INVESTMENTS

The following table presents the amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale:



	September 30, 2011
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross UnrealizedLosses			Fair Value
Available for sale securities:
Obligations of U.S. Government sponsored enterprises	$	29,636	$	34	$	(13	)	$	29,657
Obligations of states and political subdivisions	34,999		1,321		(380		)	35,940
Residential mortgage-backed securities	390,505		6,597		(216		)	396,886
	$	455,140	$	7,952	$	(609	)	$	462,483

	December 31, 2010
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross UnrealizedLosses			Fair Value
Available for sale securities:
Obligations of U.S. Government agencies	$	444	$	9	$	—		$	453
Obligations of U.S. Government sponsored enterprises	32,880		9		(770		)	32,119
Obligations of states and political subdivisions	18,486		45		(855		)	17,676
Residential mortgage-backed securities	310,636		2,656		(1,994		)	311,298
	$	362,446	$	2,719	$	(3,619	)	$	361,546

At September 30, 2011 and December 31, 2010, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than the U.S. government agencies and sponsored enterprises. The residential mortgage-backed securities are all issued by U.S. government sponsored enterprises. Available for sale securities having a carrying value of $243.4 million and $249.6 million at September 30, 2011 and December 31, 2010, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions.

The amortized cost and estimated fair value of debt securities classified as available for sale at September 30, 2011, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 4 years.



(in thousands)	Amortized Cost		Estimated Fair Value
Due in one year or less	$	7,644	$	7,667
Due after one year through five years	25,097		25,361
Due after five years through ten years	26,703		27,611
Due after ten years	5,191		4,958
Mortgage-backed securities	390,505		396,886
	$	455,140	$	462,483

The following table represents a summary of available-for-sale investment securities that had an unrealized loss:



	September 30, 2011
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government sponsored enterprises	$	8,104	$	13	$	—	$	—	$	8,104	$	13
Obligations of the state and political subdivisions	2,077		5		3,025		375		5,102		380
Residential mortgage-backed securities	58,813		216		—		—		58,813		216
	$	68,994	$	234	$	3,025	$	375	$	72,019	$	609

	December 31, 2010
	Less than 12 months				12 months or more				Total
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government sponsored enterprises	$	27,100	$	770	$	—	$	—	$	27,100	$	770
Obligations of the state and political subdivisions	11,329		420		2,965		435		14,294		855
Residential mortgage-backed securities	133,893		1,994		—		—		133,893		1,994
	$	172,322	$	3,184	$	2,965	$	435	$	175,287	$	3,619

The unrealized losses at both September 30, 2011 and December 31, 2010, were attributable to changes in market interest rates since the securities were purchased. Management systematically evaluates investment securities for other-than-temporary declines in fair value on a quarterly basis. This analysis requires management to consider various factors, which include (1) the present value of the cash flows expected to be collected compared to the amortized cost of the security, (2) duration and magnitude of the decline in value, (3) the financial condition of the issuer or issuers, (4) structure of the security and (5) the intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value. At September 30, 2011, management performed its quarterly analysis of all securities with an unrealized loss and concluded no individual securities were other-than-temporarily impaired.

The gross gains and gross losses realized from sales of available-for-sale investment securities were as follows:



	Three months ended September 30,				Nine months ended September 30,
(in thousands)	2011		2010		2011		2010
Gross gains realized	$	768	$	124	$	1,448	$	1,206
Gross losses realized	—		—		—		—
Proceeds from sales	49,033		3,258		84,456		98,340