Securities (Tables)

6 Months Ended

Jun. 30, 2018

Securities available for sale consist of the following:

	Amortized Cost		Unrealized				Fair Value
	Amortized Cost		Gains		Losses		Fair Value
	(In thousands)
June 30, 2018
U.S. agency	$	23,094	$	3	$	285	$	22,812
U.S. agency residential mortgage-backed		131,317		874		2,190		130,001
U.S. agency commercial mortgage-backed		9,659		1		276		9,384
Private label mortgage-backed		30,593		392		702		30,283
Other asset backed		77,292		170		182		77,280
Obligations of states and political subdivisions		146,941		343		3,205		144,079
Corporate		33,285		64		514		32,835
Trust preferred		1,959		-		61		1,898
Foreign government		2,069		-		48		2,021
Total	$	456,209	$	1,847	$	7,463	$	450,593

December 31, 2017
U.S. Treasury	$	898	$	-	$	-	$	898
U.S. agency		25,667		82		67		25,682
U.S. agency residential mortgage-backed		137,785		1,116		983		137,918
U.S. agency commercial mortgage-backed		9,894		36		170		9,760
Private label mortgage-backed		29,011		428		330		29,109
Other asset backed		93,811		202		115		93,898
Obligations of states and political subdivisions		174,073		755		1,883		172,945
Corporate		47,365		578		90		47,853
Trust preferred		2,929		-		127		2,802
Foreign government		2,087		-		27		2,060
Total	$	523,520	$	3,197	$	3,792	$	522,925

Investments in a Continuous Unrealized Loss Position

Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:

	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)

June 30, 2018
U.S. agency	$	13,530	$	211	$	7,843	$	74	$	21,373	$	285
U.S. agency residential mortgage-backed		39,328		988		31,119		1,202		70,447		2,190
U.S. agency commercial mortgage-backed		4,294		57		4,996		219		9,290		276
Private label mortgage- backed		16,797		423		4,107		279		20,904		702
Other asset backed		27,318		109		11,003		73		38,321		182
Obligations of states and political subdivisions		75,486		1,534		38,012		1,671		113,498		3,205
Corporate		20,679		395		3,862		119		24,541		514
Trust preferred		-		-		1,898		61		1,898		61
Foreign government		-		-		2,021		48		2,021		48
Total	$	197,432	$	3,717	$	104,861	$	3,746	$	302,293	$	7,463

December 31, 2017
U.S. agency	$	5,466	$	26	$	5,735	$	41	$	11,201	$	67
U.S. agency residential mortgage-backed		22,198		229		40,698		754		62,896		983
U.S. agency commercial mortgage-backed		2,181		34		3,994		136		6,175		170
Private label mortgage-backed		11,390		92		4,396		238		15,786		330
Other asset backed		20,352		40		16,648		75		37,000		115
Obligations of states and political subdivisions		76,574		936		28,246		947		104,820		1,883
Corporate		14,440		33		3,943		57		18,383		90
Trust preferred		-		-		2,802		127		2,802		127
Foreign government		489		10		1,571		17		2,060		27
Total	$	153,090	$	1,400	$	108,033	$	2,392	$	261,123	$	3,792

Trust Preferred Securities

The following table breaks out our trust preferred securities in further detail as of June 30, 2018 and December 31, 2017:

	June 30, 2018					December 31, 2017
	Fair Value		Net Unrealized Loss			Fair Value		Net Unrealized Loss
	(In thousands)

Trust preferred securities
Rated issues	$	935	$	(27	)	$	1,860	$	(69	)
Unrated issues		963		(34	)		942		(58	)

Private Label Mortgage Backed Securities Below Investment Grade

At June 30, 2018, three private label mortgage-backed securities had credit related OTTI and are summarized as follows:

	Senior Security		Super Senior Security		Senior Support Security		Total
	(In thousands)

Fair value	$	887	$	873	$	46	$	1,806
Amortized cost		737		704		-		1,441
Non-credit unrealized loss		-		-		-		-
Unrealized gain		150		169		46		365
Cumulative credit related OTTI		757		457		380		1,594

Credit Losses Recognized in Earnings on Securities Available for Sale

A roll forward of credit losses recognized in earnings on securities available for sale follows:

	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
	(In thousands)				(In thousands)
Balance at beginning of period	$	1,594	$	1,594	$	1,594	$	1,594
Additions to credit losses on securities for which no previous OTTI was recognized		-		-		-		-
Increases to credit losses on securities for which OTTI was previously recognized		-		-		-		-
Balance at end of period	$	1,594	$	1,594	$	1,594	$	1,594

Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity

The amortized cost and fair value of securities available for sale at June 30, 2018, by contractual maturity, follow:

	Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	16,943	$	16,925
Maturing after one year but within five years		79,682		78,851
Maturing after five years but within ten years		61,039		59,771
Maturing after ten years		49,684		48,098
		207,348		203,645
U.S. agency residential mortgage-backed		131,317		130,001
U.S. agency commercial mortgage-backed		9,659		9,384
Private label mortgage-backed		30,593		30,283
Other asset backed		77,292		77,280
Total	$	456,209	$	450,593

Gains and Losses Realized on Sale of Securities Available for Sale

A summary of proceeds from the sale of securities available for sale and gains and losses for the six month periods ending June 30, follows:

			Realized
	Proceeds		Gains		Losses
	(In thousands)
2018	$	31,445	$	81	$	126
2017		7,830		117		-