| INVESTMENT SECURITIES |
INVESTMENT SECURITIES
The amortized cost and fair value of available-for-sale investment securities at December 31 are summarized as follows (in thousands): | | | | | | | | | | | | | | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | 2017 | | | | | | | | Investment Securities Available-for-Sale: | | | | | | | | U.S. Treasury notes | $ | 2,283 |
| | — |
| | 24 |
| | 2,259 |
| U.S. Agency notes | 84,837 |
| | 57 |
| | 1,633 |
| | 83,261 |
| U.S. Agency mortgage-backed securities | 68,347 |
| | 33 |
| | 1,227 |
| | 67,153 |
| Municipal securities: | |
| | |
| | |
| | |
| Non-taxable | 102,849 |
| | 343 |
| | 1,018 |
| | 102,174 |
| Taxable | 20,313 |
| | 175 |
| | 122 |
| | 20,366 |
| Mutual funds | 2,586 |
| | 2 |
| | 46 |
| | 2,542 |
| Trust preferred securities | 49 |
| | 1 |
| | — |
| | 50 |
| Equity securities | 574 |
| | 97 |
| | 4 |
| | 667 |
| | $ | 281,838 |
| | 708 |
| | 4,074 |
| | 278,472 |
| | | | | | | | | Investment Securities Held-to-Maturity: | | | | | | | | Municipal securities: | | | | | | | | Non-taxable | $ | 28,871 |
| | 101 |
| | 227 |
| | 28,745 |
| Taxable | 3,700 |
| | — |
| | 95 |
| | 3,605 |
| | $ | 32,571 |
| | 101 |
| | 322 |
| | 32,350 |
| | | | | | | | | 2016 | | | | | | | | Investment Securities Available-for-Sale: | | | | | | | | U.S. Treasury notes | $ | 28,180 |
| | 41 |
| | 76 |
| | 28,145 |
| U.S. Agency notes | 87,098 |
| | 150 |
| | 1,848 |
| | 85,400 |
| U.S. Agency mortgage-backed securities | 72,402 |
| | 89 |
| | 1,444 |
| | 71,047 |
| Municipal securities: | |
| | |
| | |
| | |
| Non-taxable | 114,064 |
| | 574 |
| | 1,623 |
| | 113,015 |
| Taxable | 19,710 |
| | 220 |
| | 85 |
| | 19,845 |
| Mutual funds | 2,527 |
| | — |
| | 45 |
| | 2,482 |
| Trust preferred securities | 49 |
| | — |
| | 1 |
| | 48 |
| Equity securities | 632 |
| | 55 |
| | 10 |
| | 677 |
| | $ | 324,662 |
| | 1,129 |
| | 5,132 |
| | 320,659 |
| | | | | | | | | Investment Securities Held-to-Maturity: | | | | | | | | Municipal securities: | | | | | | | | Non-taxable | $ | 31,015 |
| | 56 |
| | 352 |
| | 30,719 |
| Taxable | 9,988 |
| | — |
| | 217 |
| | 9,771 |
| | $ | 41,003 |
| | 56 |
| | 569 |
| | 40,490 |
|
Information concerning securities with gross unrealized losses at December 31, 2017 and 2016, aggregated by length of time that individual securities have been in a continuous loss position, is as follows (in thousands): | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or More | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | 2017 | | | | | | | | Investment Securities Available-for-Sale: | | | | | | | | U.S. Treasury notes | $ | 2,259 |
| | 24 |
| | — |
| | — |
| U.S. Agency notes | 33,651 |
| | 344 |
| | 44,560 |
| | 1,289 |
| U.S. Agency mortgage-backed securities | 24,433 |
| | 142 |
| | 41,080 |
| | 1,085 |
| Municipal securities: | |
| | |
| | |
| | | Non-taxable | 36,348 |
| | 315 |
| | 24,197 |
| | 703 |
| Taxable | 11,068 |
| | 114 |
| | 1,032 |
| | 8 |
| Mutual funds | — |
| | — |
| | 1,519 |
| | 46 |
| Trust preferred securities | — |
| | — |
| | — |
| | — |
| Equity securities | 119 |
| | 2 |
| | 17 |
| | 2 |
| | $ | 107,878 |
| | 941 |
| | 112,405 |
| | 3,133 |
| | | | | | | | | Investment Securities Held-to-Maturity: | | | | | | | | Municipal securities: | | | | | | | | Non-taxable | $ | 9,824 |
| | 133 |
| | 3,542 |
| | 94 |
| Taxable | — |
| | — |
| | 3,205 |
| | 95 |
| | $ | 9,824 |
| | 133 |
| | 6,747 |
| | 189 |
| | | | | | | | | 2016 | | | | | | | | Investment Securities Available-for-Sale: | | | | | | | | U.S. Treasury notes | $ | 16,076 |
| | 76 |
| | — |
| | — |
| U.S. Agency notes | 69,784 |
| | 1,848 |
| | — |
| | — |
| U.S. Agency mortgage-backed securities | 64,564 |
| | 1,310 |
| | 3,518 |
| | 134 |
| Municipal securities: | | | | | | | | Non-taxable | 72,867 |
| | 1,621 |
| | 451 |
| | 2 |
| Taxable | 9,721 |
| | 82 |
| | 450 |
| | 3 |
| Mutual funds | 1,205 |
| | 37 |
| | 277 |
| | 8 |
| Trust preferred securities | 49 |
| | 1 |
| | — |
| | — |
| Equity securities | 201 |
| | 10 |
| | — |
| | — |
| | $ | 234,467 |
| | 4,985 |
| | 4,696 |
| | 147 |
| | | | | | | | | Investment Securities Held-to-Maturity: | | | | | | | | Municipal securities: | | | | | | | | Non-taxable | $ | 20,429 |
| | 251 |
| | 2,564 |
| | 101 |
| Taxable | 8,030 |
| | 217 |
| | — |
| | — |
| | $ | 28,459 |
| | 468 |
| | 2,564 |
| | 101 |
|
Management has determined that the unrealized losses at December 31, 2017 are primarily due to fluctuations in market interest rates and do not reflect credit quality deterioration of the securities. Because the Company does not have the intent to sell the investments and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost, the Company does not consider these investments to be other-than-temporarily impaired.
Contractual maturities of investment securities at December 31, 2017 were as follows (in thousands). Actual maturities may differ from contractual maturities when issuers have the right to call or prepay obligations. | | | | | | | | | | | | | | | Available-for-Sale | | Held-to-Maturity | | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | Due within one year | $ | 11,222 |
| | 11,267 |
| | 4,043 |
| | 4,047 |
| Due from one to five years | 92,900 |
| | 92,453 |
| | 4,128 |
| | 4,045 |
| Due from five to ten years | 102,520 |
| | 100,836 |
| | 8,415 |
| | 8,286 |
| Due after ten years | 3,640 |
| | 3,504 |
| | 15,985 |
| | 15,972 |
| | 210,282 |
| | 208,060 |
| | 32,571 |
| | 32,350 |
| U.S. Agency mortgage-backed securities | 68,347 |
| | 67,153 |
| | — |
| | — |
| Mutual funds | 2,586 |
| | 2,542 |
| | — |
| | — |
| Trust preferred securities | 49 |
| | 50 |
| | — |
| | — |
| Equity securities | 574 |
| | 667 |
| | — |
| | — |
| | $ | 281,838 |
| | 278,472 |
| | 32,571 |
| | 32,350 |
|
Investment securities with a market value of $108,751,000 and $149,990,000 at December 31, 2017 and 2016, respectively, were pledged to secure public deposits and for other purposes required or permitted by law.
Certain information concerning the sale of investment securities available-for-sale for the years ended December 31 was as follows (in thousands): | | | | | | | | | | | | 2017 | | 2016 | | 2015 | Proceeds from sales | $ | 43,246 |
| | 92,455 |
| | 97,981 |
| Gross realized gains | 247 |
| | 1,103 |
| | 627 |
| Gross realized losses | 14 |
| | 21 |
| | 132 |
|
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