INVESTMENT SECURITIES

Securities Available-for-Sale

The following table presents amortized cost, gross unrealized gains and losses, and fair values of securities available-for-sale as of the dates indicated:



	September 30, 2017									December 31, 2016
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
Security Type	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(In thousands)
Residential MBS and CMOs:
Agency MBS	$	375,357	$	4,569	$	(2,385	)	$	377,541	$	499,185	$	6,222	$	(2,964	)	$	502,443
Agency CMOs	175,429		1,655		(1,134		)	175,950		145,258		1,528		(497		)	146,289
Private label CMOs	131,149		4,001		(600		)	134,550		122,707		4,199		(1,437		)	125,469
Municipal securities	1,501,196		49,362		(1,408		)	1,549,150		1,447,064		15,406		(6,011		)	1,456,459
Agency commercial MBS	996,963		5,764		(6,813		)	995,914		555,552		1,798		(9,658		)	547,692
Corporate debt securities	17,000		2,125		—			19,125		47,100		680		(271		)	47,509
Collateralized loan obligations	19,119		66		(9		)	19,176		155,440		1,685		(238		)	156,887
SBA securities	166,949		1,363		(284		)	168,028		179,085		510		(750		)	178,845
Asset-backed and other securities	92,345		804		(353		)	92,796		62,264		358		(385		)	62,237
Total	$	3,475,507	$	69,709	$	(12,986	)	$	3,532,230	$	3,213,655	$	32,386	$	(22,211	)	$	3,223,830

As of September 30, 2017, securities available-for-sale with a fair value of $339.8 million were pledged as collateral for borrowings, public deposits and other purposes as required by various statutes and agreements.

During the three months ended September 30, 2017, we sold $98.3 million of securities available-for-sale for a gross realized gain of $1.3 million and a gross realized loss of $0.1 million. During the three months ended September 30, 2016, we sold $39.1 million of securities available-for-sale for a gross realized gain of $1.0 million and a gross realized loss of $0.6 million.

During the nine months ended September 30, 2017, we sold $182.7 million of securities available-for-sale for a gross realized gain of $3.3 million and a gross realized loss of $0.5 million. During the nine months ended September 30, 2016, we sold $383.9 million of securities available-for-sale for a gross realized gain of $10.6 million and a gross realized loss of $1.6 million.

Unrealized Losses on Securities Available-for-Sale

The following tables present the gross unrealized losses and fair values of securities available-for-sale that were in unrealized loss positions, for which other-than-temporary impairments have not been recognized in earnings, as of the dates indicated:



	September 30, 2017
	Less Than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Security Type	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
Residential MBS and CMOs:
Agency MBS	$	52,840	$	(271	)	$	127,695	$	(2,114	)	$	180,535	$	(2,385	)
Agency CMOs	55,606		(891		)	18,436		(243		)	74,042		(1,134		)
Private label CMOs	45,494		(386		)	18,080		(214		)	63,574		(600		)
Municipal securities	78,784		(329		)	29,203		(1,079		)	107,987		(1,408		)
Agency commercial MBS	338,883		(2,920		)	106,766		(3,893		)	445,649		(6,813		)
Collateralized loan obligations	7,162		(9		)	—		—			7,162		(9		)
SBA securities	42,963		(284		)	—		—			42,963		(284		)
Asset-backed and other securities	39,723		(295		)	8,162		(58		)	47,885		(353		)
Total	$	661,455	$	(5,385	)	$	308,342	$	(7,601	)	$	969,797	$	(12,986	)



	December 31, 2016
	Less Than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Security Type	Value		Losses			Value		Losses			Value		Losses
	(In thousands)
Residential MBS and CMOs:
Agency MBS	$	149,281	$	(1,691	)	$	122,902	$	(1,273	)	$	272,183	$	(2,964	)
Agency CMOs	44,111		(416		)	25,316		(81		)	69,427		(497		)
Private label CMOs	49,067		(906		)	30,155		(531		)	79,222		(1,437		)
Municipal securities	644,424		(6,011		)	—		—			644,424		(6,011		)
Agency commercial MBS	349,550		(9,658		)	—		—			349,550		(9,658		)
Corporate debt securities	29,829		(271		)	—		—			29,829		(271		)
Collateralized loan obligations	12,450		(37		)	39,231		(201		)	51,681		(238		)
SBA securities	69,293		(407		)	39,024		(343		)	108,317		(750		)
Asset-backed and other securities	18,213		(309		)	7,851		(76		)	26,064		(385		)
Total	$	1,366,218	$	(19,706	)	$	264,479	$	(2,505	)	$	1,630,697	$	(22,211	)

We reviewed the securities that were in an unrealized loss position at September 30, 2017, and concluded their unrealized losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. Accordingly, we determined the securities were temporarily impaired and we did not recognize such impairment in the condensed consolidated statements of earnings. Although we periodically sell securities for portfolio management purposes, we do not foresee having to sell any temporarily impaired securities strictly for liquidity needs and believe that it is more likely than not we would not be required to sell any temporarily impaired securities before recovery of their amortized cost.

Contractual Maturities of Securities Available-for-Sale

The following table presents the contractual maturities of our securities available-for-sale portfolio based on amortized cost and carrying value as of the date indicated:



	September 30, 2017
	Amortized		Fair
Maturity	Cost		Value
	(In thousands)
Due in one year or less	$	17,879	$	18,352
Due after one year through five years	326,552		331,164
Due after five years through ten years	962,429		969,431
Due after ten years	2,168,647		2,213,283
Total securities available-for-sale	$	3,475,507	$	3,532,230

Mortgage-backed securities have contractual terms to maturity, but require periodic payments to reduce principal. In addition, expected maturities may differ from contractual maturities because obligors and/or issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

Interest Income on Investment Securities

The following table presents the composition of our interest income on investment securities for the periods indicated:



	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,
	2017		2017		2016		2017		2016
	(In thousands)
Taxable interest	$	13,576	$	13,515	$	11,446	$	39,257	$	34,248
Non-taxable interest	10,795		10,750		10,333		31,926		31,562
Dividend income	391		424		408		1,307		1,344
Total interest income on investment securities	$	24,762	$	24,689	$	22,187	$	72,490	$	67,154