Investment in Securities

6 Months Ended

Jun. 30, 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:

	June 30, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	343,850	$	3,276	$	3,441	$	343,685
U.S. government agencies		91,778		8		1,848		89,938
Certificates of deposit		7,240		–		–		7,240
Total	$	442,868	$	3,284	$	5,289	$	440,863

	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:

	June 30, 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	$	156,545	$	2,140	$	30,194	$	1,301	$	186,739	$	3,441
U.S. government agencies		71,861		1,245		10,322		603		82,183		1,848
Total	$	228,406	$	3,385	$	40,516	$	1,904	$	268,922	$	5,289

	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
Total	$	68,938	$	499	$	42,568	$	884	$	111,506	$	1,383

There were 163 securities, or 49% of the total (24 greater than 12 months), in an unrealized loss position as of June 30, 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.

	June 30, 2018
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	16,570	$	16,678
Due after 1 year through 5 years		102,182		102,497
Due after 5 years through 10 years		216,399		217,126
Due after 10 years		107,717		104,562
Total	$	442,868	$	440,863

Proceeds from sales of investment securities classified as available-for-sale were $48,977,000 and $0 for the three months ended June 30, 2018 and 2017, respectively, and were $58,520,000 and $0 for the six months ended June 30, 2018 and 2017, respectively. Gross realized losses were $55,000 and $0 for the three months ended June 30, 2018 and 2017, respectively, and were $42,000 and $0 for the six months ended June 30, 2018 and 2017, respectively. There was one security totaling $3,750,000 pledged to secure public deposits and for other purposes at June 30, 2018.