SECURITIES AVAILABLE FOR SALE

The following table summarizes amortized cost and fair value of AFS securities at March 31, 2018 and December 31, 2017, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI. At March 31, 2018 and December 31, 2017, all investment securities were classified as AFS.



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2018
States and political subdivisions	$	181,682	$	2,755	$	1,644	$	182,793
GSE residential CMOs	120,291		156		3,492		116,955
Private label residential CMOs	849		4		0		853
Private label commercial CMOs	12,914		0		225		12,689
Asset-backed and other	141,897		164		551		141,510
Totals	$	457,633	$	3,079	$	5,912	$	454,800
December 31, 2017
States and political subdivisions	$	153,803	$	6,133	$	478	$	159,458
GSE residential MBSs	48,600		930		0		49,530
GSE residential CMOs	113,658		296		2,835		111,119
Private label residential CMOs	999		4		0		1,003
Private label commercial CMOs	7,809		0		156		7,653
Asset-backed and other	86,837		133		425		86,545
Totals	$	411,706	$	7,496	$	3,894	$	415,308

The following table summarizes AFS securities with unrealized losses at March 31, 2018 and December 31, 2017, 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
March 31, 2018
States and political subdivisions	27	$	56,735	$	1,500	1	$	5,434	$	144	28	$	62,169	$	1,644
GSE residential CMOs	3	50,240		1,074		6	36,768		2,418		9	87,008		3,492
Private label commercial CMOs	4	12,689		225		0	0		0		4	12,689		225
Asset-backed	6	70,290		551		0	0		0		6	70,290		551
Totals	40	$	189,954	$	3,350	7	$	42,202	$	2,562	47	$	232,156	$	5,912
December 31, 2017
States and political subdivisions	7	$	24,577	$	473	1	$	5,585	$	5	8	$	30,162	$	478
GSE residential CMOs	4	25,155		914		5	37,459		1,921		9	62,614		2,835
Private label commercial CMOs	2	7,653		156		0	0		0		2	7,653		156
Asset-backed	6	60,006		425		0	0		0		6	60,006		425
Totals	19	$	117,391	$	1,968	6	$	43,044	$	1,926	25	$	160,435	$	3,894

States 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 March 31, 2018 or at December 31, 2017.

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 March 31, 2018 or at December 31, 2017.

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 March 31, 2018 or at December 31, 2017.

The following table summarizes amortized cost and fair value of AFS securities at March 31, 2018 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 after one year through five years	$	9,852	$	9,990
Due after five years through ten years	51,527		51,672
Due after ten years	120,303		121,131
CMOs	134,054		130,497
Asset-backed and other	141,897		141,510
	$	457,633	$	454,800

The following table summarizes proceeds from sales of AFS securities and gross gains and gross losses for the three months ended March 31, 2018 and 2017.



	Three months ended March 31,
(Dollars in thousands)	2018		2017
Proceeds from sale of AFS securities	$	62,577	$	35,072
Gross gains	841		153
Gross losses	25		150

AFS securities with a fair value of $253,524,000 and $319,907,000 at March 31, 2018 and December 31, 2017 were pledged to secure public funds and for other purposes as required or permitted by law.