Investment in Securities

3 Months Ended

Mar. 31, 2018

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:

	March 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	395,439	$	3,582	$	3,681	$	395,340
U.S. government agencies		53,943		—		1,543		52,400
Certificates of deposit		7,241		—		—		7,241
Total	$	456,623	$	3,582	$	5,224	$	454,981

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	408,165	$	9,528	$	661	$	417,032
U.S. government agencies		46,222		—		722		45,500
Certificates of deposit		7,991		—		—		7,991
Total	$	462,378	$	9,528	$	1,383	$	470,523

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

	March 31, 2018
	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	$	171,575	$	2,364	$	30,324	$	1,317	$	201,900	$	3,681
U.S. government agencies		41,626		992		10,775		551		52,400		1,543
Certificates of deposit		—		—		—		—		—		—
Total	$	213,201	$	3,356	$	41,099	$	1,868	$	254,300	$	5,224

	December 31, 2017
	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	$	34,755	$	123	$	31,251	$	538	$	66,006	$	661
U.S. government agencies		34,183		376		11,317		346		45,500		722
Certificates of deposit		—		—		—		—		—		—
Total	$	68,938	$	499	$	42,568	$	884	$	111,506	$	1,383

There were 169 securities, or 46% of the total (24 greater than 12 months), in an unrealized loss position as of March 31, 2018. There were 64 securities, or 17% of the total (24 greater than 12 months), in an unrealized loss position as of December 31, 2017. 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.

	March 31, 2018
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	16,224	$	16,320
Due after 1 year through 5 years		64,485		64,887
Due after 5 years through 10 years		253,486		254,514
Due after 10 years		122,428		119,260
Total	$	456,623	$	454,981

Proceeds from sales of investment securities classified as available for sale were $9,543,000 and $0 for the three months ended March 31, 2018 and 2017, respectively. Gross realized gains were $13,000 and $0 for the three months ended March 31, 2018 and 2017, respectively. There was one security totaling $3,750,000 pledged to secure public deposits and for other purposes at March 31, 2018.