NOTE 3 - SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of securities were as follows:



	December 31, 2017
				Gross		Gross
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
	(In Thousands)
AVAILABLE FOR SALE:
U.S. Treasury securities	$	2,001	$	-	$	(3)	$	1,998
States and political subdivisions		120,000		1,535		(1,057)		120,478
Corporate obligations		10,068		16		(95)		9,989
Mortgage-backed securities-
government sponsored entities		152,901		17		(4,262)		148,656
Total debt securities	$	284,970	$	1,568	$	(5,417)	$	281,121



	December 31, 2016
				Gross		Gross
		Amortized		Unrealized		Unrealized		Fair
		Cost		Gains		Losses		Value
	(In Thousands)
AVAILABLE FOR SALE:
U.S. Treasury securities	$	2,005	$	-	$	(8)	$	1,997
States and political subdivisions		127,585		884		(3,368)		125,101
Corporate obligations		10,255		37		(180)		10,112
Mortgage-backed securities-
government sponsored entities		169,124		26		(4,220)		164,930
Total debt securities		308,969		947		(7,776)		302,140
Equity securities-financial services		320		104		-		424
	$	309,289	$	1,051	$	(7,776)	$	302,564

The following tables show the Company’s investments’ gross unrealized losses and fair value aggregated by security type and length of time that individual securities have been in a continuous unrealized loss position (in thousands):



	December 31, 2017
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	-	$	-	$	1,998	$	(3)	$	1,998	$	(3)
States and political subdivisions		17,310		(228)		44,948		(829)		62,258		(1,057)
Corporate obligations		-		-		6,859		(95)		6,859		(95)
Mortgage-backed securities-government sponsored entities		22,250		(320)		125,846		(3,942)		148,096		(4,262)
	$	39,560	$	(548)	$	179,651	$	(4,869)	$	219,211	$	(5,417)


	December 31, 2016
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	1,997	$	(8)	$	-	$	-	$	1,997	$	(8)
States and political subdivisions		90,109		(3,362)		205		(6)		90,314		(3,368)
Corporate obligations		6,895		(180)		-		-		6,895		(180)
Mortgage-backed securities-government sponsored entities		152,614		(3,912)		9,967		(308)		162,581		(4,220)
	$	251,615	$	(7,462)	$	10,172	$	(314)	$	261,787	$	(7,776)

The Company has 39 debt securities in the less than twelve month category and 162 debt securities in the twelve months or more category as of December 31, 2017. In management’s opinion, the unrealized losses on securities reflect changes in interest rates subsequent to the acquisition of specific securities. No other-than-temporary-impairment charges were recorded in 2017. Management believes that all other unrealized losses represent temporary impairment of the securities, and it is more likely than not that it will not have to sell the securities before recovery of their cost basis.

The amortized cost and fair value of debt securities as of December 31, 2017 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.


	Amortized		Fair
	Cost		Value
		(In Thousands)
Due in one year or less	$	5,514	$	5,517
Due after one year through five years		21,383		21,269
Due after five years through ten years		45,373		44,705
Due after ten years		59,799		60,974
		132,069		132,465

Mortgage-backed securities - government sponsored entities		152,901		148,656
	$	284,970	$	281,121

Gross realized gains and gross realized losses on sales of securities available for sale were $354,000 and $6,000, respectively, in 2017, compared to $284,000 and $0, respectively, in 2016, and $626,000 and $0, respectively, in 2015. The proceeds from the sales of securities totaled $15,612,000, $110,748,000 and $44,976,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

Securities with a carrying value of $213,065,000 and $230,263,000 at December 31, 2017 and 2016, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.