SECURITIES |
NOTE 4 - SECURITIES
The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2016 and December 31, 2015 are summarized as follows: | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | Market | | | | Cost | | Gain | | Loss | | Value | | | | (In Thousands) | | September 30, 2016 | | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | 35,999 | | $ | 859 | | $ | - | | $ | 36,858 | | Mortgage-backed securities | | | 161,686 | | | 3,776 | | | (31) | | | 165,431 | | State and municipal securities | | | 137,649 | | | 2,512 | | | (36) | | | 140,125 | | Corporate debt | | | 8,967 | | | 36 | | | - | | | 9,003 | | Total | | | 344,301 | | | 7,183 | | | (67) | | | 351,417 | | Securities Held to Maturity | | | | | | | | | | | | | | Mortgage-backed securities | | | 20,214 | | | 604 | | | - | | | 20,818 | | State and municipal securities | | | 5,639 | | | 455 | | | - | | | 6,094 | | Total | | $ | 25,853 | | $ | 1,059 | | $ | - | | $ | 26,912 | | | | | | | | | | | | | | | | December 31, 2015 | | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | 44,581 | | $ | 569 | | $ | (141) | | $ | 45,009 | | Mortgage-backed securities | | | 135,363 | | | 1,945 | | | (354) | | | 136,954 | | State and municipal securities | | | 143,403 | | | 2,731 | | | (101) | | | 146,033 | | Corporate debt | | | 14,902 | | | 67 | | | (27) | | | 14,942 | | Total | | | 338,249 | | | 5,312 | | | (623) | | | 342,938 | | Securities Held to Maturity | | | | | | | | | | | | | | Mortgage-backed securities | | | 21,666 | | | 368 | | | (332) | | | 21,702 | | State and municipal securities | | | 5,760 | | | 449 | | | (1) | | | 6,208 | | Total | | $ | 27,426 | | $ | 817 | | $ | (333) | | $ | 27,910 | |
The amortized cost and fair value of debt securities as of September 30, 2016 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories along with the other categories of debt securities. | | September 30, 2016 | | December 31, 2015 | | | | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | | | (In thousands) | | Debt securities available for sale | | | | | | | | | | | | | | Due within one year | | $ | 24,263 | | $ | 24,405 | | $ | 16,770 | | $ | 16,868 | | Due from one to five years | | | 141,696 | | | 144,492 | | | 153,880 | | | 156,311 | | Due from five to ten years | | | 16,656 | | | 17,089 | | | 32,236 | | | 32,805 | | Mortgage-backed securities | | | 161,686 | | | 165,431 | | | 135,363 | | | 136,954 | | | | $ | 344,301 | | $ | 351,417 | | $ | 338,249 | | $ | 342,938 | | | | | | | | | | | | | | | | Debt securities held to maturity | | | | | | | | | | | | | | Due from five to ten years | | $ | 741 | | $ | 781 | | $ | 627 | | $ | 659 | | Due after ten years | | | 4,898 | | | 5,313 | | | 5,133 | | | 5,549 | | Mortgage-backed securities | | | 20,214 | | | 20,818 | | | 21,666 | | | 21,702 | | | | $ | 25,853 | | $ | 26,912 | | $ | 27,426 | | $ | 27,910 | | All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation. The following table identifies, as of September 30, 2016 and December 31, 2015, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. At September 30, 2016, six of the Company’s 754 debt securities had been in an unrealized loss position for 12 or more months. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity; accordingly, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2016. Further, the Company believes any deterioration in value of its current investment securities is attributable to changes in market interest rates and not credit quality of the issuer. | | Less Than Twelve Months | | Twelve Months or More | | Total | | | | Gross | | | | | Gross | | | | | Gross | | | | | | | Unrealized | | | | | Unrealized | | | | | Unrealized | | | | | | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | | | | (In Thousands) | | September 30, 2016 | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | Mortgage-backed securities | | | (31) | | | 15,624 | | | - | | | - | | | (31) | | | 15,624 | | State and municipal securities | | | (29) | | | 9,161 | | | (7) | | | 1,125 | | | (36) | | | 10,286 | | Corporate debt | | | - | | | - | | | - | | | - | | | - | | | - | | Total | | $ | (60) | | $ | 24,785 | | $ | (7) | | $ | 1,125 | | $ | (67) | | $ | 25,910 | | | | | | | | | | | | | | | | | | | | | | December 31, 2015 | | | | | | | | | | | | | | | | | | | | U.S. Treasury and government sponsored agencies | | $ | (141) | | $ | 3,886 | | $ | - | | $ | - | | $ | (141) | | $ | 3,886 | | Mortgage-backed securities | | | (354) | | | 56,609 | | | (332) | | | 11,712 | | | (686) | | | 68,321 | | State and municipal securities | | | (55) | | | 15,464 | | | (47) | | | 4,531 | | | (102) | | | 19,995 | | Corporate debt | | | (27) | | | 2,961 | | | - | | | - | | | (27) | | | 2,961 | | Total | | $ | (577) | | $ | 78,920 | | $ | (379) | | $ | 16,243 | | $ | (956) | | $ | 95,163 | |
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