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Investment in Securities
 9 Months Ended
Sep. 30, 2017
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:

      September 30, 2017
      Gross       Gross      
Amortized Unrealized Unrealized
(In thousands) Cost Gains Losses Fair Value
State and political subdivisions $      406,833 $      11,086 $      924 $      416,995
U.S. government agencies 32,241 — 409 31,832
Certificates of deposit 8,241 — — 8,241
Total $ 447,315 $ 11,086 $ 1,333 $ 457,068


 

      December 31, 2016
      Gross       Gross      
Amortized Unrealized Unrealized
(In thousands) Cost Gains Losses Fair Value
State and political subdivisions $      368,223 $      5,239 $      3,328 $      370,134
U.S. government agencies 13,075 — 403 12,672
Certificates of deposit 7,746 — — 7,746
Total $ 389,044 $ 5,239 $ 3,731 $ 390,552

 

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

      September 30, 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 $      33,567 $     336 $      16,288 $      588 $      49,855 $      924
U.S. government agencies 29,162 338 2,670 71 31,832 409
Certificates of deposit — — — — — —
Total $ 62,729 $ 674 $ 18,958 $ 659 $ 81,687 $ 1,333
 
December 31, 2016
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 $ 140,384 $ 3,328 $ — $ — $ 140,384 $ 3,328
U.S. government agencies 12,672 403 — — 12,672 403
Certificates of deposit — — — — — —
Total $ 153,056 $ 3,731 $ — $ — $ 153,056 $ 3,731

 

There were 44 securities, or 12% of the total (13 greater than 12 months), in an unrealized loss position as of September 30, 2017. There were 108 securities, or 31% of the total (none greater than 12 months), in an unrealized loss position as of December 31, 2016. 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.

      September 30, 2017
(In thousands) Amortized Cost       Fair Value
Due in 1 year or less $      22,366 $      22,562
Due after 1 year through 5 years 56,315 57,476
Due after 5 years through 10 years 237,366 245,720
Due after 10 years 131,268 131,310
Total $ 447,315 $ 457,068

 

There were no sales of investment securities classified as available for sale for the three months ended September 30, 2017 or 2016. Proceeds from sales of investment securities classified as available for sale were $0 and $21,491,000 for the nine months ended September 30, 2017 and 2016, respectively. There were no gross realized gains for the three months ended September 30, 2017 or 2016. Gross gains realized were $0 and $387,000 for the nine months ended September 30, 2017 and 2016, respectively. There was one security totaling $3,750,000 pledged to secure public deposits and for other purposes at September 30, 2017.