Note 3. Debt and Equity Securities

Debt and equity securities have been classified in the consolidated balance sheet according to management’s intent. Debt and equity securities at March 31, 2015 and December 31, 2014 are summarized as follows:


	March 31, 2015
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	126,302	$	338	$	623	$	126,017
Mortgage-backed:
GSE residential		165,971		1,132		234		166,869
Asset-backed:
SBAP		29,571		280		50		29,801
Obligations of states and political subdivisions		13,957		84		117		13,924

	$	335,801	$	1,834	$	1,024	$	336,611


	March 31, 2015
	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	7,351	$	82	$	113	$	7,320
Obligations of states and political subdivisions		20,803		310		44		21,069

	$	28,154	$	392	$	157	$	28,389

*	Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.


	December 31, 2014
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	131,767		129		1,329		130,567
Mortgage-backed:
GSE residential		170,802		731		464		171,069
Asset-backed:
SBAP		30,627		98		205		30,520
Obligations of states and political subdivisions		14,324		98		158		14,264

	$	347,520		1,056		2,156		346,420


	December 31, 2014
	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	7,398		76		147		7,327
Obligations of states and political subdivisions		20,725		389		41		21,073

	$	28,123		465		188		28,400

*	Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.

The amortized cost and estimated market value of debt securities at March 31, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Held-to-Maturity				Available-for-Sale
	In Thousands
			Estimated				Estimated
	Amortized		Market		Amortized		Market
	Cost		Value		Cost		Value
Due in one year or less	$	3,133	$	3,165	$	2,001	$	2,002
Due after one year through five years		10,139		10,295		59,146		59,080
Due after five years through ten years		3,741		3,769		148,273		148,496
Due after ten years		11,141		11,160		126,381		127,033

	$	28,154	$	28,389	$	335,801	$	336,611

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2015 and December 31, 2014.


	In Thousands, Except Number of Securities
	Less than 12 Months						12 Months or More						Total
March 31, 2015	Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses		Number of Securities Included		Fair Value		Unrealized Losses
Held to Maturity Securities:
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	—	$	—		—	$	3,067	$	113		3	$	3,067	$	113
Obligations of states and political subdivisions		7,723		31		19		836		13		2		8,559		44

	$	7,723	$	31		19	$	3,903	$	126		5	$	11,626	$	157

Available-for-Sale Securities:
US Government - Sponsored enterprises (GSEs)	$	17,898	$	37		5	$	57,853	$	586		18	$	75,751	$	623
Mortgage-backed:
GSEs residential		34,835		169		22		9,486		65		8		44,321		234
Asset-backed: SBAP		5,872		50		4		—		—		—		5,872		50
Obligations of states and political subdivisions		1,036		9		3		4,442		108		12		5,478		117

	$	59,641	$	265		34	$	71,781	$	759		38	$	131,422	$	1,024


	In Thousands, Except Number of Securities
	Less than 12 Months						12 Months or More						Total
					Number						Number
					of						of
	Fair		Unrealized		Securities		Fair		Unrealized		Securities		Fair		Unrealized
December 31, 2014	Value		Losses		Included		Value		Losses		Included		Value		Losses
Held to Maturity Securities:
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	—	$	—		—	$	4,674	$	147		4	$	4,674	$	147
Obligations of states and political subdivisions		—		—		—		2,577		41		6		2,577		41

	$	—	$	—		—	$	7,251	$	188		10	$	7,251	$	188

Available-for-Sale Securities:
GSEs	$	34,753	$	143		10	$	74,250	$	1,186		24	$	109,003	$	1,329
Mortgage-backed:
GSE residential		66,504		279		36		22,172		185		13		88,676		464
Asset-backed: SBAP		16,114		205		9		—		—		—		16,114		205
Obligations of states and political subdivisions		2,078		8		4		4,699		150		13		6,777		158

	$	119,449	$	635		59	$	101,121	$	1,521		50	$	220,570	$	2,156

Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2015.

The carrying values of the Company’s investment securities could decline in the future if the financial condition of issuers deteriorate and management determines it is probable that the Company will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future given the current economic environment.