3) Securities

The amortized cost and estimated fair value of securities at year‑end were as follows:


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
December 31, 2017	Cost		Gains		(Losses)		Value
	(Dollars in thousands)
Securities available-for-sale:
Agency mortgage-backed securities	$	378,339		786		(4,392)	$	374,733
Trust preferred securities		15,000		2,119		—		17,119
Total	$	393,339	$	2,905	$	(4,392)	$	391,852

Securities held-to-maturity:
Agency mortgage-backed securities	$	309,616	$	6	$	(4,394)	$	305,228
Municipals - exempt from Federal tax		88,725		946		(607)		89,064
Total	$	398,341	$	952	$	(5,001)	$	394,292


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
December 31, 2016	Cost		Gains		(Losses)		Value
	(Dollars in thousands)
Securities available-for-sale:
Agency mortgage-backed securities	$	293,598	$	928	$	(3,537)	$	290,989
Trust preferred securities		15,000		600		—		15,600
Total	$	308,598	$	1,528	$	(3,537)	$	306,589

Securities held-to-maturity:
Agency mortgage-backed securities	$	233,409	$	15	$	(3,554)	$	229,870
Municipals - exempt from Federal tax		90,601		521		(2,244)		88,878
Total	$	324,010	$	536	$	(5,798)	$	318,748

Securities with unrealized losses at year end, aggregated by investment category and length of time that individual securities have been in an unrealized loss position are as follows:


	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2017	Value		(Losses)		Value		(Losses)		Value		(Losses)
	(Dollars in thousands)
Securities available-for-sale:
Agency mortgage-backed securities	$	185,824	$	(1,623)	$	146,670	$	(2,769)	$	332,494	$	(4,392)
Total	$	185,824	$	(1,623)	$	146,670	$	(2,769)	$	332,494	$	(4,392)

Securities held-to-maturity:
Agency mortgage-backed securities	$	168,439	$	(1,368)	$	130,759	$	(3,026)	$	299,198	$	(4,394)
Municipals - exempt from Federal tax		18,159		(182)		19,240		(425)		37,399		(607)
Total	$	186,598	$	(1,550)	$	149,999	$	(3,451)	$	336,597	$	(5,001)


	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2016	Value		(Losses)		Value		(Losses)		Value		(Losses)
	(Dollars in thousands)
Securities available-for-sale:
Agency mortgage-backed securities	$	245,045	$	(3,537)	$	—	$	—	$	245,045	$	(3,537)
Total	$	245,045	$	(3,537)	$	—	$	—	$	245,045	$	(3,537)

Securities held-to-maturity:
Agency mortgage-backed securities	$	222,132	$	(3,528)	$	612	$	(26)	$	222,744	$	(3,554)
Municipals - exempt from Federal tax		57,304		(2,026)		2,046		(218)		59,350		(2,244)
Total	$	279,436	$	(5,554)	$	2,658	$	(244)	$	282,094	$	(5,798)

There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At December 31, 2017, the Company held 504 securities (179 available-for-sale and 325 held-to-maturity), of which 296 had fair values below amortized cost. At December 31, 2017, there were $146,670,000 of agency mortgage-backed securities available-for-sale, $130,759,000 of agency mortgage-backed securities held-to-maturity, and $19,240,000 of municipals bonds held-to-maturity carried with an unrealized loss for 12 months or greater. The total unrealized loss for securities 12 months or greater was $6,220,000 at December 31, 2017. The unrealized losses were due to higher interest rates. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value. The Company does not consider these securities to be other-than-temporarily impaired at December 31, 2017.

The proceeds from sales of securities and the resulting gains and losses are listed below:




	2017		2016		2015
	(Dollars in thousands)
Proceeds	$	6,536	$	75,689	$	71,832
Gross gains		—		1,144		751
Gross losses		(6)		(45)		(109)

The amortized cost and fair value of debt securities as of December 31, 2017, by contractual maturity, are shown below. The expected maturities will differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.


	Available-for-sale
	Amortized		Estimated
	Cost		Fair Value
	(Dollars in thousands)
Due after ten years	$	15,000	$	17,119
Agency mortgage-backed securities		378,339		374,733
Total	$	393,339	$	391,852


	Held-to-maturity
	Amortized		Estimated
	Cost		Fair Value
	(Dollars in thousands)
Due 3 months or less	$	502	$	502
Due after 3 months through one year		496		498
Due after one through five years		3,189		3,219
Due after five through ten years		21,740		22,207
Due after ten years		62,798		62,638
Agency mortgage-backed securities		309,616		305,228
Total	$	398,341	$	394,292

Securities with amortized cost of $110,874,000 and $135,023,000 as of December 31, 2017 and 2016 were pledged to secure public deposits and for other purposes as required or permitted by law or contract.