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:

	March 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized
*(In thousands)*	Cost		Gains		Losses		Fair Value
State and political subdivisions	$	327,139	$	8,585	$	181	$	335,543
U.S. government agencies		104,273		198		820		103,651
Certificates of deposit		1,995		—		—		1,995
Total	$	433,407	$	8,783	$	1,001	$	441,189

	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

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

	March 31, 2019
	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	$	—	$	—	$	22,617	$	181	$	22,617	$	181
U.S. government agencies		4,945		5		44,251		815		49,196		820
Certificates of deposit		—		—		—		—		—		—
Total	$	4,945	$	5	$	66,868	$	996	$	71,813	$	1,001

	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

There were 40 securities, or 13% of the total (39 greater than 12 months), in an unrealized loss position as of March 31, 2019. There were 169 securities, or 46% of the total (24 greater than 12 months), in an unrealized loss position as of March 31, 2018. 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.

	March 31, 2019
*(In thousands)*	Amortized Cost		Fair Value
Due in 1 year or less	$	17,585	$	17,607
Due after 1 year through 5 years		123,001		124,343
Due after 5 years through 10 years		241,321		248,393
Due after 10 years		51,500		50,846
Total	$	433,407	$	441,189

Proceeds from sales of investment securities classified as available for sale were $1,101,000 and $9,543,000 for the three months ended March 31, 2019 and 2018, respectively. Gross realized gains were $11,000 and $13,000 for the three months ended March 31, 2019 and 2018, respectively. There were no securities pledged to secure public deposits and for other purposes at March 31, 2019.