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, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
GSE obligations	$	19,938	$	119	$	—	$	20,057
SBA-guaranteed securities	58,133		288		245		58,176
Mortgage-backed securities issued by GSEs	399,890		2,526		2,048		400,368
Municipal bonds	49,522		613		41		50,094
Corporate bonds	130,683		839		670		130,852
Collateralized loan obligations	47,506		—		2		47,504
Non-agency RMBS	3,943		98		14		4,027
Non-agency CMBS	454		—		1		453
Other debt securities	245		—		—		245
Equity securities	2,381		19		684		1,716
Total securities available for sale	$	712,695	$	4,502	$	3,705	$	713,492

Securities held to maturity:
Municipal bonds	$	39,292	$	984	$	—	$	40,276



	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
GSE obligations	$	14,914	$	30	$	—	$	14,944
SBA-guaranteed securities	60,408		84		372		60,120
Mortgage-backed securities issued by GSEs	428,076		1,086		3,879		425,283
Municipal bonds	39,907		355		4		40,258
Corporate bonds	118,799		1,261		148		119,912
Non-agency RMBS	4,961		3		1		4,963
Non-agency CMBS	3,576		2		—		3,578
Other debt securities	498		—		—		498
Equity securities	3,017		1		153		2,865
Total securities available for sale	$	674,156	$	2,822	$	4,557	$	672,421

Securities held to maturity:
Municipal bonds	$	39,620	$	966	$	—	$	40,586

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, 2015
Securities available for sale:
SBA-guaranteed securities	$	—	$	—	$	25,388	$	245	$	25,388	$	245
Mortgage-backed securities issued by GSEs	24,267		94		120,913		1,954		145,180		2,048
Municipal bonds	1,327		41		—		—		1,327		41
Corporate bonds	47,741		559		3,708		111		51,449		670
Collateralized loan obligations	17,383		2		—		—		17,383		2
Non-agency RMBS	81		1		951		13		1,032		14
Non-agency CMBS	453		1		—		—		453		1
Equity securities	1,514		684		—		—		1,514		684
Total temporarily impaired AFS securities	$	92,766	$	1,382	$	150,960	$	2,323	$	243,726	$	3,705

December 31, 2014
Securities available for sale:
SBA-guaranteed securities	$	94	$	1	$	41,950	$	371	$	42,044	$	372
Mortgage-backed securities issued by GSEs	152,186		1,117		149,746		2,762		301,932		3,879
Municipal bonds	1,953		4		—		—		1,953		4
Corporate bonds	18,123		64		3,767		84		21,890		148
Non-agency RMBS	1,318		1		—		—		1,318		1
Equity securities	2,711		153		—		—		2,711		153
Total temporarily impaired AFS securities	$	176,385	$	1,340	$	195,463	$	3,217	$	371,848	$	4,557

The table below summarizes the number of investment securities in an unrealized loss position.



	September 30, 2015	December 31, 2014

Securities available for sale:
SBA-guaranteed securities	11	19
Mortgage-backed securities issued by GSEs	59	76
Municipal bonds	2	6
Corporate bonds	13	5
Collateralized loan obligations	3	—
Non-agency RMBS	2	1
Non-agency CMBS	1	—
Equity securities	3	4
Total number of AFS securities in an unrealized loss position	94	111
Securities held to maturity:
Municipal bonds	—	—
Total number of investment securities in an unrealized loss position	94	111

As of September 30, 2015, fifty-two securities had been in an unrealized loss position for more than a twelve month period. The Company had $111 thousand and $13 thousand in gross unrealized losses on one corporate bond and one non-agency RMBS, respectively, that had been in unrealized loss positions for more than twelve months as of September 30, 2015. These were the only securities in loss positions for this period of time that were not issued or guaranteed by a U.S. government agency or GSE. Based on a review of financial statements and other financial data for this corporate issuer, the Company does not believe the unrealized loss on this bond was due to credit events.

The securities in an unrealized loss position as of September 30, 2015 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, 2015.

As of September 30, 2015 and December 31, 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, 2015 and December 31, 2014, investment securities with carrying values of $292,624 and $314,184, 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, 2015				December 31, 2014
	Amortized cost		Fair value		Amortized cost		Fair value
Securities available for sale:
Due within one year	$	67,453	$	68,128	$	30,365	$	30,536
Due after one year through five years	337,798		339,441		294,557		295,252
Due after five years through ten years	266,568		265,783		313,733		311,313
Due after ten years	38,495		38,424		32,484		32,455
Equity securities	2,381		1,716		3,017		2,865
	$	712,695	$	713,492	$	674,156	$	672,421
Securities held to maturity:
Due after one year through five years	$	31,541	$	32,268	$	20,177	$	20,747
Due after five years through ten years	4,083		4,182		15,836		16,092
Due after ten years	3,668		3,826		3,607		3,747
	$	39,292	$	40,276	$	39,620	$	40,586

The following table summarizes securities gains for the periods presented.



	Three months ended September 30,					Nine months ended September 30,
	2015		2014			2015		2014

Gross gains on sales of securities available for sale	$	—	$	217		$	85	$	435
Gross losses on sales of securities available for sale	—		(313		)	—		(313		)
Total securities gains (losses)	$	—	$	(96	)	$	85	$	122