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2. Investment Securities

3 Months Ended

Mar. 31, 2017

Investments, Debt and Equity Securities [Abstract]

2. Investment Securities

Investment securities available for sale at March 31, 2017 and December 31, 2016 are as follows:

(Dollars in thousands)
		March 31, 2017
		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
Mortgage-backed securities		$	62,488				1,157				321				63,324
U.S. Government
sponsored enterprises			39,888				273				262				39,899
State and political subdivisions			135,128				4,826				101				139,853
Corporate bonds			1,500				36				-				1,536
Trust preferred securities			250				-				-				250
Total		$	239,254				6,292				684				244,862

(Dollars in thousands)
		December 31, 2016
		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Estimated Fair Value
Mortgage-backed securities		$	66,654				1,221				290				67,585
U.S. Government
sponsored enterprises			38,188				308				274				38,222
State and political subdivisions			137,832				4,176				152				141,856
Corporate bonds			1,500				33				-				1,533
Trust preferred securities			750				-				-				750
Total		$	244,924				5,738				716				249,946

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2017 and December 31, 2016 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, 2017
		Less than 12 Months								12 Months or More								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
Mortgage-backed securities		$	16,534				321				-				-				16,534				321
U.S. Government
sponsored enterprises			5,832				28				13,286				234				19,118				262
State and political subdivisions			7,101				74				562				27				7,663				101
Total		$	29,467				423				13,848				261				43,315				684

(Dollars in thousands)
		December 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		$	15,594				290				-				-				15,594				290
U.S. Government
sponsored enterprises			10,120				94				9,562				180				19,682				274
State and political subdivisions			10,441				123				561				29				11,002				152
Total		$	36,155				507				10,123				209				46,278				716

At March 31, 2017, unrealized losses in the investment securities portfolio relating to debt securities totaled $684,000. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2017 tables above, 12 out of 163 securities issued by state and political subdivisions contained unrealized losses, 18 out of 78 securities issued by U.S. Government sponsored enterprises contained unrealized losses, and no 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, 2017, 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, 2017
(Dollars in thousands)
		Amortized Cost				Estimated Fair Value
Due within one year		$	12,140			12,273
Due from one to five years			89,495			92,754
Due from five to ten years			64,550			65,871
Due after ten years			10,331			10,391
Mortgage-backed securities			62,488			63,324
Equity securities			250			250
Total		$	239,254			244,863

No securities available for sale were sold during the three months ended March 31, 2017 and 2016.

Securities with a fair value of approximately $91.1 million and $95.6 million at March 31, 2017 and December 31, 2016, respectively, were pledged to secure public deposits and for other purposes as required by law.