| INVESTMENT SECURITIES |
INVESTMENT SECURITIES The amortized cost, gross gains and losses, and fair values of investment securities at December 31, 2016 and 2015 are as follows: | | | | | | | | | | | | | | | | | | | | 2016 | (In Thousands) | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | Available for sale (AFS): | | |
| | |
| | |
| | |
| U.S. Government and agency securities | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Mortgage-backed securities | | 9,295 |
| | 182 |
| | (164 | ) | | 9,313 |
| Asset-backed securities | | 109 |
| | — |
| | — |
| | 109 |
| State and political securities | | 60,777 |
| | 666 |
| | (509 | ) | | 60,934 |
| Other debt securities | | 53,046 |
| | 137 |
| | (2,065 | ) | | 51,118 |
| Total debt securities | | 123,227 |
| | 985 |
| | (2,738 | ) | | 121,474 |
| Financial institution equity securities | | 9,566 |
| | 969 |
| | — |
| | 10,535 |
| Other equity securities | | 1,667 |
| | — |
| | (184 | ) | | 1,483 |
| Total equity securities | | 11,233 |
| | 969 |
| | (184 | ) | | 12,018 |
| Total investment securities AFS | | $ | 134,460 |
| | $ | 1,954 |
| | $ | (2,922 | ) | | $ | 133,492 |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | 2015 | (In Thousands) | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | Available for sale (AFS): | | |
| | |
| | |
| | |
| U.S. Government and agency securities | | $ | 3,586 |
| | $ | — |
| | $ | (37 | ) | | $ | 3,549 |
| Mortgage-backed securities | | 9,785 |
| | 284 |
| | (60 | ) | | 10,009 |
| Asset-backed securities | | 1,960 |
| | — |
| | (20 | ) | | 1,940 |
| State and political securities | | 84,992 |
| | 1,797 |
| | (234 | ) | | 86,555 |
| Other debt securities | | 59,832 |
| | 185 |
| | (2,245 | ) | | 57,772 |
| Total debt securities | | 160,155 |
| | 2,266 |
| | (2,596 | ) | | 159,825 |
| Financial institution equity securities | | 10,397 |
| | 1,100 |
| | (14 | ) | | 11,483 |
| Other equity securities | | 5,214 |
| | 70 |
| | (435 | ) | | 4,849 |
| Total equity securities | | 15,611 |
| | 1,170 |
| | (449 | ) | | 16,332 |
| Total investment securities AFS | | $ | 175,766 |
| | $ | 3,436 |
| | $ | (3,045 | ) | | $ | 176,157 |
|
The amortized cost and fair values of trading investment securities at December 31, 2016 and 2015 are as follows. | | | | | | | | | | | | | | | | | | | | 2016 | (In Thousands) | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | Trading: | | | | | | | | | Financial institution equity securities | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Other equity securities | | 56 |
| | 2 |
| | — |
| | 58 |
| Total trading securities | | $ | 56 |
| | $ | 2 |
|
| $ | — |
|
| $ | 58 |
|
| | | | | | | | | | | | | | | | | | | | 2015 | (In Thousands) | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | Trading: | | | | | | | | | Financial institution equity securities | | $ | 78 |
| | $ | — |
| | $ | (5 | ) | | $ | 73 |
| Other equity securities | | — |
| | — |
| | — |
| | — |
| Total trading securities | | $ | 78 |
| | $ | — |
| | $ | (5 | ) | | $ | 73 |
|
The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at December 31, 2016 and 2015. | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2016 | | | Less than Twelve Months | | Twelve Months or Greater | | Total | | | | | Gross | | | | Gross | | | | Gross | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | (In Thousands) | | Value | | Losses | | Value | | Losses | | Value | | Losses | Available for Sale (AFS) | | | | | | | | | | | | | U.S. Government and agency securities | | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Mortgage-backed securities | | 3,572 |
| | (106 | ) | | 3,627 |
| | (58 | ) | | 7,199 |
| | (164 | ) | Asset-backed securities | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| State and political securities | | 26,113 |
| | (509 | ) | | — |
| | — |
| | 26,113 |
| | (509 | ) | Other debt securities | | 28,140 |
| | (1,179 | ) | | 12,240 |
| | (886 | ) | | 40,380 |
| | (2,065 | ) | Total debt securities | | 57,825 |
| | (1,794 | ) | | 15,867 |
| | (944 | ) | | 73,692 |
| | (2,738 | ) | Financial institution equity securities | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Other equity securities | | 727 |
| | (140 | ) | | 756 |
| | (44 | ) | | 1,483 |
| | (184 | ) | Total equity securities | | 727 |
| | (140 | ) | | 756 |
| | (44 | ) | | 1,483 |
| | (184 | ) | Total Investment Securities AFS | | $ | 58,552 |
| | $ | (1,934 | ) | | $ | 16,623 |
| | $ | (988 | ) | | $ | 75,175 |
| | $ | (2,922 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 2015 | | | Less than Twelve Months | | Twelve Months or Greater | | Total | | | | | Gross | | | | Gross | | | | Gross | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | (In Thousands) | | Value | | Losses | | Value | | Losses | | Value | | Losses | Available for Sale (AFS) | | | | | | | | | | | | | U.S. Government and agency securities | | $ | — |
| | $ | — |
| | $ | 3,549 |
| | $ | (37 | ) | | $ | 3,549 |
| | $ | (37 | ) | Mortgage-backed securities | | 6,081 |
| | (60 | ) | | — |
| | — |
| | 6,081 |
| | (60 | ) | Asset-backed securities | | 1,626 |
| | (16 | ) | | 314 |
| | (4 | ) | | 1,940 |
| | (20 | ) | State and political securities | | 7,345 |
| | (47 | ) | | 1,656 |
| | (187 | ) | | 9,001 |
| | (234 | ) | Other debt securities | | 24,381 |
| | (530 | ) | | 22,547 |
| | (1,715 | ) | | 46,928 |
| | (2,245 | ) | Total debt securities | | 39,433 |
| | (653 | ) | | 28,066 |
| | (1,943 | ) | | 67,499 |
| | (2,596 | ) | Financial institution equity securities | | — |
| | — |
| | 53 |
| | (14 | ) | | 53 |
| | (14 | ) | Other equity securities | | 2,363 |
| | (277 | ) | | 1,001 |
| | (158 | ) | | 3,364 |
| | (435 | ) | Total equity securities | | 2,363 |
| | (277 | ) | | 1,054 |
| | (172 | ) | | 3,417 |
| | (449 | ) | Total Investment Securities AFS | | $ | 41,796 |
| | $ | (930 | ) | | $ | 29,120 |
| | $ | (2,115 | ) | | $ | 70,916 |
| | $ | (3,045 | ) |
At December 31, 2016 there were 73 individual securities in a continuous unrealized loss position for less than twelve months and 10 individual securities in a continuous unrealized loss position for greater than twelve months.
The Company reviews its position quarterly and has asserted that at December 31, 2016 and 2015, the declines outlined in the above table represent temporary declines and the Company does not intend to sell and does not believe they will be required to sell these securities before recovery of their cost basis, which may be at maturity. The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the non-collection of principal and interest during the period.
The amortized cost and fair value of debt securities at December 31, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities since borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | (In Thousands) | | Amortized Cost | | Fair Value | Due in one year or less | | $ | 577 |
| | $ | 577 |
| Due after one year to five years | | 41,114 |
| | 40,646 |
| Due after five years to ten years | | 67,181 |
| | 65,631 |
| Due after ten years | | 14,355 |
| | 14,620 |
| Total | | $ | 123,227 |
| | $ | 121,474 |
|
Total gross proceeds from sales of securities available for sale were $44,829,000 , $65,672,000, and $102,145,000 for 2016, 2015, and 2014, respectively. The following table represents gross realized gains and losses on those transactions: | | | | | | | | | | | | | | | | Year Ended December 31, | (In Thousands) | | 2016 | | 2015 | | 2014 | Gross realized gains: | | |
| | |
| | |
| U.S. Government and agency securities | | $ | 11 |
| | $ | — |
| | $ | 59 |
| Mortgage-backed securities | | 35 |
| | — |
| | 89 |
| State and political securities | | 787 |
| | 1,571 |
| | 2,327 |
| Other debt securities | | 283 |
| | 825 |
| | 622 |
| Financial institution equity securities | | 572 |
| | 183 |
| | 710 |
| Other equity securities | | 217 |
| | 132 |
| | 491 |
| Total gross realized gains | | $ | 1,905 |
| | $ | 2,711 |
| | $ | 4,298 |
| Gross realized losses: | | |
| | |
| | |
| U.S. Government and agency securities | | $ | 5 |
| | $ | — |
| | $ | 45 |
| Asset-backed securities | | 13 |
| | — |
| | — |
| State and political securities | | 1 |
| | 22 |
| | 412 |
| Other debt securities | | 189 |
| | 54 |
| | 209 |
| Financial institution equity securities | | — |
| | — |
| | — |
| Other equity securities | | 86 |
| | 43 |
| | 117 |
| Total gross realized losses | | $ | 294 |
| | $ | 119 |
| | $ | 783 |
|
There were no impairment charges included in gross realized losses for the years ended December 31, 2016, 2015, and 2014.
Investment securities with a carrying value of approximately $95,199,000 and $131,089,000 at December 31, 2016 and 2015, respectively, were pledged to secure certain deposits, repurchase agreements, and for other purposes as required by law.
There is no concentration of investments that exceed ten percent of shareholders’ equity for any individual issuer, excluding those guaranteed by the U.S. Government. |