Investment in Securities

9 Months Ended

Sep. 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:

	September 30, 2014
(In thousands)	Amortized  Cost		Gross  Unrealized Gains		Gross  Unrealized Losses		Fair Value
State and political subdivisions	$	322,614	$	13,841	$	365	$	336,090
Certificates of deposit		3,750		—		—		3,750
Total	$	326,364	$	13,841	$	365	$	339,840

	December 31, 2013
			Gross		Gross
(In thousands)	Amortized  Cost		Unrealized Gains		Unrealized  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:

	September 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	$	6,325	$	11	$	27,626	$	354	$	33,951	$	365
Certificates of deposit		—		—		—		—		—		—
Total	$	6,325	$	11	$	27,626	$	354	$	33,951	$	365

	December 31, 2013
	Less than 12 months				12 months or more				Total
(In thousands)	Estimated  Fair Value		Unrealized  Losses		Estimated  Fair Value		Unrealized  Losses		Estimated   Fair Value		Unrealized 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 30 securities, or 9% of the total (24 greater than 12 months), in an unrealized loss position as of September 30, 2014. There were 102 securities, or 31% of the total (3 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.

	September 30, 2014
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	28,278	$	28,636
Due after 1 year through 5 years		76,717		80,844
Due after 5 years through 10 years		143,710		149,285
Due after 10 years		77,659		81,075
Total	$	326,364	$	339,840

Proceeds from sales of investment securities classified as available for sale were $587,000 and $31,006,000 for the three months ended September 30, 2014 and 2013, respectively, and were $587,000 and $94,666,000 for the nine months ended September 30, 2014 and 2013, respectively. Gross realized gains were $23,000 and $866,000 for the three months ended September 30, 2014 and 2013, respectively, and were $23,000 and $4,003,000 for the nine months ended September 30, 2014 and 2013, respectively. There were two securities totaling $3,750,000 pledged to secure public deposits and for other purposes at September 30, 2014.