XML 25 R10.htm IDEA: XBRL DOCUMENT v3.7.0.1
Securities
 12 Months Ended
Dec. 31, 2016
Securities [Abstract]  
Securities

2.SECURITIES



The amortized cost of securities and their approximate fair value at December 31 were as follows:





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

2016



 

(in thousands)



 

 

 

 

 

 

 

 



 

Amortized

 

Unrealized

 

Fair



 

Cost

 

Gains

 

Losses

 

Value



 

 

 

 

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies

 

$

 12,958 

 

$

 67 

 

$

 (153)

 

$

 12,872 

States and political subdivisions

 

 

 34,952 

 

 

 356 

 

 

 (166)

 

 

 35,142 

Total debt securities

 

$

 47,910 

 

$

 423 

 

$

 (319)

 

$

 48,014 



 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

FNMA

 

$

 14,694 

 

$

 96 

 

$

 (230)

 

$

 14,560 

FHLMC

 

 

 3,544 

 

 

 32 

 

 

 (51)

 

 

 3,525 

GNMA

 

 

 2,535 

 

 

 19 

 

 

 (21)

 

 

 2,533 

CMO

 

 

 27,127 

 

 

 67 

 

 

 (604)

 

 

 26,590 

Total mortgage-backed securities

 

$

 47,900 

 

$

 214 

 

$

 (906)

 

$

 47,208 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as available for sale

 

$

 95,810 

 

$

 637 

 

$

 (1,225)

 

$

 95,222 



 

 

 

 

 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

 1,983 

 

$

 5 

 

$

 (29)

 

$

 1,959 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as held to maturity

 

$

 1,983 

 

$

 5 

 

$

 (29)

 

$

 1,959 











 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

2015



 

(in thousands)



 

 

 

 

 

 

 

 



 

Amortized

 

Unrealized

 

Fair



 

Cost

 

Gains

 

Losses

 

Value



 

 

 

 

 

 

 

 

 

 

 

 

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies

 

$

 21,914 

 

$

 166 

 

$

 (234)

 

$

 21,846 

States and political subdivisions

 

 

 36,838 

 

 

 874 

 

 

 (29)

 

 

 37,683 

Total debt securities

 

$

 58,752 

 

$

 1,040 

 

$

 (263)

 

$

 59,529 



 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

FNMA

 

$

 10,314 

 

$

 160 

 

$

 (25)

 

$

 10,449 

FHLMC

 

 

 4,629 

 

 

 61 

 

 

 (56)

 

 

 4,634 

GNMA

 

 

 3,215 

 

 

 48 

 

 

 (27)

 

 

 3,236 

CMO

 

 

 19,464 

 

 

 66 

 

 

 (237)

 

 

 19,293 

Total mortgage-backed securities

 

$

 37,622 

 

$

 335 

 

$

 (345)

 

$

 37,612 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as available for sale

 

$

 96,374 

 

$

 1,375 

 

$

 (608)

 

$

 97,141 



 

 

 

 

 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

 1,617 

 

$

 6 

 

$

 (39)

 

$

 1,584 



 

 

 

 

 

 

 

 

 

 

 

 

Total securities designated as held to maturity

 

$

 1,617 

 

$

 6 

 

$

 (39)

 

$

 1,584 

Available for sale securities with a total fair value of $87 million and $86 million were pledged as collateral to secure public deposits and for other purposes required or permitted by law at December 31, 2016 and 2015, respectively.



The scheduled maturity of debt and mortgage-backed securities at December 31, 2016 and 2015 is summarized below.  All maturity amounts are contractual maturities.  Actual maturities may differ from contractual maturities because certain issuers have the right to call or prepay obligations with or without call premiums.











 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

2016

 

2015



 

Amortized

 

Estimated

 

Amortized

 

Estimated



 

cost

 

fair value

 

cost

 

fair value



 

 

(in thousands)

 

 

(in thousands)



 

 

 

 

 

 

 

 

 

 

 

 

Debt securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

 

$

 2,869 

 

$

 2,876 

 

$

 4,082 

 

$

 4,142 

Due after one year through five years

 

 

 30,171 

 

 

 30,214 

 

 

 29,113 

 

 

 29,448 

Due after five years through ten years

 

 

 12,166 

 

 

 12,133 

 

 

 19,356 

 

 

 19,615 

Due after ten years

 

 

 2,704 

 

 

 2,791 

 

 

 6,201 

 

 

 6,324 



 

 

 47,910 

 

 

 48,014 

 

 

 58,752 

 

 

 59,529 



 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

available for sale

 

 

 47,900 

 

 

 47,208 

 

 

 37,622 

 

 

 37,612 



 

 

 

 

 

 

 

 

 

 

 

 

Total available for sale securities

 

$

 95,810 

 

$

 95,222 

 

$

 96,374 

 

$

 97,141 



 

 

 

 

 

 

 

 

 

 

 

 

Debt securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Due in one year or less

 

$

 780 

 

$

 778 

 

$

 309 

 

$

 308 

Due after one year through five years

 

 

 289 

 

 

 283 

 

 

 374 

 

 

 365 

Due after five years through ten years

 

 

 814 

 

 

 805 

 

 

 828 

 

 

 815 

Due after ten years

 

 

 100 

 

 

 93 

 

 

 106 

 

 

 96 



 

 

 1,983 

 

 

 1,959 

 

 

 1,617 

 

 

 1,584 



 

 

 

 

 

 

 

 

 

 

 

 

Total held to maturity securities

 

$

 1,983 

 

$

 1,959 

 

$

 1,617 

 

$

 1,584 



Contractual maturities of the Company’s mortgage-backed securities generally exceed ten years; however, the effective lives may be significantly shorter due to prepayments of the underlying loans and due to the nature of these securities.



There were no realized gains and losses from gross sales of securities in 2016, 2015 or 2014.



Information regarding unrealized losses within the Company’s available for sale securities at December 31, 2016 and 2015 is summarized below.  The securities are primarily U.S. government-guaranteed agency securities or municipal securities.  All unrealized losses are considered temporary and related to market interest rate fluctuations.





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

2016



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Less than 12 months

 

 

12 months or longer

 

 

Total



 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized



 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses



 

 

(in thousands)

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies

 

$

 6,847 

 

$

 (153)

 

$

 -

 

$

 -

 

$

 6,847 

 

$

 (153)

States and political subdivisions

 

 

 16,895 

 

 

 (146)

 

 

 731 

 

 

 (20)

 

 

 17,626 

 

 

 (166)

Total debt securities

 

$

 23,742 

 

$

 (299)

 

$

 731 

 

$

 (20)

 

$

 24,473 

 

$

 (319)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FNMA

 

$

 9,577 

 

$

 (230)

 

$

 -

 

$

 -

 

$

 9,577 

 

$

 (230)

FHLMC

 

 

 1,728 

 

 

 (8)

 

 

 988 

 

 

 (43)

 

 

 2,716 

 

 

 (51)

GNMA

 

 

 1,046 

 

 

 (17)

 

 

 309 

 

 

 (4)

 

 

 1,355 

 

 

 (21)

CMO

 

 

 19,745 

 

 

 (569)

 

 

 1,166 

 

 

 (35)

 

 

 20,911 

 

 

 (604)

Total mortgage-backed securities

 

$

 32,096 

 

$

 (824)

 

$

 2,463 

 

$

 (82)

 

$

 34,559 

 

$

 (906)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

 863 

 

$

 (3)

 

$

 706 

 

$

 (26)

 

$

 1,569 

 

$

 (29)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total temporarily impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

$

 56,701 

 

$

 (1,126)

 

$

 3,900 

 

$

 (128)

 

$

 60,601 

 

$

 (1,254)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

2015



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

Less than 12 months

 

 

12 months or longer

 

 

Total



 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized



 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses



 

 

(in thousands)

Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government agencies

 

$

 4,531 

 

$

 (89)

 

$

 5,855 

 

$

 (145)

 

$

 10,386 

 

$

 (234)

States and political subdivisions

 

 

 3,133 

 

 

 (6)

 

 

 1,117 

 

 

 (23)

 

 

 4,250 

 

 

 (29)

Total debt securities

 

$

 7,664 

 

$

 (95)

 

$

 6,972 

 

$

 (168)

 

$

 14,636 

 

$

 (263)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FNMA

 

$

 3,856 

 

$

 (25)

 

$

 -

 

$

 -

 

$

 3,856 

 

$

 (25)

FHLMC

 

 

 -

 

 

 -

 

 

 1,234 

 

 

 (56)

 

 

 1,234 

 

 

 (56)

GNMA

 

 

 1,161 

 

 

 (21)

 

 

 471 

 

 

 (6)

 

 

 1,632 

 

 

 (27)

CMO

 

 

 8,996 

 

 

 (123)

 

 

 3,661 

 

 

 (114)

 

 

 12,657 

 

 

 (237)

Total mortgage-backed securities

 

$

 14,013 

 

$

 (169)

 

$

 5,366 

 

$

 (176)

 

$

 19,379 

 

$

 (345)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

States and political subdivisions

 

$

 626 

 

$

 (11)

 

$

 495 

 

$

 (28)

 

$

 1,121 

 

$

 (39)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total temporarily impaired

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

securities

 

$

 22,303 

 

$

 (275)

 

$

 12,833 

 

$

 (372)

 

$

 35,136 

 

$

 (647)



Management has assessed the securities available for sale in an unrealized loss position at December 31, 2016 and 2015 and determined the decline in fair value below amortized cost to be temporary.  In making this determination, management considered the period of time the securities were in a loss position, the percentage decline in comparison to the securities’ amortized cost, and the financial condition of the issuer (primarily government or government-sponsored enterprises).  In addition, management does not intend to sell these securities and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost.  Management believes the decline in fair value is primarily related to market interest rate fluctuations and not to the credit deterioration of the individual issuers.  The Company holds no securities backed by sub-prime or Alt-A residential mortgages or commercial mortgages and also does not hold any trust-preferred securities.



The Company did not record any other-than-temporary impairment charges in 2016, 2015, or 2014.  The credit worthiness of the Company’s portfolio is largely reliant on the ability of U.S. government agencies such as the Federal Home Loan Bank (“FHLB”), Federal National Mortgage Association (“FNMA”), and the Federal Home Loan Mortgage Corporation (“FHLMC”), and municipalities throughout New York State to meet their obligations.  In addition, dysfunctional markets could materially alter the liquidity, interest rate, and pricing risk of the portfolio.  The stable past performance is not a guarantee for similar performance going forward.