Investment in Securities

6 Months Ended

Jun. 30, 2016

Investments, Debt and Equity 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, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	339,803	$	20,362	$	—	$	360,165
Certificates of deposit		7,876		—		—		7,876
Total	$	347,679	$	20,362	$	—	$	368,041
	December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	356,531	$	12,552	$	13	$	369,070
Certificates of deposit		6,626		—		—		6,626
Total	$	363,157	$	12,552	$	13	$	375,696

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

	June 30, 2016
	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	$	2,503	$	—	$	—	$	—	$	2,503	$	—
subdivisions
Certificates of deposit		—		—		—		—		—		—
Total	$	2,503	$	—	$	—	$	—	$	2,503	$	—
	December 31, 2015
	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	$	3,638	$	5	$	1,208	$	8	$	4,846	$	13
subdivisions
Certificates of deposit		—		—		—		—		—		—
Total	$	3,638	$	5	$	1,208	$	8	$	4,846	$	13

There were four securities, or less than 1% of the total (none greater than 12 months) in an unrealized loss position as of June 30, 2016. There were 5 securities, or 1% of the total (1 greater than 12 months), in an unrealized loss position as of December 31, 2015. 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, 2016
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	40,517	$	40,998
Due after 1 year through 5 years		53,112		55,288
Due after 5 years through 10 years		134,465		144,119
Due after 10 years		119,585		127,636
Total	$	347,679	$	368,041

Proceeds from sales of investment securities classified as available for sale were $2,452,000 and $20,754,000 for the three months ended June 30, 2016 and 2015, respectively, and were $21,491,000 and $65,952,000 for the six months ended June 30, 2016 and 2015, respectively. Gross realized gains were $79,000 and $690,000 for the three months ended June 30, 2016 and 2015, respectively, and were $387,000 and $1,639,000 for the six months ended June 30, 2016 and 2015, respectively. There was one security totaling $3,750,000 pledged to secure public deposits and for other purposes at June 30, 2016.