Investment in Securities

12 Months Ended

Dec. 31, 2013

Investment in Securities [Abstract]

Investment in Securities

Note 3
Investment in Securities

Investment securities available-for-sale are recorded at fair value on a recurring basis. The Company's investment securities available-for-sale at December 31, 2013 and 2012 are measured at fair value using Level 2 valuations. The market evaluation utilizes several sources which include "observable inputs" rather than "significant unobservable inputs" and therefore falls into the Level 2 category. The table below presents the balances of securities available-for-sale measured at fair value on a recurring basis. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows:

	December 31, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	308,403	$	8,537	$	2,923	$	314,017
Certificates of deposit		3,750		-		-		3,750
Total	$	312,153	$	8,537	$	2,923	$	317,767
	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	315,345	$	19,960	$	112	$	335,193
Certificates of deposit		6,742		-		-		6,742
Total	$	322,087	$	19,960	$	112	$	341,935

The fair values of securities with unrealized losses are as follows:

	December 31, 2013
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair value		Losses
State and political subdivisions	$	101,792	$	2,661	$	3,554	$	262	$	105,346	$	2,923
Certificates of deposit		-		-		-		-		-		-
Total	$	101,792	$	2,661	$	3,554	$	262	$	105,346	$	2,923
	December 31, 2012
	Less than 12 months				12 months or more				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses		Fair value		Losses
State and political subdivisions	$	19,758	$	112	$	-	$	-	$	19,758	$	112
Certificates of deposit		-		-		-		-		-		-
Total	$	19,758	$	112	$	-	$	-	$	19,758	$	112

There were 102 securities, or 31% of total, (3 greater than 12 months) in an unrealized loss position as of December 31, 2013 compared to 18 securities (none greater than 12 months) in an unrealized loss position as of December 31, 2012 . All unrealized losses are reviewed to determine whether the losses are other than temporary. Management believes that all unrealized losses are temporary since they are market driven, and it is more likely than not that the Company will not be required to sell prior to recovery of the amortized basis.

The amortized cost and fair value of debt and equity securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties.

	December 31, 2013
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	14,994	$	15,225
Due after 1 year through 5 years		67,800		71,914
Due after 5 years through 10 years		139,779		140,947
Due after 10 years		89,580		89,681
No stated maturity		-		-
Total	$	312,153	$	317,767

The premium related to the purchase of state and political subdivisions was $4,450,000 and $4,384,000 in 2013 and 2012, respectively.

The amortized cost of debt securities pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes at December 31, 2013 and 2012 were $3,750,000.

Proceeds from sales of debt securities classified as available-for-sale were $95,742,000 in 2013, $69,747,000 in 2012, and $5,930,000 in 2011. Gross realized gains on the sales in 2013, 2012 and 2011 were $4,295,000, $2,646,000, and $48,000, respectively. Gross realized losses on sales in 2013, 2012 and 2011 were $271,000, $11,000, and $5,000, respectively.