(3) Securities

The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:


June 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	51,409	$	187	$	(652	)	$	50,944
Obligations of states and political subdivisions		79,449		3,459		(1,259	)		81,649
Mortgage-backed securities in government sponsored entities		66,007		1,208		(463	)		66,752

Total debt securities		196,865		4,854		(2,374	)		199,345
Equity securities in financial institutions		481		40		—			521

Total	$	197,346	$	4,894	$	(2,374	)	$	199,866


December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government agencies	$	53,919	$	375	$	(8	)	$	54,286
Obligations of states and political subdivisions		72,884		6,946		(24	)		79,806
Mortgage-backed securities in government sponsored entities		67,814		1,854		(233	)		69,435

Total debt securities		194,617		9,175		(265	)		203,527
Equity securities in financial institutions		481		—		(47	)		434

Total	$	195,098	$	9,175	$	(312	)	$	203,961

The fair value of securities at June 30, 2013, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities, are shown separately.


Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	6,849	$	6,893
Due after one year through five years		20,474		20,217
Due after five years through ten years		28,975		29,482
Due after ten years		74,560		76,001
Mortgage-backed securities		66,007		66,752
Equity securities		481		521

Total securities available for sale	$	197,346	$	199,866

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.


	Three months ended				Six months ended
	June 30,				June 30,
	2013		2012		2013		2012
Sale proceeds	$	7,242	$	7,610	$	7,758	$	12,982
Gross realized gains		130		67		144		99
Gross realized losses		89		25		89		59
Gains from securities called or settled by the issuer		—		—		3		—

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $151,060 and $147,204 as of June 30, 2013 and December 31, 2012, respectively.

Securities with unrealized losses at June 30, 2013 and December 31, 2012 not recognized in income are as follows:


June 30, 2013	12 Months or less					More than 12 months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	33,917	$	(652	)	$	—	$	—		$	33,917	$	(652	)
Obligations of states and political subdivisions		21,247		(1,257	)		444		(2	)		21,691		(1,259	)
Mortgage-backed securities in gov’t sponsored entities		27,094		(462	)		55		(1	)		27,149		(463	)

Total temporarily impaired	$	82,258	$	(2,371	)	$	499	$	(3	)	$	82,757	$	(2,374	)


December 31, 2012	12 Months or less					More than 12 months					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	6,184	$	(8	)	$	—	$	—		$	6,184	$	(8	)
Obligations of states and political subdivisions		1,440		(22	)		465		(2	)		1,905		(24	)
Mortgage-backed securities in gov’t sponsored entities		7,907		(215	)		2,122		(18	)		10,029		(233	)
Equity securities in financial institutions		434		(47	)		—		—			434		(47	)

Total temporarily impaired	$	15,965	$	(292	)	$	2,587	$	(20	)	$	18,552	$	(312	)

At June 30, 2013 there were seventy-one securities in the portfolio with unrealized losses mainly due to higher market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to market yields increasing across the municipal sector partly due to higher risk premiums associated with municipal insurers. The fair value is expected to recover as the securities approach their maturity date or reset date. The Corporation does not intend to sell until recovery and does not believe selling will be required before recovery.