Securities

The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2016 and December 31, 2015. There were no securities held-to-maturity as of December 31, 2015.



	September 30, 2016
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	85,630	$	652	$	(292	)	$	85,990
Municipal securities	96,665		1,345		(509		)	97,501
Mortgage-backed securities	244,780		1,715		(410		)	246,085
Asset-backed securities	19,464		59		(27		)	19,496
Corporate securities	20,000		—		(1,120		)	18,880
Other securities	3,000		26		—			3,026
Total available-for-sale	$	469,539	$	3,797	$	(2,358	)	$	470,978



	September 30, 2016
	Amortized		Gross Unrealized				Fair
	Cost		Gains		Losses		Value
Securities held-to-maturity
Corporate securities	$	5,500	$	78	$	—	$	5,578
Total held-to-maturity	$	5,500	$	78	$	—	$	5,578



	December 31, 2015
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	38,093	$	139	$	(482	)	$	37,750
Municipal securities	21,091		385		(7		)	21,469
Mortgage-backed securities	113,948		110		(1,006		)	113,052
Asset-backed securities	19,444		—		(83		)	19,361
Corporate securities	20,000		—		(913		)	19,087
Other securities	3,000		—		(21		)	2,979
Total available-for-sale	$	215,576	$	634	$	(2,512	)	$	213,698

The carrying value of securities at September 30, 2016 is shown below by their contractual maturity date. Actual maturities will differ because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Available-for-Sale
	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years	298		263
Five to ten years	36,851		36,536
After ten years	165,146		165,572
	202,295		202,371
Mortgage-backed securities	244,780		246,085
Asset-backed securities	19,464		19,496
Other securities	3,000		3,026
Total	$	469,539	$	470,978



	Held-to-Maturity
	Amortized Cost		Fair Value
Five to ten years	$	5,500	$	5,578
Total	$	5,500	$	5,578

There were no sales of available-for-sale securities during the three months ended September 30, 2016. Gross gains of $0.2 million and gross losses of $0.0 million resulted from sales of available-for-sale securities during the nine months ended September 30, 2016. There were no sales of available-for-sale securities during the three and nine months ended September 30, 2015.

Certain investments in debt securities are reported in the condensed consolidated financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2016 and December 31, 2015 was $166.9 million and $166.1 million, which was approximately 35% and 78%, respectively, of the Company’s available-for-sale securities portfolio. These declines resulted primarily from fluctuations in market interest rates after purchase.

U. S. Government-Sponsored Agencies, Municipal Securities and Corporate Securities

The unrealized losses on the Company’s investments in securities issued by U.S. Government-sponsored agencies, municipal organizations and corporate entities were caused by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2016.

Mortgage-Backed and Asset-Backed Securities

The unrealized losses on the Company’s investments in mortgage-backed and asset-backed securities were caused by interest rate changes. The Company expects to recover the amortized cost bases over the term of the securities. Because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2016.

Should any future impairment of these securities become other-than-temporary, the cost basis of the security will be reduced, with the resulting loss recognized in net income in the period in which the other-than-temporary impairment (“OTTI”) is identified.

The following tables show the available-for-sale securities portfolio’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2016 and December 31, 2015.



	September 30, 2016
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	29,919	$	(257	)	$	263	$	(35	)	$	30,182	$	(292	)
Municipal securities	38,854		(509		)	—		—			38,854		(509		)
Mortgage-backed securities	64,526		(410		)	—		—			64,526		(410		)
Asset-backed securities	4,913		(9		)	9,589		(18		)	14,502		(27		)
Corporate securities	4,861		(139		)	14,019		(981		)	18,880		(1,120		)
Total	$	143,073	$	(1,324	)	$	23,871	$	(1,034	)	$	166,944	$	(2,358	)



	December 31, 2015
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Securities available-for-sale
U.S. Government-sponsored agencies	$	18,289	$	(237	)	$	8,537	$	(245	)	$	26,826	$	(482	)
Municipal securities	1,026		(7		)	—		—			1,026		(7		)
Mortgage-backed securities	74,198		(562		)	22,655		(444		)	96,853		(1,006		)
Asset-backed securities	19,361		(83		)	—		—			19,361		(83		)
Corporate securities	19,087		(913		)	—		—			19,087		(913		)
Other securities	2,979		(21		)	—		—			2,979		(21		)
Total	$	134,940	$	(1,823	)	$	31,192	$	(689	)	$	166,132	$	(2,512	)

There were no held-to-maturity securities in an unrealized loss position at September 30, 2016, and there were no held-to-maturity securities at December 31, 2015.

There were no amounts reclassified from accumulated other comprehensive income (loss) during the three and nine months ended September 30, 2015. Amounts reclassified from accumulated other comprehensive income (loss) and the affected line items in the consolidated statements of income during the three and nine months ended September 30, 2016 were as follows:



Details About Accumulated Other Comprehensive Income (Loss) Components	Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) for the				Affected Line Item in the Statements of Income
	Three Months Ended September 30, 2016		Nine Months Ended September 30, 2016		Affected Line Item in the Statements of Income
Unrealized gains and losses on securities available-for-sale
Gain realized in earnings	$	—	$	177	Gain on sale of securities
Total reclassified amount before tax	—		177		Income Before Income Taxes
Tax expense	—		60		Income Tax Provision
Total reclassifications out of accumulated other comprehensive income (loss)	$	—	$	117	Net Income