Securities

The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of Securities Available-for-Sale at September 30, 2014 and December 31, 2013, were as follows:



Securities Available-for-Sale:	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value

September 30, 2014
U.S. Treasury and Agency Securities	$	20,000	$	—	$	(637	)	$	19,363
Obligations of State and Political Subdivisions	134,763		5,858		(92		)	140,529
Mortgage-backed Securities - Residential	420,466		2,758		(7,728		)	415,496
Equity Securities	353		—		—			353
Total	$	575,582	$	8,616	$	(8,457	)	$	575,741

December 31, 2013
U.S. Treasury and Agency Securities	$	20,000	$	—	$	(1,048	)	$	18,952
Obligations of State and Political Subdivisions	112,008		2,388		(899		)	113,497
Mortgage-backed Securities - Residential	481,724		3,497		(11,991		)	473,230
Equity Securities	353		—		—			353
Total	$	614,085	$	5,885	$	(13,938	)	$	606,032

Equity securities that do not have readily determinable fair values are included in the above totals, are carried at historical cost and are evaluated for impairment on a periodic basis. All mortgage-backed securities in the above table are residential mortgage-backed securities and guaranteed by government sponsored entities.

The carrying amount, unrecognized gains and losses and fair value of Securities Held-to-Maturity at September 30, 2014 and December 31, 2013, were as follows:



Securities Held-to-Maturity:	Carrying Amount		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value

September 30, 2014
Obligations of State and Political Subdivisions	$	184	$	2	$	—	$	186

December 31, 2013
Obligations of State and Political Subdivisions	$	268	$	3	$	—	$	271

The amortized cost and fair value of Securities at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed and Equity Securities are not due at a single maturity date and are shown separately.



Securities Available-for-Sale:	Amortized Cost		Fair Value

Due in one year or less	$	3,716	$	3,737
Due after one year through five years	20,274		20,174
Due after five years through ten years	65,615		67,862
Due after ten years	65,158		68,119
Mortgage-backed Securities - Residential	420,466		415,496
Equity Securities	353		353
Total	$	575,582	$	575,741



Securities Held-to-Maturity:	Carrying Amount		Fair Value

Due in one year or less	$	—	$	—
Due after one year through five years	184		186
Due after five years through ten years	—		—
Due after ten years	—		—
Total	$	184	$	186

Proceeds from the Sales of Securities are summarized below:



	Three Months Ended		Three Months Ended
	September 30, 2014		September 30, 2013

Proceeds from Sales	$	45,473	$	19,231
Gross Gains on Sales	567		428
Income Taxes on Gross Gains	198		150



	Nine Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2013

Proceeds from Sales	$	52,711	$	119,952
Gross Gains on Sales	1,039		1,508
Income Taxes on Gross Gains	364		528

Below is a summary of securities with unrealized losses as of September 30, 2014 and December 31, 2013, presented by length of time the securities have been in a continuous unrealized loss position:



	Less than 12 Months					12 Months or More					Total
September 30, 2014	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Treasury and Agency Securities	$	—	$	—		$	19,363	$	(637	)	$	19,363	$	(637	)
Obligations of State and Political Subdivisions	4,849		(35		)	4,038		(57		)	8,887		(92		)
Mortgage-backed Securities - Residential	67,038		(543		)	239,488		(7,185		)	306,526		(7,728		)
Equity Securities	—		—			—		—			—		—
Total	$	71,887	$	(578	)	$	262,889	$	(7,879	)	$	334,776	$	(8,457	)



	Less than 12 Months					12 Months or More					Total
December 31, 2013	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

U.S. Treasury and Agency Securities	$	18,952	$	(1,048	)	$	—	$	—		$	18,952	$	(1,048	)
Obligations of State and Political Subdivisions	38,878		(899		)	—		—			38,878		(899		)
Mortgage-backed Securities - Residential	346,028		(11,903		)	1,735		(88		)	347,763		(11,991		)
Equity Securities	—		—			—		—			—		—
Total	$	403,858	$	(13,850	)	$	1,735	$	(88	)	$	405,593	$	(13,938	)

Securities are written down to fair value when a decline in fair value is not considered temporary. In estimating other-than-temporary losses, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The Company doesn’t intend to sell or expect to be required to sell these securities, and the decline in fair value is largely due to changes in market interest rates, therefore, the Company does not consider these securities to be other-than-temporarily impaired. All mortgage-backed securities in the Company’s portfolio are guaranteed by government sponsored entities, are investment grade, and are performing as expected.