SECURITIES

The amortized cost and fair value of investment securities were as follows:



	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Available for Sale
U.S. Government and agency securities	$	8,496	$	302	$	(18	)	$	8,780
Municipal securities	237,342		2,999		(1,969		)	238,372
Agency mortgage-backed pass-through securities	30,183		222		(273		)	30,132
Corporate bonds and other	46,416		197		(41		)	46,572
Total	$	322,437	$	3,720	$	(2,301	)	$	323,856



	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Available for Sale
U.S. Government and agency securities	$	5,883	$	266	$	—		$	6,149
Municipal securities	242,501		956		(5,655		)	237,802
Agency mortgage-backed pass-through securities	27,496		265		(437		)	27,324
Corporate bonds and other	45,271		77		(168		)	45,180
Total	$	321,151	$	1,564	$	(6,260	)	$	316,455

As of September 30, 2017, the Company’s management does not expect to sell any securities classified as available for sale with material unrealized losses, and the Company believes it is more likely than not it will not be required to sell any of these securities before their anticipated recovery, at which time the Company will receive full value for the securities. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2017, management believes the unrealized losses in the previous table are temporary and no other than temporary impairment loss has been realized in the Company’s consolidated statements of income.

The amortized cost and fair value of investment securities at September 30, 2017, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties.



	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	10,879	$	10,904
Due after one year through five years	65,441		65,873
Due after five years through ten years	100,154		100,909
Due after ten years	115,780		116,038
Subtotal	292,254		293,724
Agency mortgage-backed pass through securities	30,183		30,132
Total	$	322,437	$	323,856

Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows:



	September 30, 2017
	Less than 12 Months					More than 12 Months					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in thousands)
Available for Sale
U.S. Government and agency securities	$	1,153	$	(18	)	$	—	$	—		$	1,153	$	(18	)
Municipal securities	51,739		(554		)	56,306		(1,415		)	108,045		(1,969		)
Agency mortgage-backed pass-through securities	13,173		(168		)	3,581		(105		)	16,754		(273		)
Corporate bonds and other	9,222		(41		)	—		—			9,222		(41		)
Total	$	75,287	$	(781	)	$	59,887	$	(1,520	)	$	135,174	$	(2,301	)



	December 31, 2016
	Less than 12 Months					More than 12 Months					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
	(Dollars in thousands)
Available for Sale
U.S. Government and agency securities	$	—	$	—		$	—	$	—		$	—	$	—
Municipal securities	178,876		(5,655		)	—		—			178,876		(5,655		)
Agency mortgage-backed pass-through securities	12,520		(347		)	2,803		(90		)	15,323		(437		)
Corporate bonds and other	24,629		(168		)	—		—			24,629		(168		)
Total	$	216,025	$	(6,170	)	$	2,803	$	(90	)	$	218,828	$	(6,260	)

During the three and nine months ended September 30, 2017, the Company sold $9.0 million of corporate bonds with a minimal gain recognized. No securities were sold during the three and nine months ended September 30, 2016. At September 30, 2017 and December 31, 2016, the Company did not own securities of any one issuer, other than the U.S government and its agencies, in an amount greater than 10% of consolidated shareholders’ equity at such respective dates.

The carrying value of pledged securities was $5.0 million at September 30, 2017 and $4.9 million at December 31, 2016. The securities are pledged to further collateralize letters of credit issued by the Bank but confirmed by another financial institution.