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notes to consolidated financial statements

 NOTE 3

Debt and Equity Securities:

    The amortized cost and estimated fair value of investments in debt securities are as follows:

	Amortized		Gross unrealized					Estimated
(in thousands)	cost		gains		losses			fair value
December 31, 2001
U.S. Treasury securities	$	30,665	$	1,525	$	(111	)	$	32,079
Corporate securities		142,476		3,352		(1,161	)		144,667
Obligations of states and
political subdivisions		38,904		631		(175	)		39,360
Mortgage-backed securities		40,859		120		(40	)		40,939
	$	252,904	$	5,628	$	(1,487	)	$	257,045
December 31, 2000
U.S. Treasury securities	$	39,133	$	1,303	$	(46	)	$	40,390
Corporate securities		112,715		762		(1,319	)		112,158
Obligations of states and
political subdivisions		30,700		476		(160	)		31,016
Mortgage-backed securities		26,354		27		(538	)		25,843
	$	208,902	$	2,568	$	(2,063	)	$	209,407

    The amortized cost and estimated fair value of debt securities at December 31, 2001, by contractual maturities, are as follows:

(in thousands)	Amortized cost		Estimated fair value
Due in one year or less	$	32,556	$	32,889
Due after one year through five years		80,356		82,406
Due after five years through ten years		71,671		73,297
Due after ten years		27,462		27,514
		212,045		216,106
Mortgage-backed securities		40,859		40,939
	$	252,904	$	257,045

    The cost and estimated fair value of investments in equity securities are as follows:

			Gross unrealized					Estimated
(in thousands)	Cost		gains		losses			fair value
December 31, 2001
Preferred stock:
Other	$	3,965	$	23	$	(221	)	$	3,767
Common stocks:
Corporate securities		47,947		10,433		(10,253	)		48,127
Other		108		12		–			120
	$	52,020	$	10,468	$	(10,474	)	$	52,014
December 31, 2000
Preferred stock:
Other	$	4,064	$	17	$	(417	)	$	3,664
Common stocks:
Corporate securities		44,842		14,711		(4,862	)		54,691
Other		256		109		–			365
	$	49,162	$	14,837	$	(5,279	)	$	58,720

    The fair value of debt and equity securities was estimated using quoted market prices. Sales of debt and equity securities resulted in realized gains of $0.6 million, $2.2 million and $3.5 million; and realized losses of $0.6 million, $4.8 million and $1.6 million for the years ended December 31, 2001, 2000 and 1999, respectively.