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 March 31, 2015 and December 31, 2014 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
March 31, 2015:
Carrying value:
U.S. Government sponsored agencies	$	—		29,904		20,114		201,168		251,186	2,093	(727	)	252,552	1.45	%
Residential mortgage-backed	—			65,101		79,250		895,399		1,039,750	18,814	(2,308	)	1,056,256	2.38
Commercial mortgage-backed	—			775		—		—		775	63	—		838	4.95
State and political subdivisions	511			569		—		28,356		29,436	26	(268	)	29,194	1.04
Corporate notes	38,640			67,069		81,388		24,449		211,546	2,870	(799	)	213,617	2.55
Equity investments	—			—		—		2,000		2,000	—	(15	)	1,985	2.14
Total	$	39,151		163,418		180,752		1,151,372		1,534,693	23,866	(4,117	)	1,554,442	2.23
Fair value:
Debt securities	$	39,606		166,357		184,307		1,162,187
Equity securities	—			—		—		1,985
Total	$	39,606		166,357		184,307		1,164,172

Weighted average yield	2.57		%	1.96	%	2.58	%	2.20	%

December 31, 2014:
Carrying value:
U.S. Government sponsored agencies	$	—		29,942		20,119		180,098		230,159	2,129	(557	)	231,731	1.39	%
Residential mortgage-backed	269			65,433		48,174		885,896		999,772	14,189	(6,117	)	1,007,844	2.39
Commercial mortgage-backed	—			779		—		—		779	58	—		837	4.95
State and political subdivisions	863			571		—		28,371		29,805	33	(223	)	29,615	1.05
Corporate notes	27,382			72,959		70,990		—		171,331	2,759	(395	)	173,695	2.75
Equity investments	—			—		—		2,000		2,000	—	(33	)	1,967	2.15
Total	$	28,514		169,684		139,283		1,096,365		1,433,846	19,168	(7,325	)	1,445,689	2.25
Fair value:
Debt securities	$	28,901		172,561		140,717		1,101,543
Equity securities	—			—		—		1,967
Total	$	28,901		172,561		140,717		1,103,510

Weighted average yield	2.64		%	1.97	%	2.58	%	2.23	%

Securities Held to Maturity. The amortized cost, contractual maturity, gross unrealized gains and losses and fair value of investment securities held to maturity at March 31, 2015 and December 31, 2014 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
March 31, 2015:
Carrying value:
U.S. Government sponsored agencies	$	—		—		10,001		—		10,001	64	—		10,065	1.29	%
Residential mortgage-backed	—			103,224		48,400		429,339		580,963	4,013	(1,984	)	582,992	1.89
State and political subdivisions	561			660		2,189		961		4,371	1	(88	)	4,284	1.78
Total	$	561		103,884		60,590		430,300		595,335	4,078	(2,072	)	597,341	1.88
Fair value:
Debt securities	$	561		104,797		61,100		430,883

Weighted average yield	3.07		%	1.93	%	1.25	%	1.95	%

December 31, 2014:
Carrying value:
U.S. Government sponsored agencies	$	—		—		10,725		—		10,725	42	—		10,767	1.25	%
Residential mortgage-backed	—			105,660		50,512		448,905		605,077	1,931	(5,782	)	601,226	1.86
State and political subdivisions	561			335		489		961		2,346	1	(68	)	2,279	1.68
Total	$	561		105,995		61,726		449,866		618,148	1,974	(5,850	)	614,272	1.85
Fair value:
Debt securities	$	561		106,147		62,000		445,564

Weighted average yield	3.07		%	1.88	%	1.13	%	1.94	%

Proceeds from sales of available-for-sale investment securities were $44.8 million and $166.3 million for the three months ended March 31, 2015 and 2014, respectively. Gross realized gains and gross realized losses on investment securities for the three months ended March 31, 2015 and 2014 were as follows:



	Three Months Ended
	March 31,
(dollars in thousands)	2015			2014
Gross realized gains on sales of available-for-sale securities	$	560		2,010
Gross realized losses on sales of available-for-sale securities	(517		)	(730	)
Net realized gain on investment securities	$	43		1,280

Residential and commercial mortgage-backed securities are primarily issued by U.S. government sponsored enterprises and U.S. government agencies. Investment securities with a carrying value of $366.4 million and $349.0 million at March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014, 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
March 31, 2015:
Available for sale:
U.S. Government sponsored agencies	$	86,684	(592	)	14,600	(135	)	101,284	(727	)
Residential mortgage-backed	66,185		(252	)	117,535	(2,056	)	183,720	(2,308	)
State and political subdivisions	28,087		(268	)	—	—		28,087	(268	)
Corporate notes	20,274		(756	)	4,957	(43	)	25,231	(799	)
Equity investments	1,985		(15	)	—	—		1,985	(15	)
Total	$	203,215	(1,883	)	137,092	(2,234	)	340,307	(4,117	)
Held to maturity:
Residential mortgage-backed	$	100,000	(386	)	119,905	(1,598	)	219,905	(1,984	)
State and political subdivisions	2,643		(27	)	899	(61	)	3,542	(88	)
Total	$	102,643	(413	)	120,804	(1,659	)	223,447	(2,072	)

December 31, 2014:
Available for sale:
U.S. Government sponsored agencies	$	79,207	(427	)	14,600	(130	)	93,807	(557	)
Residential mortgage-backed	204,378		(1,154	)	191,644	(4,963	)	396,022	(6,117	)
State and political subdivisions	28,148		(223	)	—	—		28,148	(223	)
Corporate notes	9,650		(350	)	4,955	(45	)	14,605	(395	)
Equity investments	1,967		(33	)	—	—		1,967	(33	)
Total	$	323,350	(2,187	)	211,199	(5,138	)	534,549	(7,325	)
Held to maturity:
Residential mortgage-backed	$	28,371	(112	)	325,820	(5,670	)	354,191	(5,782	)
State and political subdivisions	641		(3	)	896	(65	)	1,537	(68	)
Total	$	29,012	(115	)	326,716	(5,735	)	355,728	(5,850	)

The Company does not believe the investment securities that were in an unrealized loss position at March 31, 2015 and December 31, 2014 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 March 31, 2015 and December 31, 2014 included 27 and 47 securities, respectively.