3.	INVESTMENT SECURITIES

Details of investment securities available-for-sale and held-to-maturity as of

March

31,

2017

and

December

31,

2016

were as follows:

	Available-for-Sale
	March 31 , 201 7
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	97,003	$	434	$	(938	)	$	96,499
Commercial		77,606		51		(1,156	)		76,501
Obligations of states and political subdivisions		7,637		395		(8	)		8,024
Obligations of U.S. government-sponsored agencies		2,000		4		—			2,004
Corporate notes		750		—		—			750
U.S. Treasury securities		80		—		—			80
Total	$	185,076	$	884	$	(2,102	)	$	183,858

	Held-to-Maturity
	March 31, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	17,880	$	7	$	(132	)	$	17,755
Obligations of U.S. government-sponsored agencies		9,715		12		(152	)		9,575
Obligations of states and political subdivisions		2,044		6		(22	)		2,028
Total	$	29,639	$	25	$	(306	)	$	29,358

	Available-for-Sale
	December 31, 2016
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	99,922	$	490	$	(2,003	)	$	98,409
Commercial		71,761		56		(1,287	)		70,530
Obligations of states and political subdivisions		9,759		390		(7	)		10,142
Obligations of U.S. government-sponsored agencies		2,000		—		(7	)		1,993
Corporate notes		756		—		—			756
U.S. Treasury securities		80		—		—			80
Total	$	184,278	$	936	$	(3,304	)	$	181,910

	Held-to-Maturity
	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	14,684	$	5	$	(148	)	$	14,541
Obligations of U.S. government-sponsored agencies		9,129		13		(222	)		8,920
Obligations of states and political subdivisions		2,091		2		(46	)		2,047
Total	$	25,904	$	20	$	(416	)	$	25,508

The scheduled maturities of investment securities available-for-sale and held-to-maturity as of

March

31,

2017

are presented in the following table:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(Dollars in Thousands)
Maturing within one year	$	1,089	$	1,093	$	—	$	—
Maturing after one to five years		6,172		6,245		2,289		2,303
Maturing after five to ten years		82,184		81,875		2,913		2,876
Maturing after ten years		95,631		94,645		24,437		24,179
Total	$	185,076	$	183,858	$	29,639	$	29,358

For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments.

The following table reflects 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, as of

March

31,

2017

and

December

31,

2016.

	Available-for-Sale
	March 31 , 201 7
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	75,284	$	(917	)	$	1,729	$	(21	)
Commercial		48,106		(807	)		18,066		(349	)
Obligations of states and political subdivisions		847		(8	)		—		—
U.S. Treasury securities		80		—			—		—
Total	$	124,317	$	(1,732	)	$	19,795	$	(370	)

	Held-to-Maturity
	March 31 , 2017
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	13,030	$	(132	)	$	—	$	—
Obligations of U.S. government-sponsored agencies		8,618		(152	)		—		—
Obligations of states and political subdivisions		1,056		(15	)		549		(7	)
Total	$	22,704	$	(299	)	$	549	$	(7	)

	Available-for-Sale
	December 31, 201 6
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Residential	$	85,741	$	(1,976	)	$	1,904	$	(27	)
Commercial		54,475		(946	)		10,721		(341	)
Obligations of U.S. government-sponsored agencies		1,993		(7	)		—		—
Obligations of states and political subdivisions		434		(7	)		—		—
U.S. Treasury securities		80		—			—		—
Total	$	142,723	$	(2,936	)	$	12,625	$	(368	)

	Held-to-Maturity
	December 31, 2016
	Less than 12 Months					12 Months or More
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in Thousands)
Mortgage-backed securities:
Commercial	$	12,776	$	(148	)	$	—	$	—
Obligations of U.S. government-sponsored agencies		7,957		(222	)		—		—
Obligations of states and political subdivisions		1,628		(46	)		—		—
Total	$	22,361	$	(416	)	$	—	$	—

Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: (i) the length of time and the extent to which fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, (iii) whether the Company intends to sell securities, and (iv) whether it is more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases.

As of

March

31,

2017,

debt securities had been in a loss position for more than

months, and

126

debt securities had been in a loss position for less than

months. As of

December

31,

2016,

debt securities had been in a loss position for more than

months, and

130

debt securities had been in a loss position for less than

months. As of both

March

31,

2017

and

December

31,

2016,

the losses for all securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. Further, the Company has the current intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments as of

March

31,

2017

and

December

31,

2016.

Investment securities available-for-sale with a carrying value of

$95.2

million and

$87.7

million as of

March

31,

2017

and

December

31,

2016,

respectively, were pledged to secure public deposits and for other purposes.

investment securities were sold during the

three

months ended

March

31,

2017,

however, certain securities were paid prior to contractual maturity, and the Company realized gains on the prepayment of the securities. Gains realized on prepayments of investment securities were approximately

$0.05

million for the

three

months ended

March

31,

2017.

Gains realized on sales of securities available-for-sale and prepayments of investment securities were approximately

$0.6

million for the year ended

December

31,

2016.

There were no losses on sales of securities during the

three

months ended

March

31,

2017

or the year ended

December

31,

2016.