INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE 3 — INVESTMENT SECURITIES

The amortized cost, related estimated fair value, and unrealized gains and losses for investment securities classified as “Available-For-Sale” or “Held-to-Maturity” were as follows at December 31, 2016 and 2015:

	Available-for-Sale Securities
(Dollars in thousands)			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2016:
U.S. Treasury securities	$	1,008	$	2	$	—	$	1,010
Obligations of U.S. Government Corporations and Agencies:
Mortgage-backed		112,155		83		(1,331)		110,907
Other		21,399		82		(511)		20,970
Obligations of state and political subdivisions		211,154		2,776		(2,796)		211,134
Corporate debt securities		35,178		4		(1,206)		33,976
Marketable equity securities		810		830		—		1,640
Total	$	381,704	$	3,777	$	(5,844)	$	379,637

	Held-to-Maturity Securities
(Dollars in thousands)			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2016:
Obligations of U.S. Government Corporations and Agencies:
Mortgage-backed	$	4	$	—	$	—	$	4
Total	$	4	$	—	$	—	$	4

	Available-for-Sale Securities
(Dollars in thousands)			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2015:
U.S. Treasury securities	$	1,022	$	—	$	(1)	$	1,021
Obligations of U.S. Government Corporations and Agencies:
Mortgage-backed		113,847		37		(1,410)		112,474
Other		21,554		117		(79)		21,592
Obligations of state and political subdivisions		195,297		5,425		(408)		200,314
Corporate debt securities		49,162		10		(1,339)		47,833
Marketable equity securities		1,194		813		—		2,007
Total	$	382,076	$	6,402	$	(3,237)	$	385,241

	Held-to-Maturity Securities
(Dollars in thousands)			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
December 31, 2015:
Obligations of U.S. Government Corporations and Agencies:
Mortgage-backed	$	26	$	1	$	—	$	27
Total	$	26	$	1	$	—	$	27

Securities Available-for-Sale with an aggregate fair value of $320,319,000 at December 31, 2016 and $326,872,000 at December 31, 2015, and securities Held-to-Maturity with an aggregate book value of $4,000 at December 31, 2016 and $26,000 at December 31, 2015, were pledged to secure public funds, trust funds, securities sold under agreements to repurchase, debtor in possession funds and FHLB advances aggregating $221,818,000 at December 31, 2016 and $219,576,000 at December 31, 2015.

The amortized cost and fair value of securities, by contractual maturity, are shown below at December 31, 2016. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(Dollars in thousands)	Available for Sale				Held to Maturity
	Amortized				Amortized
	Cost		Fair Value		Cost		Fair Value
1 year or less	$	2,264	$	2,264	$	—	$	—
Over 1 year through 5 years		59,860		60,118		—		—
Over 5 years through 10 years		97,209		95,887		—		—
Over 10 years		109,406		108,821		—		—
Mortgage-backed securities		112,155		110,907		4		4
Marketable equity securities		810		1,640		—		—
	$	381,704	$	379,637	$	4	$	4

There were no aggregate investments with a single issuer (excluding the U.S. Government and its political subdivisions and agencies) which exceeded ten percent of consolidated stockholders’ equity at December 31, 2016. The quality rating of the obligations of state and political subdivisions are generally investment grade, as rated by Moody’s, Standard and Poor’s or Fitch. The typical exceptions are local issues which are not rated, but are secured by the full faith and credit obligations of the communities that issued these securities.

Proceeds from sales of investments in Available-for-Sale debt and equity securities during 2016, 2015 and 2014 were $76,759,000, $111,799,000 and $195,847,000, respectively. Gross gains realized on these sales were $1,907,000, $2,186,000 and $3,354,000, respectively. Gross losses on these sales were $143,000, $55,000 and $598,000, respectively. Impairment losses realized on Available-for-Sale equity securities were $0, $14,000 and $0, respectively.

There were no proceeds from sales of investments in Held-to-Maturity debt and equity securities during 2016, 2015 and 2014. Therefore, there were no gains or losses realized during these periods.

The Corporation and its investment advisors monitor the entire portfolio monthly with particular attention given to securities in a continuous loss position of at least ten percent for over twelve months. As of June 30, 2015, we recognized other than temporary impairment on one equity security that was trading below cost basis. We have written down the value of the shares based upon market indications. In management’s opinion, the equity securities reflect a more accurate valuation of the shares after the impairment charge. Based on the factors described above, management did not consider any additional securities to be other-than-temporarily impaired at December 31, 2016 and 2015.

In accordance with disclosures required by FASB ASC 320-10-50, Investments - Debt and Equity Securities, the summary below shows the gross unrealized losses and fair value of the Corporation’s investments, aggregated by investment category, that individual securities have been in a continuous unrealized loss position for less than 12 months or 12 months or more as of December 31, 2016 and 2015:

December 31, 2016
(Dollars in thousands)	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available-for-Sale:
U.S. Treasury securities	$	—	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. Government Corporations and Agencies:
Mortgage-backed		89,444		(1,216)		8,783		(115)		98,227		(1,331)
Other		10,340		(500)		1,741		(11)		12,081		(511)
Obligations of state and political subdivisions		95,481		(2,796)		—		—		95,481		(2,796)
Corporate debt securities		21,656		(749)		10,298		(457)		31,954		(1,206)
Marketable equity securities		—		—		—		—		—		—
	$	216,921	$	(5,261)	$	20,822	$	(583)	$	237,743	$	(5,844)

December 31, 2015
(Dollars in thousands)	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available-for-Sale:								—
U.S. Treasury securities	$	1,021	$	(1)	$	—	$	—	$	1,021	$	(1)
Obligations of U.S. Government Corporations and Agencies:
Mortgage-backed		86,618		(1,177)		11,234		(233)		97,852		(1,410)
Other		12,962		(79)		—		—		12,962		(79)
Obligations of state and political subdivisions		26,163		(258)		8,105		(150)		34,268		(408)
Corporate debt securities		27,527		(531)		19,433		(808)		46,960		(1,339)
Marketable equity securities		—		—		—		—		—		—
	$	154,291	$	(2,046)	$	38,772	$	(1,191)	$	193,063	$	(3,237)

The Corporation invests in various forms of agency debt including mortgage backed securities and callable debt. The mortgage backed securities are issued by FHLMC (“Federal Home Loan Mortgage Corporation”), FNMA (“Federal National Mortgage Association”) or GNMA (“Government National Mortgage Association”). The municipal securities consist of general obligations and revenue bonds. The marketable equity securities consist of stocks in other bank holding companies. The fair market value of the above securities is influenced by market interest rates, prepayment speeds on mortgage securities, bid-offer spreads in the market place and credit premiums for various types of agency debt. These factors change continuously and therefore the market value of these securities may be higher or lower than the Corporation’s carrying value at any measurement date. Management does not believe any of their 155 securities with a one year or less unrealized loss position or any of their 11 securities with a greater than one year unrealized loss position as of December 31, 2016, represent an other-than-temporary impairment, as these unrealized losses relate principally to changes in interest rates subsequent to the acquisition of the specific securities.