SECURITIES AVAILABLE FOR SALE

The following table summarizes amortized cost and fair value of AFS securities at March 31, 2017 and December 31, 2016, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI. At March 31, 2017 and December 31, 2016 all investment securities were classified as AFS.



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2017
U.S. Government Agencies	$	8,541	$	0	$	50	$	8,491
States and political subdivisions	182,221		2,522		867		183,876
GSE residential MBSs	107,928		983		0		108,911
GSE residential CMOs	115,645		400		2,961		113,084
GSE commercial CMOs	5,144		0		205		4,939
Private label CMOs	4,220		5		27		4,198
Total debt securities	423,699		3,910		4,110		423,499
Equity securities	50		52		0		102
Totals	$	423,749	$	3,962	$	4,110	$	423,601
December 31, 2016
U.S. Government Agencies	$	39,569	$	147	$	124	$	39,592
States and political subdivisions	163,677		1,782		1,177		164,282
GSE residential MBSs	116,022		928		6		116,944
GSE residential CMOs	72,411		240		3,268		69,383
GSE commercial CMOs	5,148		0		292		4,856
Private label CMOs	5,042		0		36		5,006
Total debt securities	401,869		3,097		4,903		400,063
Equity securities	50		41		0		91
Totals	$	401,919	$	3,138	$	4,903	$	400,154

The following table summarizes AFS securities with unrealized losses at March 31, 2017 and December 31, 2016, aggregated by major security type and length of time in a continuous unrealized loss position.



	Less Than 12 Months				12 Months or More				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2017
U.S. Government Agencies	$	0	$	0	$	8,491	$	50	$	8,491	$	50
States and political subdivisions	43,443		565		5,326		302		48,769		867
GSE residential CMOs	63,943		2,957		551		4		64,494		2,961
GSE commercial CMOs	4,939		205		0		0		4,939		205
Private label CMOs	0		0		2,009		27		2,009		27
Totals	$	112,325	$	3,727	$	16,377	$	383	$	128,702	$	4,110
December 31, 2016
U.S. Government Agencies	$	10,710	$	23	$	13,531	$	101	$	24,241	$	124
States and political subdivisions	58,924		610		5,075		567		63,999		1,177
GSE residential MBSs	5,034		6		0		0		5,034		6
GSE residential CMOs	59,534		3,264		634		4		60,168		3,268
GSE commercial CMOs	4,856		292		0		0		4,856		292
Private label CMOs	0		0		5,005		36		5,005		36
Totals	$	139,058	$	4,195	$	24,245	$	708	$	163,303	$	4,903

The Company had 32 securities and 46 securities at March 31, 2017 and December 31, 2016 for which the security's amortized cost exceeds its fair value:

U.S. Government Agencies and GSE Securities. At March 31, 2017, a total of 10 U.S. Government Agencies and GSE CMO securities have unrealized losses, 8 of which are in the less than 12 months category, and 2 of which are in the more than 12 months category. At December 31, 2016, the Company had 17 such securities, including GSE MBSs, with unrealized losses, 14 of which were in the less than 12 months category, and 3 of which were in the more than 12 months category. These unrealized losses have been caused by a widening of spreads or a rise in interest rates from the time these securities were purchased. The contractual terms of these securities do not permit the issuer to settle the securities at a price less than its par value basis. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at March 31, 2017 or at December 31, 2016.

State and Political Subdivisions. At March 31, 2017, a total of 20 state and political subdivision securities have unrealized losses, 19 of which are in the less than 12 months category, and 1 of which is in the more than 12 months category. At December 31, 2016, the Company had 26 such securities with unrealized losses, 25 of which were in the less than 12 months category, and 1 of which was in the more than 12 months category. These unrealized losses have been caused by a widening of spreads or a rise in interest rates from the time these securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is OTTI. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at March 31, 2017 or at December 31, 2016.

Private Label CMOs. At March 31, 2017, a total of 2 private label CMOs have unrealized losses, all of which were in the more than 12 months category. At December 31, 2016, 3 private label securities had an amortized cost which exceeded their fair value in the less than 12 months category. These unrealized losses have been caused by a widening of spreads or a rise in interest rates from the time the securities were purchased. Because the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be maturity, the Company does not consider these securities to be OTTI at March 31, 2017 or at December 31, 2016.

The following table summarizes amortized cost and fair value of AFS securities at March 31, 2017 by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.



	Available for Sale
(Dollars in thousands)	Amortized Cost		Fair Value

Due in one year or less	$	15	$	15
Due after one year through five years	8,641		8,797
Due after five years through ten years	75,809		76,742
Due after ten years	106,297		106,813
MBSs and CMOs	232,937		231,132
Total debt securities	423,699		423,499
Equity securities	50		102
	$	423,749	$	423,601

The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the three months ended March 31, 2017 and 2016.



	Three months ended March 31,
	2017		2016

Proceeds from sale of AFS securities	$	35,072,000	$	64,743,000
Gross gains	153,000		1,468,000
Gross losses	150,000		48,000

AFS securities with a fair value of $311,103,000 and $317,282,000 at March 31, 2017 and December 31, 2016 were pledged to secure public funds and for other purposes as required or permitted by law.