SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2016 and December 31, 2015 are summarized as follows (in thousands):



	September 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trading:
U.S. Government and agency obligations	$	1,230						$	1,366
Municipal bonds	331							336
Corporate bonds	26,916							20,925
Mortgage-backed or related securities	7,628							8,173
Equity securities	14							89
	$	36,119						$	30,889
Available-for-Sale:
U.S. Government and agency obligations	$	57,900	$	298	$	(28	)	$	58,170
Municipal bonds	142,234		3,236		(69		)	145,401
Corporate bonds	10,386		39		(52		)	10,373
Mortgage-backed or related securities	753,344		10,094		(786		)	762,652
Asset-backed securities	29,961		21		(262		)	29,720
Equity securities	88		10		—			98
	$	993,913	$	13,698	$	(1,197	)	$	1,006,414
Held-to-Maturity:
U.S. Government and agency obligations	$	1,076	$	—	$	(2	)	$	1,074
Municipal bonds:	199,606		8,841		(12		)	208,435
Corporate bonds	4,162		—		—			4,162
Mortgage-backed or related securities	67,131		2,501		—			69,632
	$	271,975	$	11,342	$	(14	)	$	283,303



	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trading:
U.S. Government and agency obligations	$	1,230						$	1,368
Municipal bonds	332							341
Corporate bonds	25,063							18,699
Mortgage-backed or related securities	12,705							13,663
Equity securities	14							63
	$	39,344						$	34,134
Available-for-Sale:
U.S. Government and agency obligations	$	30,211	$	213	$	(193	)	$	30,231
Municipal bonds	142,898		853		(432		)	143,319
Corporate bonds	15,937		56		(12		)	15,981
Mortgage-backed or related securities	919,318		4,056		(5,115		)	918,259
Asset-backed securities	31,288		—		(603		)	30,685
Equity securities	88		10		—			98
	$	1,139,740	$	5,188	$	(6,355	)	$	1,138,573
Held-to-Maturity:
U.S. Government and agency obligations	$	1,106	$	5	$	—		$	1,111
Municipal bonds:	162,778		6,219		(191		)	168,806
Corporate bonds	4,273		—		—			4,273
Mortgage-backed or related securities	52,509		253		(325		)	52,437
	$	220,666	$	6,477	$	(516	)	$	226,627

At September 30, 2016 and December 31, 2015, the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position was as follows (in thousands):



	September 30, 2016
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-Sale:
U.S. Government and agency obligations	$	5,784	$	(16	)	$	1,078	$	(12	)	$	6,862	$	(28	)
Municipal bonds	18,503		(67		)	1,060		(2		)	19,563		(69		)
Corporate bonds	5,334		(52		)	—		—			5,334		(52		)
Mortgage-backed or related securities	152,276		(600		)	32,760		(186		)	185,036		(786		)
Asset-backed securities	—		—			19,667		(262		)	19,667		(262		)
	$	181,897	$	(735	)	$	54,565	$	(462	)	$	236,462	$	(1,197	)
Held-to-Maturity
U.S. Government and agency obligations	$	1,074	$	(2	)	$	—	$	—		$	1,074	$	(2	)
Municipal bonds	$	4,494	$	(12	)	$	—	$	—		$	4,494	$	(12	)
	$	5,568	$	(14	)	$	—	$	—		$	5,568	$	(14	)

	December 31, 2015
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-Sale:
U.S. Government and agency obligations	$	8,707	$	(97	)	$	10,489	$	(96	)	$	19,196	$	(193	)
Municipal bonds	69,848		(426		)	905		(6		)	70,753		(432		)
Corporate bonds	5,153		(12		)	—		—			5,153		(12		)
Mortgage-backed or related securities	533,143		(4,380		)	68,562		(735		)	601,705		(5,115		)
Asset-backed securities	20,893		(355		)	9,792		(248		)	30,685		(603		)
	$	637,744	$	(5,270	)	$	89,748	$	(1,085	)	$	727,492	$	(6,355	)
Held-to-Maturity
Municipal bonds	$	28,545	$	(188	)	$	254	$	(3	)	$	28,799	$	(191	)
Mortgage-backed or related securities	34,493		(323		)	255		(2		)	34,748		(325		)
	$	63,038	$	(511	)	$	509	$	(5	)	$	63,547	$	(516	)

At September 30, 2016, there were 91 securities—available-for-sale with unrealized losses, compared to 242 at December 31, 2015. At September 30, 2016, there were six securities—held-to-maturity with unrealized losses, compared to 32 at December 31, 2015. Management does not believe that any individual unrealized loss as of September 30, 2016, or December 31, 2015 represented other-than-temporary impairment (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.

Sales of securities—trading totaled $1.7 million with a resulting net gain of $156,000 for the nine months ended September 30, 2016 compared to $2.5 million with a resulting net loss of $690,000 for the nine months ended September 30, 2015. The Company did not recognize any OTTI charges or recoveries on securities—trading during the nine months ended September 30, 2016, or the nine months ended September 30, 2015. There were no securities—trading in a nonaccrual status at September 30, 2016, or December 31, 2015. Net unrealized holding gains of $112,000 were recognized during the nine months ended September 30, 2016.

Sales of securities—available-for-sale totaled $233.3 million with a resulting net gain of $374,000 for the nine months ended September 30, 2016. Sales of securities—available-for-sale totaled $40.3 million with a resulting net gain of $126,000 for the nine months ended September 30, 2015. There were no securities—available-for-sale in a nonaccrual status at September 30, 2016 or December 31, 2015.

There were no sales of securities—held-to-maturity during the nine months ended September 30, 2016, or September 30, 2015. There were no securities—held-to-maturity in a nonaccrual status at September 30, 2016 or December 31, 2015.

The amortized cost and estimated fair value of securities at September 30, 2016, 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, 2016
	Trading				Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing in one year or less	$	—	$	—	$	13,178	$	13,175	$	2,561	$	2,583
Maturing after one year through five years	5,668		5,969		179,161		180,625		15,252		15,500
Maturing after five years through ten years	3,245		3,596		203,970		206,203		112,199		116,736
Maturing after ten years through twenty years	276		310		240,518		244,927		96,601		102,641
Maturing after twenty years	26,916		20,925		356,998		361,386		45,362		45,843
	36,105		30,800		993,825		1,006,316		271,975		283,303
Equity securities	14		89		88		98		—		—
	$	36,119	$	30,889	$	993,913	$	1,006,414	$	271,975	$	283,303

The following table presents, as of September 30, 2016, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):



	September 30, 2016
	Carrying Value		Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	204,765	$	203,838	$	213,382
Interest rate swap counterparties	24,754		24,669		25,501
Repurchase agreements	126,873		125,666		127,958
Other	1,890		1,884		1,889
Total pledged securities	$	358,282	$	356,057	$	368,730