INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2016

Amortized cost, estimated fair values, and gross unrealized gains and losses of securities available for sale and held to maturity

The amortized cost, fair value and gross unrealized gains and losses of the Company’s investment securities available for sale and held to maturity at December 31, 2016 and 2015 were as follows (in thousands):

	December 31, 2016									December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for sale:
U.S. Government agency securities	$	-	$	-	$	-		$	-	$	28,977	$	2	$	(463	)	$	28,516
Obligations of states and political subdivisions		63,447		1,847		-			65,294		100,215		4,467		-			104,682
Collateralized mortgage obligations		17,854		-		(402	)		17,452		15,795		2		(248	)		15,549
Mortgage-backed securities		88,769		79		(887	)		87,961		93,719		39		(1,316	)		92,442
Corporate bonds		9,000		-		(465	)		8,535		6,000		-		(90	)		5,910
Total available for sale securities		179,070		1,926		(1,754	)		179,242		244,706		4,510		(2,117	)		247,099
Held to maturity:
U.S. Government agency securities		2,380		88		-			2,468		43,570		1,450		-			45,020
Obligations of states and political subdivisions		10,400		278		-			10,678		11,739		536		-			12,275
Corporate bonds		6,000		113		-			6,113		6,000		7		(30	)		5,977
Total held to maturity securities		18,780		479		-			19,259		61,309		1,993		(30	)		63,272
Total investment securities	$	197,850	$	2,405	$	(1,754	)	$	198,501	$	306,015	$	6,503	$	(2,147	)	$	310,371

Investment securities amortized cost, maturities, and approximate fair value

The amortized cost, contractual maturities and fair value of the Company’s investment securities at December 31, 2016 (in thousands) are presented in the table below. Collateralized mortgage obligations (“CMOs”) and mortgage-backed securities (“MBS”) assume maturity dates pursuant to average lives.

	December 31, 2016
	Amortized Cost		Fair Value
Securities available for sale:
Due in one year or less	$	26,650	$	26,831
Due from one to five years		131,177		131,767
Due from five to ten years		21,243		20,644
Total securities available for sale		179,070		179,242
Securities held to maturity:
Due in one year or less		2,636		2,679
Due from one to five years		1,253		1,284
Due from five to ten years		8,380		8,580
Due after ten years		6,511		6,716
Total securities held to maturity		18,780		19,259
Total investment securities	$	197,850	$	198,501

Proceeds from sales of securities available for sale and the associated realized securities gains and losses

The proceeds from sales of securities available for sale and the associated realized gains and losses are shown below (in thousands) for the years indicated. Realized gains are also inclusive of gains on called securities.

	Years Ended December 31,
	2016		2015			2014

Proceeds	$	6,615	$	10,080		$	20,604

Gross realized gains	$	617	$	334		$	271
Gross realized losses		-		(15	)		(252	)
Net realized gains	$	617	$	319		$	19

Length of time individual securities for held-to-maturity and available-for-sale held in a continuous unrealized loss position

Information pertaining to securities with unrealized losses at December 31, 2016 and 2015, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (in thousands):

	Less than 12 months					12 months or longer					Total
December 31, 2016	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Collateralized mortgage obligations	$	15,716	$	(359	)	$	1,736	$	(43	)	$	17,452	$	(402	)
Mortgage-backed securities		73,091		(887	)		-		-			73,091		(887	)
Corporate bonds		2,850		(150	)		5,685		(315	)		8,535		(465	)
Total	$	91,657	$	(1,396	)	$	7,421	$	(358	)	$	99,078	$	(1,754	)

	Less than 12 months					12 months or longer					Total
December 31, 2015	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government agency securities	$	16,744	$	(233	)	$	9,770	$	(230	)	$	26,514	$	(463	)
Collateralized mortgage obligations		1,831		(4	)		8,200		(244	)		10,031		(248	)
Mortgage-backed securities		66,804		(884	)		17,936		(432	)		84,740		(1,316	)
Corporate bonds		8,880		(120	)		-		-			8,880		(120	)
Total	$	94,259	$	(1,241	)	$	35,906	$	(906	)	$	130,165	$	(2,147	)