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.



	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
GSE obligations	$	14,906	$	—	$	24	$	14,882
SBA-guaranteed securities	62,948		72		419		62,601
Mortgage-backed securities issued by GSE	454,884		338		8,723		446,499
Corporate bonds	118,615		1,899		127		120,387
Non-agency CMBS	3,600		38		—		3,638
Municipal bonds	43,276		357		1		43,632
Other debt securities	498		—		—		498
Equity securities	3,034		1		179		2,856
Total securities available for sale	$	701,761	$	2,705	$	9,473	$	694,993

Securities held to maturity:
Municipal bonds	$	39,728	$	686	$	10	$	40,404



	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
GSE obligations	$	14,834	$	—	$	161	$	14,673
SBA-guaranteed securities	66,579		52		751		65,880
Mortgage-backed securities issued by GSE	216,818		69		11,627		205,260
Corporate bonds	109,423		1,800		483		110,740
Non-agency CMBS	5,867		71		—		5,938
Municipal bonds	600		1		—		601
Other debt securities	253		—		—		253
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
September 30, 2014
Securities available for sale:
GSE obligations	$	14,882	$	24	$	—	$	—	$	14,882	$	24
SBA-guaranteed securities	110		1		45,129		418		45,239		419
Mortgage-backed securities issued by GSE	218,226		3,076		162,408		5,647		380,634		8,723
Corporate bonds	9,991		15		5,983		112		15,974		127
Municipal bonds	409		1		—		—		409		1
Equity securities	2,856		179		—		—		2,856		179
Total temporarily impaired AFS securities	$	246,474	$	3,296	$	213,520	$	6,177	$	459,994	$	9,473

Securities held to maturity:
Municipal bonds	$	1,419	$	10	$	—	$	—	$	1,419	$	10

December 31, 2013
Securities available for sale:
GSE obligations	$	14,673	$	161	$	—	$	—	$	14,673	$	161
SBA-guaranteed securities	57,277		751		—		—		57,277		751
Mortgage-backed securities issued by GSE	198,885		11,627		—		—		198,885		11,627
Corporate bonds	19,420		483		—		—		19,420		483
Total temporarily impaired AFS securities	$	290,255	$	13,022	$	—	$	—	$	290,255	$	13,022

Unrealized losses on investment securities as of September 30, 2014 related to 105 mortgage-backed securities issued by U.S. government-sponsored enterprises ("GSEs"), 21 securities guaranteed by the U.S. Small Business Administration ("SBA"), 5 investment grade corporate bonds, 4 marketable equity securities, 3 GSE obligations, and 1 municipal bond. Unrealized losses on investment securities as of December 31, 2013 related to 65 mortgage-backed securities issued by GSEs, 23 SBA-guaranteed securities, 6 investment grade corporate bonds, and 2 GSE obligations. As of September 30, 2014, 139 securities had been in an unrealized loss position for more than a twelve month period. The Company had $112 in gross unrealized losses on corporate bonds as of September 30, 2014 that had been in an unrealized loss position for more than twelve months. These 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 September 30, 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 September 30, 2014.

As of September 30, 2014, the Company held no individual investment securities with an aggregate book value greater than 10 percent of total shareholders’ equity. As of September 30, 2014 and December 31, 2013, investment securities with carrying values of $259,011 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.



	September 30, 2014				December 31, 2013
	Amortized cost		Fair value		Amortized cost		Fair value
Securities available for sale:
Due within one year	$	24,114	$	24,241	$	677	$	678
Due after one year through five years	323,880		323,593		182,777		182,713
Due after five years through ten years	315,149		309,318		173,624		166,765
Due after ten years	35,584		34,985		57,296		53,189
Equity securities	3,034		2,856		677		1,043
	$	701,761	$	694,993	$	415,051	$	404,388
Securities held to maturity:
Due after one year through five years	$	9,871	$	9,999	$	500	$	500
Due after five years through ten years	26,270		26,770		—		—
Due after ten years	3,587		3,635		—		—
	$	39,728	$	40,404	$	500	$	500

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



	Three months ended September 30,					Nine months ended September 30,
	2014			2013		2014			2013

Gross gains on sales of securities available for sale	$	217		$	—	$	435		$	1,248
Gross losses on sales of securities available for sale	(313		)	—		(313		)	(34		)
Total securities gains (losses)	$	(96	)	$	—	$	122		$	1,214