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2. Investment Securities
 3 Months Ended
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
2. Investment Securities

Investment securities available for sale at March 31, 2016 and December 31, 2015 are as follows:

 

(Dollars in thousands)                      
    March 31, 2016      
   

 

Amortized

Cost

    

Gross

Unrealized

Gains

    

Gross

Unrealized

Losses

    

 

Estimated

Fair Value

Mortgage-backed securities   $ 72,066       1,836       23       73,879
U.S. Government                              
sponsored enterprises     37,021       622       126       37,517
State and political subdivisions     141,091       7,688       14       148,765
Corporate bonds     1,918       11       18       1,911
Trust preferred securities     750       -       -       750
Equity securities     748       522       -       1,270
Total   $ 253,594       10,679       181       264,092

  

(Dollars in thousands)                      
    December 31, 2015    
   

 

Amortized

Cost

    

Gross

Unrealized

Gains

    

Gross

Unrealized

Losses

    

 

Estimated

Fair Value

Mortgage-backed securities   $ 76,406       1,526       45       77,887
U.S. Government                              
sponsored enterprises     38,173       399       155       38,417
State and political subdivisions     141,500       6,817       72       148,245
Corporate bonds     1,928       -       22       1,906
Trust preferred securities     750       -       -       750
Equity securities     748       577       -       1,325
Total   $ 259,505       9,319       294       268,530

 

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2016 and December 31, 2015 are summarized in the tables below, with the length of time the individual securities have been in a continuous loss position.

 

(Dollars in thousands)                                  
    March 31, 2016        
    Less than 12 Months     12 Months or More     Total  
   

 

Fair Value

    

Unrealized

Losses

    

 

Fair Value

    

Unrealized

Losses

    

 

Fair Value

    

Unrealized

Losses

Mortgage-backed securities   $ 4,277       23       -       -       4,277       23
U.S. Government                                              
sponsored enterprises     -       -       10,684       126       10,684       126
State and political subdivisions     3,749       14       596       -       4,345       14
Corporate bonds     982       18       -       -       982       18
Total   $ 9,008       55       11,280       126       20,288       181

  

(Dollars in thousands)                                  
      December 31, 2015          
    Less than 12 Months     12 Months or More     Total  
   

 

Fair Value

    

Unrealized

Losses

    

 

Fair Value

    

Unrealized

Losses

    

 

Fair Value

    

Unrealized

Losses

Mortgage-backed securities   $ 7,891       45       -       -       7,891       45
U.S. Government                                              
sponsored enterprises     3,074       13       10,828       142       13,902       155
State and political subdivisions     2,198       4       3,930       68       6,128       72
Corporate bonds     1,500       22       -       -       1,500       22
Total   $ 14,663       84       14,758       210       29,421       294

  

At March 31, 2016, unrealized losses in the investment securities portfolio relating to debt securities totaled $181,000.  The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary.  From the March 31, 2016 tables above, five out of 174 securities issued by state and political subdivisions contained unrealized losses, seven out of 78 securities issued by U.S. Government sponsored enterprises, including mortgage-backed securities, contained unrealized losses, and one out of three securities issued by corporations contained unrealized losses.  These unrealized losses are considered temporary because of acceptable financial condition and results of operations of entities that issued each security and the repayment sources of principal and interest on U.S. Government sponsored enterprises, including mortgage-backed securities, are government backed.

 

The amortized cost and estimated fair value of investment securities available for sale at March 31, 2016, by contractual maturity, are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

March 31, 2016          
(Dollars in thousands)          
   

Amortized

Cost

    

Estimated

Fair Value

Due within one year   $ 5,360       5,414
Due from one to five years     73,089       69,928
Due from five to ten years     87,563       98,330
Due after ten years     14,768       15,271
Mortgage-backed securities     72,066       73,879
Equity securities     748       1,270
Total   $ 253,594       264,092

  

No securities available for sale were sold during the three months ended March 31, 2016 and 2015.

 

Securities with a fair value of approximately $88.0 million and $91.0 million at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public deposits and for other purposes as required by law.