4. Investments:

The amortized cost and fair value of securities at June 30, 2013 and December 31, 2012, are as follows (in thousands):


June 30, 2013	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Debt securities:
U.S. Treasuries	$	43,734	$	24	$	(652	)	$	43,106
U.S. Government agencies		165,749		835		(6,417	)		160,167
Mortgage-backed securities		42,764		159		(1,058	)		41,865
States and political subdivisions		35,268		1,265		(3	)		36,530

Total debt securities		287,515		2,283		(8,130	)		281,668
Equity securities		650							650

Total available for sale securities	$	288,165	$	2,283	$	(8,130	)	$	282,318

Held to maturity securities:
States and political subdivisions	$	9,732	$	22	$	(476	)	$	9,278

Total held to maturity securities	$	9,732	$	22	$	(476	)	$	9,278


December 31, 2012	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale securities:
Debt securities:
U.S. Treasuries	$	53,661	$	490	$	(55	)	$	54,096
U.S. Government agencies		147,652		1,810		(364	)		149,098
Mortgage-backed securities		16,903		538					17,441
States and political subdivisions		35,433		2,158					37,591

Total debt securities		253,649		4,996		(419	)		258,226
Equity securities		650							650

Total available for sale securities	$	254,299	$	4,996	$	(419	)	$	258,876

Held to maturity securities:
States and political subdivisions	$	7,125	$	112	$	(12	)	$	7,225

Total held to maturity securities	$	7,125	$	112	$	(12	)	$	7,225

The amortized cost and fair value of debt securities at June 30, 2013 (in thousands), by contractual maturity, are shown on the next page. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Fair Value
Available for sale securities:
Due in one year or less	$	13,898	$	13,998
Due after one year through five years		63,157		63,282
Due after five years through ten years		72,436		72,389
Due after ten years		95,260		90,134
Mortgage-backed securities		42,764		41,865

Totals	$	287,515	$	281,668

Held to maturity securities:
Due in one year or less	$	1,013	$	1,022
Due after one year through five years		1,777		1,773
Due after five years through ten years		3,492		3,353
Due after ten years		3,450		3,130

Totals	$	9,732	$	9,278

Available for Sale and Held to Maturity Securities with gross unrealized losses at June 30, 2013 and December 31, 2012, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows (in thousands):


	Less Than Twelve Months				Over Twelve Months		Total
	Fair Value		Gross Unrealized Losses		Fair Value	Gross Unrealized Losses	Fair Value		Gross Unrealized Losses
June 30, 2013:
U.S. Treasuries	$	30,082	$	652	$	$	$	30,082	$	652
U.S. Government agencies		117,322		6,417				117,322		6,417
Mortgage-backed securities		35,002		1,058				35,002		1,058
States and political subdivisions		7,974		479				7,974		479

TOTAL	$	190,380	$	8,606	$	$	$	190,380	$	8,606

December 31, 2012:
U.S. Treasuries	$	9,887	$	55	$	$	$	9,887	$	55
U.S. Government agencies		30,335		364				30,335		364
States and political subdivisions		1,451		12				1,451		12

TOTAL	$	41,673	$	431	$	$	$	41,673	$	431

At June 30, 2013, 7 of the 10 securities issued by the U.S. Treasury, 24 of the 33 securities issued by U.S. Government agencies, 8 of the 10 mortgage-backed securities and 29 of the 147 securities issued by states and political subdivisions contained unrealized losses.

Management evaluates securities for other-than-temporary impairment on a monthly basis. In performing this evaluation, the length of time and the extent to which the fair value has been less than cost, the fact that the Company’s securities are primarily issued by U.S. Treasury and U.S. Government Agencies and the cause of the decline in value are considered. In addition, the Company does not intend to sell and it is not more likely than not that it will be required to sell these securities before maturity. While some available for sale securities have been sold for liquidity purposes or for gains, the Company has traditionally held its securities, including those classified as available for sale, until maturity. As a result of the evaluation of these securities, the Company has determined that the unrealized losses summarized in the tables above are not deemed to be other-than-temporary.

Securities with a fair value of $275,804,907 and $241,879,775 at June 30, 2013 and December 31, 2012, respectively, were pledged to secure public deposits, federal funds purchased and other balances required by law.

Proceeds from the sale of available for sale debt securities were $24,989,844 and $44,771,114 for the six months ended June 30, 2013 and 2012, respectively. Available for sale debt securities were sold for a realized gain of $254,841 and $964,175 for the six months ended June 30, 2013 and 2012, respectively.