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Investment in Securities

12 Months Ended

Dec. 31, 2011

Note 3
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 at December 31, 2011 and 2010 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 falls into the Level 2 category. The table below presents the balances of securities available-for-sale measured at fair value on a recurring basis. The amortized cost, gross unrealized gains, gross unrealized losses and fair value of debt and equity securities are summarized as follows:

	December 31, 2011
			Gross			Gross
	Amortized		Unrealized			Unrealized
(In thousands)	Cost		Gains			Losses	Fair Value
State and political subdivisions	$	287,585	$	19,797	$	20	$	307,362
Certificates of deposit		3,250		—		—		3,250
Total	$	290,835	$	19,797	$	20	$	310,612

	December 31, 2010
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	255,929	$	9,829	$	1,189	$	264,569
Total	$	255,929	$	9,829	$	1,189	$	264,569

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

	December 31, 2011
	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	$	4,362	$	20	$	—	$	—	$	4,362	$	20
Certificates of deposit		—		—		—		—		—		—
Total	$	4,362	$	20	$	—	$	—	$	4,362	$	20

	December 31, 2010
	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	$	53,741	$	1,189	$	—	$	—	$	53,741	$	1,189
Total	$	53,741	$	1,189	$	—	$	—	$	53,741	$	1,189

There were 7 securities (none greater than 12 months) in an unrealized loss position as of December 31, 2011 compared to 61 securities (none greater than 12 months) in an unrealized loss position as of December 31, 2010 . All unrealized losses are reviewed to determine whether the losses are other than temporary. Management believes that all unrealized losses are temporary since they are market driven and the Company has the ability and intent to hold these securities until maturity.

The amortized cost and fair value of debt and equity 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.

	December 31, 2011
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	16,289	$	16,512
Due after 1 year through 5 years		41,109		44,131
Due after 5 years through 10 years		114,454		124,680
Due after 10 years		118,983		125,289
No stated maturity		—		—
Total	$	290,835	$	310,612

The amortized cost of debt securities pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes at December 31, 2011 and 2010 were $3,250,000 and $27,776,000 respectively.

Proceeds from sales of debt securities classified as available-for-sale were $5,930,000 in 2011, $0 in 2010, and $21,906,000 in 2009. Gross realized gains on the sales in 2011, 2010 and 2009 were $48,000, $0 and $699,000, respectively; gross realized losses on sales in 2011, 2010 and 2009 were $5,000, $0 and $2,000, respectively.