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SECURITIES
 9 Months Ended
Sep. 30, 2016
Securities  
Securities

(5)Securities

 

A summary of securities is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

    

Gross

    

Gross

    

 

 

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

 

 

 

Cost

 

Gains

 

Losses

 

Value

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$
2,374

 

$
76

 

$

 —

 

$
2,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

 
16,114

 

 
324

 

 
(7)

 

 
16,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale

 

$
18,488

 

$
400

 

$
(7)

 

$
18,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$
570

 

$
28

 

$

 —

 

$
598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

 
2,143

 

 
55

 

 

 —

 

 
2,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities held to maturity

 

$
2,713

 

$
83

 

$

 —

 

$
2,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$
2,410

 

$
62

 

$
(2)

 

$
2,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

 
16,543

 

 
104

 

 
(89)

 

 
16,558

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale

 

$
18,953

 

$
166

 

$
(91)

 

$
19,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$
573

 

$
12

 

$

 —

 

$
585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

 
2,539

 

 
4

 

 

 —

 

 
2,543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities held to maturity

 

$
3,112

 

$
16

 

$

 —

 

$
3,128

 

 

All residential mortgage-backed securities have been issued by government-sponsored enterprises.

 

The amortized cost and estimated fair value of debt securities by contractual maturity at September 30, 2016 is shown in the table 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

    

Fair

    

Amortized

    

Fair

 

 

 

Cost

 

Value

 

Cost

 

Value

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After five years through ten years

 

$
530

 

$
546

 

$

 —

 

$

 —

 

Over ten years

 

 
1,844

 

 
1,904

 

 
570

 

 
598

 

 

 

 
2,374

 

 
2,450

 

 
570

 

 
598

 

Residential mortgage-backed securities

 

 
16,114

 

 
16,431

 

 
2,143

 

 
2,198

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$
18,488

 

$
18,881

 

$
2,713

 

$
2,796

 

 

There were no sales of securities for the nine months ended September 30, 2016 and 2015.

 

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous loss position, is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Than Twelve Months

 

Twelve Months Or Longer

 

 

    

Gross

    

 

 

    

Gross

    

 

 

 

 

 

Unrealized

 

Fair

 

Unrealized

 

Fair

 

 

 

Losses

 

Value

 

Losses

 

Value

 

 

 

(In thousands)

 

At September 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$

—

 

$

—

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

 
(7)

 

 
1,902

 

 

 —

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total temporarily impaired securities

 

$
(7)

 

$
1,902

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

State and municipal

 

$

—

 

$

—

 

$
(2)

 

$
244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities

 

 
(20)

 

 
3,946

 

 
(69)

 

 
3,229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total temporarily impaired securities

 

$
(20)

 

$
3,946

 

$
(71)

 

$
3,473

 

 

Each reporting period, the Company evaluates all securities classified as available-for-sale or held-to-maturity with a decline in fair value below the amortized cost of the investment to determine whether or not the impairment is deemed to be other-than-temporary (“OTTI”).

 

At September 30, 2016, one security classified as available for sale had an unrealized loss with aggregate depreciation of 0.37% from the security’s amortized cost basis.  The unrealized loss on the Company’s investment in the residential mortgage backed-security was caused by a change in interest rates and not by credit quality.  The investment is issued by a government-sponsored enterprise and as management has not decided to sell the security, nor is it likely that the Company will be required to sell the security, the decline is deemed not to be OTTI.