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, 2018	Cost		Gains		(Losses)		Value
	(Dollars in thousands)
Securities available-for-sale:
Agency mortgage-backed securities	$	311,523	$	98	$	(8,767)	$	302,854
U.S. Treasury		147,823		930		—		148,753
U.S. Government sponsored entities		7,433		4		(1)		7,436
Total	$	466,779	$	1,032	$	(8,768)	$	459,043

Securities held-to-maturity:
Agency mortgage-backed securities	$	291,241	$	59	$	(9,153)	$	282,147
Municipals - exempt from Federal tax		85,957		312		(2,241)		84,028
Total	$	377,198	$	371	$	(11,394)	$	366,175


			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

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, 2018	Value		(Losses)		Value		(Losses)		Value		(Losses)
	(Dollars in thousands)
Securities available-for-sale:
Agency mortgage-backed securities	$	3,868	$	(21)	$	281,082	$	(8,746)	$	284,950	$	(8,767)
U.S. Government sponsored entities		3,974		(1)		—		—		3,974		(1)
Total	$	7,842	$	(22)	$	281,082	$	(8,746)	$	288,924	$	(8,768)

Securities held-to-maturity:
Agency mortgage-backed securities	$	16,088	$	(103)	$	255,917	$	(9,050)	$	272,005	$	(9,153)
Municipals - exempt from Federal tax		5,019		(27)		57,301		(2,214)		62,320		(2,241)
Total	$	21,107	$	(130)	$	313,218	$	(11,264)	$	334,325	$	(11,394)


	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)

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, 2018, the Company held 525 securities (202 available-for-sale and 323 held-to-maturity), of which 385 had fair values below amortized cost. At December 31, 2018, there were $281,082,000 of agency mortgage-backed securities available-for-sale, $255,917,000 of agency mortgage-backed securities held-to-maturity, and $57,301,000 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 $20,010,000 at December 31, 2018. 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, 2018.

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




	2018		2017		2016
	(Dollars in thousands)
Proceeds	$	94,291	$	6,536	$	75,689
Gross gains		1,243		—		1,144
Gross losses		(977)		(6)		(45)

The amortized cost and fair value of debt securities as of December 31, 2018, 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 3 months through one year	$	1,996	$	1,995
Due after one through five years		153,260		154,194
Agency mortgage-backed securities		311,523		302,854
Total	$	466,779	$	459,043


	Held-to-maturity
	Amortized		Estimated
	Cost		Fair Value
	(Dollars in thousands)
Due after 3 months through one year	$	645	$	645
Due after one through five years		4,199		4,246
Due after five through ten years		25,311		25,226
Due after ten years		55,802		53,911
Agency mortgage-backed securities		291,241		282,147
Total	$	377,198	$	366,175

Securities with amortized cost of $36,229,000 and $110,874,000 as of December 31, 2018 and 2017 were pledged to secure public deposits and for other purposes as required or permitted by law or contract.