SECURITIES AVAILABLE FOR SALE

The following table summarizes amortized cost and fair value of AFS securities at September 30, 2018 and December 31, 2017, and the corresponding amounts of gross unrealized gains and losses recognized in AOCI. At September 30, 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
September 30, 2018
States and political subdivisions	$	161,146	$	1,251	$	2,977	$	159,420
GSE residential CMOs	113,335		39		4,720		108,654
Private label residential CMOs	313		0		1		312
Private label commercial CMOs	61,560		18		368		61,210
Asset-backed and other	159,928		503		671		159,760
Totals	$	496,282	$	1,811	$	8,737	$	489,356
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 September 30, 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
September 30, 2018
States and political subdivisions	46	$	67,649	$	1,591	5	$	22,667	$	1,386	51	$	90,316	$	2,977
GSE residential CMOs	4	59,708		1,125		7	46,729		3,595		11	106,437		4,720
Private label residential CMOs	1	312		1		0	0		0		1	312		1
Private label commercial CMOs	5	33,258		70		2	6,597		298		7	39,855		368
Asset-backed and other	4	61,660		274		3	11,426		397		7	73,086		671
Totals	60	$	222,587	$	3,061	17	$	87,419	$	5,676	77	$	310,006	$	8,737
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 and other	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 September 30, 2018 or at December 31, 2017.

GSE 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 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, 2018 or at December 31, 2017.

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, 2018 or at December 31, 2017.

Private Label Commercial CMOs and Asset-backed and Other. The unrealized losses presented in the table above have been caused by 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, 2018 or at December 31, 2017.

The following table summarizes amortized cost and fair value of AFS securities at September 30, 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	$	5,066	$	5,053
Due after five years through ten years	38,129		37,619
Due after ten years	117,951		116,748
CMOs	175,208		170,176
Asset-backed and other	159,928		159,760
	$	496,282	$	489,356

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, 2018 and 2017.



	Three months ended September 30,				Nine months ended September 30,
(Dollars in thousands)	2018		2017		2018		2017
Proceeds from sale of AFS securities	$	25,070	$	103,666	$	113,180	$	162,319
Gross gains	185		670		1,237		1,477
Gross losses	156		137		346		287

AFS securities with a fair value of $297,469,000 and $319,907,000 at September 30, 2018 and December 31, 2017 were pledged to secure public funds and for other purposes as required or permitted by law.