INVESTMENT SECURITIES

The following tables summarize the amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale and held to maturity by major classification.



	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
U.S. government-sponsored enterprise securities	$	14,846	$	—	$	123	$	14,723
SBA-guaranteed securities	64,271		57		614		63,714
Residential mortgage-backed securities (MBS)	218,376		76		8,767		209,685
Corporate bonds	111,159		1,899		321		112,737
Commercial MBS	4,133		53		—		4,186
Municipal obligations - non-taxable	600		1		—		601
Other debt securities	498		—		—		498
Marketable equity securities	700		387		—		1,087
Total securities available for sale	$	414,583	$	2,473	$	9,825	$	407,231

Securities held to maturity:
Municipal obligations - non-taxable	$	3,119	$	—	$	—	$	3,119



	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
U.S. government-sponsored enterprise securities	$	14,834	$	—	$	161	$	14,673
SBA-guaranteed securities	66,579		52		751		65,880
Residential MBS	216,818		69		11,627		205,260
Corporate bonds	109,423		1,800		483		110,740
Commercial MBS	5,867		71		—		5,938
Municipal obligations – non-taxable	600		1		—		601
Other debt securities	253		—		—		253
Marketable equity securities	677		366		—		1,043
Total securities available for sale	$	415,051	$	2,359	$	13,022	$	404,388

Securities held to maturity:
Corporate bonds	$	500	$	—	$	—	$	500

The following tables summarize gross unrealized losses and fair values, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position.



	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2014
U.S. government-sponsored enterprise securities	$	9,849	$	22	$	4,874	$	101	$	14,723	$	123
SBA-guaranteed securities	53,007		614		—		—		53,007		614
Residential MBS	183,744		7,893		21,391		874		205,135		8,767
Corporate bonds	24,606		321		—		—		24,606		321
Total temporarily impaired securities	$	271,206	$	8,850	$	26,265	$	975	$	297,471	$	9,825

December 31, 2013
U.S. government-sponsored enterprise securities	$	14,673	$	161	$	—	$	—	$	14,673	$	161
SBA-guaranteed securities	57,277		751		—		—		57,277		751
Residential MBS	198,885		11,627		—		—		198,885		11,627
Corporate bonds	19,420		483		—		—		19,420		483
Total temporarily impaired securities	$	290,255	$	13,022	$	—	$	—	$	290,255	$	13,022

All residential MBSs in the investment portfolio as of March 31, 2014 and December 31, 2013 were issued and backed by government-sponsored enterprises ("GSEs"). Unrealized losses on investment securities as of March 31, 2014 related to 67 residential MBSs issued by GSEs, 22 SBA-guaranteed securities, 8 investment grade corporate bonds, and 2 GSE securities. Unrealized losses on investment securities at December 31, 2013 related to 65 residential MBSs issued by GSEs, 23 SBA-guaranteed securities, 6 investment grade corporate bonds, and 2 GSE securities. As of March 31, 2014, eight securities had been in an unrealized loss position for more than a twelve month period. The Company had $321 in unrealized losses on corporate bonds at quarter end, which were the only securities in a loss position that were not issued or guaranteed by a U.S. government agency or GSE. These corporate bonds were all issued by large national or international financial institutions, and the Company does not believe the unrealized losses on these bonds were due to issuer-related credit events.

The securities in an unrealized loss position as of March 31, 2014 continue to perform and are expected to perform through maturity, and the issuers have not experienced significant adverse events that would call into question their ability to repay these debt obligations according to contractual terms. Further, because the Company does not intend to sell these investments and does not believe that it will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, unrealized losses on such securities were not considered to represent other-than-temporary impairment as of March 31, 2014.

As of March 31, 2014, the Company held no individual investment securities with an aggregate book value greater than 10 percent of total stockholders’ equity. As of March 31, 2014 and December 31, 2013, investment securities with carrying values of $221,929 and $226,048, respectively, were pledged to secure public deposits, borrowings and for other purposes required or permitted by law.

The amortized cost and fair values of securities available for sale, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	March 31, 2014				December 31, 2013
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Securities available for sale:
Due within one year	$	557	$	557	$	677	$	678
Due after one year through five years	179,875		180,364		182,777		182,713
Due after five years through ten years	173,568		168,492		173,624		166,765
Due after ten years	59,883		56,731		57,296		53,189
Equity securities	700		1,087		677		1,043
	$	414,583	$	407,231	$	415,051	$	404,388
Securities held to maturity:
Due after one year through five years	$	—	$	—	$	500	$	500
Due after five years through ten years	1,479		1,479		—		—
Due after ten years	1,640		1,640		—		—
	$	3,119	$	3,119	$	500	$	500

The following table summarizes securities gains (losses) for the periods presented.



	Three Months Ended March 31,
	2014		2013

Gross gains on sales of securities available for sale	$	—	$	1,092
Gross losses on sales of securities available for sale	—		—
Total securities gains	$	—	$	1,092