(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:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2013
U.S. Treasury securities and obligations of U.S. government agencies	$	54,494	$	120	$	(650	)	$	53,964
Obligations of states and political subdivisions		80,048		2,907		(1,480	)		81,475
Mortgage-backed securities in government sponsored entities		63,779		1,152		(447	)		64,484

Total debt securities		198,321		4,179		(2,577	)		199,923
Equity securities in financial institutions		481		—		(48	)		433

Total	$	198,802	$	4,179	$	(2,625	)	$	200,356


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2012
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 September 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.


	Amortized Cost		Fair Value
Available for sale
Due in one year or less	$	6,450	$	6,478
Due after one year through five years		21,276		21,110
Due after five years through ten years		32,826		33,144
Due after ten years		73,990		74,707
Mortgage-backed securities		63,779		64,484
Equity securities		481		433

Total securities available for sale	$	198,802	$	200,356

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


	Three months ended				Nine months ended
	September 30,				September 30,
	2013		2012		2013		2012
Sale proceeds	$	927	$	—	$	8,686	$	12,982
Gross realized gains		—		—		144		99
Gross realized losses		—		—		89		59
Gains from securities called or settled by the issuer		80		—		83		—

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $150,873 and $147,204 as of September 30, 2013 and December 31, 2012, respectively.

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


September 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	$	32,170	$	(650	)	$	—	$	—		$	32,170	$	(650	)
Obligations of states and political subdivisions		25,519		(1,480	)		—		—			25,519		(1,480	)
Mortgage-backed securities in gov’t sponsored entities		22,329		(441	)		349		(6	)		22,678		(447	)
Equity securities		481		(48	)		—		—			481		(48	)

Total temporarily impaired	$	80,499	$	(2,619	)	$	349	$	(6	)	$	80,848	$	(2,625	)


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 September 30, 2013 there were seventy-four 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.