4.	SECURITIES

Securities available for sale at September 30, 2015 and December 31, 2014 are as follows:


	September 30, 2015									December 31, 2014
	Amortized		Unrealized					Fair		Amortized		Unrealized					Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
U.S. Gov’t sponsored entities	$	145,440	$	2,102	$	(533	)	$	147,009	$	155,482	$	2,301	$	(2,219	)	$	155,564
State & political subdivisions		174,367		6,291		(229	)		180,429		174,600		6,804		(402	)		181,002
Residential & multi-family mortgage		184,471		1,825		(1,949	)		184,347		265,678		2,291		(2,805	)		265,164
Corporate notes & bonds		19,793		179		(936	)		19,036		20,791		139		(1,500	)		19,430
Pooled trust preferred		800		360		0			1,160		800		105		0			905
Pooled SBA		53,987		1,021		(649	)		54,359		63,139		1,074		(1,560	)		62,653
Other securities		1,020		0		(27	)		993		1,020		0		(18	)		1,002

Total	$	579,878	$	11,778	$	(4,323	)	$	587,333	$	681,510	$	12,714	$	(8,504	)	$	685,720

At September 30, 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 September 30, 2015 and December 31, 2014 are as follows:


	September 30, 2015		December 31, 2014
Corporate equity securities	$	2,997	$	3,044
Mutual funds		1,028		997
Certificates of deposit		254		253
Corporate notes and bonds		155		157
U.S. Government sponsored entities		55		54

Total	$	4,489	$	4,505

Securities with unrealized losses at September 30, 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):

September 30, 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	$	44,488	$	(263	)	$	37,250	$	(270	)	$	84,738	$	(533	)
State & political subdivisions		19,065		(167	)		3,134		(62	)		22,199		(229	)
Residential & multi-family mortgage		69,507		(881	)		50,734		(1,068	)		120,241		(1,949	)
Corporate notes & bonds		0		0			8,477		(936	)		8,477		(936	)
Pooled SBA		0		0			28,500		(649	)		28,500		(649	)
Other securities		0		0			993		(27	)		993		(27	)

	$	136,060	$	(1,311	)	$	129,088	$	(3,012	)	$	265,148	$	(4,323	)

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 and nine months ended September 30, 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 September 30, 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 the sale of available for sale securities is as follows:


	Proceeds		Gross Gains		Gross Losses
Three months ended September 30, 2015	$	38,025	$	244	$	(171	)
Nine months ended September 30, 2015		86,554		852		(288	)
Three months ended September 30, 2014		9,698		41		0
Nine months ended September 30, 2014		38,826		328		(83	)

The following is a schedule of the contractual maturity of securities available for sale, excluding equity securities, at September 30, 2015:


	Amortized Cost		Fair Value
1 year or less	$	25,281	$	25,501
1 year – 5 years		190,387		195,612
5 years – 10 years		94,600		95,971
After 10 years		30,132		30,550

		340,400		347,634
Residential and multi-family mortgage		184,471		184,347
Pooled SBA		53,987		54,359

Total debt securities	$	578,858	$	586,340

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 September 30, 2015 and December 31, 2014, securities carried at $344,036 and $325,799, respectively, were pledged to secure public deposits and for other purposes as provided by law.