2.	INTEREST-BEARING TIME DEPOSITS IN BANKS AND SECURITIES:

Interest-bearing time deposits in banks totaled $49,005,000 and $61,175,000 at December 31, 2012 and 2011, respectively, and have original maturities generally ranging from one to two years. Of these amounts, $44,776,000 and $51,813,000, respectively, are time deposits with balances greater than $100,000 at December 31, 2012 and 2011.

A summary of the Company’s available-for-sale and held-to-maturity securities as of December 31, 2012 and 2011 are as follows (in thousands):


	December 31, 2012
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value

Securities available-for-sale:

U. S. Treasury securities	$	6,042	$	48	$	—		$	6,090

Obligations of U.S. government sponsored-enterprises and agencies		219,420		4,060		—			223,480

Obligations of state and political subdivisions		786,278		57,541		(129	)		843,690

Corporate bonds and other		117,244		6,020		(73	)		123,191

Residential mortgage-backed securities		564,434		23,285		(443	)		587,276

Commercial mortgage-backed securities		33,819		1,739		(250	)		35,308


Total securities available-for-sale	$	1,727,237	$	92,693	$	(895	)	$	1,819,035


Securities held-to-maturity:

Obligations of state and political subdivisions	$	735	$	7	$	—		$	742

Residential mortgage-backed securities		294		11		—			305

Commercial mortgage-backed securities		32		1		—			33


Total debt securities held-to-maturity	$	1,061	$	19	$	—		$	1,080


	December 31, 2011
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value

Securities available-for-sale:

U. S. Treasury Securities	$	15,143	$	204	$	—		$	15,347

Obligations of U.S. government sponsored-enterprises and agencies		255,548		5,802		(4	)		261,346

Obligations of state and political subdivisions		655,957		48,812		(98	)		704,671

Corporate bonds and other		127,514		4,215		(255	)		131,474

Residential mortgage-backed securities		681,277		24,247		(89	)		705,435

Commercial mortgage-backed securities		22,003		1,113		—			23,116


Total securities available-for-sale	$	1,757,442	$	84,393	$	(446	)	$	1,841,389


Securities held-to-maturity:

Obligations of state and political subdivisions	$	3,187	$	30	$	—		$	3,217

Residential mortgage-backed securities		358		14		—			372

Commercial mortgage-backed securities		64		2		—			66


Total debt securities held-to-maturity	$	3,609	$	46	$	—		$	3,655

The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at December 31, 2012, were computed by using scheduled amortization of balances and historical prepayment rates. At December 31, 2012 and 2011, the Company did not hold any CMOs that entail higher risks than standard mortgage-backed securities.

The amortized cost and estimated fair value of debt securities at December 31, 2012, by contractual and expected maturity, are shown below (in thousands):


	Available-for-Sale				Held-to-Maturity
	Amortized Cost Basis		Estimated Fair Value		Amortized Cost Basis		Estimated Fair Value

Due within one year	$	156,237	$	158,605	$	655	$	658
Due after one year through five years		494,482		514,761		80		84
Due after five years through ten years		467,185		509,127		—		—
Due after ten years		11,080		13,958		—		—
Mortgage-backed securities		598,253		622,584		326		338

Total	$	1,727,237	$	1,819,035	$	1,061	$	1,080

The following table discloses, as of December 31, 2012 and 2011, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands):


	Less than 12 Months				12 Months or Longer				Total
December 31, 2012	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss

Obligations of state and political subdivisions	$	36,480	$	129	$	—	$	—	$	36,480	$	129
Residential mortgage-backed securities		17,344		401		3,574		42		20,918		443
Commercial mortgage-backed securities		12,453		250		—		—		12,453		250
Corporate bonds and other		4,994		73		—		—		4,994		73

Total	$	71,271	$	853	$	3,574	$	42	$	74,845	$	895


	Less than 12 Months				12 Months or Longer				Total
December 31, 2011	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss

Obligations of U. S. government sponsored-enterprises and agencies	$	3,114	$	4	$	—	$	—	$	3,114	$	4
Obligations of state and political subdivisions		9,595		98		—		—		9,595		98
Residential mortgage-backed securities		13,722		89		—		—		13,722		89
Corporate bonds and other		17,533		255		—		—		17,533		255

Total	$	43,964	$	446	$	—	$	—	$	43,964	$	446

The number of investment positions in this unrealized loss position totaled 90 at December 31, 2012. We do not believe these unrealized losses are “other than temporary” as (i) we do not have the intent to sell our securities prior to recovery and/or maturity and, (ii) it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. In making this determination, we also consider the length of time and extent to which fair value has been less than cost and the financial condition of the issuer. The unrealized losses noted are interest rate related due to the level of interest rates at December 31, 2012 compared to the time of purchase. We have reviewed the ratings of the issuers and have not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies.

Securities, carried at approximately $843,859,000 and $829,074,000 at December 31, 2012 and 2011, respectively, were pledged as collateral for public or trust fund deposits, securities sold under agreements to repurchase and for other purposes required or permitted by law.

During 2012, 2011, and 2010, sales of investment securities that were classified as available-for-sale totaled approximately $144,144,000, $22,970,000, and $28,039,000 respectively. Gross realized gains from 2012, 2011, and 2010, securities sales were approximately $2,816,000, $505,000, and $363,000, respectively. Gross realized losses from 2012 and 2011 securities sales were approximately $44,000 and $13,000, respectively. There were no losses on securities sales in 2010. The specific identification method was used to determine cost in computing the realized gains and losses.