(2)

Securities

The amortized cost, unrealized gains and losses, and fair value of securities available-for-sale follows:

(in thousands)	Amortized		Unrealized				Fair
March 31, 2017	cost		Gains		Losses		value

Government sponsored enterprise obligations	$	340,122	$	900	$	1,076	$	339,946
Mortgage-backed securities - government agencies		161,867		728		2,037		160,558
Obligations of states and political subdivisions		54,305		757		198		54,864
Corporate equity securities		653		123		-		776

Total securities available for sale	$	556,947	$	2,508	$	3,311	$	556,144

December 31, 2016

U.S. Treasury and other U.S. Government obligations	$	74,997	$	1	$	-	$	74,998
Government sponsored enterprise obligations		268,784		800		1,494		268,090
Mortgage-backed securities - government agencies		170,344		735		2,236		168,843
Obligations of states and political subdivisions		57,158		682		396		57,444
Corporate equity securities		653		46		-		699

Total securities available for sale	$	571,936	$	2,264	$	4,126	$	570,074

Corporate equity securities consist of common stock in a publicly-traded business development company.

There were

securities classified as held to maturity as of

March

31,

2017

December

31,

2016.

Bancorp sold

securities in

2016

nor during the

three

-month period ending

March

31,

2017.

A summary of the available-for-sale investment securities by contractual maturity groupings as of

March

31,

2017

is shown below.

(in thousands)
Securities available-for-sale	Amortized cost		Fair value

Due within 1 year	$	183,351	$	183,438
Due after 1 but within 5 years		90,361		90,658
Due after 5 but within 10 years		16,240		16,090
Due after 10 years		104,475		104,624
Mortgage-backed securities – government agencies		161,867		160,558
Corporate equity securities		653		776

Total securities available-for-sale	$	556,947	$	556,144

Actual maturities

may

differ from contractual maturities because some issuers have the right to call or prepay obligations. In addition to equity securities, the investment portfolio includes agency mortgage-backed securities, which are guaranteed by agencies such as the FHLMC, FNMA, and GNMA. These securities differ from traditional debt securities primarily in that they

may

have uncertain principal payment dates and are priced based on estimated prepayment rates on the underlying collateral.

Bancorp pledges portions of its investment securities portfolio to secure public fund deposits, cash balances of certain wealth management and trust accounts, and securities sold under agreements to repurchase. The carrying value of these pledged securities was approximately

$355.3

million at

March

31,

2017

and

$380.4

million at

December

31,

2016.

Securities with unrealized losses at

March

31,

2017

and

December

31,

2016,

not recognized in the statements of income are as follows:

(in thousands)	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
March 31, 2017	value		losses		value		losses		value		losses

Government sponsored enterprise obligations	$	111,725	$	883	$	12,887	$	193	$	124,612	$	1,076
Mortgage-backed securities - government agencies		97,143		1,699		9,431		338		106,574		2,037
Obligations of states and political subdivisions		19,096		174		2,537		24		21,633		198

Total temporarily impaired securities	$	227,964	$	2,756	$	24,855	$	555	$	252,819	$	3,311

December 31, 2016
Government sponsored enterprise obligations	$	154,951	$	1,344	$	3,485	$	150	$	158,436	$	1,494
Mortgage-backed securities - government agencies		115,374		1,873		9,914		363		125,288		2,236
Obligations of states and political subdivisions		29,893		380		1,478		16		31,371		396

Total temporarily impaired securities	$	300,218	$	3,597	$	14,877	$	529	$	315,095	$	4,126

Applicable dates for determining when securities are in an unrealized loss position are

March

31,

2017

and

December

31,

2016.

As such, it is possible that a security had a market value lower than its amortized cost on other days during the past

twelve

months, but is not in the “Investments with an Unrealized Loss of less than

months” category above.

Unrealized losses on Bancorp’s investment securities portfolio have not been recognized as an expense because the securities are of high credit quality, and the decline in fair values is due to changes in the prevailing interest rate environment since the purchase date. Fair value is expected to recover as securities reach their maturity date and/or the interest rate environment returns to conditions similar to when these securities were purchased. These investments consist of

and

117

separate investment positions as of

March

31,

2017

and

December

31,

2016,

respectively. Because management does not intend to sell the investments, and it is not likely that Bancorp will be required to sell the investments before recovery of their amortized cost bases, which

may

be maturity, Bancorp does

not

consider these securities to be other-than-temporarily impaired at

March

31,

2017.

FHLB stock and other securities are investments held by Bancorp which are not readily marketable and are carried at cost. This category includes holdings of Federal Home Loan Bank of Cincinnati (FHLB) stock which are required for access to FHLB borrowing, and are classified as restricted securities.