Note 3 - Investment Securities
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
(3)
Investment Securities
The following is a summary of the Bank’s investment securities portfolio as of
December
31,
2016
and
2015
(000s
omitted):
 
 
 
Held to Maturity
 
 
 
December 31, 2016
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
Obligations of States and Political                                
Subdivisions
    
40,241
     
701
     
(288
 )    
40,654
 
Corporate Debt Securities    
500
     
2
     
-
     
502
 
    $
40,741
    $
703
    $
(288
 )   $
41,156
 
 
 
 
Held to Maturity
 
 
 
December 31, 2015
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
Obligations of States and Political
                                
Subdivisions
    
40,782
     
1,333
     
(178
 )    
41,937
 
Corporate Debt Securities
    
500
     
-
     
-
     
500
 
    $
41,282
    $
1,333
    $
(178
 )   $
42,437
 
 
 
 
 
Available for Sale
 
 
 
December 31, 2016
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
Obligations of U.S. Government Agencies
   $
282,130
    $
389
    $
(7,519
 )   $
275,000
 
Mortgage Backed Securities issued by U.S. Government Agencies
    
148,764
     
118
     
(2,673
 )    
146,209
 
Obligations of States and Political Subdivisions
    
30,909
     
109
     
(409
 )    
30,609
 
Corporate Debt Securities
    
34,363
     
135
     
(338
 )    
34,160
 
Other Securities
    
2,044
     
45
     
-
     
2,089
 
    $
498,210
    $
796
    $
(10,939
 )   $
488,067
 
 
 
 
Available for Sale
 
 
 
December 31, 2015
 
 
 
 
 
 
 
Gross
 
 
Gross
 
 
Estimated
 
 
 
Amortized
 
 
Unrealized
 
 
Unrealized
 
 
Fair
 
 
 
Cost
 
 
Gains
 
 
Losses
 
 
Value
 
Obligations of U.S. Government Agencies
   $
370,469
    $
1,647
    $
(3,055
 )   $
369,061
 
Mortgage Backed Securities issued by U.S. Government Agencies
    
104,472
     
107
     
(1,327
 )    
103,252
 
Obligations of States and Political Subdivisions
    
17,212
     
305
     
(48
 )    
17,469
 
Corporate Debt Securities
    
5,000
     
-
     
(50
 )    
4,950
 
Other Securities
    
2,044
     
83
     
-
     
2,127
 
    $
499,197
    $
2,142
    $
(4,480
 )   $
496,859
 
 
The amortized cost, estimated fair value, and weighted average yield of securities at
December
31,
2016,
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
(000s
omitted).
 
 
    
 
Held to Maturity
 
 
Available for Sale
 
 
    
 
 
 
 
 
Estimated
 
 
Weighted
 
 
 
 
 
 
Estimated
 
 
Weighted
 
 
    
 
Amortized
 
 
Fair
 
 
Average
 
 
Amortized
 
 
Fair
 
 
Average
 
 
    
 
Cost
 
 
Value
 
 
Yield
 
 
Cost
 
 
Value
 
 
Yield
 
Maturing within
    
 
      
 
      
 
      
 
      
 
      
 
  
1 year
   $
11,791
    $
11,798
     
1.30
 %   $
4,493
    $
4,492
     
1.27
 %
1
through
5 years
    
19,891
     
20,009
     
2.46
 %    
155,879
     
154,113
     
1.72
 %
6
through
10 years
    
7,722
     
8,017
     
3.49
 %    
180,022
     
174,304
     
2.16
 %
Over 10 years
    
1,337
     
1,332
     
3.51
 %    
7,008
     
6,860
     
1.47
 %
Total
    
40,741
     
41,156
     
2.35
 %    
347,402
     
339,769
     
1.94
 %
Mortgage Backed Securities
    
-
     
-
     
0.00
 %    
148,764
     
146,209
     
2.09
 %
Securities with no stated maturity
    
-
     
-
     
0.00
 %    
2,044
     
2,089
     
0.00
 %
Total
   $
40,741
    $
41,156
     
2.35
 %   $
498,210
    $
488,067
     
1.97
 %
 
The investment securities portfolio is evaluated for impairment throughout the year. Impairment is recorded against individual securities, unless the decrease in fair value is attributable to interest rates or the lack of an active market, and management determines that the Company has the intent and ability to hold the investment for a period of time sufficient to allow for an anticipated recovery in the fair value. The fair values of investments with an amortized cost in excess of their fair values at
December
31,
2016
and
December
31,
2015
are as follows
(000s
omitted):
 
December 31, 2016
  
                                                 
 
 
Less than 12 months
 
 
12 months or longer
 
 
Total
 
 
 
Aggregate Fair Value
 
 
Gross Unrealized Losses
 
 
Aggregate Fair Value
 
 
Gross Unrealized Losses
 
 
Aggregate Fair Value
 
 
Gross Unrealized Losses
 
Obligations of United States Government Agencies
   $
242,212
    $
7,519
    $
-
    $
-
    $
242,212
    $
7,519
 
Mortgage Backed Securities issued by U.S. Government Agencies
    
112,995
     
2,144
     
22,857
     
529
     
135,852
     
2,673
 
Obligations of States and Political Subdivisions
    
40,524
     
682
     
2,976
     
15
     
43,500
     
697
 
Corporate Debt Securities
    
24,025
     
338
     
-
     
-
     
24,025
     
338
 
    $
419,756
    $
10,683
    $
25,833
    $
544
    $
445,589
    $
11,227
 
 
December 31, 2015
 
                                                 
 
 
Less than 12 months
 
 
12 months or longer
 
 
Total
 
 
 
Aggregate Fair Value
 
 
Gross Unrealized Losses
 
 
Aggregate Fair Value
 
 
Gross Unrealized Losses
 
 
Aggregate Fair Value
 
 
Gross Unrealized Losses
 
Obligations of United States Government Agencies
   $
170,178
    $
2,367
    $
53,497
    $
688
    $
223,675
    $
3,055
 
Mortgage Backed Securities issued by U.S. Government Agencies
    
57,949
     
633
     
31,118
     
694
     
89,067
     
1,327
 
Obligations of States and Political Subdivisions
    
10,830
     
165
     
5,324
     
61
     
16,154
     
226
 
Corporate Debt Securities
    
4,950
     
50
     
-
     
-
     
4,950
     
50
 
    $
243,907
    $
3,215
    $
89,939
    $
1,443
    $
333,846
    $
4,658
 
 
The amount of investment securities issued by government agencies, states, and political subdivisions with unrealized losses and the amount of unrealized losses on those investment securities are primarily the result of market interest rates and not the result of the credit quality of the issuers of the securities. The company has the ability and intent to hold these securities until recovery, which
may
be until maturity. The fair value of these securities is expected to recover as the securities approach maturity. As of
December
31,
2016
and
December
31,
2015,
there were
230
and
146
securities in an unrealized loss position, respectively.
 
Investment securities carried at
$96,032,000
and
$118,823,000
were pledged or set aside to secure borrowings, public and trust deposits, and for other purposes required by law at
December
31,
2016
and
December
31,
2015,
respectively.
 
At
December
31,
2016,
Obligations of U. S. Government Agencies included securities issued by the Federal Home Loan Banks with an estimated market value of
$202,457,000
and securities issued by the Federal Farm Credit Banks with an estimated fair value of
$72,453,000.
At
December
31,
2016,
Mortgage Backed Securities issued by U. S. Government Agencies included securities issued by the Government National Mortgage Association with an estimated fair value of
$146,209,000.
At
December
31,
2015,
Obligations of U. S. Government Agencies included securities issued by the Federal Home Loan Banks with an estimated fair value of
$184,467,000
and securities issued by the Federal Farm Credit Banks with an estimated fair value of
$184,594,000.
At
December
31,
2015,
Mortgage Backed Securities issued by U. S. Government Agencies included securities issued by the Government National Mortgage Association with an estimated fair value of
$103,252,000.
 
For the years ended
December
31,
2016,
2015,
and
2014,
proceeds from sales of securities amounted to
$36,114,000,
$39,238,000,
and
$122,579,000,
respectively. Gross realized gains amounted to
$2,346,000,
$653,000,
and
$2,782,000,
respectively. Gross realized losses amounted to
$195,000,
$255,000,
and
$3,436,000,
respectively. The tax provision (benefit) applicable to these net realized gains and losses amounted to
$731,000,
$135,000,
and
($222,000),
respectively.