(3)	SECURITIES

The carrying amount of securities and their estimated fair values at September 30, 2017 were as follows:


	September 30, 2017
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428

Available for sale:
U.S. Agency securities	$	89,419		766		(356	)		89,829
Taxable municipal bonds		1,281		10		(6	)		1,285
Tax free municipal bonds		27,349		903		(21	)		28,231
Trust preferred securities		1,646		71		—			1,717
Mortgage backed securities		71,399		378		(552	)		71,225

	$	191,094		2,128		(935	)		192,287

The carrying amount of securities and their estimated fair values at December 31, 2016 were as follows:


	December 31, 2016
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
	(Dollars in Thousands)
Restricted:
FHLB stock	$	4,428		—		—			4,428

Available for sale:
U.S. Treasury securities		2,000		1		—			2,001
U.S. Agency securities		83,667		983		(638	)		84,012
Taxable municipal bonds		2,720		17		(10	)		2,727
Tax free municipal bonds		33,004		1,081		(174	)		33,911
Trust preferred securities		1,634		183		—			1,817
Mortgage-backed securities		85,626		437		(1,051	)		85,012

	$	208,651		2,702		(1,873	)		209,480

The scheduled maturities of debt securities available for sale at September 30, 2017 were as follows:


			Estimated
	Amortized		Fair
	Cost		Value
	(Dollars in Thousands)
Due within one year	$	3,830	$	3,850
Due in one to five years		23,534		23,745
Due in five to ten years		25,505		25,847
Due after ten years		7,230		7,558

		60,099		61,000
Amortizing agency bonds		59,596		60,062
Mortgage-backed securities		71,399		71,225

Total securities available for sale	$	191,094	$	192,287

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of September 30, 2017 were as follows:


	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	31,029		(212	)		8,217		(144	)		39,246		(356	)
Taxable municipal bonds		519		(6	)		—		—			519		(6	)
Tax free municipal bonds		1,666		(4	)		928		(17	)		2,594		(21	)
Mortgage-backed securities		25,788		(171	)		17,353		(381	)		43,141		(552	)

Total available for sale	$	59,002		(393	)		26,498		(542	)		85,500		(935	)

The estimated fair value and unrealized loss amounts of temporarily impaired investments as of December 31, 2016 were as follows:


	Less than 12 months					12 months or longer					Total
	Estimated		Unrealized			Estimated		Unrealized			Estimated		Unrealized
	Fair Value		Losses			Fair Value		Losses			Fair Value		Losses
	(Dollars in Thousands)
Available for sale
U.S. Agency securities	$	41,963		(597	)		3,459		(41	)		45,422		(638	)
Taxable municipal bonds		1,347		(10	)		—		—			1,347		(10	)
Tax free municipal bonds		7,369		(174	)		—		—			7,369		(174	)
Mortgage-backed securities		48,462		(796	)		7,439		(255	)		55,901		(1,051	)

Total available for sale	$	99,141		(1,577	)		10,898		(296	)		110,039		(1,873	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluations. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. At September 30, 2017, the Company has 60 securities with unrealized losses. The losses for all securities are considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and are not related to the credit worthiness of the issuers. Furthermore, the Company has the intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments as of September 30, 2017.

At September 30, 2017 and December 31, 2016, securities with a book value of approximately $117.4 million and $125.6 million and a market value of approximately $120.1 million and $128.4 million, respectively, were pledged to various municipalities for deposits in excess of FDIC limits as required by law.