Investment Securities (Tables)

12 Months Ended

Dec. 31, 2017

The following table shows a comparison of amortized cost and fair values of investment securities at December 31, 2017 and 2016:



(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCL
December 31, 2017
Available for Sale:
U.S. government agencies	$	30,000	$	0		744	$	29,256	$	0
Commercial mortgage-backed agencies		41,771		0		880		40,891		0
Collateralized mortgage obligations		41,298		2		916		40,384		0
Obligations of states and political subdivisions		20,772		365		118		21,019		0
Collateralized debt obligations		19,711		0		4,791		14,920		(3,389)
Total available for sale	$	153,552	$	367	$	7,449	$	146,470	$	(3,389)
Held to Maturity:
U.S. government agencies	$	15,876	$	447	$	0	$	16,323	$	0
Residential mortgage-backed agencies		47,771		94		423		47,442		0
Commercial mortgage-backed agencies		17,288		236		6		17,518		0
Collateralized mortgage obligations		4,187		0		69		4,118		0
Obligations of states and political subdivisions		8,510		1,443		8		9,945		0
Total held to maturity	$	93,632	$	2,220	$	506	$	95,346	$	0


December 31, 2016
Available for Sale:
U.S. government agencies	$	25,000	$	0	$	747	$	24,253	$	0
Commercial mortgage-backed agencies		52,978		1		757		52,222		0
Collateralized mortgage obligations		19,953		13		399		19,567		0
Obligations of states and political subdivisions		23,700		255		251		23,704		0
Collateralized debt obligations		27,930		0		7,676		20,254		(3,961)
Total available for sale	$	149,561	$	269	$	9,830	$	140,000		(3,961)
Held to Maturity:
U.S. government agencies	$	15,738	$	512	$	0	$	16,250	$	0
Residential mortgage-backed agencies		50,384		160		279		50,265		0
Commercial mortgage-backed agencies		17,584		248		0		17,832		0
Collateralized mortgage obligations		4,833		0		149		4,684		0
Obligations of states and political subdivisions		8,630		490		170		8,950		0
Total held to maturity	$	97,169	$	1,410	$	598	$	97,981	$	0

Proceeds from Sales and Realized Gain and Losses



(in thousands)	2017		2016
Proceeds	$	18,530	$	43,782
Realized gains		52		688
Realized losses		101		248

Gross Unrealized Losses and Fair Values of Securities



	Less than 12 months				12 months or more
(in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
December 31, 2017
Available for Sale:
U.S. government agencies	$	4,931	$	69	$	24,325	$	675
Commercial mortgage-backed agencies		12,593		169		28,298		711
Collateralized mortgage obligations		27,387		472		12,447		443
Obligations of states and political subdivisions		2,683		44		2,747		75
Collateralized debt obligations		0		0		14,920		4,791
Total available for sale	$	47,594	$	754	$	82,737	$	6,695
Held to Maturity:
Residential mortgage-backed agencies		15,897		135		10,422		288
Commercial mortgage-backed agencies		9,028		6		0		0
Collateralized mortgage obligations		0		0		4,118		69
Obligations of states and political subdivisions		0		0		2,377		8
Total held to maturity	$	24,925	$	141	$	16,917	$	365


December 31, 2016
Available for Sale:
U.S. government agencies	$	24,253	$	747	$	0	$	0
Commercial mortgage-backed agencies		51,604		757		0		0
Collateralized mortgage obligations		14,706		399		0		0
Obligations of states and political subdivisions		8,079		160		2,934		91
Collateralized debt obligations		0		0		20,254		7,676
Total available for sale	$	98,642	$	2,063	$	23,188	$	7,767
Held to Maturity:
Residential mortgage-backed agencies		20,899		279		0		0
Commercial mortgage-backed agencies		4,684		149		0		0
Obligations of states and political subdivisions		2,335		170		0		0
Total held to maturity	$	27,918	$	598	$	0	$	0

Non-Cash OTTI Credit Losses Recognized in Earnings


(in thousands)	2017		2016
Balance of credit-related OTTI at January 1	$	3,124	$	3,133
Decreases for previously recognized credit-related OTTI
because there was an intent to sell		0		0
Additions for decreases in cash flows expected to be collected		0		0
Reduction for increases in cash flows expected to be collected		(166)		(9)
Balance of credit-related OTTI at December 31	$	2,958	$	3,124

Amortized Cost and Fair Values Classified by Contractual Maturity Date

The amortized cost and estimated fair value of securities by contractual maturity at December 31, 2017 are shown in the following table. Actual maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.


(in thousands)	Amortized Cost		Fair Value
Contractual Maturity
Available for sale:
Due in one year or less	$	447	$	452
Due after one year through five years		17,739		17,515
Due after five years through ten years		22,761		22,263
Due after ten years		29,536		24,965
		70,483		65,195
Commercial mortgage-backed agencies		41,771		40,891
Collateralized mortgage obligations		41,298		40,384
Total available for sale	$	153,552	$	146,470
Held to Maturity:
Due after one year through five years	$	8,276	$	8,503
Due after five years through ten years		7,600	$	7,820
Due after ten years		8,510		9,945
		24,386		26,268
Residential mortgage-backed agencies		47,771		47,442
Commercial mortgage-backed agencies		17,288		17,518
Collateralized mortgage obligations		4,187		4,118
Total held to maturity	$	93,632	$	95,346