Note 4 – 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:
September 30, 2017
U.S. Government agencies	$	52,093	$	64	$	154	$	52,003
Mortgage-backed		160,645		660		580		160,725
Equity		662		-		-		662
Total	$	213,400	$	724	$	734	$	213,390

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:
September 30, 2017
U.S. Government agencies	$	1,837	$	42	$	-	$	1,879
States and political subdivisions		1,404		61		-		1,465
Other debt securities (1)		3,000		107		-		3,107
Total	$	6,241	$	210	$	-	$	6,451

December 31, 2016
U.S. Government agencies	$	2,089	$	26	$	-	$	2,115
States and political subdivisions		1,615		76		-		1,691
Other debt 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 with a fixed to floating rate of 6.5% 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 September 30, 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
September 30, 2017
Available-for-sale securities:
U.S. Government agencies	$	40,819	$	150	$	2,998	$	4	$	43,817	$	154
Mortgage-backed		60,113		289		11,086		291		71,199		580
Total	$	100,932	$	439	$	14,084	$	295	$	115,016	$	734


	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 September 30, 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	$	9,000	$	8,996	$	-	$	-
Due after one year through five years		40,973		40,831		902		946
Due after five years through ten years		34,242		34,241		3,502		3,626
Due after ten years		128,523		128,660		1,837		1,879
		212,738		212,728		6,241		6,451
Equity securities		662		662		-		-
Total	$	213,400	$	213,390	$	6,241	$	6,451

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