Investment Securities (Tables)

6 Months Ended

Jun. 30, 2017

Summary of Investment Security Carrying and Fair Value

The carrying values and estimated fair values of investment securities at the periods indicated are presented below:



(In Thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2017
Securities available for sale
U.S. Treasury and government sponsored entities		$236,733		$92		$744		$236,081
Municipal securities	17,346		125		29		17,442
U.S. Agency mortgage-backed securities	1		—		—		1
Corporate bonds	34,640		415		—		35,055
Collateralized loan obligations	3,000		—		—		3,000
Preferred stock	5,421		228		6		5,643
Total securities available for sale		$297,141		$860		$779		$297,222
Securities held to maturity
Municipal securities		$898		$7		$—		$905
Total securities held to maturity		$898		$7		$—		$905
December 31, 2016
Securities available for sale
U.S. Treasury and government sponsored entities		$264,267		$150		$1,056		$263,361
Municipal securities	18,184		26		53		18,157
U.S. Agency mortgage-backed securities	2		—		—		2
Corporate bonds	44,437		295		—		44,732
Preferred stock	4,922		49		4		4,967
Total securities available for sale		$331,812		$520		$1,113		$331,219
Securities held to maturity
Municipal securities		$899		$23		$—		$922
Total securities held to maturity		$899		$23		$—		$922

Unrealized Gain (Loss) on Investments

Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016 were as follows:



	Less Than 12 Months				More Than 12 Months				Total
(In Thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2017:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$182,035		$737		$489		$7		$182,524		$744
Municipal Securities	4,217		9		1,782		20		5,999		29
Preferred Stock	1,036		6		—		—		1,036		6
Total		$187,288		$752		$2,271		$27		$189,559		$779

December 31, 2016:
Securities Available for Sale
U.S. Treasury and government sponsored entities		$180,638		$1,051		$489		$5		$181,127		$1,056
Municipal Securities	11,533		33		1,786		20		13,319		53
Preferred Stock	—		—		1,038		4		1,038		4
Total		$192,171		$1,084		$3,313		$29		$195,484		$1,113

Schedule of Amortized Cost and Fair Value by Contractual Maturity

The amortized cost and estimated fair values of debt securities and preferred stock at June 30, 2017, are distributed by contractual maturity as shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Although preferred stock has no stated maturity, it is aggregated in the calculation of weighted average yields presented below in the category of investments that mature in ten years or more.



(In Thousands)	Amortized Cost		Fair Value		Weighted Average Yield
US Treasury and government sponsored entities
Within 1 year		$32,000		$31,987	0.96	%
1-5 years	202,733		202,094		1.20	%
5-10 years	2,000		2,000		2.00	%
Total		$236,733		$236,081	1.17	%
U.S. Agency mortgage-backed securities
1-5 years		$1		$1	5.06	%
Total		$1		$1	5.06	%
Corporate bonds
1-5 years		$26,206		$26,494	1.88	%
5-10 years	8,434		8,561		2.32	%
Total		$34,640		$35,055	1.99	%
Collateralized loan obligations
Over 10 years		$3,000		$3,000	3.04	%
Total		$3,000		$3,000	3.04	%
Preferred stock
Over 10 years		$5,421		$5,643	6.37	%
Total		$5,421		$5,643	6.37	%
Municipal securities
Within 1 year		$2,824		$2,823	0.96	%
1-5 years	13,930		14,046		2.27	%
5-10 years	1,490		1,478		4.78	%
Total		$18,244		$18,347	2.27	%

Schedule of Available-For-Sale Securities Proceeds, Gains, and Losses

The proceeds and resulting gains and losses, computed using specific identification, from sales of investment securities for the six months ending June 30, 2017 and 2016, respectively, are as follows:



(In Thousands)	Proceeds		Gross Gains		Gross Losses
2017
Available for sale securities		$10,010		$14		$—
2016
Available for sale securities		$5,785		$12		$23

Summary of Interest Income On Available-For-Sale Investment Securities

A summary of interest income for the six months ending June 30, 2017 and 2016, on available for sale investment securities is as follows:



(In Thousands)	2017		2016
US Treasury and government sponsored entities		$1,602		$1,336
U.S. Agency mortgage-backed securities	—		4
Other	583		447
Total taxable interest income		$2,185		$1,787
Municipal securities		$189		$146
Total tax-exempt interest income		$189		$146
Total		$2,374		$1,933