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2. Investment Securities
 3 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
2. Investment Securities

Investment securities available for sale at March 31, 2018 and December 31, 2017 are as follows:

 

(Dollars in thousands)                        
    March 31, 2018  
    Amortized Cost     Gross Unrealized Gains     Gross Unrealized Losses     Estimated Fair Value  
Mortgage-backed securities   $ 49,731       559       722       49,568  
U.S. Government                                
sponsored enterprises     38,466       24       649       37,841  
State and political subdivisions     121,299       2,994       152       124,141  
Corporate bonds     1,500       -       1       1,499  
Trust preferred securities     250       -       -       250  
Total   $ 211,246       3,577       1,524       213,299  

 

(Dollars in thousands)                        
    December 31, 2017  
    Amortized Cost     Gross Unrealized Gains     Gross Unrealized Losses     Estimated Fair Value  
Mortgage-backed securities   $ 53,124       814       329       53,609  
U.S. Government                                
sponsored enterprises     40,504       140       264       40,380  
State and political subdivisions     129,276       4,310       16       133,570  
Corporate bonds     1,500       12       -       1,512  
Trust preferred securities     250       -       -       250  
Total   $ 224,654       5,276       609       229,321  

 

The current fair value and associated unrealized losses on investments in securities with unrealized losses at March 31, 2018 and December 31, 2017 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, 2018  
    Less than 12 Months     12 Months or More     Total  
    Fair Value     Unrealized Losses     Fair Value     Unrealized Losses     Fair Value     Unrealized Losses  
Mortgage-backed securities   $ 13,062       219       10,693       503       23,755       722  
U.S. Government                                                
sponsored enterprises     26,715       448       9,665       201       36,380       649  
State and political subdivisions     7,023       122       965       30       7,988       152  
Corporate bonds     999       1       -       -       999       1  
Total   $ 47,799       790       21,323       734       69,122       1,524  

 

(Dollars 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  
Mortgage-backed securities   $ 8,701       75       11,259       254       19,960       329  
U.S. Government                                                
sponsored enterprises     12,661       98       10,067       166       22,728       264  
State and political subdivisions     798       2       1,501       14       2,299       16  
Total   $ 22,160       175       22,827       434       44,987       609  

 

At March 31, 2018, unrealized losses in the investment securities portfolio relating to debt securities totaled $1.5 million. The unrealized losses on these debt securities arose due to changing interest rates and are considered to be temporary. From the March 31, 2018 tables above, 12 out of 150 securities issued by state and political subdivisions contained unrealized losses, 36 out of 79 securities issued by U.S. Government sponsored enterprises contained unrealized losses, one out of two 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, 2018, 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, 2018            
(Dollars in thousands)            
    Amortized Cost     Estimated Fair Value  
Due within one year   $ 12,931       13,039  
Due from one to five years     101,101       103,219  
Due from five to ten years     38,976       38,938  
Due after ten years     8,257       8,285  
Mortgage-backed securities     49,731       49,568  
Trust preferred securities     250       250  
Total   $ 211,246       213,299  

 

No securities available for sale were sold during the three months ended March 31, 2018 and 2017.

 

Securities with a fair value of approximately $99.2 million and $105.6 million at March 31, 2018 and December 31, 2017, respectively, were pledged to secure public deposits and for other purposes as required by law.