Securities

12 Months Ended

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Securities

NOTE 3 - SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
2015
U.S. Treasury securities and obligations of U.S. government agencies	$	40,992	$	74	$	(129	)	$	40,937
Obligations of states and political subdivisions		87,255		4,959		(62	)		92,152
Mortgage-back securities in government sponsored entities		62,135		681		(243	)		62,573
Total debt securities		190,382		5,714		(434	)		195,662
Equity securities in financial institutions		481		106		—			587
Total	$	190,863	$	5,820	$	(434	)	$	196,249
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
2014
U.S. Treasury securities and obligations of U.S.government agencies	$	42,910	$	115	$	(123	)	$	42,902
Obligations of states and political subdivisions		83,215		5,112		(306	)		88,021
Mortgage-back securities in government sponsored entities		65,646		976		(180	)		66,442
Total debt securities		191,771		6,203		(609	)		197,365
Equity securities in financial institutions		481		59		—			540
Total	$	192,252	$	6,262	$	(609	)	$	197,905

The amortized cost and fair value of securities at year end 2015 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	5,075	$	5,078
Due from one to five years		31,433		31,442
Due from five to ten years		31,754		33,606
Due after ten years		59,985		62,963
Mortgage-backed securities in government sponsored entities		62,135		62,573
Equity securities in financial institutions		481		587
Total	$	190,863	$	196,249

Securities with a carrying value of $142,888 and $137,898 were pledged as of December 31, 2015 and 2014, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:

	2015			2014			2013
Sale proceeds	$	—		$	18,088		$	8,686
Gross realized gains		—			113			144
Gross realized losses		—			(1	)		(89	)
Gains (losses) from securities called or settled by the issuer		(18	)		1			149

Debt securities with unrealized losses at year end 2015 and 2014 not recognized in income are as follows:

	12 Months or less					More than 12 months					Total
2015	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	25,464	$	(112	)	$	1,132	$	(17	)	$	26,596	$	(129	)
Obligations of states and political subdivisions		2,932		(20	)		1,469		(42	)		4,401		(62	)
Mortgage-backed securities in gov’t sponsored entities		27,263		(172	)		5,041		(71	)		32,304		(243	)
Total temporarily impaired	$	55,659	$	(304	)	$	7,642	$	(130	)	$	63,301	$	(434	)
	12 Months or less					More than 12 months					Total
2014	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	7,664	$	(17	)	$	11,888	$	(106	)	$	19,552	$	(123	)
Obligations of states and political subdivisions		853		(11	)		5,647		(295	)		6,500		(306	)
Mortgage-backed securities in gov’t sponsored entities		12,289		(29	)		11,492		(151	)		23,781		(180	)
Total temporarily impaired	$	20,806	$	(57	)	$	29,027	$	(552	)	$	49,833	$	(609	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive loss on the Consolidated Balance Sheet.

The Company has assessed each available-for-sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

• The length of time and the extent to which fair value has been below cost;

• The severity of impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer;

• If the Company intends to sell the investment;

• If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

• If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

• Identification and evaluation of investments that have indications of impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

• Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

• Documentation of these analyses, as required by policy.

At December 31, 2015, the Company owned 50 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.