C. Investment in Securities

Effective with the Company’s adoption of ASU 2016-01 on January 1, 2018, the Company carries all investments in equity securities at fair value through net income (“FVTNI”) which approximates market value. The Company has no securities that qualify for the equity method or for consolidation of the investee for which the Company has elected the practicality exception to fair value measurement.

Investments in securities at September 30, 2018, December 31, 2017 and September 30, 2017 consisted of the following:

	September 30, 2018				December 31, 2017				September 30, 2017
			Estimated				Estimated				Estimated
	Cost		Market Value		Cost		Market Value		Cost		Market Value
	(In thousands)
Securities carried at FVTNI (trading securities for comparative periods):
US Government Obligations	$	-	$	-	$	-	$	-	$	59,905	$	59,954
Common stocks		18,154		28,666		26		34		24		31
Mutual Funds		44		44		11		11		11		11
Closed-end funds		951		994		-		-		-		-
Total securities carried at FVTNI		19,149		29,704		37		45		59,940		59,996

Available for sale securities:
Common stocks		-		-		17,441		36,637		21,319		41,315
Closed-end funds		-		-		99		108		99		114
Total available for sale securities		-		-		17,540		36,745		21,418		41,429

Total investments in securities	$	19,149	$	29,704	$	17,577	$	36,790	$	81,358	$	101,425

There were no securities sold, not yet purchased at September 30, 2018, December 31, 2017 and September 30, 2017.

Investments in United States Treasury Bills and Notes with maturities of greater than three months at the time of purchase are classified as investments in securities, and those with maturities of three months or less at the time of purchase are classified as cash equivalents. The portion of investments in securities held for resale in anticipation of short-term market movements were classified as trading securities for the periods ended December 31, 2017 and September 30, 2017. Securities carried at FVTNI for the September 30, 2018 period-end and trading securities in the periods ending December 31, 2017 and September 30, 2017 are stated at fair value, with any unrealized gains or losses reported in current period earnings. Available for sale (“AFS”) investments for the periods ended December 31, 2017 and September 30, 2017 are stated at fair value, with any unrealized gains or losses, net of taxes, reported as a component of equity except for losses deemed to be other than temporary (“OTT”) which were recorded as realized losses in the condensed consolidated statements of income.

Effective January 1, 2018, the Company adopted ASU 2016-01, which eliminated available for sale accounting and resulted in the reclassification of $12.1 million, net of tax, out of accumulated comprehensive income and into retained earnings in the condensed consolidated statement of financial condition. As a result, for the three and nine months ended September 30, 2018, changes in the fair value of the Company’s entire investment portfolio are now recorded in the net gain (loss) from investments line in the condensed consolidated statements of income rather than through other comprehensive income.

The following table identifies all reclassifications out of accumulated other comprehensive income (“AOCI”) into income for the three and nine months ended September 30, 2017 (in thousands). (No disclosure is needed for the three and nine months ended September 30, 2018 due to the adoption of ASU 2016-01.)

Amount								Affected Line Items	Reason for
Reclassified								in the Statements	Reclassification
from AOCI								Of Income	from AOCI
Three months ended				Nine months ended
September 30, 2017				September 30, 2017

	$	20			$	20		Net gain from investments	Realized gain on sale of AFS securities
		2,821				2,855		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
	$	2,841			$	2,875		Income before income taxes
		(1,051	)			(1,064	)	Income tax provision
	$	1,790			$	1,811		Net income

The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of December 31, 2017 and September 30, 2017. (No disclosures are required as of September 30, 2018 due to the adoption of ASU 2016-01.)

	December 31, 2017
			Gross			Gross			Estimated
			Unrealized			Unrealized			Market
	Cost		Gains			Losses			Value
	(In thousands)
Common stocks	$	17,441		$	19,196		$	-		$	36,637
Closed-end funds		99			9			-			108
Total available for sale securities	$	17,540		$	19,205		$	-		$	36,745

	September 30, 2017
			Gross			Gross			Estimated
			Unrealized			Unrealized			Market
	Cost		Gains			Losses			Value
	(In thousands)
Common stocks	$	21,319		$	19,996		$	-		$	41,315
Closed-end funds		99			15			-			114
Total available for sale securities	$	21,418		$	20,011		$	-		$	41,429

A net unrealized gain, net of taxes, for the three and nine months ended September 30, 2017 of $2.3 million and $1.0 million, respectively, has been included in other comprehensive income, a component of equity, at September 30, 2017. During the three and nine months ended September 30, 2017, proceeds from the sales of investments available for sale were approximately $321,000 and gross gains on the sale of investments available for sale amounted to $20,000 and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income. There were no realized losses on the sale of investments available for sale for the three and nine months ended September 30, 2017. The Company determines the cost of a security sold by using specific identification. Accumulated other comprehensive income in the condensed consolidated statements of equity is primarily comprised of unrealized gains/losses, net of taxes, for AFS securities.

There were no investments classified as available for sale that were in an unrealized loss position at December 31, 2017 or September 30, 2017.

For the three and nine months ended September 30, 2017, there were no losses on available for sale securities that were deemed to be other than temporary.