SECURITIES AVAILABLE FOR SALE

The following table summarizes amortized cost and fair value of AFS securities at September 30, 2017 and December 31, 2016, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI. At September 30, 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
September 30, 2017
States and political subdivisions	$	153,951	$	4,788	$	479	$	158,260
GSE residential MBSs	50,699		876		23		51,552
GSE residential CMOs	116,411		695		3,207		113,899
Private label residential CMOs	2,400		10		12		2,398
Private label commercial CMOs	7,820		0		149		7,671
Asset-backed	87,729		1		164		87,566
Total debt securities	419,010		6,370		4,034		421,346
Equity securities	50		59		0		109
Totals	$	419,060	$	6,429	$	4,034	$	421,455
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 residential 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 September 30, 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)	# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses		# of Securities	Fair Value		Unrealized Losses
September 30, 2017
States and political subdivisions	10	$	28,872	$	355	1	$	5,480	$	124	11	$	34,352	$	479
GSE residential MBSs	1	4,304		23		0	0		0		1	4,304		23
GSE residential CMOs	4	25,421		1,180		5	37,977		2,027		9	63,398		3,207
Private label residential CMOs	0	0		0		1	980		12		1	980		12
Private label commercial CMOs	2	7,671		149		0	0		0		2	7,671		149
Asset-backed	7	70,416		164		0	0		0		7	70,416		164
Totals	24	$	136,684	$	1,871	7	$	44,437	$	2,163	31	$	181,121	$	4,034
December 31, 2016
U.S. Government Agencies	6	$	10,710	$	23	2	$	13,531	$	101	8	$	24,241	$	124
States and political subdivisions	25	58,924		610		1	5,075		567		26	63,999		1,177
GSE residential MBSs	1	5,034		6		0	0		0		1	5,034		6
GSE residential CMOs	6	59,534		3,264		1	634		4		7	60,168		3,268
GSE commercial CMOs	1	4,856		292		0	0		0		1	4,856		292
Private label residential CMOs	0	0		0		3	5,005		36		3	5,005		36
Totals	39	$	139,058	$	4,195	7	$	24,245	$	708	46	$	163,303	$	4,903

U.S. Government Agencies and GSE Securities. The unrealized losses presented in the table above have been caused by a widening of spreads and/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 September 30, 2017 or at December 31, 2016.

State and Political Subdivisions. The unrealized losses presented in the table above have been caused by a widening of spreads and/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 September 30, 2017 or at December 31, 2016.

Private Label Residential CMOs. The unrealized losses presented in the table above have been caused by a widening of spreads and/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 September 30, 2017 or at December 31, 2016.

Private Label Commercial CMOs and Asset-backed. The unrealized losses presented in the table above have been caused by the bid ask spread, widening of spreads and/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 September 30, 2017.

The following table summarizes amortized cost and fair value of AFS securities at September 30, 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	8,727		8,968
Due after five years through ten years	47,696		48,932
Due after ten years	97,513		100,345
MBSs and CMOs	177,330		175,520
Asset-backed	87,729		87,566
Total debt securities	419,010		421,346
Equity securities	50		109
	$	419,060	$	421,455

The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the three and nine months ended September 30, 2017 and 2016.



	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2017		2016		2017		2016

Proceeds from sale of AFS securities	$	103,666	$	0	$	162,319	$	64,742
Gross gains	670		0		1,477		1,468
Gross losses	137		0		287		48

AFS securities with a fair value of $322,278,000 and $317,282,000 at September 30, 2017 and December 31, 2016 were pledged to secure public funds and for other purposes as required or permitted by law.