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Securities | 9 Months Ended
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Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract] |
Securities | Note 2. Securities The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities at September 30, 2016 and December 31, 2015 were as follows (in thousands):
|  | September 30, 2016 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized (Losses) |  |  | Fair Value |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency and mortgage-backed securities |  | $ | 74,732 |  |  | $ | 1,092 |  |  | $ | (62 | ) |  | $ | 75,762 |
Obligations of states and political subdivisions |  |  | 12,148 |  |  |  | 402 |  |  |  | — |  |  |  | 12,550 |
Corporate equity securities |  |  | 1 |  |  |  | 10 |  |  |  | — |  |  |  | 11 |
Total securities available for sale |  | $ | 86,881 |  |  | $ | 1,504 |  |  | $ | (62 | ) |  | $ | 88,323 |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency and mortgage-backed securities |  | $ | 39,118 |  |  | $ | 487 |  |  | $ | — |  |  | $ | 39,605 |
Obligations of states and political subdivisions |  |  | 14,645 |  |  |  | 531 |  |  |  | — |  |  |  | 15,176 |
Corporate debt securities |  |  | 1,500 |  |  |  | 24 |  |  |  | — |  |  |  | 1,524 |
Total securities held to maturity |  | $ | 55,263 |  |  | $ | 1,042 |  |  | $ | — |  |  | $ | 56,305 |
Total securities |  | $ | 142,144 |  |  | $ | 2,546 |  |  | $ | (62 | ) |  | $ | 144,628 |
|  | December 31, 2015 |
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized (Losses) |  |  | Fair Value |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency and mortgage-backed securities |  | $ | 89,919 |  |  | $ | 261 |  |  | $ | (843 | ) |  | $ | 89,337 |
Obligations of states and political subdivisions |  |  | 15,931 |  |  |  | 333 |  |  |  | (50 | ) |  |  | 16,214 |
Corporate equity securities |  |  | 1 |  |  |  | 7 |  |  |  | — |  |  |  | 8 |
Total securities available for sale |  | $ | 105,851 |  |  | $ | 601 |  |  | $ | (893 | ) |  | $ | 105,559 |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency and mortgage-backed securities |  | $ | 49,662 |  |  | $ | 36 |  |  | $ | (326 | ) |  | $ | 49,372 |
Obligations of states and political subdivisions |  |  | 15,357 |  |  |  | 228 |  |  |  | (19 | ) |  |  | 15,566 |
Corporate debt securities |  |  | 1,500 |  |  |  | — |  |  |  | — |  |  |  | 1,500 |
Total securities held to maturity |  | $ | 66,519 |  |  | $ | 264 |  |  | $ | (345 | ) |  | $ | 66,438 |
Total securities |  | $ | 172,370 |  |  | $ | 865 |  |  | $ | (1,238 | ) |  | $ | 171,997 |
At September 30, 2016 and December 31, 2015, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands):
|  | September 30, 2016 |
|  | Less than 12 months |  |  | 12 months or more |  |  | Total |
|  |  |  |  | Unrealized |  |  | Unrealized |  |  |  |  |  |  |  |  | Unrealized |
|  | Fair Value |  |  | (Loss) |  |  | Fair Value |  |  | (Loss) |  |  | Fair Value |  |  | (Loss) |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency and mortgage-backed securities |  | $ | — |  |  | $ | — |  |  | $ | 6,022 |  |  | $ | (62 | ) |  | $ | 6,022 |  |  | $ | (62 | )
Total securities available for sale |  | $ | — |  |  | $ | — |  |  | $ | 6,022 |  |  | $ | (62 | ) |  | $ | 6,022 |  |  | $ | (62 | )
Total securities |  | $ | — |  |  | $ | — |  |  | $ | 6,022 |  |  | $ | (62 | ) |  | $ | 6,022 |  |  | $ | (62 | )
|  | December 31, 2015 |
|  | Less than 12 months |  |  | 12 months or more |  |  | Total |
|  |  |  |  | Unrealized |  |  |  |  |  | Unrealized |  |  |  |  |  | Unrealized |
|  | Fair Value |  |  | (Loss) |  |  | Fair Value |  |  | (Loss) |  |  | Fair Value |  |  | (Loss) |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency and mortgage-backed securities |  | $ | 50,185 |  |  | $ | (464 | ) |  | $ | 13,409 |  |  | $ | (379 | ) |  | $ | 63,594 |  |  | $ | (843 | )
Obligations of states and political subdivisions |  |  | 2,395 |  |  |  | (15 | ) |  |  | 1,053 |  |  |  | (35 | ) |  |  | 3,448 |  |  |  | (50 | )
Total securities available for sale |  | $ | 52,580 |  |  | $ | (479 | ) |  | $ | 14,462 |  |  | $ | (414 | ) |  | $ | 67,042 |  |  | $ | (893 | )
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agency and mortgage-backed securities |  | $ | 32,791 |  |  | $ | (326 | ) |  | $ | — |  |  | $ | — |  |  | $ | 32,791 |  |  | $ | (326 | )
Obligations of states and political subdivisions |  |  | 3,052 |  |  |  | (19 | ) |  |  | — |  |  |  | — |  |  |  | 3,052 |  |  |  | (19 | )
Total securities held to maturity |  | $ | 35,843 |  |  | $ | (345 | ) |  | $ | — |  |  | $ | — |  |  | $ | 35,843 |  |  | $ | (345 | )
Total securities |  | $ | 88,423 |  |  | $ | (824 | ) |  | $ | 14,462 |  |  | $ | (414 | ) |  | $ | 102,885 |  |  | $ | (1,238 | )
The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities. At September 30, 2016, there were seven U.S. agency and mortgage-backed securities in an unrealized loss position. The Company did not have any obligations of a state and political subdivision in an unrealized loss position at September 30, 2016. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 4.0 years at September 30, 2016. At December 31, 2015, there were fifty-two U.S. agency and mortgage-backed securities and thirteen obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2015. The weighted-average re-pricing term of the portfolio was 4.6 years at December 31, 2015. The unrealized losses at September 30, 2016 in the U.S. agency and mortgage-backed securities portfolio were related to changes in market interest rates and not credit concerns of the issuers. For the nine months ended September 30, 2016, the Company sold one security from the held to maturity portfolio. The Company recognized no gain or loss related to the sale as the carrying value of the security sold equaled the proceeds from the sale of $657 thousand. The sale of this security was in response to credit deterioration of the issuer. There were no sales of securities from the held to maturity portfolio for the three months ended September 30, 2016 and the three and nine month periods ended September 30, 2015. The amortized cost and fair value of securities at September 30, 2016 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date.
|  | Available for Sale |  |  | Held to Maturity |
|  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |
|  | Cost |  |  | Value |  |  | Cost |  |  | Value |
Due within one year |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Due after one year through five years |  |  | 9,871 |  |  |  | 10,014 |  |  |  | 1,780 |  |  |  | 1,818 |
Due after five years through ten years |  |  | 12,564 |  |  |  | 12,926 |  |  |  | 16,687 |  |  |  | 17,144 |
Due after ten years |  |  | 64,445 |  |  |  | 65,372 |  |  |  | 36,796 |  |  |  | 37,343 |
Corporate equity securities |  |  | 1 |  |  |  | 11 |  |  |  | — |  |  |  | — |
|  | $ | 86,881 |  |  | $ | 88,323 |  |  | $ | 55,263 |  |  | $ | 56,305 |
Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at September 30, 2016, and no impairment has been recognized. The composition of restricted securities at September 30, 2016 and December 31, 2015 was as follows (in thousands):
|  | September 30, 2016 |  |  | December 31, 2015 |
Federal Home Loan Bank stock |  | $ | 623 |  |  | $ | 466 |
Federal Reserve Bank stock |  |  | 875 |  |  |  | 875 |
Community Bankers’ Bank stock |  |  | 50 |  |  |  | 50 |
|  | $ | 1,548 |  |  | $ | 1,391 |

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