Note 5. Investment Securities

The amortized cost and fair values of investment securities at June 30, 2013 and December 31, 2012 are as follows:

	June 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(In Thousands)	Cost		Gains		Losses			Value
Available for sale (AFS)
U.S. Government and agency securities	$	31,937	$	870	$	(293	)	$	32,514
State and political securities	164,477		4,611		(4,687		)	164,401
Other debt securities	103,860		933		(2,479		)	102,314
Total debt securities	300,274		6,414		(7,459		)	299,229
Financial institution equity securities	9,810		1,515		(4		)	11,321
Other equity securities	772		—		(33		)	739
Total equity securities	10,582		1,515		(37		)	12,060
Total investment securities AFS	$	310,856	$	7,929	$	(7,496	)	$	311,289

	December 31, 2012
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
(In Thousands)	Cost		Gains		Losses			Value
Available for sale (AFS)
U.S. Government and agency securities	$	24,475	$	1,384	$	(19	)	$	25,840
State and political securities	168,843		12,805		(1,424		)	180,224
Other debt securities	70,108		1,750		(259		)	71,599
Total debt securities	263,426		15,939		(1,702		)	277,663
Financial institution equity securities	8,422		1,140		(14		)	9,548
Other equity securities	2,068		74		(37		)	2,105
Total equity securities	10,490		1,214		(51		)	11,653
Total investment securities AFS	$	273,916	$	17,153	$	(1,753	)	$	289,316

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time, that the individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012.

	June 30, 2013
	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. Government and agency securities	$	15,150	$	(293	)	$	—	$	—		$	15,150	$	(293	)
State and political securities	41,588		(3,019		)	4,327		(1,668		)	45,915		(4,687		)
Other debt securities	60,578		(2,457		)	728		(22		)	61,306		(2,479		)
Total debt securities	117,316		(5,769		)	5,055		(1,690		)	122,371		(7,459		)
Financial institution equity securities	—		—			63		(4		)	63		(4		)
Other equity securities	739		(33		)	—		—			739		(33		)
Total equity securities	739		(33		)	63		(4		)	802		(37		)
Total	$	118,055	$	(5,802	)	$	5,118	$	(1,694	)	$	123,173	$	(7,496	)

	December 31, 2012
	Less than Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands)	Value		Losses			Value		Losses			Value		Losses
U.S. Government and agency securities	$	910	$	(19	)	$	—	$	—		$	910	$	(19	)
State and political securities	8,882		(316		)	5,647		(1,108		)	14,529		(1,424		)
Other debt securities	11,250		(189		)	3,727		(70		)	14,977		(259		)
Total debt securities	21,042		(524		)	9,374		(1,178		)	30,416		(1,702		)
Financial institution equity securities	66		(1		)	205		(13		)	271		(14		)
Other equity securities	701		(28		)	63		(9		)	764		(37		)
Total equity securities	767		(29		)	268		(22		)	1,035		(51		)
Total	$	21,809	$	(553	)	$	9,642	$	(1,200	)	$	31,451	$	(1,753	)

At June 30, 2013 there were a total of 182 and 13 individual securities that were in a continuous unrealized loss position for less than twelve months and twelve months or greater, respectively.

The Company reviews its position quarterly and has determined that, at June 30, 2013, the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe it will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that the unrealized losses disclosed above are not other than temporary but are the result of interest rate changes, sector credit ratings changes, or company-specific ratings changes that are not expected to result in the non-collection of principal and interest during the period.

The amortized cost and fair value of debt securities at June 30, 2013, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In Thousands)	Amortized Cost		Fair Value
Due in one year or less	$	6,180	$	6,197
Due after one year to five years	41,234		41,746
Due after five years to ten years	87,544		85,721
Due after ten years	165,316		165,565
Total	$	300,274	$	299,229

Total gross proceeds from sales of securities available for sale were $42,910,000 and $18,014,000, for the six months ended June 30, 2013 and 2012, respectively. The following table represents gross realized gains and losses on those transactions:

	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2013		2012		2013		2012
Gross realized gains:
U.S. Government and agency securities	$	—	$	—	$	—	$	138
State and political securities	1,062		45		1,641		51
Other debt securities	178		22		299		77
Financial institution equity securities	—		106		130		461
Other equity securities	34		—		250		126
Total gross realized gains	$	1,274	$	173	$	2,320	$	853

Gross realized losses:
U.S. Government and agency securities	$	—	$	—	$	—	$	—
State and political securities	—		2		60		2
Other debt securities	—		—		—		—
Financial institution equity securities	—		1		—		67
Other equity securities	—		—		—		25
Total gross realized losses	$	—	$	3	$	60	$	94

There were no impairment charges included in gross realized losses for the three and six months ended June 30, 2013 and 2012, respectively.