(5) Securities

The amortized cost, gross unrealized gains and losses and fair values of securities available for sale at September 30, 2012 and December 31, 2011 is as follows:


	At September 30, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(Dollars in thousands)
Securities available for sale:
U.S. Government agencies and corporations	$	47,379	$	119	$	(7	)	$	47,491
Mortgage backed securities		126,237		3,899		(149	)		129,987
Collateralized mortgage obligations		25,825		317		(88	)		26,054
State and political subdivisions		29,578		2,224		—			31,802

Total Securities	$	229,019	$	6,559	$	(244	)	$	235,334


	At December 31, 2011
	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
	(Dollars in thousands)
Securities available for sale:
U.S. Government agencies and corporations	$	56,762	$	120	$	(1	)	$	56,881
Mortgage backed securities		103,624		3,705		(292	)		107,037
Collateralized mortgage obligations		29,537		700		—			30,237
State and political subdivisions		30,000		1,901		(44	)		31,857

Total Securities	$	219,923	$	6,426	$	(337	)	$	226,012

The carrying value of securities pledged to secure trust deposits, public deposits, line of credit, and for other purposes required by law amounted to $174,773 and $137,388 at September 30, 2012 and December 31, 2011 respectively.

The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. U.S. Government agencies and corporations include callable and bullet agency issues and agency-backed mortgage backed securities. Mortgage backed securities and collateralized mortgage obligations are not due at a single maturity date and are shown separately.


	At September 30, 2012
	(Dollars in thousands)
	Amortized Cost		Fair Value
Securities available for sale:
Due in one year or less	$	24,281	$	24,389
Due from one year to five years		25,538		26,251
Due from five years to ten years		9,808		10,786
Due after ten years		17,330		17,867
Mortgage backed securities and collateralized mortgage obligations		152,062		156,041

	$	229,019	$	235,334

Realized gains and losses related to securities available-for-sale at September 30, 2012 and 2011 is as follows:


	September 30,
	2012		2011
	(Dollars in thousands)
Gross realized gains	$	46	$	507
Gross realized losses		—		—

Net Securities Gains	$	46	$	507

Proceeds from the sale of available for sale securities	$	5,050	$	24,560

The following is a summary of securities that had unrealized losses at September 30, 2012 and December 31, 2011. 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 September 30, 2012 there were 10 securities with unrealized losses totaling $244 and at December 31, 2011, the Corporation held 10 securities with unrealized losses totaling $337. Factors that are temporary in nature may result in securities being valued at less than amortized cost. For example, when the current levels of interest rates offered on securities are higher compared to the coupon interest rates on the securities held by the Corporation or when impairment is not due to credit deterioration, securities will be valued at less than amortized cost. The Corporation has the ability and the intent to hold these securities until their value recovers.


	At September 30, 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)
U.S. Government agencies and corporations	$	19,990	$	(7	)	$	—	$	—	$	19,990	$	(7	)
Mortgage backed securities		16,045		(150	)		—		—		16,045		(150	)
Collateralized mortgage obligations		10,555		(87	)		—				10,555		(87	)
State and political subdivisions		—		—			—		—		—		—

Total	$	46,590	$	(244	)	$	—	$	—	$	46,590	$	(244	)


	At December 31, 2011
	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	$	9,999	$	(1	)	$	—	$	—	$	9,999	$	(1	)
Mortgage backed securities		25,606		(292	)		—		—		25,606		(292	)
State and political subdivisions		3,669		(44	)		—		—		3,669		(44	)

Total	$	39,274	$	(337	)	$	—	$	—	$	39,274	$	(337	)