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Securities Available for Sale
 12 Months Ended
Dec. 31, 2016
Investments Debt And Equity Securities [Abstract]  
Securities Available for Sale

4.

SECURITIES AVAILABLE FOR SALE

The amortized cost and fair value of securities available for sale, including gross unrealized gains and losses, are as follows:

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

 

(In thousands)

 

December 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

$

3,999

 

 

$

92

 

 

$

(10

)

 

$

4,081

 

Corporate

 

 

3,044

 

 

 

54

 

 

 

(18

)

 

 

3,080

 

Municipal

 

 

13,857

 

 

 

254

 

 

 

(56

)

 

 

14,055

 

Residential mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

21,130

 

 

 

172

 

 

 

(580

)

 

 

20,722

 

Commercial mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

14,676

 

 

 

56

 

 

 

(554

)

 

 

14,178

 

U.S. Government-guaranteed

 

 

9,589

 

 

 

12

 

 

 

(144

)

 

 

9,457

 

Collateralized mortgage obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

2,127

 

 

 

28

 

 

 

—

 

 

 

2,155

 

U.S. Government-guaranteed

 

 

368

 

 

 

3

 

 

 

—

 

 

 

371

 

Total debt securities

 

 

68,790

 

 

 

671

 

 

 

(1,362

)

 

 

68,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual fund

 

 

545

 

 

 

—

 

 

 

(7

)

 

 

538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale

 

$

69,335

 

 

$

671

 

 

$

(1,369

)

 

$

68,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

$

6,886

 

 

$

159

 

 

$

(12

)

 

$

7,033

 

Corporate

 

 

4,250

 

 

 

78

 

 

 

(48

)

 

 

4,280

 

Municipal

 

 

15,327

 

 

 

472

 

 

 

(24

)

 

 

15,775

 

Residential mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

14,277

 

 

 

352

 

 

 

(120

)

 

 

14,509

 

Commercial mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

5,465

 

 

 

87

 

 

 

(108

)

 

 

5,444

 

U.S. Government-guaranteed

 

 

11,742

 

 

 

26

 

 

 

—

 

 

 

11,768

 

Collateralized mortgage obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

2,437

 

 

 

18

 

 

 

—

 

 

 

2,455

 

U.S. Government-guaranteed

 

 

452

 

 

 

6

 

 

 

—

 

 

 

458

 

Total debt securities

 

 

60,836

 

 

 

1,198

 

 

 

(312

)

 

 

61,722

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual fund

 

 

545

 

 

 

—

 

 

 

—

 

 

 

545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale

 

$

61,381

 

 

$

1,198

 

 

$

(312

)

 

$

62,267

 

 

The amortized cost and fair value of debt securities by contractual maturity at December 31, 2016 are presented 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.

 

 

 

Amortized

 

 

Fair

 

 

 

Cost

 

 

Value

 

 

 

(In thousands)

 

Within 1 year

 

$

1,766

 

 

$

1,793

 

After 1 year through 5 years

 

 

12,147

 

 

 

12,328

 

After 5 years through 10 years

 

 

6,987

 

 

 

7,095

 

 

 

 

20,900

 

 

 

21,216

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities and collaterlized

     mortgage obligations

 

 

47,890

 

 

 

46,883

 

 

 

 

 

 

 

 

 

 

 

 

$

68,790

 

 

$

68,099

 

 

Obligations of U.S. Government-sponsored enterprises consist primarily of securities issued by the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association.

For the years ended December 31, 2016 and 2015, proceeds from sales of securities available for sale amounted to $2,521,000 and $2,990,000, respectively.  Gross realized gains amounted to $100,000 and $570,000, respectively, and gross realized losses amounted to $0 and $249,000, respectively. In addition, gross realized gains of $62,000 were recognized upon the call of securities by issuers in 2016.

At December 31, 2016 and 2015, investment securities having a fair value of $2,107,000 and $3,988,000, respectively, were pledged as collateral for certain deposits and FHLBB borrowings.

There were no individual holdings of investment securities at December 31, 2016 and 2015, other than holdings of the U.S. Government and its agencies, which exceeded 10% of the Company’s stockholders’ equity as of such dates.

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

 

 

 

Less Than Twelve Months

 

 

Over Twelve Months

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

December 31, 2016

 

(In thousands)

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

$

(10

)

 

$

1,990

 

 

$

—

 

 

$

—

 

Corporate

 

 

(14

)

 

 

519

 

 

 

(4

)

 

 

996

 

Municipal

 

 

(46

)

 

 

3,310

 

 

 

(10

)

 

 

477

 

Residential mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

(580

)

 

 

16,261

 

 

 

—

 

 

 

—

 

Commercial mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

(554

)

 

 

8,766

 

 

 

 

 

 

 

 

 

U.S. Government-guaranteed

 

 

(144

)

 

 

5,927

 

 

 

—

 

 

 

—

 

Total debt securities

 

 

(1,348

)

 

 

36,773

 

 

 

(14

)

 

 

1,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual fund

 

 

(7

)

 

 

538

 

 

 

—

 

 

 

—

 

 

 

$

(1,355

)

 

$

37,311

 

 

$

(14

)

 

$

1,473

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

$

—

 

 

$

—

 

 

$

(12

)

 

$

1,989

 

Corporate

 

 

—

 

 

 

—

 

 

 

(48

)

 

 

2,088

 

Municipal

 

 

—

 

 

 

—

 

 

 

(24

)

 

 

2,185

 

Residential mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

—

 

 

 

—

 

 

 

(120

)

 

 

5,994

 

Commercial mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored enterprises

 

 

—

 

 

 

—

 

 

 

(108

)

 

 

5,062

 

Total debt securities

 

$

—

 

 

$

—

 

 

$

(312

)

 

$

17,318

 

 

For the year ended December 31, 2015, the Company recognized OTTI write-downs of $328,000 on marketable equity securities that management either intended to sell (and later sold), or deemed an impairment to exist based on the severity and duration of the unrealized loss.

At December 31, 2016, 41 debt securities have unrealized losses with aggregate depreciation of 3.75% from the Company’s amortized cost basis. The unrealized losses at December 31, 2016, which related primarily to securities issued by U.S. government-sponsored enterprises, were primarily caused by an increase in long-term rates in the fourth quarter of 2016. The Company currently does not believe it is probable that it will be unable to collect all amounts due according to the contractual terms of these investments.  Therefore, it is expected that the bonds would not be settled at a price less than the par value of the investment.  Because the Company does not intend to sell any debt securities and it is more likely than not that the Company will not be required to sell any debt securities before recovery of its amortized cost basis, it does not consider these investments to be other-than-temporarily impaired at December 31, 2016.