Investment Securities

The following

tables summarize the amortized cost and estimated fair values of the securities portfolio at

December 31, 2017

and

2016


December 31, 2017 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available For Sale
Obligations of U.S. government-sponsored entities	$	43,601	$	44	$	437	$	43,208
Obligations of states and political subdivisions		114,960		562		1,273		114,249
Mortgage-backed securities – residential		195,605		523		2,735		193,393
Mortgage-backed securities – commercial		50,518		42		1,208		49,352
Asset-backed securities		15,569		9		4		15,574
Corporate debt securities		7,578		1		37		7,542
Mutual funds and equity securities		864		71		-		935
Total securities – available for sale	$	428,695	$	1,252	$	5,694	$	424,253
Held To Maturity
Obligations of states and political subdivisions	$	3,364	$	114	$	-	$	3,478

December 31, 201 6 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available For Sale
Obligations of U.S. government-sponsored entities	$	71,941	$	213	$	460	$	71,694
Obligations of states and political subdivisions		134,055		773		2,536		132,292
Mortgage-backed securities – residential		225,489		1,505		2,687		224,307
Mortgage-backed securities – commercial		47,164		6		1,557		45,613
Corporate debt securities		6,565		1		441		6,125
Mutual funds and equity securities		824		20		11		833
Total securities – available for sale	$	486,038	$	2,518	$	7,692	$	480,864
Held To Maturity
Obligations of states and political subdivisions	$	3,488	$	109	$	-	$	3,597

Investment securities with a carrying value of

$214

million and

$191

million at

December 31, 2017

and

2016,

respectively, were pledged to secure public and trust deposits, repurchase agreements, and for other purposes.

At year-end

201

and

2016,

the Company held

investment securities of any single issuer, other than the U.S. Government and its agencies, in an amount greater than

10%

of shareholders’ equity.

The amortized cost and estimated fair value of the

debt securities portfolio at

December 31, 2017,

by contractual maturity, are detailed 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. Mutual funds and equity securities in the available for sale portfolio at

December 31, 2017

consist of investments by the Company’s captive insurance subsidiary. These securities have

stated maturity and are

not

included in the maturity schedule that follows.

Mortgage-backed securities are stated separately due to the nature of payment and prepayment characteristics of these securities

, as principal is

not

due at a single date.


	Available For Sale				Held To Maturity
December 31, 2017 (In thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	27,301	$	27,276	$	-	$	-
Due after one year through five years		50,953		50,676		-		-
Due after five years through ten years		63,345		62,451		1,232		1,322
Due after ten years		40,109		40,170		2,132		2,156
Mortgage-backed securities		246,123		242,745		-		-
Total	$	427,831	$	423,318	$	3,364	$	3,478

Gross realized gains and

losses on the sale of available for sale investment securities were as follows for the year indicated.


(In thousands)	201 7		201 6		201 5

Gross realized gains	$	501	$	4,191	$	224
Gross realized losses		481		193		53
Net realized gain	$	20	$	3,998	$	171

Income tax provision related to net realized gain	$	7	$	1,399	$	60

Investment securities with unrealized losses at year-end

2017

and

2016

not

recognized in income are presented in the tables below. The tables segregate investment securities that have been in a continuous unrealized loss position for less than

twelve

months from those that have been in a continuous unrealized loss position for

twelve

months or more. The table also includes the fair value of the related securities.

	Less than 12 Months				12 Months or More				Total
December 31 , 2017 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government-sponsored entities	$	11,544	$	43	$	25,298	$	394	$	36,842	$	437
Obligations of states and political subdivisions		40,402		413		33,965		860		74,367		1,273
Mortgage-backed securities – residential		77,312		481		99,986		2,254		177,298		2,735
Mortgage-backed securities – commercial		7,758		62		34,139		1,146		41,897		1,208
Asset-backed securities		1,166		4		-		-		1,166		4
Corporate debt securities		7,251		36		200		1		7,451		37
Total	$	145,433	$	1,039	$	193,588	$	4,655	$	339,021	$	5,694

	Less than 12 Months				12 Months or More				Total
December 31, 2016 (In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. government-sponsored entities	$	51,657	$	460	$	-	$	-	$	51,657	$	460
Obligations of states and political subdivisions		91,728		2,526		1,999		10		93,727		2,536
Mortgage-backed securities – residential		154,397		2,485		5,841		202		160,238		2,687
Mortgage-backed securities – commercial		43,309		1,557		-		-		43,309		1,557
Corporate debt securities		536		6		5,476		435		6,012		441
Mutual funds and equity securities		128		2		113		9		241		11
Total	$	341,755	$	7,036	$	13,429	$	656	$	355,184	$	7,692

Unrealized losses included in the tables above have

not

been recognized in income since they have been identified as temporary.

The Company attributes the unrealized losses in its investment securities portfolio to changes in market interest rates and volatility. Investment securities with unrealized losses at

December 31, 2017

are performing according to their contractual terms, and the Company does

not

expect to incur a loss on these securities unless they are sold prior to maturity. The Company does

not

have the intent to sell these securities nor does it believe it is likely that it will be required to sell these securities prior to their anticipated recovery. The Company does

not

consider any of the securities to be impaired due to reasons of credit quality or other factors.