SECURITIES

The amortized cost, unrealized gains, unrealized losses and estimated fair values of securities at September 30, 2017, December 31, 2016, and September 30, 2016 are summarized as follows:



	September 30, 2017
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	23,591	$	608	$	64	$	24,135
Residential mortgage-backed securities:
Government-sponsored agencies	120,898		1,580		719		121,759
Nongovernment-sponsored entities	2,714		49		8		2,755
State and political subdivisions
General obligations	2,803		11		1		2,813
Other revenues	10,568		83		29		10,622
Corporate debt securities	16,326		—		136		16,190
Total taxable debt securities	176,900		2,331		957		178,274
Tax-exempt debt securities
State and political subdivisions
General obligations	70,714		1,382		510		71,586
Water and sewer revenues	25,049		433		74		25,408
Lease revenues	14,250		283		71		14,462
Electric revenues	6,226		76		23		6,279
University revenues	5,290		3		22		5,271
Other revenues	26,831		593		115		27,309
Total tax-exempt debt securities	148,360		2,770		815		150,315
Equity securities	137		—		—		137
Total available for sale securities	$	325,397	$	5,101	$	1,772	$	328,726



	December 31, 2016
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities
U.S. Government and agencies and corporations	$	14,580	$	642	$	48	$	15,174
Residential mortgage-backed securities:
Government-sponsored agencies	138,451		1,554		1,159		138,846
Nongovernment-sponsored entities	4,631		44		22		4,653
Corporate debt securities	18,295		23		148		18,170
Total taxable debt securities	175,957		2,263		1,377		176,843
Tax-exempt debt securities
State and political subdivisions
General obligations	49,449		569		1,388		48,630
Water and sewer revenues	9,087		63		149		9,001
Lease revenues	9,037		7		201		8,843
Electric revenues	3,247		10		48		3,209
Sales tax revenues	2,870		—		34		2,836
Other revenues	17,321		93		371		17,043
Total tax-exempt debt securities	91,011		742		2,191		89,562
Equity securities	137		—		—		137
Total available for sale securities	$	267,105	$	3,005	$	3,568	$	266,542



	September 30, 2016
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value
Available for Sale
Taxable debt securities:
U.S. Government and agencies and corporations	$	14,818	$	921	$	47	$	15,692
Residential mortgage-backed securities:
Government-sponsored agencies	132,913		2,556		264		135,205
Nongovernment-sponsored agencies	5,382		48		29		5,401
State and political subdivisions:
Water and sewer revenues	250		—		—		250
Corporate debt securities	20,003		49		149		19,903
Total taxable debt securities	173,366		3,574		489		176,451
Tax-exempt debt securities:
State and political subdivisions:
General obligations	47,014		2,221		115		49,120
Water and sewer revenues	7,980		265		11		8,234
Lease revenues	7,392		321		38		7,675
Sales tax revenues	2,880		124		—		3,004
Other revenues	16,869		701		29		17,541
Total tax-exempt debt securities	82,135		3,632		193		85,574
Equity securities	77		—		—		77
Total available for sale securities	$	255,578	$	7,206	$	682	$	262,102

The below information is relative to the five states where issuers with the highest volume of state and political subdivision securities held in our portfolio are located. We own no such securities of any single issuer which we deem to be a concentration.



	September 30, 2017
	Amortized		Unrealized				Estimated
Dollars in thousands	Cost		Gains		Losses		Fair Value

Texas	$	20,215	$	440	$	71	$	20,584
Michigan	18,823		235		212		18,846
California	15,314		260		64		15,510
Illinois	12,463		244		38		12,669
Pennsylvania	10,603		91		79		10,615

Management performs pre-purchase and ongoing analysis to confirm that all investment securities meet applicable credit quality standards.

The maturities, amortized cost and estimated fair values of securities at September 30, 2017, are summarized as follows:



Dollars in thousands	Amortized Cost		Estimated Fair Value
Due in one year or less	$	46,461	$	46,984
Due from one to five years	82,524		83,284
Due from five to ten years	33,110		33,119
Due after ten years	163,165		165,202
Equity securities	137		137
	$	325,397	$	328,726

The proceeds from sales, calls and maturities of available for sale securities, including principal payments received on mortgage-backed obligations, and the related gross gains and losses realized, for the nine months ended September 30, 2017 and 2016 are as follows:



		Proceeds from						Gross realized
Dollars in thousands		Sales		Calls and Maturities		Principal Payments		Gains		Losses
For the Nine Months Ended September 30,
2017
	Securities available for sale	$	131,345	$	2,610	$	24,349	$	416	$	358

2016
	Securities available for sale	$	63,641	$	630	$	27,696	$	1,117	$	281

We held 81 available for sale securities having an unrealized loss at September 30, 2017. We do not intend to sell these securities, and it is more likely than not that we will not be required to sell these securities before recovery of their amortized cost bases. We believe that this decline in value is primarily attributable to the lack of market liquidity and to changes in market interest rates and not due to credit quality. Accordingly, no other-than-temporary impairment charge to earnings is warranted at this time.

Provided below is a summary of securities available for sale which were in an unrealized loss position at September 30, 2017 and December 31, 2016.



	September 30, 2017
	Less than 12 months					12 months or more					Total
Dollars in thousands	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
Temporarily impaired securities
Taxable debt securities
U.S. Government agencies and corporations	$	5,374	$	(25	)	$	2,712	$	(39	)	$	8,086	$	(64	)
Residential mortgage-backed securities:
Government-sponsored agencies	29,222		(316		)	13,476		(403		)	42,698		(719		)
Nongovernment-sponsored entities	—		—			949		(8		)	949		(8		)
State and political subdivisions:
General obligations	734		(1		)	—		—			734		(1		)
Other revenues	4,816		(29		)	—		—			4,816		(29		)
Corporate debt securities	3,014		(39		)	1,653		(97		)	4,667		(136		)
Tax-exempt debt securities
State and political subdivisions:
General obligations	14,204		(164		)	10,236		(346		)	24,440		(510		)
Water and sewer revenues	6,702		(74		)	—		—			6,702		(74		)
Lease revenues	571		(2		)	1,061		(69		)	1,632		(71		)
Electric revenues	2,146		(23		)	—		—			2,146		(23		)
University revenues	3,508		(22		)	—		—			3,508		(22		)
Other revenues	4,279		(42		)	1,278		(73		)	5,557		(115		)
Total temporarily impaired securities	74,570		(737		)	31,365		(1,035		)	105,935		(1,772		)
Total	$	74,570	$	(737	)	$	31,365	$	(1,035	)	$	105,935	$	(1,772	)



	December 31, 2016
	Less than 12 months					12 months or more					Total
Dollars in thousands	Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss			Estimated Fair Value		Unrealized Loss
Temporarily impaired securities
Taxable debt securities
U.S. Government agencies and corporations	$	763	$	(5	)	$	2,575	$	(43	)	$	3,338	$	(48	)
Residential mortgage-backed securities:
Government-sponsored agencies	55,388		(985		)	8,389		(174		)	63,777		(1,159		)
Nongovernment-sponsored entities	97		—			3,013		(22		)	3,110		(22		)
Corporate debt securities	968		(31		)	3,136		(117		)	4,104		(148		)
Tax-exempt debt securities
State and political subdivisions:
General obligations	33,115		(1,388		)	—		—			33,115		(1,388		)
Water and sewer revenues	4,761		(149		)	—		—			4,761		(149		)
Lease revenues	7,011		(201		)	—		—			7,011		(201		)
Electric revenues	1,973		(48		)	—		—			1,973		(48		)
Sales tax revenues	2,836		(34		)	—		—			2,836		(34		)
Other revenues	8,445		(371		)	—		—			8,445		(371		)
Total temporarily impaired securities	115,357		(3,212		)	17,113		(356		)	132,470		(3,568		)
Total	$	115,357	$	(3,212	)	$	17,113	$	(356	)	$	132,470	$	(3,568	)