Investment Securities

The following tables summarize the amortized costs and estimated fair value of the securities portfolio at

June 30, 2017

and

December 31, 2016.

June 30, 2017 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available For Sale
Obligations of U.S. government-sponsored entities	$	79,734	$	160	$	377	$	79,517
Obligations of states and political subdivisions		126,308		1,128		863		126,573
Mortgage-backed securities – residential		202,825		1,339		2,001		202,163
Mortgage-backed securities – commercial		48,003		9		1,186		46,826
Corporate debt securities		7,575		94		3		7,666
Mutual funds and equity securities		836		42		3		875
Total securities – available for sale	$	465,281	$	2,772	$	4,433	$	463,620
Held To Maturity
Obligations of states and political subdivisions	$	3,461	$	156	$	-	$	3,617

December 31, 2016 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available For Sale
Obligations of U.S. government-sponsored entities	$	71,941	$	213	$	460	$	71,694
Obligations of states and political subdivisions		134,055		773		2,536		132,292
Mortgage-backed securities – residential		225,489		1,505		2,687		224,307
Mortgage-backed securities – commercial		47,164		6		1,557		45,613
Corporate debt securities		6,565		1		441		6,125
Mutual funds and equity securities		824		20		11		833
Total securities – available for sale	$	486,038	$	2,518	$	7,692	$	480,864
Held To Maturity
Obligations of states and political subdivisions	$	3,488	$	109	$	-	$	3,597

Investment securities with a carrying value of

$193

million and

$191

million at

June 30, 2017

and

December 31, 2016,

respectively, were pledged to secure public and trust deposits, repurchase agreements, and for other purposes

The amortized cost and estimated fair value of the debt securities portfolio at

June 30, 2017,

by contractual maturity, are detailed below. Expected maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties. Mutual funds and equity securities in the available for sale portfolio consist of investments attributed to the Company’s captive insurance subsidiary. These securities have

stated maturity and are

not

included in the maturity schedule that follows.

Mortgage-backed securities are stated separately due to the nature of payment and prepayment characteristics of these securities, as principal is

not

due at a single date.

	Available For Sale				Held To Maturity
	Amortized		Estimated		Amortized		Estimated
June 30, 2017 (In thousands)	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	32,117	$	32,149	$	-	$	-
Due after one year through five years		72,712		73,016		-		-
Due after five years through ten years		84,313		84,005		1,302		1,407
Due after ten years		24,475		24,586		2,159		2,210
Mortgage-backed securities		250,828		248,989		-		-
Total	$	464,445	$	462,745	$	3,461	$	3,617

Gross realized gains and losses on the sale of available for sale investment securities were as follows:

	Three Months Ended					Six Months Ended
	June 30 ,					June 30,
(In thousands)	2017			2016		2017			2016

Gross realized gains	$	-		$	190	$	-		$	352
Gross realized losses		1			59		10			138
Net realized (loss) gain	$	(1	)	$	131	$	(10	)	$	214

Investment securities with unrealized losses at

June 30, 2017

and

December 31, 2016

not

recognized in income are presented in the tables below. The tables segregate investment securities that have been in a continuous unrealized loss position for less than

twelve

months from those that have been in a continuous unrealized loss position for

twelve

months or more. The tables also include the fair value of the related securities.

	Less than 12 Months				12 Months or More				Total
June 30, 2017 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government-sponsored entities	$	57,666	$	369	$	1,992	$	8	$	59,658	$	377
Obligations of states and political subdivisions		57,732		765		4,838		98		62,570		863
Mortgage-backed securities – residential		142,716		1,783		8,567		218		151,283		2,001
Mortgage-backed securities – commercial		42,997		1,186		-		-		42,997		1,186
Corporate debt securities		1,311		3		-		-		1,311		3
Mutual funds and equity securities		-		-		120		3		120		3
Total	$	302,422	$	4,106	$	15,517	$	327	$	317,939	$	4,433

	Less than 12 Months				12 Months or More				Total
December 31, 2016 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government-sponsored entities	$	51,657	$	460	$	-	$	-	$	51,657	$	460
Obligations of states and political subdivisions		91,728		2,526		1,999		10		93,727		2,536
Mortgage-backed securities – residential		154,397		2,485		5,841		202		160,238		2,687
Mortgage-backed securities – commercial		43,309		1,557		-		-		43,309		1,557
Corporate debt securities		536		6		5,476		435		6,012		441
Mutual funds and equity securities		128		2		113		9		241		11
Total	$	341,755	$	7,036	$	13,429	$	656	$	355,184	$	7,692

Unrealized losses included in the tables above have

not

been recognized in income since they have been identified as temporary. The Company evaluates investment securities for other-than-temporary impairment (“OTTI”) at least quarterly, and more frequently when economic or market conditions warrant. Many factors are considered, including: (

) the length of time and the extent to which the fair value has been less than cost, (

)

the financial condition and near-term prospects of the issuer, (

)

whether the market decline was effected by macroeconomic conditions, and (

) whether the Company has the intent to sell the security or more likely than

not

will be required to sell the security before its anticipated recovery. The assessment of whether an OTTI charge exists involves a high degree of subjectivity and judgment and is based on the information available to the Company at a point in time.

The Company attributes the unrealized losses in its investment securities portfolio to changes in market interest rates and volatility. Investment securities with unrealized losses at

June 3

2017

are performing according to their contractual terms, and the Company does

not

expect to incur a loss on these securities unless they are sold prior to maturity. The Company does

not

have the intent to sell these securities nor does it believe it is likely that it will be required to sell these securities prior to their anticipated recovery. The Company does

not

consider any of the securities to be impaired due to reasons of credit quality or other factors.