157		—		(296		)	9,861		20,442		—		(371		)	20,071
Over 10 years	40,000		—		(1,446		)	38,554		—		—		—			—
	75,002		55		(1,856		)	73,201		54,945		110		(615		)	54,440
Money market mutual funds:
No stated maturity	5,668		—		—			5,668		11,675		—		—			11,675
	5,668		—		—			5,668		11,675		—		—			11,675
Equity securities:
No stated maturity	673		530		(3		)	1,200		854		483		—			1,337
	673		530		(3		)	1,200		854		483		—			1,337
Total	$	330,613	$	3,646	$	(2,683	)	$	331,576	$	311,651	$	4,160	$	(1,528	)	$	314,283

Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties. Unrealized losses in investment securities at June 30, 2015 and December 31, 2014 do not represent other-than-temporary impairments.

Securities with a carrying value of $226.4 million and $230.9 million at June 30, 2015 and December 31, 2014, respectively, were pledged to secure public deposits and for other purposes as required by law.

The following table presents information related to sales of securities available-for-sale during the six months ended June 30, 2015 and 2014:



	Six Months Ended June 30,
(Dollars in thousands)	2015		2014
Securities available-for-sale:
Proceeds from sales	$	37,546	$	30,286
Gross realized gains on sales	294		557
Gross realized losses on sales	22		—
Tax expense related to net realized gains on sales	95		195

Management evaluates debt securities, which are comprised of U.S. government, government sponsored agencies, municipalities, corporate bonds and other issuers, for other-than-temporary impairment by considering the current economic conditions, the length of time and the extent to which the fair value has been less than cost, market interest rates and the bond rating of each security. All of the debt securities are rated as investment grade and management believes that it will not incur any losses. The unrealized losses on the Corporation’s investments in debt securities are temporary in nature since they are primarily related to market interest rates and are not related to the underlying credit quality of the issuers. The Corporation does not have the intent to sell the debt securities and believes it is more likely than not, that it will not have to sell the securities before recovery of their cost basis. The Corporation did not recognize any other-than-temporary impairment charges on debt securities for the six months ended June 30, 2015 and 2014.

At June 30, 2015 and December 31, 2014, there were no investments in any single non-federal issuer representing more than 10% of shareholders’ equity.

The following table shows the fair value of securities that were in an unrealized loss position at June 30, 2015 and December 31, 2014 by the length of time those securities were in a continuous loss position:



	Less than Twelve Months					Twelve Months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
At June 30, 2015
Securities Held-to-Maturity
Corporate bonds	$	—	$	—		$	4,991	$	(19	)	$	4,991	$	(19	)
Total	$	—	$	—		$	4,991	$	(19	)	$	4,991	$	(19	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,896	$	(79	)	$	4,896	$	(79	)
U.S. government corporations and agencies	45,156		(131		)	4,974		(26		)	50,130		(157		)
State and political subdivisions	28,564		(479		)	1,336		(14		)	29,900		(493		)
Residential mortgage-backed securities	4,809		(4		)	—		—			4,809		(4		)
Collateralized mortgage obligations	—		—			3,410		(91		)	3,410		(91		)
Corporate bonds	55,913		(1,787		)	6,005		(69		)	61,918		(1,856		)
Equity securities	2		(3		)	—		—			2		(3		)
Total	$	134,444	$	(2,404	)	$	20,621	$	(279	)	$	155,065	$	(2,683	)
At December 31, 2014
Securities Held-to-Maturity
Corporate bonds	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Total	$	15,036	$	(27	)	$	4,987	$	(25	)	$	20,023	$	(52	)
Securities Available-for-Sale
U.S. treasuries	$	—	$	—		$	4,845	$	(127	)	$	4,845	$	(127	)
U.S. government corporations and agencies	39,607		(80		)	62,140		(452		)	101,747		(532		)
State and political subdivisions	10,246		(31		)	9,303		(106		)	19,549		(137		)
Residential mortgage-backed securities	4,824		(32		)	—		—			4,824		(32		)
Collateralized mortgage obligations	—		—			3,725		(85		)	3,725		(85		)
Corporate bonds	21,949		(328		)	15,805		(287		)	37,754		(615		)
Total	$	76,626	$	(471	)	$	95,818	$	(1,057	)	$	172,444	$	(1,528	)