4.	SECURITIES

Securities available for sale at March 31, 2015 and December 31, 2014 are as follows:


	March 31, 2015									December 31, 2014
	Amortized		Unrealized					Fair		Amortized		Unrealized					Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. Gov’t sponsored entities	$	146,329	$	2,711	$	(407	)	$	148,633	$	155,482	$	2,301	$	(2,219	)	$	155,564
State & political subdivisions		172,948		7,885		(136	)		180,697		174,600		6,804		(402	)		181,002
Residential & multi-family mortgage		240,172		3,766		(986	)		242,952		265,678		2,291		(2,805	)		265,164
Corporate notes & bonds		20,792		167		(1,423	)		19,536		20,791		139		(1,500	)		19,430
Pooled trust preferred		800		105		0			905		800		105		0			905
Pooled SBA		61,515		1,157		(1,000	)		61,672		63,139		1,074		(1,560	)		62,653
Other securities		1,020		0		(15	)		1,005		1,020		0		(18	)		1,002

Total	$	643,576	$	15,791	$	(3,967	)	$	655,400	$	681,510	$	12,714	$	(8,504	)	$	685,720

At March 31, 2015 and December 31, 2014, there were no holdings of securities of any one issuer, other than the U.S. Government sponsored entities, in an amount greater than 10% of shareholders’ equity. The Corporation’s residential and multi-family mortgage securities are issued by government sponsored entities.

Trading securities at March 31, 2015 and December 31, 2014 are as follows:


	March 31, 2015		December 31, 2014
Corporate equity securities	$	3,034	$	3,044
Mutual funds		1,000		997
Certificates of deposit		256		253
Corporate notes and bonds		157		157
U.S. Government sponsored entities		55		54

Total	$	4,502	$	4,505

Securities with unrealized losses at March 31, 2015 and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands):

March 31, 2015


	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	12,509	$	(16	)	$	65,116	$	(391	)	$	77,625	$	(407	)
State & political subdivisions		14,513		(61	)		5,412		(75	)		19,925		(136	)
Residential & multi-family mortgage		33,201		(174	)		58,378		(812	)		91,579		(986	)
Corporate notes & bonds		0		0			7,984		(1,423	)		7,984		(1,423	)
Pooled SBA		0		0			32,991		(1,000	)		32,991		(1,000	)
Other securities		0		0			1,005		(15	)		1,005		(15	)

	$	60,223	$	(251	)	$	171,792	$	(3,716	)	$	232,015	$	(3,967	)

December 31, 2014


	Less than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Gov’t sponsored entities	$	26,069	$	(149	)	$	85,016	$	(2,070	)	$	111,085	$	(2,219	)
State & political subdivisions		16,398		(179	)		12,363		(223	)		28,761		(402	)
Residential & multi-family mortgage		70,360		(603	)		99,397		(2,202	)		169,757		(2,805	)
Corporate notes & bonds		5,008		(30	)		7,935		(1,470	)		12,943		(1,500	)
Pooled SBA		0		(0	)		34,608		(1,560	)		34,608		(1,560	)
Other securities		0		(0	)		1,002		(18	)		1,002		(18	)

	$	117,835	$	(961	)	$	240,321	$	(7,543	)	$	358,156	$	(8,504	)

The Corporation evaluates securities for other-than-temporary impairment on a quarterly basis, or more frequently when economic or market conditions warrant such an evaluation.

A roll-forward of the other-than-temporary impairment amount related to credit losses for the three months ended March 31, 2015 and 2014 is as follows:


Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, beginning of period	$	4,054
Additional credit loss for which other-than-temporary impairment was not previously recognized		0
Additional credit loss for which other-than-temporary impairment was previously recognized		0

Balance of credit losses on debt securities for which a portion of other-than-temporary impairment was recognized in earnings, end of period	$	4,054

Due to the insignificance of the adjusted amortized cost balance, no further disclosures are required with respect to the Corporation’s structured pooled trust preferred securities.

For the securities that comprise corporate notes and bonds and the securities that are issued by state and political subdivisions, management monitors publicly available financial information, such as filings with the Securities and Exchange Commission, in order to evaluate the securities for other-than-temporary impairment. For financial institution issuers, management monitors information from quarterly “call” report filings that are used to generate Uniform Bank Performance Reports. All other securities that were in an unrealized loss position at the balance sheet date were reviewed by management, and issuer-specific documents were reviewed, as appropriate given the following considerations. When reviewing securities for other-than-temporary impairment, management considers the financial condition and near-term prospects of the issuer and whether downgrades by bond rating agencies have occurred. Management also considers the length of time and extent to which fair value has been less than cost, and whether management does not have the intent to sell these securities and it is likely that it will not be required to sell the securities before their anticipated recovery.

As of March 31, 2015 and December 31, 2014, management concluded that the securities described in the previous paragraph were not other-than-temporarily impaired for the following reasons:

•

There is no indication of any significant deterioration of the creditworthiness of the institutions that issued the securities.

•

All contractual interest payments on the securities have been received as scheduled, and no information has come to management’s attention through the processes previously described which would lead to a conclusion that future contractual payments will not be timely received.

The Corporation does not intend to sell and it is not more likely than not that it will be required to sell the securities in an unrealized loss position before recovery of its amortized cost basis.

Information pertaining to security sales on available for sale securities is as follows:


	Proceeds		Gross Gains		Gross Losses
Three months ended March 31, 2015	$	32,949	$	136	$	117
Three months ended March 31, 2014	$	12,951	$	149	$	83

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at March 31, 2015:


	Amortized Cost		Fair Value
1 year or less		26,601		26,752
1 year – 5 years		170,252		175,000
5 years – 10 years		111,026		114,745
After 10 years		32,990		33,274

		340,869		349,771
Residential and multi-family mortgage		240,172		242,952
Pooled SBA		61,515		61,672

Total debt securities	$	642,556	$	654,395

Mortgage and asset backed securities and pooled SBA securities are not due at a single date; periodic payments are received based on the payment patterns of the underlying collateral.

On March 31, 2015 and December 31, 2014, securities carried at $292,962 and $325,799, respectively, were pledged to secure public deposits and for other purposes as provided by law.