XML 16 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Investment in Securities
 6 Months Ended
Jun. 30, 2013
Investment in 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 falls 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, 2013
        Gross   Gross      
  Amortized       Unrealized       Unrealized          
(In thousands) Cost   Gains   Losses   Fair Value
State and political subdivisions $       262,797   $       10,650   $       2,828   $       270,619
Certificates of deposit   5,809     -     -     5,809
       Total $ 268,606   $ 10,650   $ 2,828   $ 276,428

  December 31, 2012
            Gross       Gross          
  Amortized   Unrealized   Unrealized      
(In thousands) Cost   Gains   Losses   Fair Value
State and political subdivisions $       315,345   $       19,960   $       112   $       335,193
Certificates of deposit   6,742     -     -     6,742
       Total $ 322,087   $ 19,960   $ 112   $ 341,935

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

  June 30, 2013
  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 $       74,377   $       2,828   $       -   $       -   $       74,377   $       2,828
Certificates of deposit   -     -     -     -     -     -
       Total $ 74,377   $ 2,828   $ -   $ -   $ 74,377   $ 2,828

  December 31, 2012
  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 $       19,758   $       112   $       -   $       -   $       19,758   $       112
Certificates of deposit   -     -     -     -     -     -
       Total $ 19,758   $ 112   $ -   $ -   $ 19,758   $ 112

There were 71 securities, or 24% of the total (none greater than 12 months), in an unrealized loss position as of June 30, 2013. There were 18 securities, or 5% of the total (none greater than 12 months), in an unrealized loss position as of December 31, 2012. 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 the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery.

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, 2013
(In thousands) Amortized Cost       Fair Value
Due in 1 year or less $       15,436   $       15,627
Due after 1 year through 5 years   72,338     76,717
Due after 5 years through 10 years   128,561     131,142
Due after 10 years   52,271     52,942
       Total $ 268,606   $ 276,428

Proceeds from sales of investment securities classified as available for sale were $35,639,000 and $15,090,000 for the three months ended June 30, 2013 and 2012, respectively, and were $63,660,000 and $29,749,000 for the six months ended June 30, 2013 and 2012, respectively. Gross realized gains were $1,684,000 and $1,168,000 for the three months ended June 30, 2013 and 2012, respectively, and were $3,137,000 and $2,134,000 for the six months ended June 30, 2013 and 2012, respectively. There were two securities totaling $3,750,000 pledged to secure public deposits and for other purposes at June 30, 2013.