Securities

The amortized cost, gross unrealized gains and losses and fair values of securities at March 31, 2013 and December 31, 2012 follows:



	At March 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(Dollars in thousands)
Securities available for sale:
U.S. Government agencies and corporations	$	57,736	$	29	$	(38	)	$	57,727
Mortgage backed securities	108,146		2,129		(850		)	109,425
Collateralized mortgage obligations	18,904		412		(40		)	19,276
State and political subdivisions	29,970		2,111		(20		)	32,061
Preferred Securities	4,684		—		—			4,684
Total Securities	$	219,440	$	4,681	$	(948	)	$	223,173

	At December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(Dollars in thousands)
Securities available for sale:
U.S. Government agencies and corporations	$	36,868	$	102	$	—		$	36,970
Mortgage backed securities	109,440		2,589		(328		)	111,701
Collateralized mortgage obligations	22,483		398		—			22,881
State and political subdivisions	29,980		2,241		(10		)	32,211
Total Securities	$	198,771	$	5,330	$	(338	)	$	203,763

U.S. Government agencies and corporations include callable and bullet agency issues and agency-backed mortgage backed securities. The maturity of mortgage backed securities is shown based on contractual maturity of the security although repayments occur each year.

The amortized cost and fair value of available for sale debt securities by contractual maturity date at March 31, 2013 is provided in the following table. Mortgage backed securities are not due at a single maturity date and are therefore shown separately.



	At March 31, 2013
	Amortized Cost		Fair Value
	(Dollars in thousands)
Securities available for sale:
Due in one year or less	$	10,080	$	10,085
Due from one year to five years	51,731		52,772
Due from five years to ten years	23,965		24,578
Due after ten years	6,614		7,037
Mortgage backed securities and collateralized mortgage obligations	127,050		128,701
	$	219,440	$	223,173

The following table shows the proceeds from sales of available-for-sale securities for each of the two periods ended March 31. The gross realized gains and losses on those sales that have been included in earnings. Gains or losses on the sales of available-for-sale securities are recognized upon sale and are determined using the specific identification method.



	March 31,
	2013		2012
	(Dollars in thousands)
Gross realized gains	$	178	$	—
Gross realized losses	—		—
Net Securities Gains	$	178	$	—
Proceeds from the sale of available for sale securities	$	2,280	$	—

The carrying value of securities pledged to secure trust deposits, public deposits, line of credit, and for other purposes required by law amounted to $123,770 and $150,197 at March 31, 2013 and December 31, 2012, respectively.

The following is a summary of securities that had unrealized losses at March 31, 2013 and December 31, 2012. The information is presented for securities that have been in an unrealized loss position for less than 12 months and for more than 12 months. At March 31, 2013, the Corporation held 18 securities with unrealized losses totaling $948. At December 31, 2012 there were 12 securities with unrealized losses totaling $338. There are temporary reasons why securities may be valued at less than amortized cost. Temporary reasons are that the current levels of interest rates as compared to the coupons on the securities held by the Corporation are higher and impairment is not due to credit deterioration. The Corporation has the intent and the ability to hold these securities until their value recovers, which may be until maturity.



	At March 31, 2013
	Less than 12 months					12 months or longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. Government agencies and corporations	$	14,962	$	(38	)	$	—	$	—	$	14,962	(38		)
Mortgage backed securities	$	54,753	$	(890	)	$	—	$	—	$	54,753	(890		)
State and political subdivisions	1,053		(20		)	—		—		1,053		(20		)
Total	$	70,768	$	(948	)	$	—	$	—	$	70,768	$	(948	)

	At December 31, 2012
	Less than 12 months					12 months or longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Mortgage backed securities	$	44,491	$	(328	)	$	—	$	—	$	44,491	$	(328	)
State and political subdivisions	1,062		(10		)	—		—		1,062		(10		)
Total	$	45,553	$	(338	)	$	—	$	—	$	45,553	$	(338	)