Debt and Equity Securities

Debt and equity securities have been classified in the consolidated balance sheet according to management’s intent. Debt and equity securities at March 31, 2016 and December 31, 2015 are summarized as follows:



	March 31, 2016
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)*	$	53,304	$	383	$	115	$	53,572
Mortgage-backed:
GSE residential	191,822		983		447		192,358
Asset-backed:
SBAP	29,585		237		8		29,814
Obligations of states and political subdivisions	32,260		386		31		32,615
	$	306,971	$	1,989	$	601	$	308,359



	March 31, 2016
	Securities Held-to-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	11,314	$	80	$	78	$	11,316
Obligations of states and political subdivisions	18,648		273		5		18,916
	$	29,962	$	353	$	83	$	30,232


*	Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Bank, Federal Farm Credit Bank, and Government National Mortgage Association.



	December 31, 2015
	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)*	$	77,177	215	483	76,909
Mortgage-backed:
GSE residential	192,983		430	1,498	191,915
Asset-backed:
SBAP	31,253		54	273	31,034
Obligations of states and political subdivisions	31,093		274	97	31,270
	$	332,506	973	2,351	331,128



	December 31, 2015
	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	9,375	60	169	9,266
Obligations of states and political subdivisions	18,820		288	9	19,099
	$	28,195	348	178	28,365


*	Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Bank, Federal Farm Credit Bank, and Government National Mortgage Association.

The amortized cost and estimated market value of debt securities at March 31, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Held-to-Maturity				Available-for-sale
	In Thousands
	Amortized Cost		Estimated Market Value		Amortized Cost		Estimated Market Value
Due in one year or less	$	1,909	$	1,918	$	—	$	—
Due after one year through five years	9,638		9,769		45,642		45,971
Due after five years through ten years	4,765		4,840		93,629		94,283
Due after ten years	13,650		13,705		167,700		168,105
	$	29,962	$	30,232	$	306,971	$	308,359

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015.



	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
March 31, 2016	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses
Held to Maturity Securities:
Mortgage-backed:
Government-sponsored enterprises (GSEs) residential	$	1,462	$	8	1	$	2,539	$	70	2	$	4,001	$	78
Obligations of states and political subdivisions	3,437		5		9	—		—		—	3,437		5
	$	4,899	$	13	10	$	2,539	$	70	2	$	7,438	$	83
Available-for-Sale Securities:
GSEs	$	8,738	$	30	4	$	14,372	$	85	5	$	23,110	$	115
Mortgage-backed:
GSE residential	68,450		371		32	5,706		76		8	74,156		447
Asset-backed: SBAP	5,992		8		2	—		—		—	5,992		8
Obligations of states and political subdivisions	5,333		22		14	725		9		2	6,058		31
	$	88,513	$	431	52	$	20,803	$	170	15	$	109,316	$	601



	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized		Number of Securities	Fair		Unrealized		Number of Securities	Fair		Unrealized
December 31, 2015	Value		Losses		Included	Value		Losses		Included	Value		Losses
Held to Maturity Securities:
Mortgage-backed:
Government-sponsored enterprises (GSEs) residential	$	4,339	$	45	3	$	2,717	$	124	3	$	7,056	$	169
Obligations of states and political subdivisions	3,461		9		10	—		—		—	3,461		9
	$	7,800	$	54	13	$	2,717	$	124	3	$	10,517	$	178
Available-for-Sale Securities:
GSEs	$	33,369	$	232	12	$	17,829	$	251	6	$	51,198	$	483
Mortgage-backed:
GSE residential	142,251		1,407		66	4,521		91		7	146,772		1,498
Asset-backed: SBAP	22,811		273		12	—		—		—	22,811		273
Obligations of states and political subdivisions	7,925		60		18	3,350		37		9	11,275		97
	$	206,356	$	1,972	108	$	25,700	$	379	22	$	232,056	$	2,351

Unrealized losses on securities have not been recognized into income because the issuers’ securities are of high credit quality, management does not intend to sell the securities and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payment on the securities. The fair value is expected to recover as the securities approach maturity. The Company does not consider these securities to be other-than-temporarily impaired at March 31, 2016.

The carrying values of the Company’s investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that the Company will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future given the current economic environment.