Investment Securities Available-For-Sale

The following table shows investment securities available-for-sale.



(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2016
U.S. Treasury and Federal agencies securities	$	405,726	$	2,328	$	(59	)	$	407,995
U.S. States and political subdivisions securities	130,386		2,590		(147		)	132,829
Mortgage-backed securities — Federal agencies	239,486		4,884		(200		)	244,170
Corporate debt securities	35,342		288		(15		)	35,615
Foreign government and other securities	800		10		—			810
Total debt securities	811,740		10,100		(421		)	821,419
Marketable equity securities	1,428		5,779		(11		)	7,196
Total investment securities available-for-sale	$	813,168	$	15,879	$	(432	)	$	828,615

December 31, 2015
U.S. Treasury and Federal agencies securities	$	389,457	$	1,718	$	(1,506	)	$	389,669
U.S. States and political subdivisions securities	120,441		2,692		(143		)	122,990
Mortgage-backed securities — Federal agencies	234,400		3,430		(1,533		)	236,297
Corporate debt securities	34,241		199		(57		)	34,383
Foreign government and other securities	800		10		(1		)	809
Total debt securities	779,339		8,049		(3,240		)	784,148
Marketable equity securities	1,893		5,906		(220		)	7,579
Total investment securities available-for-sale	$	781,232	$	13,955	$	(3,460	)	$	791,727

At September 30, 2016 and December 31, 2015, the residential mortgage-backed securities held by the Company consisted primarily of GNMA, FNMA and FHLMC pass-through certificates which are guaranteed by those respective agencies of the United States government (Government Sponsored Enterprise, GSEs).

The following table shows the contractual maturities of investments in debt securities available-for-sale at September 30, 2016. Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



(Dollars in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	212,850	$	213,454
Due after one year through five years	320,672		324,588
Due after five years through ten years	38,732		39,207
Due after ten years	—		—
Mortgage-backed securities	239,486		244,170
Total debt securities available-for-sale	$	811,740	$	821,419

The following table summarizes gross unrealized losses and fair value by investment category and age.



	Less than 12 Months					12 months or Longer					Total
(Dollars in thousands)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2016
U.S. Treasury and Federal agencies securities	$	31,409	$	(59	)	$	—	$	—		$	31,409	$	(59	)
U.S. States and political subdivisions securities	24,850		(108		)	2,692		(39		)	27,542		(147		)
Mortgage-backed securities - Federal agencies	48,311		(159		)	4,995		(41		)	53,306		(200		)
Corporate debt securities	4,992		(15		)	—		—			4,992		(15		)
Foreign government and other securities	—		—			—		—			—		—
Total debt securities	109,562		(341		)	7,687		(80		)	117,249		(421		)
Marketable equity securities	340		(10		)	3		(1		)	343		(11		)
Total investment securities available-for-sale	$	109,902	$	(351	)	$	7,690	$	(81	)	$	117,592	$	(432	)

December 31, 2015
U.S. Treasury and Federal agencies securities	$	151,581	$	(928	)	$	43,372	$	(578	)	$	194,953	$	(1,506	)
U.S. States and political subdivisions securities	17,040		(79		)	3,795		(64		)	20,835		(143		)
Mortgage-backed securities - Federal agencies	78,731		(777		)	20,592		(756		)	99,323		(1,533		)
Corporate debt securities	9,340		(57		)	—		—			9,340		(57		)
Foreign government and other securities	99		(1		)	—		—			99		(1		)
Total debt securities	256,791		(1,842		)	67,759		(1,398		)	324,550		(3,240		)
Marketable equity securities	427		(218		)	3		(2		)	430		(220		)
Total investment securities available-for-sale	$	257,218	$	(2,060	)	$	67,762	$	(1,400	)	$	324,980	$	(3,460	)

The initial indication of potential other-than-temporary-impairment (OTTI) for both debt and equity securities is a decline in fair value below amortized cost. Quarterly, the impaired securities are analyzed on a qualitative and quantitative basis in determining OTTI. Declines in the fair value of available-for-sale debt securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of impairment related to other factors is recognized in other comprehensive income. In estimating OTTI losses, the Company considers among other things, (i) the length of time and the extent to which fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) whether it is more likely than not that the Company will not have to sell any such securities before a recovery of cost.

At September 30, 2016, the Company does not have the intent to sell any of the available-for-sale securities in the table above and believes that it is more likely than not, that it will not have to sell any such securities before an anticipated recovery of cost. Primarily the unrealized losses on debt securities are due to increases in market rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date or if market yields for such investments decline. The Company does not believe any of the securities are impaired due to reasons of credit quality.

The following table shows the gross realized gains and losses from the securities available-for-sale portfolio, including marketable equity securities. Realized gains and losses of all securities are computed using the specific identification cost basis.



	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in thousands)	2016		2015		2016			2015
Gross realized gains	$	989	$	—	$	1,084		$	4
Gross realized losses	—		—		—			—
OTTI losses	—		—		(294		)	—
Net realized gains (losses)	$	989	$	—	$	790		$	4

At September 30, 2016 and December 31, 2015, investment securities available-for-sale with carrying values of $258.35 million and $233.14 million, respectively, were pledged as collateral for security repurchase agreements and for other purposes.