SECURITIES

Securities—Trading: The amortized cost and estimated fair value of securities—trading at September 30, 2015 and December 31, 2014 are summarized as follows (in thousands):



	September 30, 2015				December 31, 2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
U.S. Government and agency obligations	$	1,230	$	1,389	$	1,340	$	1,505
Municipal bonds	1,403		1,418		1,405		1,440
Corporate bonds	25,026		18,340		27,995		19,118
Mortgage-backed or related securities	15,043		16,313		16,726		18,136
Equity securities	14		55		14		59
	$	42,716	$	37,515	$	47,480	$	40,258

There were two sales of securities—trading totaling $2.5 million with a resulting realized loss of $690,000 during the nine months ended September 30, 2015; however, the realized loss was offset by the reversal of fair value allowances totaling $1.2 million resulting in net gains on these securities sales of $550,000. There were three sales of securities—trading totaling $2.4 million with a resulting net gain of $1,000 during the nine months ended September 30, 2014. The Company did not recognize any OTTI charges or recoveries on securities—trading during the nine months ended September 30, 2015 or 2014. There were no securities—trading on nonaccrual status at September 30, 2015 or 2014.

The amortized cost and estimated fair value of securities—trading at September 30, 2015, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.



	September 30, 2015
	Amortized Cost		Fair Value

Maturing in one year or less	$	1,070	$	1,075
Maturing after one year through five years	9,021		9,735
Maturing after five years through ten years	3,567		3,961
Maturing after ten years through twenty years	4,018		4,349
Maturing after twenty years	25,026		18,340
	42,702		37,460
Equity securities	14		55
	$	42,716	$	37,515

Securities—Available-for-Sale: The amortized cost and estimated fair value of securities—available-for-sale at September 30, 2015 and December 31, 2014 are summarized as follows (in thousands):



	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government and agency obligations	$	12,043	$	—	$	(51	)	$	11,992
Municipal bonds	67,459		300		(102		)	67,657
Corporate bonds	5,000		22		—			5,022
Mortgage-backed or related securities	300,929		2,391		(520		)	302,800
Asset-backed securities	31,300		—		(517		)	30,783
	$	416,731	$	2,713	$	(1,190	)	$	418,254

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government and agency obligations	$	29,973	$	8	$	(211	)	$	29,770
Municipal bonds	49,959		190		(121		)	50,028
Corporate bonds	5,000		18		—			5,018
Mortgage-backed or related securities	300,979		1,429		(1,598		)	300,810
Asset-backed securities	25,513		167		(285		)	25,395
	$	411,424	$	1,812	$	(2,215	)	$	411,021

At September 30, 2015 and December 31, 2014, an aging of unrealized losses and fair value of related securities—available-for-sale was as follows (in thousands):



	September 30, 2015
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	1,334	$	(9	)	$	10,658	$	(42	)	$	11,992	$	(51	)
Municipal bonds	15,727		(95		)	3,199		(7		)	18,926		(102		)
Mortgage-backed or related securities	41,550		(248		)	72,167		(272		)	113,717		(520		)
Asset-backed securities	20,835		(422		)	9,948		(95		)	30,783		(517		)
	$	79,446	$	(774	)	$	95,972	$	(416	)	$	175,418	$	(1,190	)

	December 31, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	15,983	$	(58	)	$	9,847	$	(153	)	$	25,830	$	(211	)
Municipal bonds	16,322		(61		)	7,129		(60		)	23,451		(121		)
Corporate bonds	—		—			—		—			—		—
Mortgage-backed or related securities	91,046		(236		)	107,266		(1,362		)	198,312		(1,598		)
Asset-backed securities	—		—			9,765		(285		)	9,765		(285		)
	$	123,351	$	(355	)	$	134,007	$	(1,860	)	$	257,358	$	(2,215	)

There were 44 sales of securities—available-for-sale totaling $40.3 million with a resulting net gain of $126,000 during the nine months ended September 30, 2015. There were twelve sales of securities—available-for-sale totaling $56.0 million with a resulting net gain of $40,000 during the nine months ended September 30, 2014. At September 30, 2015, there were 83 securities—available for sale with unrealized losses, compared to 94 securities at December 31, 2014. Management does not believe that any individual unrealized loss as of September 30, 2015 represents OTTI. The decline in fair market values of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. There were no securities—available-for-sale on nonaccrual status at September 30, 2015 or 2014.

The amortized cost and estimated fair value of securities—available-for-sale at September 30, 2015 and December 31, 2014, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.



	September 30, 2015
	Amortized Cost		Fair Value

Maturing in one year or less	$	17,491	$	17,462
Maturing after one year through five years	250,837		251,489
Maturing after five years through ten years	37,545		37,541
Maturing after ten years through twenty years	30,856		31,376
Maturing after twenty years	80,002		80,386
	$	416,731	$	418,254

Securities—Held-to-Maturity: The amortized cost and estimated fair value of securities—held-to-maturity at September 30, 2015 and December 31, 2014 are summarized as follows (in thousands):



	September 30, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government and agency obligations	$	1,116	$	10	$	—		$	1,126
Municipal bonds	121,937		6,073		(197		)	127,813
Corporate bonds	1,800		—		—			1,800
Mortgage-backed or related securities	7,297		220		(1		)	7,516
	$	132,150	$	6,303	$	(198	)	$	138,255

	December 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government and agency obligations	$	2,146	$	—	$	(19	)	$	2,127
Municipal bonds	119,951		6,319		(48		)	126,222
Corporate bonds	1,800		—		—			1,800
Mortgage-backed or related securities	7,361		105		(7		)	7,459
	$	131,258	$	6,424	$	(74	)	$	137,608

At September 30, 2015 and December 31, 2014, an aging analysis of unrealized losses and fair value of related securities—held-to-maturity was as follows (in thousands):



	September 30, 2015
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	—	$	—		$	—	$	—		$	—	$	—
Municipal bonds	8,542		(193		)	255		(4		)	8,797		(197		)
Mortgage-backed or related securities	—		—			287		(1		)	287		(1		)
	$	8,542	$	(193	)	$	542	$	(5	)	$	9,084	$	(198	)

	December 31, 2014
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Government and agency obligations	$	—	$	—		$	1,127	$	(19	)	$	1,127	$	(19	)
Municipal bonds	9,821		(44		)	592		(4		)	10,413		(48		)
Mortgage-backed or related securities	1,018		(7		)	—		—			1,018		(7		)
	$	10,839	$	(51	)	$	1,719	$	(23	)	$	12,558	$	(74	)

There were no sales of securities—held-to-maturity during the nine months ended September 30, 2015 and 2014. At September 30, 2015, there were 14 securities—held-to-maturity with unrealized losses, compared to 25 securities at December 31, 2014. Management does not believe that any individual unrealized loss as of September 30, 2015 represents OTTI. The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase. There were no securities—held-to-maturity on nonaccrual status at September 30, 2015 or 2014.

The amortized cost and estimated fair value of securities—held-to-maturity at September 30, 2015 and December 31, 2014, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.



	September 30, 2015
	Amortized Cost		Fair Value

Maturing in one year or less	$	3,747	$	3,799
Maturing after one year through five years	13,852		14,041
Maturing after five years through ten years	24,951		25,608
Maturing after ten years through twenty years	76,642		81,606
Maturing after twenty years	12,958		13,201
	$	132,150	$	138,255

Pledged Securities: The following table presents, as of September 30, 2015, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):



	Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	132,234	$	137,818
Interest rate swap counterparties	13,419		13,949
Retail repurchase agreements	110,258		111,037
Total pledged securities	$	255,911	$	262,804