SECURITIES

The significant accounting policies related to securities are presented in Note 1, "Summary of Significant Accounting Policies" to the Consolidated Financial Statements in the Company's 2017 10-K.

A summary of the Company's securities portfolio by category and maturity is presented in the following tables.

Securities Portfolio

(Dollar amounts in thousands)



	As of September 30, 2018									As of December 31, 2017
	Amortized Cost		Gross Unrealized					Fair Value		Amortized Cost		Gross Unrealized					Fair Value
	Amortized Cost		Gains		Losses			Fair Value		Amortized Cost		Gains		Losses			Fair Value
Securities Available-for-Sale
U.S. treasury securities	$	49,434	$	—	$	(325	)	$	49,109	$	46,529	$	—	$	(184	)	$	46,345
U.S. agency securities	143,765		6		(2,517		)	141,254		157,636		197		(986		)	156,847
Collateralized mortgage obligations ("CMOs")	1,304,611		103		(46,787		)	1,257,927		1,113,019		121		(17,954		)	1,095,186
Other mortgage-backed securities ("MBSs")	462,046		114		(16,495		)	445,665		373,676		201		(4,334		)	369,543
Municipal securities	228,048		118		(5,131		)	223,035		209,558		693		(1,260		)	208,991
Corporate debt securities	62,888		32		(500		)	62,420		—		—		—			—
Equity securities⁽¹⁾	—		—		—			—		7,408		194		(305		)	7,297
Total securities available-for-sale	$	2,250,792	$	373	$	(71,755	)	$	2,179,410	$	1,907,826	$	1,406	$	(25,023	)	$	1,884,209
Securities Held-to-Maturity
Municipal securities	$	12,673	$	—	$	(2,158	)	$	10,515	$	13,760	$	—	$	(1,747	)	$	12,013
Equity Securities⁽¹⁾								$	29,046								$	—
Trading Securities⁽¹⁾								$	—								$	20,447


⁽¹⁾	As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within trading securities or securities available-for-sale and are now presented within equity securities in the Consolidated Statements of Financial Condition for the current period. For further discussion of this guidance, see Note 2, "Recent Accounting Pronouncements."

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)



	As of September 30, 2018
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	113,814	$	111,859	$	1,631	$	1,353
After one year to five years	171,155		168,215		4,915		4,078
After five years to ten years	199,166		195,744		2,176		1,806
After ten years	—		—		3,951		3,278
Securities that do not have a single contractual maturity date	1,766,657		1,703,592		—		—
Total	$	2,250,792	$	2,179,410	$	12,673	$	10,515

The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $1.4 billion as of September 30, 2018 and $1.1 billion as of December 31, 2017. No securities held-to-maturity were pledged as of September 30, 2018 or December 31, 2017.

Securities Available-for-Sale Gains

(Dollar amounts in thousands)



	Quarters Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Gains on sales of securities:
Gross realized gains	$	—	$	3,197	$	—	$	3,481
Gross realized losses	—		—		—		—
Net realized gains on sales of securities	—		3,197		—		3,481
Non-cash impairment charges:
Other-than-temporary securities impairment ("OTTI")	—		—		—		—
Net realized gains	$	—	$	3,197	$	—	$	3,481

Accounting guidance requires that the credit portion of an OTTI charge be recognized through income. If a decline in fair value below carrying value is not attributable to credit deterioration and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the non-credit related portion of the decline in fair value in other comprehensive income.

There was no outstanding balance of OTTI previously recognized on securities available-for-sale as of either September 30, 2018 or December 31, 2017. During the quarters and nine months ended September 30, 2018 and 2017 no OTTI was recognized on securities available-for-sale.

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of September 30, 2018 and December 31, 2017.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)



		Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of September 30, 2018
Securities Available-for-Sale
U.S. treasury securities	24	$	38,623	$	307	$	10,486	$	18	$	49,109	$	325
U.S. agency securities	75	81,753		1,398		54,161		1,119		135,914		2,517
CMOs	260	610,183		15,445		602,362		31,342		1,212,545		46,787
MBSs	119	215,463		5,396		222,989		11,099		438,452		16,495
Municipal securities	501	140,916		2,762		55,975		2,369		196,891		5,131
Corporate debt securities	8	36,621		500		—		—		36,621		500
Total	987	$	1,123,559	$	25,808	$	945,973	$	45,947	$	2,069,532	$	71,755
Securities Held-to-Maturity
Municipal securities	8	$	—	$	—	$	10,515	$	2,158	$	10,515	$	2,158
As of December 31, 2017
Securities Available-for-Sale
U.S. treasury securities	20	$	19,918	$	87	$	26,427	$	97	$	46,345	$	184
U.S. agency securities	72	66,899		300		58,021		686		124,920		986
CMOs	211	365,131		3,265		633,227		14,689		998,358		17,954
MBSs	86	126,136		902		210,017		3,432		336,153		4,334
Municipal securities	265	35,500		479		81,360		781		116,860		1,260
Equity securities⁽¹⁾	2	391		214		6,386		91		6,777		305
Total	656	$	613,975	$	5,247	$	1,015,438	$	19,776	$	1,629,413	$	25,023
Securities Held-to-Maturity
Municipal securities	8	$	—	$	—	$	12,013	$	1,747	$	12,013	$	1,747


⁽¹⁾	As a result of accounting guidance adopted in the first quarter of 2018, equity securities are no longer presented within securities available-for-sale and are now presented within equity securities in the Consolidated Statements of Financial Condition for the current period. For further discussion of this guidance, see Note 2, "Recent Accounting Pronouncements."

Substantially all of the Company's CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority are supported by third-party insurance or some other form of credit enhancement. Management does not believe any of these securities with unrealized losses as of September 30, 2018 represent OTTI related to credit deterioration. These unrealized losses are attributed to changes in interest rates and temporary market movements. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.