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



	September 30, 2015
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)*	$	94,160	$	403	$	276	$	94,287
Mortgage-backed:
GSE residential and SBA Pools	147,488		629		471		147,646
Asset-backed:
SBAP	27,723		137		37		27,823
Obligations of states and political subdivisions	23,242		167		114		23,295
	$	292,613	$	1,336	$	898	$	293,051



	September 30, 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	$	6,745	$	62	$	135	$	6,672
Obligations of states and political subdivisions	19,045		270		29		19,286
	$	25,790	$	332	$	164	$	25,958


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



	December 31, 2014
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
U.S. 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 Bank, and Federal Farm Credit Bank.

The amortized cost and estimated market value of debt securities at September 30, 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
	Amortized Cost		Estimated Market Value		Amortized Cost		Estimated Market Value
Due in one year or less	$	2,573	$	2,592	$	—	$	—
Due after one year through five years	9,955		10,093		44,258		44,487
Due after five years through ten years	3,372		3,432		120,979		121,173
Due after ten years	9,890		9,841		127,376		127,391
	$	25,790	$	25,958	$	292,613	$	293,051

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 September 30, 2015 and December 31, 2014.



	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
September 30, 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	$	1,576	$	14	1	$	2,748	$	121	3	$	4,324	$	135
Obligations of states and political subdivisions	5,449		27		15	298		2		1	5,747		29
	$	7,025	$	41	16	$	3,046	$	123	4	$	10,071	$	164
Available-for-Sale Securities:
GSEs	$	—	$	—	—	$	34,967	$	276	11	$	34,967	$	276
Mortgage-backed:
GSE residential	62,178		386		32	4,198		85		8	66,376		471
Asset-backed: SBAP	8,701		36		5	2,513		1		1	11,214		37
Obligations of states and political subdivisions	4,077		33		11	3,309		81		9	7,386		114
	$	74,956	$	455	48	$	44,987	$	443	29	$	119,943	$	898



	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized		Number of Securities	Fair		Unrealized		Number of 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

Unrealized losses on securities have not been recognized into income because the issuers’ securities are of high credit quality, management does not intend to sell the securities and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payment on the securities. The fair value is expected to recover as the securities approach maturity. The Company does not consider these securities to be other-than-temporarily impaired at September 30, 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.