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INVESTMENT SECURITIES
 3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
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