NOTE 3 - INVESTMENT SECURITIES: The amortized cost and fair values of investment securities, with gross unrealized gains and losses, consist of the following: Gross Gross Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value December 31, 2002 Securities available for sale: U.S. Government and federal agency obligations  $ 5,000 $ 157 $ – $ 5,157 Obligations of state and political subdivisions 25,506 438 (37)25,907 Mortgage backed securities 253,467 2,598 (425)255,640 Other debt securities 15,441 265 (74)15,632 Marketable equity securities 7,305 – (5)7,300 Total securities available for sale $306,719 $3,458 $(541)$309,636 Securities held to maturity: U.S. Government and federal agency obligations $ 10,000 $ 344 $ – $ 10,344 Obligations of state and political subdivisions 17,285 327 (72)17,540 Mortgage backed securities 31,201 1,515 – 32,716 Total securities held to maturity $ 58,486 $2,186 $ December 31, 2001 Securities available for sale: U.S. Treasury securities $ 5,002 $ 109 $ – $ 5,111 U.S. Government and federal agency obligations 34,998 Obligations of state and political subdivisions 7,823 Mortgage backed securities 125,449 1,476 (350)126,575 Other debt securities 38,332 325 (103)38,554 Marketable equity securities 7,084 – (12)7,072 Total securities available for sale $218,688 $1,915 Securities held to maturity: U.S. Government and federal agency obligations $ 34,248 Obligations of state and political subdivisions 13,202 Mortgage backed securities 54,582 841 – 55,423 Other debt securities 50 – – 50 Total securities held to maturity $102,082 $ 841 Securities with carrying values of $160,352,000 and $135,608,000 at December 31, 2002 and 2001, respectively were pledged to secure public deposits and other borrowings. 44