SECURITIES
 12 Months Ended
Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
SECURITIES
 
The amortized cost and fair value of investment securities were as follows:
 
December 31, 2016
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(Dollars in thousands)
Available for Sale
 

 
 

 
 

 
 

U.S. Government and agency securities
$
5,883

 
$
266

 
$
—

 
$
6,149

Municipal securities
242,501

 
956

 
(5,655
)
 
237,802

Agency mortgage-backed pass-through securities
27,496

 
265

 
(437
)
 
27,324

Corporate bonds
45,271

 
77

 
(168
)
 
45,180

Total
$
321,151

 
$
1,564

 
$
(6,260
)
 
$
316,455


 
December 31, 2015
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(Dollars in thousands)
Available for Sale
 

 
 

 
 

 
 

U.S. Government and agency securities
$
8,674

 
$
412

 
$
—

 
$
9,086

Municipal securities
123,809

 
2,575

 
(35
)
 
126,349

Agency mortgage-backed pass-through securities
29,511

 
397

 
(246
)
 
29,662

Total
$
161,994

 
$
3,384

 
$
(281
)
 
$
165,097



As of December 31, 2016, the Company's management does not expect to sell any securities classified as available for sale with material unrealized losses; and the Company believes that it is more likely than not it will not be required to sell any of these securities before their anticipated recovery at which time the Company will receive full value for the securities. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2016, management believes the unrealized losses in the previous table are temporary and no other than temporary impairment loss has been realized in the Company’s consolidated statements of income.
 
The amortized cost and fair value of investment securities at December 31, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties.
 
Amortized
Cost
 
Fair
Value
 
(Dollars in thousands)
Due in one year or less
$
2,738

 
$
2,764

Due after one year through five years
74,501

 
74,190

Due after five years through ten years
87,551

 
85,645

Due after ten years
128,865

 
126,532

Subtotal
293,655

 
289,131

Agency mortgage-backed pass through securities
27,496

 
27,324

Total
$
321,151

 
$
316,455










Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows:
 
December 31, 2016
 
Less than 12 Months
 
More than 12 Months
 
Total
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
(Dollars in thousands)
Available for Sale
 

 
 

 
 

 
 

 
 

 
 

U.S. Government and agency securities
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Municipal securities
178,876

 
(5,655
)
 
—

 
—

 
178,876

 
(5,655
)
Agency mortgage-backed pass-through securities
12,520

 
(347
)
 
2,803

 
(90
)
 
15,323

 
(437
)
Corporate bonds
24,629

 
(168
)
 
—

 
—

 
24,629

 
(168
)
Total
$
216,025

 
$
(6,170
)
 
$
2,803

 
$
(90
)
 
$
218,828

 
$
(6,260
)
 
 
December 31, 2015
 
Less than 12 Months
 
More than 12 Months
 
Total
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
 
(Dollars in thousands)
Available for Sale
 

 
 

 
 

 
 

 
 

 
 

U.S. Government and agency securities
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Municipal securities
6,867

 
(30
)
 
298

 
(5
)
 
7,165

 
(35
)
Agency mortgage-backed pass-through securities
4,952

 
(36
)
 
9,519

 
(210
)
 
14,471

 
(246
)
Total
$
11,819

 
$
(66
)
 
$
9,817

 
$
(215
)
 
$
21,636

 
$
(281
)

 
As of December 31, 2016, the Company’s security portfolio consisted of 314 securities, two of which were mortgage-backed securities that were in an unrealized loss position for more than 12 months. There were no realized losses on these securities as the Company believes these securities are temporarily impaired due to changes in market interest rates. The majority of the securities in an unrealized loss position are related to the Company's municipal securities.
 
The Company sold $2.5 million in securities during 2016 and recorded a gain on the sale of $30 thousand. The Company sold $2.2 million in securities during 2015 and recorded a loss on the sale of $37 thousand. During the first quarter of 2015, the Company sold all securities acquired in the F&M Bancshares transaction resulting in gross proceeds of approximately $15.0 million. No gains or losses were recognized. The Company sold $2.0 million in securities in 2014 and recorded a gain on the sale of $82 thousand.
 
At December 31, 2016 and 2015, the Company did not own securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of the consolidated stockholders’ equity at such respective dates.
 
The carrying value of pledged securities was $4.9 million at December 31, 2016. The securities are pledged to further collateralize letters of credit issued by the Bank but confirmed by another financial institution. The Company did not have pledged securities at December 31, 2015.