NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) NOTE 4 INVESTMENT SECURITIES continued The following table shows the Corporation’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2003: The amortized cost and fair value of securities available for sale and held to maturity at December 31, 2003, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities with a carrying value of approximately $158,474,000 and $136,269,000 were pledged at December 31, 2003 and 2002 to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. In addition, all otherwise unpledged securities are pledged as collateral for Federal Home Loan Bank advances with qualified first mortgage loans. Proceeds from sales of securities available for sale during 2003, 2002 and 2001 were $58,245,000, $21,363,000 and $770,000. Gross gains of $950,000 and $739,000 in 2003 and 2002 and gross losses of $200,000 in 2001, were realized on those sales. In addition, losses of $615,000 were recorded during 2003 due to a permanent decline in the values of two securities. ----------------------------------------------------------------------------------------------------------------------------------- AVAILABLE FOR SALE HELD TO MATURITY AMORTIZED COST FAIR VALUE AMORTIZED COST FAIR VALUE =================================================================================================================================== Maturity distribution at December 31, 2003: Due in one year or less.......................................... $ 17,557 $ 17,753 $ 1,485 $ 1,493 Due after one through five years ................................ 55,723 57,244 4,060 4,243 Due after five through ten years ................................ 41,274 43,851 1,086 1,247 Due after ten years ............................................. 44,528 47,567 1,229 1,266 -------- -------- -------- -------- 159,082 166,415 7,860 8,249 Mortgage-backed securities ...................................... 174,208 173,204 77 77 Marketable equity securities .................................... 9,237 9,241 -------- -------- -------- -------- Totals ........................................................ $342,527 $348,860 $ 7,937 $ 8,326 ======== ======== ======== ======== Less than 12 12 Months or Total Months Longer --------------------------------------------------------------------- GROSS GROSS GROSS FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED  VALUE LOSSES VALUE LOSSES VALUE LOSSES --------------------------------------------------------------------- Federal agencies .......................................... $ 7,410 $ (50) $ 747 $ (2) $ 8,157 $ (52) State and municipal ....................................... 2,547 (82) 166 (4) 2,713 (86) Mortgage-backed securities ................................ 90,148 (1,817)  90,148  (1,817) -------- ------- ------ ------- -------- ------- Total temporarily impaired investment securities ....... $100,105 $(1,949) $ 913 $ (6) $101,018 $(1,955) ======== ======= ====== ======= ======== ======== 37