INVESTMENTS IN DEBT AND EQUITY SECURITIES

Securities Available for Sale. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities available for sale at September 30, 2014 and December 31, 2013 were as follows:



	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
(dollars in thousands)	or Less			Years		Years		10 Years			Gains	Losses		Value
September 30, 2014:
Carrying value:
U.S. Government sponsored agencies	$	8,355		29,981		20,125		155,035		213,496	3,989	(292	)	217,193	1.33	%
Residential mortgage-backed	270			65,773		43,199		914,904		1,024,146	14,034	(10,613	)	1,027,567	2.37
Commercial mortgage-backed	—			782		—		—		782	55	—		837	4.95
State and political subdivisions	1,612			838		—		28,387		30,837	74	—		30,911	1.15
Corporate notes	11,961			109,536		57,998		—		179,495	4,345	(505	)	183,335	2.81
Equity investments	—			—		—		1,750		1,750	—	(41	)	1,709	2.10
Total	$	22,198		206,910		121,322		1,100,076		1,450,506	22,497	(11,451	)	1,461,552	2.25
Fair value:
Debt securities	$	22,430		211,554		121,748		1,104,111
Equity securities	—			—		—		1,709
Total	$	22,430		211,554		121,748		1,105,820

Weighted average yield	2.54		%	2.27	%	2.27	%	2.23	%

December 31, 2013:
Carrying value:
U.S. Government sponsored agencies	$	8,450		40,243		88,666		135,679		273,038	3,525	(664	)	275,899	1.34	%
Residential mortgage-backed	—			43,943		115,731		951,454		1,111,128	12,873	(18,214	)	1,105,787	2.32
Commercial mortgage-backed	—			—		793		—		793	63	—		856	4.94
State and political subdivisions	1,369			2,035		200		28,432		32,036	81	(560	)	31,557	1.26
Corporate notes	4,980			140,575		45,132		—		190,687	5,777	(261	)	196,203	2.69
Equity investments	—			—		—		1,500		1,500	—	(57	)	1,443	2.17
Total	$	14,799		226,796		250,522		1,117,065		1,609,182	22,319	(19,756	)	1,611,745	2.18
Fair value:
Debt securities	$	14,927		233,338		250,860		1,111,177
Equity securities	—			—		—		1,443
Total	$	14,927		233,338		250,860		1,112,620

Weighted average yield	2.17		%	2.23	%	1.81	%	2.24	%

Securities Held to Maturity. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at September 30, 2014 and December 31, 2013 were as follows:



	Maturity									Total Amortized Cost	Gross				Weighted Average Yield
	1 Year			1-5		5-10		After			Unrealized			Fair
(dollars in thousands)	or Less			Years		Years		10 Years			Gains	Losses		Value
September 30, 2014:
Carrying value:
U.S. Government sponsored agencies	$	—		—		11,713		—		11,713	—	(77	)	11,636	1.22	%
Residential mortgage-backed	—			133,567		52,574		467,145		653,286	1,247	(10,580	)	643,953	1.89
State and political subdivisions	521			820		489		1,002		2,832	1	(79	)	2,754	1.84
Total	$	521		134,387		64,776		468,147		667,831	1,248	(10,736	)	658,343	1.88
Fair value:
Debt securities	$	521		133,995		64,713		459,114

Weighted average yield	2.62		%	1.88	%	1.12	%	1.98	%

December 31, 2013:
Carrying value:
U.S. Government sponsored agencies	$	—		—		16,119		—		16,119	—	(153	)	15,966	1.14	%
Residential mortgage-backed	—			16,327		182,933		522,504		721,764	441	(21,206	)	700,999	1.88
State and political subdivisions	640			575		55		1,033		2,303	2	(87	)	2,218	1.93
Total	$	640		16,902		199,107		523,537		740,186	443	(21,446	)	719,183	1.86
Fair value:
Debt securities	$	642		16,926		195,647		505,968

Weighted average yield	3.32		%	2.20	%	1.53	%	1.97	%

Proceeds from sales of available-for-sale investment securities were zero and $166.3 million for the three and nine months ended September 30, 2014, respectively, compared to $25.1 million and $143.7 million for the comparable periods in 2013. Gross realized gains and gross realized losses on investment securities for the three and nine months ended September 30, 2014 and 2013 were as follows:



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
(dollars in thousands)	2014			2013		2014		2013
Gross realized gains on sales of available-for-sale securities	$	—		110		2,010		802
Gross realized losses on sales of available-for-sale securities	—			—		(730	)	(354	)
Other-than-temporary impairment	(1		)	(2	)	(2	)	(411	)
Net realized (loss) gain on investment securities	$	(1	)	108		1,278		37

Other-than-temporary impairment for the nine months ended September 30, 2013 includes impairment of $407,000 recorded during the first quarter of 2013 on a municipal investment security classified as held-to-maturity. Investment securities with a carrying value of $311.4 million and $283.7 million at September 30, 2014 and December 31, 2013, respectively, were pledged in connection with deposits of public and trust funds, securities sold under agreements to repurchase and for other purposes as required by law.

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2014 and December 31, 2013, were as follows:



	Less Than 12 Months				12 Months or More			Total
(dollars in thousands)	Fair Value		Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
September 30, 2014:
Available for sale:
U.S. Government sponsored agencies	$	24,573	(273	)	14,707	(19	)	39,280	(292	)
Residential mortgage-backed	179,472		(1,076	)	259,445	(9,537	)	438,917	(10,613	)
Corporate notes	12,079		(421	)	9,916	(84	)	21,995	(505	)
Equity investments	1,709		(41	)	—	—		1,709	(41	)
Total	$	217,833	(1,811	)	284,068	(9,640	)	501,901	(11,451	)
Held to maturity:
U.S. Government sponsored agencies	$	11,636	(77	)	—	—		11,636	(77	)
Residential mortgage-backed	179,822		(1,651	)	342,062	(8,929	)	521,884	(10,580	)
State and political subdivisions	512		(3	)	926	(76	)	1,438	(79	)
Total	$	191,970	(1,731	)	342,988	(9,005	)	534,958	(10,736	)

December 31, 2013:
Available for sale:
U.S. Government sponsored agencies	$	16,005	(664	)	—	—		16,005	(664	)
Residential mortgage-backed	511,617		(18,119	)	5,473	(95	)	517,090	(18,214	)
State and political subdivisions	27,872		(560	)	—	—		27,872	(560	)
Corporate notes	9,959		(41	)	4,780	(220	)	14,739	(261	)
Equity investments	1,443		(57	)	—	—		1,443	(57	)
Total	$	566,896	(19,441	)	10,253	(315	)	577,149	(19,756	)
Held to maturity:
U.S. Government sponsored agencies	$	15,966	(153	)	—	—		15,966	(153	)
Residential mortgage-backed	644,700		(20,759	)	10,527	(447	)	655,227	(21,206	)
State and political subdivisions	946		(87	)	—	—		946	(87	)
Total	$	661,612	(20,999	)	10,527	(447	)	672,139	(21,446	)

The Company does not believe the investment securities that were in an unrealized loss position at September 30, 2014 and December 31, 2013 are other-than-temporarily impaired. The unrealized losses on the investment securities were primarily attributable to fluctuations in interest rates. It is expected that the securities would not be settled at a price less than the amortized cost. Because the decline in fair value is attributable to changes in interest rates and not credit loss, and because the Company does not intend to sell these investments and it is more likely than not that First Bank will not be required to sell these securities before the anticipated recovery of the remaining amortized cost basis or maturity, these investments are not considered other-than-temporarily impaired. The unrealized losses for investment securities for 12 months or more at September 30, 2014 and December 31, 2013 included 52 and 12 securities, respectively.