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Investment Securities | 3 Months Ended
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Mar. 31, 2017
Investment Securities [Abstract] |
Investment Securities | NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows:
|  | March 31, 2017
|  | Amortized |  | Gross Unrealized |  | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 6,266 |  | 4 |  | 90 |  | 6,180
SBA securities |  |  | 1,436 |  | - |  | 16 |  | 1,420
State and political subdivisions |  |  | 20,584 |  | 186 |  | 198 |  | 20,572
Mortgage-backed securities |  |  | 35,076 |  | 14 |  | 426 |  | 34,664
Total investment securities available for sale |  | $ | 63,362 |  | 204 |  | 730 |  | 62,836
| December 31, 2016
|  | Amortized |  | Gross Unrealized |  | Fair
|  | Cost |  | Gains |  | Losses |  | Value
Available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 6,271 |  | 1 |  | 113 |  | 6,159
SBA securities |  |  | 1,453 |  | - |  | 16 |  | 1,437
State and political subdivisions |  |  | 20,625 |  | 141 |  | 292 |  | 20,474
Mortgage-backed securities |  |  | 36,895 |  | 21 |  | 506 |  | 36,410
Total investment securities available for sale |  | $ | 65,244 |  | 163 |  | 927 |  | 64,480
During the first quarter of 2017, there were no investment securities either sold or called. During the first quarter of 2016, approximately $12.2 million of investment securities were either sold or called, subsequently resulting in a gain on sale of $307,000. Contractual maturities and yields on the Company’s investment securities at March 31, 2017 and December 31, 2016 are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | March 31, 2017
|  | Less than one year |  | One to five years |  | Five to ten years |  | Over ten years |  |  |  | Total
(dollars in thousands) |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | $ | - |  | - |  | 2,014 |  | 1.61 | % |  | 4,166 |  | 2.27 | % |  | - |  | - |  |  | 6,180 |  | 2.06 | %
SBA securities |  |  | - |  | - |  | - |  | - |  |  | - |  | - |  |  | 1,420 |  | 1.56 | % |  | 1,420 |  | 1.56 | %
State and political subdivisions |  |  | - |  | - |  | 2,822 |  | 1.80 | % |  | 12,063 |  | 2.36 | % |  | 5,687 |  | 2.82 | % |  | 20,572 |  | 2.41 | %
Mortgage-backed securities |  |  | - |  | - |  | - |  | - |  |  | 8,014 |  | 1.66 | % |  | 26,650 |  | 1.82 | % |  | 34,664 |  | 1.78 | %
Total |  | $ | - |  | - |  | 4,836 |  | 1.72 | % |  | 24,243 |  | 2.11 | % |  | 33,757 |  | 1.98 | % |  | 62,836 |  | 2.01 | %
|  | December 31, 2016
|  | Less than one year |  | One to five years |  | Five to ten years |  | Over ten years |  |  |  | Total
|  | Amount |  | Yield |  | Amount |  | Yield |  |  | Amount |  | Yield |  | Amount |  | Yield |  | Amount |  | Yield
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | $ | - |  | - |  | 997 |  | 1.15 | % |  | 5,162 |  | 2.23 | % |  | - |  | - |  |  | 6,159 |  | 2.06 | %
SBA securities |  |  | - |  | - |  | - |  | - |  |  | - |  | - |  |  | 1,437 |  | 1.32 | % |  | 1,437 |  | 1.32 | %
State and political subdivisions |  |  | - |  | - |  | 2,271 |  | 1.73 | % |  | 12,287 |  | 2.35 | % |  | 5,916 |  | 2.77 | % |  | 20,474 |  | 2.40 | %
Mortgage-backed securities |  |  | - |  | - |  | - |  | - |  |  | 8,527 |  | 1.64 | % |  | 27,883 |  | 1.68 | % |  | 36,410 |  | 1.67 | %
Total |  | $ | - |  | - |  | 3,268 |  | 1.55 | % |  | 25,976 |  | 2.10 | % |  | 35,236 |  | 1.85 | % |  | 64,480 |  | 1.93 | %
The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities at March 31, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
| March 31, 2017
|  | Less than 12 months |  | 12 months or longer |  |  |  |  |  |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
(dollars in thousands) |  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | 4 |  | $ | 3,967 |  | $ | 90 |  | - |  | $ | - |  | $ | - |  | 4 |  | $ | 3,967 |  | $ | 90
SBA securities |  | - |  |  | - |  |  | - |  | 1 |  |  | 1,421 |  |  | 16 |  | 1 |  |  | 1,421 |  |  | 16
State and political subdivisions |  | 24 |  |  | 10,519 |  |  | 198 |  | - |  |  | - |  |  | - |  | 24 |  |  | 10,519 |  |  | 198
Mortgage-backed securities |  | 26 |  |  | 28,837 |  |  | 396 |  | 2 |  |  | 3,722 |  |  | 30 |  | 28 |  |  | 32,559 |  |  | 426
Total |  | 54 |  | $ | 43,323 |  | $ | 684 |  | 3 |  | $ | 5,143 |  | $ | 46 |  | 57 |  | $ | 48,466 |  | $ | 730
| December 31, 2016
|  | Less than 12 months |  | 12 months or longer |  |  |  |  |  |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
|  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | 5 |  | $ | 5,144 |  | $ | 113 |  | - |  | $ | - |  | $ | - |  | 5 |  | $ | 5,144 |  | $ | 113
SBA securities |  | 1 |  |  | 1,437 |  |  | 16 |  | - |  |  | - |  |  | - |  | 1 |  |  | 1,437 |  |  | 16
State and political subdivisions |  | 32 |  |  | 13,936 |  |  | 292 |  | - |  |  | - |  |  | - |  | 32 |  |  | 13,936 |  |  | 292
Mortgage-backed securities |  | 25 |  |  | 27,292 |  |  | 476 |  | 2 |  |  | 3,991 |  |  | 30 |  | 27 |  |  | 31,283 |  |  | 506
Total |  | 63 |  | $ | 47,809 |  | $ | 897 |  | 2 |  | $ | 3,991 |  | $ | 30 |  | 65 |  | $ | 51,800 |  | $ | 927
At March 31, 2017, the Company had 54 individual investments with a fair market value of $43.3 million that were in an unrealized loss position for less than 12 months and three individual investments with a fair market value of $5.1 million that were in an unrealized loss position for 12 months or longer. The unrealized losses were primarily attributable to changes in interest rates, rather than deterioration in credit quality. The individual securities are each investment grade securities. The Company considers the length of time and extent to which the fair value of available-for-sale debt securities have been less than cost to conclude that such securities are not other-than-temporarily impaired. The Company also considers other factors such as the financial condition of the issuer including credit ratings and specific events affecting the operations of the issuer, volatility of the security, underlying assets that collateralize the debt security, and other industry and macroeconomic conditions. As the Company has no intent to sell securities with unrealized losses and it is not more-likely-than-not that the Company will be required to sell these securities before recovery of amortized cost, the Company has concluded that these securities are not impaired on an other-than-temporary basis. Other investments are comprised of the following and are recorded at cost which approximates fair value.
(dollars in thousands) |  |  | March 31, 2017 |  | December 31, 2016
Federal Home Loan Bank stock |  | $ | 4,965 |  | 5,173
Investment in Trust Preferred securities |  |  | 403 |  | 403
Other investments |  |  | 155 |  | 166
Total other investments |  | $ | 5,523 |  | 5,742
The Company has evaluated the Federal Home Loan Bank (“FHLB”) stock for impairment and determined that the investment in the FHLB stock is not other than temporarily impaired as of March 31, 2017 and ultimate recoverability of the par value of this investment is probable. All of the FHLB stock is used to collateralize advances with the FHLB. At March 31, 2017, $20.7 million of securities were pledged as collateral for repurchase agreements from brokers and no securities were pledged to secure client deposits. At December 31, 2016, $21.0 million of securities were pledged as collateral for repurchase agreements from brokers, and approximately $21.1 million of securities were pledged to secure client deposits.

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