SECURITIES AVAILABLE FOR SALE
 12 Months Ended
Dec. 31, 2016
Available-for-sale Securities [Abstract]  
SECURITIES AVAILABLE FOR SALE

NOTE 3.  SECURITIES AVAILABLE FOR SALE

 

Amortized costs and fair values of securities AFS are summarized as follows:

 

    December 31, 2016  
    Amortized     Gross     Gross     Fair  
(in thousands)   Cost     Unrealized Gains     Unrealized Losses     Value  
U.S. government sponsored enterprises   $ 1,981     $ -     $ 18     $ 1,963  
State, county and municipals     191,721       160       4,638       187,243  
Mortgage-backed securities     161,309       242       2,422       159,129  
Corporate debt securities     12,117       52       -       12,169  
Equity securities     2,631       2,152       -       4,783  
    $ 369,759     $ 2,606     $ 7,078     $ 365,287  

 

    December 31, 2015  
    Amortized     Gross     Gross     Fair  
(in thousands)   Cost     Unrealized Gains     Unrealized Losses     Value  
U.S. government sponsored enterprises   $ 287     $ 7     $ -     $ 294  
State, county and municipals     104,768       497       244       105,021  
Mortgage-backed securities     61,600       418       554       61,464  
Corporate debt securities     1,140       -       -       1,140  
Equity securities     3,196       1,504       23       4,677  
    $ 170,991     $ 2,426     $ 821     $ 172,596  
 

The current fair value and associated unrealized losses on investments in debt and equity securities with unrealized losses at December 31, 2016 and 2015 are summarized in the following table, with the length of time the individual securities have been in a continuous loss position.

 

    December 31, 2016  
    Less than 12 months     12 months or more     Total  
(in thousands)   Fair Value     Unrealized 
Losses		     Fair Value     Unrealized 
Losses		     Fair Value     Unrealized 
Losses		  
U.S. government sponsored enterprises   $ 1,963     $ 18     $ -     $ -     $ 1,963     $ 18  
State, county and municipals     167,457       4,629       1,300       9       168,757       4,638  
Mortgage-backed securities     134,770       2,311       3,653       111       138,423       2,422  
    $ 304,190     $ 6,958     $ 4,953     $ 120     $ 309,143     $ 7,078  

 

    December 31, 2015  
    Less than 12 months     12 months or more     Total  
(in thousands)   Fair Value     Unrealized 
Losses		     Fair Value     Unrealized 
Losses		     Fair Value     Unrealized 
Losses		  
State, county and municipals   $ 34,283     $ 112     $ 12,702     $ 132     $ 46,985     $ 244  
Mortgage-backed securities     22,228       167       13,750       387       35,978       554  
Equity securities     408       23       -       -       408       23  
    $ 56,919     $ 302     $ 26,452     $ 519     $ 83,371     $ 821  

 

At December 31, 2016 there were $7.1 million of gross unrealized losses related to 581 securities, or 1.9% of total securities. As of December 31, 2016, the Company does not consider its AFS securities with unrealized losses to be other-than-temporarily impaired. The unrealized losses in each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. The Company has the ability and intent to hold its securities to maturity. There was a $0.5 million other-than-temporary impairment (related to one private company stock carried in other investments in the consolidated balance sheets) charged to earnings during the fourth quarter of 2016 compared to none in 2015 and 2014.

 

The amortized cost and fair value of AFS securities by contractual maturity at December 31, 2016 are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or prepaid without any penalties; therefore, these securities are not included in the maturity categories in the following summary.

 

    December 31, 2016  
(in thousands)   Amortized Cost     Fair Value  
Due in less than one year   $ 9,833     $ 9,835  
Due in one year through five years     81,288       80,847  
Due after five years through ten years     106,416       102,401  
Due after ten years     8,282       8,292  
      205,819       201,375  
Mortgage-backed securities     161,309       159,129  
Equity securities     2,631       4,783  
Securities AFS   $ 369,759     $ 365,287  
 

AFS securities with a carrying value of $30.3 million and $24.3 million as of December 31, 2016 and 2015, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law.

 

Proceeds from sales of AFS securities available for sale during 2016, 2015 and 2014 were $31.4 million, $13.9 million and $4.8 million, respectively. Gross gains of $91,000 and gross losses of $13,000 were realized on sales in 2016, gross gains of $0.6 million were realized on sales in 2015, and gross gains of $0.3 million in 2014.