Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Securities

Note 3: Securities

The amortized cost and fair values, together with gross unrealized gains and losses, of securities are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities	(In thousands)
December 31, 2016:
U.S. government agencies	$	11	$	—	$	—	$	11
Mortgage-backed securities of           government-sponsored entities		58,797		399		582		58,614
Private-label collateralized mortgage           obligations		41		—		1		40
State and political subdivisions		11,698		402		56		12,044
Totals	$	70,547	$	801	$	639	$	70,709

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities	(In thousands)
December 31, 2015:
U.S. government agencies	$	101	$	—	$	—	$	101
Mortgage-backed securities of           government-sponsored entities		75,972		662		530		76,104
Private-label collateralized mortgage           obligations		274		3		—		277
State and political subdivisions		18,224		677		36		18,865
Totals	$	94,571	$	1,342	$	566	$	95,347

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity Securities:	(In thousands)
December 31, 2016:
U.S. government agencies	$	21	$	—	$	—	$	21
Mortgage-backed securities of           government-sponsored entities		704		7		—		711
State and political subdivisions		8,834		12		239		8,607
Totals	$	9,559	$	19	$	239	$	9,339

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity Securities:	(In thousands)
December 31, 2015:
U.S. government agencies	$	82	$	—	$	—	$	82
Mortgage-backed securities of           government-sponsored entities		1,052		5		—		1,057
State and political subdivisions		7,173		29		136		7,066
Totals	$	8,307	$	34	$	136	$	8,205

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

	Available-for-sale				Held-to-maturity
	Amortized cost		Fair Value		Amortized cost		Fair Value
	(In thousands)
Within one year	$	1,189	$	1,212	$	—	$	—
One to five years		4,023		4,244		2,056		2,044
Five to ten years		4,557		4,628		2,906		2,831
After ten years		1,940		1,971		3,893		3,753
		11,709		12,055		8,855		8,628
Mortgage-backed securities of      government-sponsored entities		58,797		58,614		704		711
Private-label collateralized mortgage      obligations		41		40		—		—
Totals	$	70,547	$	70,709	$	9,559	$	9,339

The carrying value of securities pledged as collateral, to secure public deposits, customer repurchase agreements and for other purposes, was $43.7 million and $55.3 million at December 31, 2016 and 2015, respectively.

There were no sales of available-for-sale or held-to-maturity investments during the years ended December 31, 2016 and 2015, and there were no transfers between categories.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at December 31, 2016 and 2015 was $49.8 million and $53.8 million, which represented approximately 62% and 52%, respectively, of the Company’s aggregate fair market value of the available-for-sale and held-to-maturity investment portfolios. These declines resulted primarily from changes in market interest rates.

Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary at December 31, 2016.

Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

The unrealized losses on the Company’s investments in mortgage-backed securities of government-sponsored entities, private-label mortgage obligations and municipal securities were caused by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2016.

The following table shows the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2016 and 2015:

	December 31, 2016
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Mortgage-backed securities      of government-      sponsored entities	$	32,810	$	409	$	7,978	$	173	$	40,788	$	582
Private-label collateralized      mortgage obligations		—		—		40		1		40		1
State and political      subdivisions		8,087		204		929		91		9,016		295
Total temporarily impaired      securities	$	40,897	$	613	$	8,947	$	265	$	49,844	$	878

	December 31, 2015
	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
Mortgage-backed securities      of government-      sponsored entities	$	32,930	$	269	$	14,560	$	261	$	47,490	$	530
State and political      subdivisions		3,756		50		2,515		122		6,271		172
Total temporarily impaired      securities	$	36,686	$	319	$	17,075	$	383	$	53,761	$	702