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Securities | 9 Months Ended
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Sep. 30, 2017
Investments Debt And Equity Securities [Abstract] |
Securities | Securities: The following table summarizes the amortized cost and fair value of the available-for-sale investment securities portfolio at September 30, 2017 and December 31, 2016 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income:
|  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(In Thousands of Dollars) | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
| Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government sponsored entities | $ | 8,728 |  |  | $ | 5 |  |  | $ | (25 | ) |  | $ | 8,708 |
State and political subdivisions |  | 182,206 |  |  |  | 3,127 |  |  |  | (906 | ) |  |  | 184,427 |
Corporate bonds |  | 1,238 |  |  |  | 7 |  |  |  | (4 | ) |  |  | 1,241 |
Mortgage-backed securities - residential |  | 167,419 |  |  |  | 921 |  |  |  | (1,103 | ) |  |  | 167,237 |
Collateralized mortgage obligations - residential |  | 18,745 |  |  |  | 0 |  |  |  | (605 | ) |  |  | 18,140 |
Small Business Administration |  | 15,429 |  |  |  | 0 |  |  |  | (329 | ) |  |  | 15,100 |
Equity securities |  | 175 |  |  |  | 208 |  |  |  | (1 | ) |  |  | 382 |
Totals | $ | 393,940 |  |  | $ | 4,268 |  |  | $ | (2,973 | ) |  | $ | 395,235 |
|  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(In Thousands of Dollars) | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
| Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government sponsored entities | $ | 5,970 |  |  | $ | 5 |  |  | $ | (54 | ) |  | $ | 5,921 |
State and political subdivisions |  | 157,014 |  |  |  | 1,049 |  |  |  | (2,760 | ) |  |  | 155,303 |
Corporate bonds |  | 1,343 |  |  |  | 4 |  |  |  | (8 | ) |  |  | 1,339 |
Mortgage-backed securities - residential |  | 171,215 |  |  |  | 1,019 |  |  |  | (2,552 | ) |  |  | 169,682 |
Collateralized mortgage obligations - residential |  | 21,397 |  |  |  | 1 |  |  |  | (705 | ) |  |  | 20,693 |
Small Business Administration |  | 17,236 |  |  |  | 0 |  |  |  | (530 | ) |  |  | 16,706 |
Equity securities |  | 168 |  |  |  | 185 |  |  |  | (2 | ) |  |  | 351 |
Totals | $ | 374,343 |  |  | $ | 2,263 |  |  | $ | (6,611 | ) |  | $ | 369,995 |
Proceeds from the sale of portfolio securities were $0 during the three and $54.5 during the nine month period ended September 30, 2017. Gross gains of $0 and $730 thousand along with gross losses of $0 and $731 thousand were realized on these sales during the three and nine month periods ended September 30, 2017. Proceeds from the sale of portfolio securities were $2.3 million during the three and $11.5 million during the nine month period ended September 30, 2016. Gross gains were $31 thousand and $224 thousand along with gross losses of $0 and $152 thousand during the same three and nine month period ended September 30, 2016. The amortized cost and fair value of the debt securities portfolio are shown by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|  | September 30, 2017 |
(In Thousands of Dollars) |  | Amortized Cost |  |  | Fair Value |
Maturity |  |  |  |  |  |  |  |
Within one year |  | $ | 16,357 |  |  | $ | 16,397 |
One to five years |  |  | 50,636 |  |  |  | 51,389 |
Five to ten years |  |  | 111,761 |  |  |  | 113,200 |
Beyond ten years |  |  | 13,418 |  |  |  | 13,390 |
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities |  |  | 201,593 |  |  |  | 200,477 |
Total |  | $ | 393,765 |  |  | $ | 394,853 |
The following table summarizes the investment securities with unrealized losses at September 30, 2017 and December 31, 2016, aggregated by major security type and length of time in a continuous unrealized loss position. Unrealized losses for U.S. Treasury and U.S. government sponsored entities for more than twelve months, rounded to less than $1 thousand in 2016.
| Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
(In Thousands of Dollars) | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
| Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
September 30, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government sponsored entities | $ | 5,538 |  |  | $ | (12 | ) |  | $ | 411 |  |  | $ | (13 | ) |  | $ | 5,949 |  |  | $ | (25 | )
State and political subdivisions |  | 33,400 |  |  |  | (489 | ) |  |  | 15,864 |  |  |  | (417 | ) |  |  | 49,264 |  |  |  | (906 | )
Corporate bonds |  | 481 |  |  |  | (2 | ) |  |  | 102 |  |  |  | (2 | ) |  |  | 583 |  |  |  | (4 | )
Mortgage-backed securities - residential |  | 55,980 |  |  |  | (574 | ) |  |  | 20,949 |  |  |  | (529 | ) |  |  | 76,929 |  |  |  | (1,103 | )
Collateralized mortgage obligations - residential |  | 7,806 |  |  |  | (94 | ) |  |  | 10,283 |  |  |  | (511 | ) |  |  | 18,089 |  |  |  | (605 | )
Small Business Administration |  | 7,867 |  |  |  | (105 | ) |  |  | 7,198 |  |  |  | (224 | ) |  |  | 15,065 |  |  |  | (329 | )
Equity securities |  | 23 |  |  |  | (1 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 23 |  |  |  | (1 | )
Total | $ | 111,095 |  |  | $ | (1,277 | ) |  | $ | 54,807 |  |  | $ | (1,696 | ) |  | $ | 165,902 |  |  | $ | (2,973 | )
| Less than 12 Months |  |  | 12 Months or Longer |  |  | Total |
(In Thousands of Dollars) | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
| Value |  |  | Loss |  |  | Value |  |  | Loss |  |  | Value |  |  | Loss |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government sponsored entities | $ | 4,015 |  |  | $ | (54 | ) |  | $ | 502 |  |  | $ | 0 |  |  | $ | 4,517 |  |  | $ | (54 | )
State and political subdivisions |  | 92,560 |  |  |  | (2,745 | ) |  |  | 286 |  |  |  | (15 | ) |  |  | 92,846 |  |  |  | (2,760 | )
Corporate bonds |  | 786 |  |  |  | (8 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 786 |  |  |  | (8 | )
Mortgage-backed securities - residential |  | 98,348 |  |  |  | (1,823 | ) |  |  | 29,743 |  |  |  | (729 | ) |  |  | 128,091 |  |  |  | (2,552 | )
Collateralized mortgage obligations - residential |  | 7,956 |  |  |  | (108 | ) |  |  | 10,972 |  |  |  | (597 | ) |  |  | 18,928 |  |  |  | (705 | )
Small Business Administration |  | 8,770 |  |  |  | (205 | ) |  |  | 7,890 |  |  |  | (325 | ) |  |  | 16,660 |  |  |  | (530 | )
Equity securities |  | 44 |  |  |  | (2 | ) |  |  | 0 |  |  |  | 0 |  |  |  | 44 |  |  |  | (2 | )
Total | $ | 212,479 |  |  | $ | (4,945 | ) |  | $ | 49,393 |  |  | $ | (1,666 | ) |  | $ | 261,872 |  |  | $ | (6,611 | )
Other-Than-Temporary-Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities are generally evaluated for OTTI under FASB Accounting Standards Codification (“ASC”) 320, Investments – Debt and Equity Securities. Consideration is given to 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 affected by macroeconomic conditions and whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, or U.S. government sponsored enterprises, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment, and is based on the information available to management at a point in time. When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income or loss. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. As of September 30, 2017, the Company’s security portfolio consisted of 541 securities, 137 of which were in an unrealized loss position. The majority of the unrealized losses on the Company’s securities are related to its holdings of mortgage-backed securities, collateralized mortgage obligations, state and political subdivision securities, and Small Business Administration securities as discussed below. Unrealized losses on debt securities issued by state and political subdivisions have not been recognized into income. These securities have maintained their investment grade ratings and management does not have the intent and does not expect to be required to sell these securities before their anticipated recovery. The fair value is expected to recover as the securities approach their maturity date. All of the Company’s holdings of collateralized mortgage obligations and residential mortgage-backed securities were issued by U.S. government-sponsored entities. Unrealized losses on these securities have not been recognized into income. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, the issues are guaranteed by the issuing entity which the U.S. government has affirmed its commitment to support, and because the Company does not have the intent to sell these residential mortgage-backed securities and it is likely that it will not be required to sell the securities before their anticipated recovery, the Company does not consider these securities to be OTTI. Management does not believe any unrealized losses on Small Business Administration securities represent an OTTI. The securities are issued and backed by the full faith and credit of the U.S. government and the Company does not have the intent and does not anticipate that it will be required to sell these securities before their anticipated recovery. The fair value of these securities is expected to recover as they approach their maturity.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
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