5.	SECURITIES

Components of the available for sale portfolio are as follows:

	September 30, 2014
	Amortized cost		Gross Unrealized Gains		Gross unrealized losses			Fair value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities’ securities	$	242,043	$	—	$	(10,404	)	$	231,639
Mortgage-backed GSE securities: residential		281,852		45		(6,411	)		275,486
Total	$	523,895	$	45	$	(16,815	)	$	507,125

	December 31, 2013
	Amortized cost		Gross Unrealized Gains		Gross unrealized losses			Fair value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities’ securities	$	247,863	$	—	$	(25,570	)	$	222,293
Equity securities		101		344		—			445
Mortgage-backed GSE securities: residential		303,435		31		(15,198	)		288,268
Total	$	551,399	$	375	$	(40,768	)	$	511,006

Debt securities available for sale by contractual maturity, repricing or expected call date are shown below:

	September 30, 2014
	(Dollars in thousands)
	Amortized Cost		Fair Value
Due in one year or less	$	500	$	500
Due after one year through five years		—		—
Due after five years through ten years		209,134		200,791
Due after ten years through fifteen years		32,409		30,348
Mortgage-backed GSE securities: residential		281,852		275,486
Total	$	523,895	$	507,125

Securities pledged for participation in the Ohio Linked Deposit Program were approximately $398,000 at September 30, 2014 and $382,000 at December 31, 2013.

Securities available for sale that have been in an unrealized loss position for less than twelve months or twelve months or more are as follows:

	September 30, 2014
	(Dollars in thousands)
	Less Than 12 Months					12 Months or More							Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury and government sponsored entities’ securities	$	4,444	$	(46	)	$	226,695	$	(10,358	)	$	231,139	$	(10,404	)
Mortgage-backed GSE securities:
residential		33,726		(87	)		241,010		(6,324	)		274,736		(6,411	)
Total	$	38,170	$	(133	)	$	467,705	$	(16,682	)	$	505,875	$	(16,815	)

	December 31, 2013
	(Dollars in thousands)
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury and government sponsored entities’ securities	$	193,746	$	(21,360	)	$	28,046	$	(4,210	)	$	221,792	$	(25,570	)
Mortgage-backed GSE securities:
residential		240,201		(10,680	)		47,319		(4,518	)		287,520		(15,198	)
Total	$	433,947	$	(32,040	)	$	75,365	$	(8,728	)	$	509,312	$	(40,768	)

All of the U.S. Treasury and government sponsored entities (GSE) and mortgage-backed securities that were temporarily impaired at September 30, 2014 and December 31, 2013, were impaired due to the level of interest rates at that time. Unrealized losses on U.S. Treasury and government sponsored entities and mortgage-backed securities have not been recognized into income as of September 30, 2014 and December 31, 2013 because the issuer’s securities are of high credit quality (rated AA or higher), it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. From April 30, 2013 to December 31, 2013, the 10-year treasury yield rose from 1.70% to 3.04% which caused the securities portfolio to lose value. Since December 31, 2013, the 10-year treasury yield has fallen to 2.52% resulting in an increase in the value of the portfolio. The duration of the securities portfolio was approximately 6.3 years at September 30, 2014. There is risk that longer term rates could rise further resulting in greater unrealized losses. The Company can look for opportunities to sell securities to reduce the portfolio or change the duration characteristics. All of the securities are GSE issued debt or mortgage-backed securities and carry the same rating as the U.S. Government. The Company expects to realize all interest and principal on these securities and has no intent ot sell and more than lilely will not be required to sell these securities until maturity.

At September 30, 2014 and December 31, 2013, all of the mortgage-backed securities held by the Company were issued by U.S. government sponsored agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company does not have the intent to sell these mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2014 and December 31, 2013. The Company expects to realize all interest and principal on these securities.

Proceeds from sales of equity securities available for sale were $470,000 and $0 for the three months ended September 30, 2014 and 2013, respectively. Gross gains of $328,000 and $0 were realized on these sales during the third quarter of 2014 and 2013, respectively.

Proceeds from sales of equity and other securities available for sale were $5.5 million and $97.1 million for the nine months ended September 30, 2014 and 2013, respectively. Gross gains of $362,000 and $2.6 million were realized on these sales during the first nine months of 2014 and 2013, respectively.