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Investment Securities
 6 Months Ended
Jun. 30, 2017
Investment Securities [Abstract]  
Investment Securities

NOTE 2 – Investment Securities

The amortized costs and fair value of investment securities are as follows:

     
      June 30, 2017
Amortized       Gross Unrealized       Fair
(dollars in thousands) Cost Gains       Losses Value
Available for sale
US government agencies $ 9,260 12 72 9,200
SBA securities 4,438 - 21 4,417
State and political subdivisions 20,129 321 72 20,378
Mortgage-backed securities 47,822 9 447 47,384
Total investment securities available for sale $ 81,649 342 612 81,379
 
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 six months of 2017, there were $415,000 of investment securities either sold or called, resulting in a gain on sale of $2,000. During the first six months of 2016, approximately $19.8 million of investment securities were either sold or called, subsequently resulting in a gain on sale of $325,000.

Contractual maturities and yields on the Company’s investment securities at June 30, 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.

 
   June 30, 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 $     - -    3,015    1.70 % 6,185 2.38 % - - 9,200 2.16 %
SBA securities - - - - - - 4,417 2.43 % 4,417 2.43 %
State and political subdivisions - - 2,409 1.55 % 12,196 2.36 % 5,773 2.82 % 20,378 2.39 %
Mortgage-backed securities - - 914 1.36 % 9,686 1.82 % 36,784 2.12 % 47,384 2.03 %
Total $ - - 6,338 1.59 %    28,067    2.18 %    46,974    2.23 %    81,379    2.16 %
 
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 June 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

 
June 30, 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 8 $     6,480 $ 72 - $      - $ - 8 $      6,480 $ 72
SBA securities 1 3,002 16 1 1,414 5 2 4,416 21
State and political subdivisions 14 6,492 72 - - - 14 6,491 72
Mortgage-backed securities 34 42,865 396 3 4,415 51 37 47,280 447
Total 57 $ 58,839 $ 556 4 $ 5,829 $ 56 61 $ 64,668 $ 612
 
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 June 30, 2017, the Company had 57 individual investments with a fair market value of $58.8 million that were in an unrealized loss position for less than 12 months and four individual investments with a fair market value of $5.8 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) June 30, 2017 December 31, 2016
Federal Home Loan Bank stock $ 3,499 5,173
Investment in Trust Preferred securities   403 403
Other investments 129 166
Total other investments $ 4,031 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 June 30, 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 June 30, 2017, $20.5 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.