Securities

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Securities

Note 4: 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
	(In thousands)
Available-for-sale securities
September 30, 2017:
U.S. government agencies	$	8	$	—	$	—	$	8
Mortgage-backed securities of           government sponsored entities		47,184		349		345		47,188
State and political subdivisions		11,099		309		48		11,360
Totals	$	58,291	$	658	$	393	$	58,556

	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
	(In thousands)
Held-to-maturity Securities:
September 30, 2017:
U.S. government agencies	$	15	$	—	$	—	$	15
Mortgage-backed securities of           government sponsored entities		670		3		2		671
State and political subdivisions		11,064		108		64		11,108
Totals	$	11,749	$	111	$	66	$	11,794

	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 and fair value of available-for-sale securities and held-to-maturity securities at September 30, 2017 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)
One to five years	$	5,216	$	5,367	$	2,058	$	2,085
Five to ten years		4,547		4,633		3,340		3,318
After ten years		1,344		1,368		5,681		5,720
		11,107		11,368		11,079		11,123
Mortgage-backed securities of      government sponsored entities		47,184		47,188		670		671
Totals	$	58,291	$	58,556	$	11,749	$	11,794

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $37.6 million at September 30, 2017, compared to $43.7 million at December 31, 2016.

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 September 30, 2017 and December 31, 2016 was $36.1 million and $49.8 million, which represented approximately 51% and 62%, respectively, of the Company’s total aggregate fair value of the available-for-sale and held-to-maturity investment portfolios. These decreases resulted primarily from changes in market interest rates.

Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the decreases in fair value for these securities are temporary at September 30, 2017.

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 following table shows the gross unrealized losses and fair value of the Company’s temporarily impaired investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2017
	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	$	14,503	$	111	$	15,777	$	236	$	30,280	$	347
State and political subdivisions		3,360		40		2,463		72		5,823		112
Total temporarily impaired      securities	$	17,863	$	151	$	18,240	$	308	$	36,103	$	459

	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