Investment in Securities

6 Months Ended

Jun. 30, 2014

Investment in Securities [Abstract]

Investment in Securities

Note 11 - 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 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 fall into the Level 2 category. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities are summarized as follows:

	June 30, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	311,021	$	13,238	$	540	$	323,719
Certificates of deposit		3,750		-		-		3,750
Total	$	314,771	$	13,238	$	540	$	327,469

	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

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

	June 30, 2014
	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	$	3,834	$	2	$	36,578	$	538	$	40,412	$	540
Certificates of deposit		-		-		-		-		-		-
Total	$	3,834	$	2	$	3,578	$	538	$	40,412	$	540

	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

There were 36 securities, or 11% of the total (four greater than 12 months), in an unrealized loss position as of June 30, 2014. There were 102 securities, or 31% of the total (three greater than 12 months), in an unrealized loss position as of December 31, 2013. All unrealized losses were reviewed to determine whether the losses were other than temporary. Management believes that all unrealized losses are temporary since they were 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 investment 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.

	June 30, 2014
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	21,417	$	21,789
Due after 1 year through 5 years		72,344		76,417
Due after 5 years through 10 years		144,456		149,664
Due after 10 years		76,554		79,599
Total	$	314,771	$	327,469

Proceeds from sales of investment securities classified as available for sale were $0 and $35,639,000 for the three months ended June 30, 2014 and 2013, respectively, and were $0 and $63,660,000 for the six months ended June 30, 2014 and 2013, respectively. Gross realized gains were $0 and $1,684,000 for the three months ended June 30, 2014 and 2013, respectively, and were $0 and $3,137,000 for the six months ended June 30, 2014 and 2013, respectively. There were two securities totaling $3,750,000 pledged to secure public deposits and for other purposes at June 30, 2014.