4.	SECURITIES

The components of securities are as follows:

	December 31, 2014
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			value
	(Dollars in thousands)
Available for Sale
U.S. Treasury and government sponsored entities' securities	$	232,225	$	184	$	(4,452	)	$	227,957
Mortgage-backed GSE securities: residential		274,204		331		(2,702	)		271,833
Total	$	506,429	$	515	$	(7,154	)	$	499,790

	December 31, 2013
			Gross		Gross
	Amortized		unrealized		unrealized			Fair
	cost		gains		losses			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:

	December 31, 2014
	Amortized cost		Fair value
	(Dollars in thousands)
Due in one year or less	$	—	$	—
Due after one year through five years		—		—
Due after five years through ten years		204,851		201,171
Due after ten years		27,374		26,786
Mortgage-backed GSE securities: residential		274,204		271,833
Total	$	506,429	$	499,790

Proceeds, gross realized gains, losses and impairment charges of available for sale securities were as follows:

	2014		2013			2012
	(Dollars in thousands)
Proceeds	$	14,595	$	137,467		$	343,000
Gross gains		444		2,712			6,325
Gross losses		—		(135	)		—
Impairment charges		—		—			(13	)

Income tax expense related to net realized gains and losses was $155 for 2014 and $0 for 2013 and 2012 due to the full valuation allowance recorded on the net deferred tax asset of the Company.

Securities pledged for participation in the Ohio Linked Deposit Program were approximately $501,000 and $382,000 at December 31, 2014 and 2013, respectively. See further discussion regarding pledged securities in Note 12.

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 at December 31, 2014:

	Less than 12 months					12 months or more					Total
	Fair		Unrealized loss			Fair		Unrealized loss			Fair		Unrealized loss
	value		Loss			value		Loss			value		Loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	—	$	—		$	214,495	$	(4,452	)	$	214,495	$	(4,452	)
Mortgage-backed GSE securities: residential		4,625		(40	)		193,434		(2,662	)		198,059		(2,702	)
Total temporarily impaired securities	$	4,625	$	(40	)	$	407,929	$	(7,114	)	$	412,554	$	(7,154	)

All of the U.S. Treasury and government sponsored entities and mortgage-backed securities that were temporarily impaired at December 31, 2014, 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 December 31, 2014 because the issuer’s securities are of high credit quality (rated AA or higher), management does not intend to sell, and 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.

At December 31, 2014, 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 considered these securities to be other-than-temporarily impaired at December 31, 2014.

Securities available for sale in an unrealized loss position are as follows at December 31, 2013:

	Less than 12 months					12 months or more					Total
	Fair value		Unrealized loss			Fair value		Unrealized loss			Fair value		Unrealized loss
	(Dollars in thousands)
Description of securities:
U.S. Treasury and government sponsored entities	$	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 temporarily impaired securities	$	433,947	$	(32,040	)	$	75,365	$	(8,728	)	$	509,312	$	(40,768	)

All of the U.S. Treasury and government sponsored entities and mortgage-backed securities that were temporarily impaired at 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 December 31, 2013 because the issuer’s securities are of high credit quality (rated AA or higher), management does not intend to sell, and 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. The primary reason for the decline in fair value was the rise in longer term interest rates experienced during the second, third and fourth quarters of 2013. From April 30, 2013 to December 31, 2013 the 10 year treasury yield rose from 1.70% to 3.04%. The duration of the securities portfolio is approximately 7.2 years at December 31, 2013. There is risk that longer term rates could rise further resulting in greater unrealized losses. Management continues to allow the portfolio to decline as no new investment purchases are being considered. In addition, 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.

At 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 December 31, 2013.

The Company recognized no OTTI charges in 2014 and 2013. The Company recognized a $13,000 OTTI charge on an equity investment in one financial institution in 2012.