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Investment Securities | 12 Months Ended
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Dec. 31, 2017
Investment Securities [Abstract] |
Investment Securities | NOTE 2 – Investment Securities The amortized costs and fair value of investment securities are as follows:
|  |  |  |  |  |  |  |  | December 31, 2017
|  | Amortized |  |  |  | Gross Unrealized |  | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value
Available for sale |  |  |  |  |  |  |  |  |
US government agencies |  | $ | 8,749 |  | 1 |  | 97 |  | 8,653
SBA securities |  |  | 4,087 |  | - |  | 24 |  | 4,063
State and political subdivisions |  |  | 11,242 |  | 179 |  | 25 |  | 11,396
Mortgage-backed securities |  |  |  |  |  |  |  |  |
FHLMC |  |  | 9,102 |  | - |  | 149 |  | 8,953
FNMA |  |  | 29,383 |  | 3 |  | 386 |  | 29,000
GNMA |  |  | 5,618 |  | 2 |  | 82 |  | 5,538
Total mortgage-backed securities |  |  | 44,103 |  | 5 |  | 617 |  | 43,491
Total |  | $ | 68,181 |  | 185 |  | 763 |  | 67,603
|  |  |  |  |  |  |  |  | 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 |  |  |  |  |  |  |  |  |
FHLMC |  |  | 10,922 |  | - |  | 185 |  | 10,737
FNMA |  |  | 24,827 |  | 19 |  | 277 |  | 24,569
GNMA |  |  | 1,146 |  | 2 |  | 44 |  | 1,104
Total mortgage-backed securities |  |  | 36,895 |  | 21 |  | 506 |  | 36,410
Total |  | $ | 65,244 |  | 163 |  | 927 |  | 64,480
During 2017, approximately $9.7 million of investment securities were either sold or called, subsequently resulting in a gain on sale of investment securities of $4,500. In comparison, the Company sold $33.5 million of its investment securities during 2016, recording a gain on sale of investment securities of $431,000. The amortized costs and fair values of investment securities available for sale at December 31, 2017 and 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers have the right to prepay the obligations.
|  |  |  |  |  |  |  |  | December 31,
|  |  |  |  | 2017 |  |  |  | 2016
|  | Amortized |  | Fair |  | Amortized |  | Fair
(dollars in thousands) |  | Cost |  | Value |  | Cost |  | Value
Available for sale |  |  |  |  |  |  |  |  |
Due within one year |  | $ | 1,435 |  | 1,427 |  | - |  | -
Due after one through five years |  |  | 2,677 |  | 2,666 |  | 3,303 |  | 3,268
Due after five through ten years |  |  | 24,796 |  | 24,645 |  | 26,234 |  | 25,976
Due after ten years |  |  | 39,273 |  | 38,865 |  | 35,707 |  | 35,236
|  | $ | 68,181 |  | 67,603 |  | 65,244 |  | 64,480
The tables below summarize gross unrealized losses on investment securities and the fair market value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2017 and 2016.
|  |  |  | Less than 12 months |  |  |  | 12 months or longer |  |  |  |  |  |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
(dollars in thousands) |  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government agencies |  | 5 |  | $ | 4,184 |  | $ | 22 |  | 4 |  | $ | 3,968 |  | $ | 75 |  | 9 |  | $ | 8,152 |  | $ | 97
SBA securities |  | 1 |  |  | 2,936 |  |  | 13 |  | 1 |  |  | 1,127 |  |  | 11 |  | 2 |  |  | 4,063 |  |  | 24
State and political subdivisions |  | 3 |  |  | 1,214 |  |  | 9 |  | 2 |  |  | 792 |  |  | 16 |  | 5 |  |  | 2,006 |  |  | 25
Mortgage-backed |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLMC |  | 3 |  |  | 2,897 |  |  | 26 |  | 7 |  |  | 6,056 |  |  | 123 |  | 10 |  |  | 8,953 |  |  | 149
FNMA |  | 11 |  |  | 14,345 |  |  | 135 |  | 13 |  |  | 14,597 |  |  | 251 |  | 24 |  |  | 29,940 |  |  | 386
GNMA |  | 2 |  |  | 2,270 |  |  | 40 |  | 1 |  |  | 971 |  |  | 42 |  | 3 |  |  | 2,243 |  |  | 82
|  | 25 |  | $ | 27,846 |  | $ | 245 |  | 28 |  | $ | 27,511 |  | $ | 518 |  | 53 |  | $ | 55,357 |  | $ | 763
|  |  |  | Less than 12 months |  |  |  | 12 months or longer |  |  |  |  |  |  | Total
|  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized |  |  |  | Fair |  | Unrealized
|  | # |  | value |  | losses |  | # |  | value |  | losses |  | # |  | value |  | losses
As of December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FHLMC |  | 10 |  |  | 10,737 |  |  | 185 |  | - |  |  | - |  |  | - |  | 10 |  |  | 10,737 |  |  | 185
FNMA |  | 14 |  |  | 15,478 |  |  | 247 |  | 2 |  |  | 3,991 |  |  | 30 |  | 16 |  |  | 19,469 |  |  | 277
GNMA |  | 1 |  |  | 1,077 |  |  | 44 |  | - |  |  | - |  |  | - |  | 1 |  |  | 1,077 |  |  | 44
|  | 63 |  | $ | 47,809 |  | $ | 897 |  | 2 |  | $ | 3,991 |  | $ | 30 |  | 65 |  | $ | 51,800 |  | $ | 927
At December 31, 2017, the Company had 25 individual investments with a fair market value of $27.8 million that were in an unrealized loss position for less than 12 months and 28 individual investments with a fair market value of $27.5 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 were not other-than-temporarily impaired. We also consider 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, we have concluded that the 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:
|  |  |  |  | December 31,
(dollars in thousands) |  | 2017 |  | 2016
Federal Home Loan Bank stock |  | $ | 3,754 |  | 5,173
Other investments |  |  | 305 |  | 166
Investment in Trust Preferred subsidiaries |  |  | 403 |  | 403
|  | $ | 4,462 |  | 5,742
The Company has evaluated the FHLB stock for impairment and determined that the investment in FHLB stock is not other than temporarily impaired as of December 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 December 31, 2017 and 2016, $7.7 million and $21.0 million, respectively, of securities were pledged as collateral for repurchase agreements from brokers. In addition, approximately $21.1 million was pledged to secure client deposits at December 31, 2016.

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