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, 2018 and 2017 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, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
(In thousands)	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	332,732	$	3,791	$	1,806	$	334,717
U.S. government agencies		106,153		86		1,417		104,822
Certificates of deposit		1,995		—		—		1,995
Total	$	440,880	$	3,877	$	3,223	$	441,534

	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:

	December 31, 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	$	91,248	$	556	$	60,546	$	1,250	$	151,794	$	1,806
U.S. government agencies		30,409		130		38,005		1,287		68,414		1,417
Certificates of deposit		—		—		—		—		—		—
Total	$	121,657	$	686	$	98,551	$	2,537	$	220,208	$	3,223

	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
Certificates of deposit		—		—		—		—		—		—
Total	$	68,938	$	499	$	42,568	$	884	$	111,506	$	1,383

There were 136 securities, or 43% of the total (61 greater than 12 months), in an unrealized loss position as of December 31, 2018 compared to 64 securities, or 17% (24 greater than 12 months), in an unrealized loss position as of December 31, 2017. 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, the Company does not have the intent to sell the security, 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 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, 2018
(In thousands)	Amortized Cost		Fair Value
Due in 1 year or less	$	7,956	$	7,987
Due after 1 year through 5 years		125,746		126,252
Due after 5 years through 10 years		242,119		244,118
Due after 10 years		65,059		63,177
No stated maturity		—		—
Total	$	440,880	$	441,534

The premium related to the purchase of state and political subdivisions was $6,857,000 and $7,147,000 in 2018 and 2017, respectively.

The amortized cost of debt securities pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes at December 31, 2018 was $0 and at December 31, 2017 was $3,750,000.

Proceeds from sales of debt securities classified as available-for-sale were $58,520,000 in 2018, $0 in 2017, and $21,491,000 in 2016. Gross realized gains on the sales in 2018, 2017 and 2016 were $180,000, $0, and $387,000, respectively. Gross realized losses on sales in 2018, 2017 and 2016 were $222,000, $0, and $0, respectively.