Investment Securities

3 Months Ended

Mar. 31, 2017

Investment Securities [Abstract]

Investment Securities

Note 3 – Investment Securities

The following table provides information on the amortized cost and estimated fair values of investment securities.

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available-for-sale securities:
March 31, 2017
U.S. Government agencies	$	43,311	$	38	$	74	$	43,275
Mortgage-backed		134,449		481		781		134,149
Equity		655		-		7		648
Total	$	178,415	$	519	$	862	$	178,072
December 31, 2016
U.S. Government agencies	$	34,320	$	56	$	58	$	34,318
Mortgage-backed		130,490		263		1,809		128,944
Equity		652		-		12		640
Total	$	165,462	$	319	$	1,879	$	163,902
Held-to-maturity securities:
March 31, 2017
U.S. Government agencies	$	2,001	$	29	$	-	$	2,030
States and political subdivisions		1,614		72		-		1,686
Other equity securities (1)		3,000		139		-		3,139
Total	$	6,615	$	240	$	-	$	6,855
December 31, 2016
U.S. Government agencies	$	2,089	$	26	$	-	$	2,115
States and political subdivisions		1,615		76		-		1,691
Other equity securities (1)		3,000		-		-		3,000
Total	$	6,704	$	102	$	-	$	6,806

(1) On December 15, 2016, the Company bought $3.0 million in subordinated notes from a local regional bank which it intends to hold to maturity of December 30, 2026.

The following tables provide information about gross unrealized losses and fair value by length of time that the individual securities have been in a continuous unrealized loss position at March 31, 2017 and December 31, 2016.

	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
March 31, 2017
Available-for-sale securities:
U.S. Government agencies	$	26,948	$	74	$	-	$	-	$	26,948	$	74
Mortgage-backed		49,097		534		8,883		247		57,980		781
Equity securities		648		7		-		-		648		7
Total	$	76,693	$	615	$	8,883	$	247	$	85,576	$	862
	Less than				More than
	12 Months				12 Months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
December 31, 2016
Available-for-sale securities:
U.S. Government agencies	$	11,926	$	58	$	-	$	-	$	11,926	$	58
Mortgage-backed		100,237		1,546		9,208		263		109,445		1,809
Equity securities		640		12		-		-		640		12
Total	$	112,803	$	1,616	$	9,208	$	263	$	122,011	$	1,879

All of the securities with unrealized losses in the portfolio have modest duration risk, low credit risk, and minimal losses when compared to total amortized cost. The unrealized losses on debt securities that exist are the result of market changes in interest rates since original purchase. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost bases, which may be at maturity for debt securities, the Company considers the unrealized losses to be temporary.

The following table provides information on the amortized cost and estimated fair values of investment securities by maturity date at March 31, 2017.

	Available for sale				Held to maturity
	Amortized		Estimated		Amortized		Estimated
(Dollars in thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	15,012	$	15,007	$	210	$	210
Due after one year through five years		26,022		25,974		500		529
Due after five years through ten years		17,745		17,670		904		947
Due after ten years		118,981		118,773		2,001		2,030
		177,760		177,424		3,615		3,716
Equity securities		655		648		3,000		3,139
Total	$	178,415	$	178,072	$	6,615	$	6,855

The maturity dates for debt securities are determined using contractual maturity dates.