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, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
GSE obligations	$	17,595	$	120	$	—	$	17,715
SBA-guaranteed securities	18,125		207		11		18,321
Mortgage-backed securities issued by GSEs	529,554		5,905		868		534,591
Municipal bonds	129,300		2,061		163		131,198
Corporate bonds	184,954		1,996		1,118		185,832
Collateralized loan obligations	50,511		94		76		50,529
Non-agency CMBS	16,366		36		42		16,360
Certificates of deposit	743		—		—		743
Equity securities	11,109		229		667		10,671
Total securities available for sale	$	958,257	$	10,648	$	2,945	$	965,960

Securities held to maturity:
Municipal bonds	$	38,847	$	1,834	$	—	$	40,681



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale:
GSE obligations	$	5,980	$	3	$	1	$	5,982
SBA-guaranteed securities	12,114		74		12		12,176
Mortgage-backed securities issued by GSEs	440,654		887		5,916		435,625
Municipal bonds	55,402		504		106		55,800
Corporate bonds	123,669		551		688		123,532
Collateralized loan obligations	50,538		—		55		50,483
Non-agency RMBS	3,528		144		9		3,663
Certificates of deposit	245		—		—		245
Equity securities	2,381		33		788		1,626
Total securities available for sale	$	694,511	$	2,196	$	7,575	$	689,132

Securities held to maturity:
Municipal bonds	$	39,182	$	1,318	$	—	$	40,500

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, 2016
Securities available for sale:
SBA-guaranteed securities	$	2,464	$	11	$	—	$	—	$	2,464	$	11
Mortgage-backed securities issued by GSEs	120,411		530		37,302		338		157,713		868
Municipal bonds	19,144		163		—		—		19,144		163
Corporate bonds	41,816		218		22,588		900		64,404		1,118
Collateralized loan obligations	30,909		76		—		—		30,909		76
Non-agency CMBS	9,087		42		—		—		9,087		42
Equity securities	—		—		1,513		667		1,513		667
Total temporarily impaired AFS securities	$	223,831	$	1,040	$	61,403	$	1,905	$	285,234	$	2,945

December 31, 2015
Securities available for sale:
GSE obligations	$	999	$	1	$	—	$	—	$	999	$	1
SBA-guaranteed securities	5,043		12		—		—		5,043		12
Mortgage-backed securities issued by GSEs	208,620		2,453		117,144		3,463		325,764		5,916
Municipal bonds	8,995		106		—		—		8,995		106
Corporate bonds	43,110		577		3,697		111		46,807		688
Collateralized loan obligations	45,471		55		—		—		45,471		55
Non-agency RMBS	—		—		901		9		901		9
Equity securities	1,411		788		—		—		1,411		788
Total temporarily impaired AFS securities	$	313,649	$	3,992	$	121,742	$	3,583	$	435,391	$	7,575

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



	September 30, 2016	December 31, 2015

Securities available for sale:
SBA-guaranteed securities	2	1
GSE obligations	—	1
Mortgage-backed securities issued by GSEs	40	83
Municipal bonds	21	9
Corporate bonds	16	15
Collateralized loan obligations	5	8
Non-agency RMBS	—	1
Equity securities	2	3
Total number of investment securities in an unrealized loss position	86	121

As of September 30, 2016, 20 securities had been in an unrealized loss position for more than a twelve month period. The Company had $900 in gross unrealized losses on 6 corporate bonds that had been in unrealized loss positions for more than twelve months as of September 30, 2016. Based on a review of financial statements and other financial data for these corporate issuers, which are all large, investment grade financial institutions, the Company does not believe the unrealized losses on these bonds were due to credit events. Additionally, unrealized losses on equity securities were primarily related to a common stock investment in a publicly-traded business development company that provides financing for lower middle-market companies and financial sponsors. Based on a review of financial statements and other financial data for this business development company, the Company believes the unrealized losses to be temporary. The Company will continue to closely monitor and evaluate this common stock investment for signs of other than temporary impairment in future periods.

Debt securities in an unrealized loss position as of September 30, 2016 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, 2016.

As of September 30, 2016 and December 31, 2015, the Company held no individual investment securities with an aggregate book value greater than 10 percent of total shareholders’ equity. As of September 30, 2016 and December 31, 2015, investment securities with carrying values of $368,522 and $279,953, 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, 2016				December 31, 2015
	Amortized cost		Fair value		Amortized cost		Fair value
Securities available for sale:
Due within one year	$	48,991	$	49,115	$	66,591	$	67,163
Due after one year through five years	637,090		643,041		291,298		289,525
Due after five years through ten years	238,278		240,288		309,625		306,420
Due after ten years	22,789		22,845		24,616		24,398
Equity securities	11,109		10,671		2,381		1,626
	$	958,257	$	965,960	$	694,511	$	689,132
Securities held to maturity:
Due within one year	$	1,010	$	1,019	$	—	$	—
Due after one year through five years	30,046		31,136		31,421		32,272
Due after five years through ten years	4,039		4,261		4,072		4,229
Due after ten years	3,752		4,265		3,689		3,999
	$	38,847	$	40,681	$	39,182	$	40,500

The following table summarizes securities gains for the periods presented.



	Three months ended September 30,				Nine months ended September 30,
	2016		2015		2016			2015

Gross gains on sales of securities available for sale	$	—	$	—	$	286		$	85
Gross losses on sales of securities available for sale	—		—		(92		)	—
Total securities gains	$	—	$	—	$	194		$	85