Securities

The following tables summarize securities available-for-sale and securities held-to-maturity as of September 30, 2018 and December 31, 2017.



	September 30, 2018
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	115,176	$	20	$	(2,436	)	$	112,760
Municipal securities	97,160		39		(6,119		)	91,080
Mortgage-backed securities	237,703		33		(12,044		)	225,692
Asset-backed securities	5,003		—		(43		)	4,960
Corporate securities	36,684		41		(2,220		)	34,505
Total available-for-sale	$	491,726	$	133	$	(22,862	)	$	468,997



	September 30, 2018
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities held-to-maturity
Municipal securities	$	10,159	$	—	$	(640	)	$	9,519
Corporate securities	10,041		24		(74		)	9,991
Total held-to-maturity	$	20,200	$	24	$	(714	)	$	19,510



	December 31, 2017
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities available-for-sale
U.S. Government-sponsored agencies	$	133,424	$	531	$	(765	)	$	133,190
Municipal securities	97,370		366		(1,359		)	96,377
Mortgage-backed securities	215,452		15		(5,747		)	209,720
Asset-backed securities	5,000		9		—			5,009
Corporate securities	27,111		103		(1,167		)	26,047
Other securities	3,000		—		(68		)	2,932
Total available-for-sale	$	481,357	$	1,024	$	(9,106	)	$	473,275



	December 31, 2017
	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
Securities held-to-maturity
Municipal securities	$	10,164	$	40	$	(357	)	$	9,847
Corporate securities	9,045		191		—			9,236
Total held-to-maturity	$	19,209	$	231	$	(357	)	$	19,083

The carrying value of securities at September 30, 2018 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
One to five years	$	425	$	403
Five to ten years	63,004		61,057
After ten years	185,591		176,885
	249,020		238,345
Mortgage-backed securities	237,703		225,692
Asset-backed securities	5,003		4,960
Total	$	491,726	$	468,997



	Held-to-Maturity
	Amortized Cost		Fair Value
Five to ten years	$	14,286	$	13,956
After ten years	5,914		5,554
Total	$	20,200	$	19,510

There were no gross gains or losses resulting from sales of available-for-sale securities during the three and nine months ended September 30, 2018 and gross losses of $0.0 million for the three and nine months ended September 30, 2017.

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, 2018 and December 31, 2017 was $466.6 million and $354.6 million, which was approximately 96% and 72%, respectively, of the Company’s available-for-sale and held-to-maturity securities portfolios. These declines resulted primarily from fluctuations in market interest rates after purchase. Management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced with the resulting loss recognized in net income in the period the other-than-temporary impairment (“OTTI”) is identified.

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 upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2018.

Mortgage-Backed Securities

The unrealized losses on the Company’s investments in mortgage-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 upon maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2018.



	September 30, 2018
	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	$	75,589	$	(1,019	)	$	31,049	$	(1,417	)	$	106,638	$	(2,436	)
Municipal securities	30,647		(1,292		)	56,008		(4,827		)	86,655		(6,119		)
Mortgage-backed securities	55,063		(1,061		)	167,901		(10,983		)	222,964		(12,044		)
Asset-backed securities	4,960		(43		)	—		—			4,960		(43		)
Corporate securities	9,548		(33		)	19,813		(2,187		)	29,361		(2,220		)
Total	$	175,807	$	(3,448	)	$	274,771	$	(19,414	)	$	450,578	$	(22,862	)



	September 30, 2018
	Less Than 12 Months					12 Months or Longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities held-to-maturity
Municipal securities	$	9,519	$	(640	)	$	—	$	—	$	9,519	$	(640	)
Corporate securities	6,467		(74		)	—		—		6,467		(74		)
Total	$	15,986	$	(714	)	$	—	$	—	$	15,986	$	(714	)



	December 31, 2017
	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	$	30,194	$	(256	)	$	22,824	$	(509	)	$	53,018	$	(765	)
Municipal securities	5,638		(77		)	57,128		(1,282		)	62,766		(1,359		)
Mortgage-backed securities	29,542		(251		)	177,266		(5,496		)	206,808		(5,747		)
Corporate securities	1,852		(148		)	18,981		(1,019		)	20,833		(1,167		)
Other securities	—		—			2,932		(68		)	2,932		(68		)
Total	$	67,226	$	(732	)	$	279,131	$	(8,374	)	$	346,357	$	(9,106	)



	December 31, 2017
	Less Than 12 Months					12 Months or Longer				Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities held-to-maturity
Municipal securities	$	8,255	$	(357	)	$	—	$	—	$	8,255	$	(357	)
Total	$	8,255	$	(357	)	$	—	$	—	$	8,255	$	(357	)

There were no amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statements of income during the three and nine months ended September 30, 2018. Amounts reclassified from accumulated other comprehensive loss and the affected line items in the condensed consolidated statements of income during the three and nine months ended September 30, 2017 were as follows:



Details About Accumulated Other Comprehensive Loss Components	Amounts Reclassified from Accumulated Other Comprehensive Loss for the						Affected Line Item in the Statements of Income
	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017			Affected Line Item in the Statements of Income
Realized gains and losses on securities available-for-sale
Loss realized in earnings	$	(8	)	$	(8	)	Other
Total reclassified amount before tax	(8		)	(8		)	Income Before Income Taxes
Tax benefit	(3		)	(3		)	Income Tax Provision
Total reclassifications out of accumulated other comprehensive loss	$	(5	)	$	(5	)	Net Income