| INVESTMENT SECURITIES |
INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities classified as available for sale are summarized below as of the dates presented (dollars in thousands). | | | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross Unrealized Gains | | Gross
Unrealized
Losses | | Fair Value | March 31, 2017 | | | | | Obligations of other U.S. government agencies and corporations | | $ | 40,555 |
| | $ | 65 |
| | $ | (320 | ) | | $ | 40,300 |
| Obligations of state and political subdivisions | | 28,715 |
| | 36 |
| | (1,063 | ) | | 27,688 |
| Corporate bonds | | 15,271 |
| | 51 |
| | (348 | ) | | 14,974 |
| Residential mortgage-backed securities | | 88,604 |
| | 167 |
| | (744 | ) | | 88,027 |
| Commercial mortgage-backed securities | | 2,507 |
| | — |
| | (62 | ) | | 2,445 |
| Equity securities | | 711 |
| | 48 |
| | (54 | ) | | 705 |
| Total | | $ | 176,363 |
| | $ | 367 |
| | $ | (2,591 | ) | | $ | 174,139 |
|
| | | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | December 31, 2016 | | | | | Obligations of other U.S. government agencies and corporations | | $ | 29,809 |
| | $ | 68 |
| | $ | (387 | ) | | $ | 29,490 |
| Obligations of state and political subdivisions | | 29,631 |
| | 15 |
| | (1,791 | ) | | 27,855 |
| Corporate bonds | | 15,292 |
| | 54 |
| | (378 | ) | | 14,968 |
| Residential mortgage-backed securities | | 88,295 |
| | 193 |
| | (900 | ) | | 87,588 |
| Commercial mortgage-backed securities | | 2,520 |
| | — |
| | (76 | ) | | 2,444 |
| Equity securities | | 711 |
| | 46 |
| | (51 | ) | | 706 |
| Total | | $ | 166,258 |
| | $ | 376 |
| | $ | (3,583 | ) | | $ | 163,051 |
|
The amortized cost and approximate fair value of investment securities classified as held to maturity are summarized below as of the dates presented (dollars in thousands). | | | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | March 31, 2017 | | | | | Obligations of state and political subdivisions | | $ | 12,870 |
| | $ | 7 |
| | $ | (172 | ) | | $ | 12,705 |
| Residential mortgage-backed securities | | 6,778 |
| | 5 |
| | (66 | ) | | 6,717 |
| Total | | $ | 19,648 |
| | $ | 12 |
| | $ | (238 | ) | | $ | 19,422 |
|
| | | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | December 31, 2016 | | | | | Obligations of state and political subdivisions | | $ | 12,976 |
| | $ | 2 |
| | $ | (429 | ) | | $ | 12,549 |
| Residential mortgage-backed securities | | 7,115 |
| | 8 |
| | (60 | ) | | 7,063 |
| Total | | $ | 20,091 |
| | $ | 10 |
| | $ | (489 | ) | | $ | 19,612 |
|
Securities are classified in the consolidated balance sheets according to management’s intent. The Company had no securities classified as trading as of March 31, 2017 or December 31, 2016. The aggregate fair values and aggregate unrealized losses on securities whose fair values are below book values are summarized in the tables below. Due to the nature of the investment and current market prices, these unrealized losses are considered a temporary impairment of the securities. The following table presents, by type and number of securities, the age of gross unrealized losses and approximate fair value by investment category for securities available for sale as of the dates presented (dollars in thousands). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | Count | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | March 31, 2017 | | | | | | | | Obligations of other U.S. government agencies and corporations | | 47 |
| | $ | 25,563 |
| | $ | (316 | ) | | $ | 440 |
| | $ | (4 | ) | | $ | 26,003 |
| | $ | (320 | ) | Obligations of state and political subdivisions | | 22 |
| | 23,027 |
| | (1,063 | ) | | — |
| | — |
| | 23,027 |
| | (1,063 | ) | Corporate bonds | | 25 |
| | 2,745 |
| | (103 | ) | | 7,180 |
| | (245 | ) | | 9,925 |
| | (348 | ) | Residential mortgage-backed securities | | 104 |
| | 56,232 |
| | (732 | ) | | 1,988 |
| | (12 | ) | | 58,220 |
| | (744 | ) | Commercial mortgage-backed securities | | 4 |
| | 2,445 |
| | (62 | ) | | — |
| | — |
| | 2,445 |
| | (62 | ) | Equity securities | | 3 |
| | 5 |
| | (1 | ) | | 486 |
| | (53 | ) | | 491 |
| | (54 | ) | Total | | 205 |
| | $ | 110,017 |
| | $ | (2,277 | ) | | $ | 10,094 |
| | $ | (314 | ) | | $ | 120,111 |
| | $ | (2,591 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | Count | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | December 31, 2016 | | | | | | | | Obligations of other U.S. government agencies and corporations | | 45 |
| | $ | 22,819 |
| | $ | (382 | ) | | $ | 448 |
| | $ | (5 | ) | | $ | 23,267 |
| | $ | (387 | ) | Obligations of state and political subdivisions | | 33 |
| | 25,764 |
| | (1,791 | ) | | — |
| | — |
| | 25,764 |
| | (1,791 | ) | Corporate bonds | | 27 |
| | 3,724 |
| | (132 | ) | | 6,929 |
| | (246 | ) | | 10,653 |
| | (378 | ) | Residential mortgage-backed securities | | 110 |
| | 60,433 |
| | (883 | ) | | 1,778 |
| | (17 | ) | | 62,211 |
| | (900 | ) | Commercial mortgage-backed securities | | 4 |
| | 2,444 |
| | (76 | ) | | — |
| | — |
| | 2,444 |
| | (76 | ) | Equity securities | | 3 |
| | 50 |
| | (4 | ) | | 492 |
| | (47 | ) | | 542 |
| | (51 | ) | Total | | 222 |
| | $ | 115,234 |
| | $ | (3,268 | ) | | $ | 9,647 |
| | $ | (315 | ) | | $ | 124,881 |
| | $ | (3,583 | ) |
The following table presents, by type and number of securities, the age of gross unrealized losses and approximate fair value by investment category for securities held to maturity as of the dates presented (dollars in thousands). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | Count | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | March 31, 2017 | | | | | | | | Obligations of state and political subdivisions | | 3 |
| | $ | 8,048 |
| | $ | (172 | ) | | $ | — |
| | $ | — |
| | $ | 8,048 |
| | $ | (172 | ) | Residential mortgage-backed securities | | 6 |
| | 4,494 |
| | (66 | ) | | — |
| | — |
| | 4,494 |
| | (66 | ) | Total | | 9 |
| | $ | 12,542 |
| | $ | (238 | ) | | $ | — |
| | $ | — |
| | $ | 12,542 |
| | $ | (238 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | Count | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | | Fair Value | | Unrealized
Losses | December 31, 2016 | | | | | | | | Obligations of state and political subdivisions | | 5 |
| | $ | 9,597 |
| | $ | (429 | ) | | $ | — |
| | $ | — |
| | $ | 9,597 |
| | $ | (429 | ) | Residential mortgage-backed securities | | 6 |
| | 4,677 |
| | (60 | ) | | — |
| | — |
| | 4,677 |
| | (60 | ) | Total | | 11 |
| | $ | 14,274 |
| | $ | (489 | ) | | $ | — |
| | $ | — |
| | $ | 14,274 |
| | $ | (489 | ) |
The unrealized losses in the Company’s investment portfolio, caused by interest rate increases, are not credit issues and the Company does not intend to sell the securities. Furthermore, it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. The Company does not consider these securities to be other-than-temporarily impaired at March 31, 2017 or December 31, 2016. The weighted average tax equivalent yield, amortized cost and approximate fair value of debt securities, by contractual maturity (including mortgage-backed securities), are shown below as of the dates presented. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (dollars in thousands). | | | | | | | | | | | | | | | | | | | | | | | | | | Securities Available for Sale | | Securities Held to Maturity | | | Weighted Average T.E. Yield | | Amortized Cost | | Fair Value | | Weighted
Average T.E.
Yield | | Amortized
Cost | | Fair
Value | March 31, 2017 | | | | | | | Due within one year | | 2.05 | % | | $ | 900 |
| | $ | 898 |
| | 7.17 | % | | $ | 685 |
| | $ | 686 |
| Due after one year through five years | | 2.33 |
| | 11,641 |
| | 11,654 |
| | 7.17 |
| | 3,095 |
| | 3,100 |
| Due after five years through ten years | | 2.93 |
| | 26,963 |
| | 26,611 |
| | 7.17 |
| | 2,745 |
| | 2,730 |
| Due after ten years | | 2.53 |
| | 136,148 |
| | 134,271 |
| | 3.54 |
| | 13,123 |
| | 12,906 |
| Total debt securities | | |
| | $ | 175,652 |
| | $ | 173,434 |
| | |
| | $ | 19,648 |
| | $ | 19,422 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Securities Available for Sale | | Securities Held to Maturity | | | Weighted
Average T.E.
Yield | | Amortized
Cost | | Fair
Value | | Weighted
Average T.E.
Yield | | Amortized
Cost | | Fair
Value | December 31, 2016 | | | | | | | Due within one year | | 1.61 | % | | $ | 1,753 |
| | $ | 1,750 |
| | 7.17 | % | | $ | 685 |
| | $ | 686 |
| Due after one year through five years | | 2.27 |
| | 10,509 |
| | 10,476 |
| | 7.17 |
| | 3,095 |
| | 3,089 |
| Due after five years through ten years | | 2.77 |
| | 27,173 |
| | 26,771 |
| | 7.17 |
| | 2,745 |
| | 2,637 |
| Due after ten years | | 2.51 |
| | 126,112 |
| | 123,348 |
| | 3.17 |
| | 13,566 |
| | 13,200 |
| Total debt securities | | |
| | $ | 165,547 |
| | $ | 162,345 |
| | |
| | $ | 20,091 |
| | $ | 19,612 |
|
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