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, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
*(In thousands)*	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	337,378	$	2,187	$	4,691	$	334,874
U.S. government agencies		108,158		—		2,337		105,821
Certificates of deposit		5,745		—		—		5,745
Total	$	451,281	$	2,187	$	7,028	$	446,440

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
*(In thousands)*	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	408,165	$	9,528	$	661	$	417,032
U.S. government agencies		46,222		—		722		45,500
Certificates of deposit		7,991		—		—		7,991
Total	$	462,378	$	9,528	$	1,383	$	470,523

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

	September 30, 2018
	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	$	178,137	$	2,905	$	36,804	$	1,786	$	214,941	$	4,691
U.S. government agencies		79,513		974		26,308		1,363		105,821		2,337
Total	$	257,650	$	3,879	$	63,112	$	3,149	$	320,762	$	7,028

	December 31, 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	$	34,755	$	123	$	31,251	$	538	$	66,006	$	661
U.S. government agencies		34,183		376		11,317		346		45,500		722
Total	$	68,938	$	499	$	42,568	$	884	$	111,506	$	1,383

There were 197 securities, or 61% of the total (35 greater than 12 months), in an unrealized loss position as of September 30, 2018. There were 64 securities, or 17% of the total (24 greater than 12 months), in an unrealized loss position as of December 31, 2017. 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, 2018
*(In thousands)*	Amortized Cost		Fair Value
Due in 1 year or less	$	13,741	$	13,782
Due after 1 year through 5 years		121,838		121,626
Due after 5 years through 10 years		232,821		231,333
Due after 10 years		82,881		79,699
Total	$	451,281	$	446,440

There were no sales of investment securities classified as available for sale for the three months ended September 30, 2018 or 2017. Proceeds from sales of investment securities classified as available for sale were $58,520,000 and $0 for the nine months ended September 30, 2018 and 2017, respectively. There were no gross realized gains for the three months ended September 30, 2018 or 2017. Gross realized losses were $42,000 and $0 for the nine months ended September 30, 2018 and 2017, respectively. There was one security totaling $3,750,000 pledged to secure public deposits and for other purposes at September 30, 2018.