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Securities
 6 Months Ended
Jun. 30, 2019
Securities [Abstract]  
Securities
3.
Securities

The amortized cost, estimated fair value and unrealized gains (losses) of available for sale (“AFS”) securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of June 30, 2019
                        
Federal agency
  
$
52,987
    
$
28
    
$
178
    
$
52,837
  
State & municipal
    
9
      
-
      
-
      
9
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
458,878
      
3,624
      
666
      
461,836
  
U.S. government agency securities
    
36,447
      
955
      
11
      
37,391
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
351,250
      
2,210
      
847
      
352,613
  
U.S. government agency securities
    
74,729
      
734
      
453
      
75,010
  
Total AFS securities
  
$
974,300
    
$
7,551
    
$
2,155
    
$
979,696
  
As of December 31, 2018
                                
Federal agency
  
$
84,982
    
$
10
    
$
693
    
$
84,299
  
State & municipal
    
30,136
      
16
      
237
      
29,915
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
493,225
      
439
      
10,354
      
483,310
  
U.S. government agency securities
    
29,190
      
270
      
475
      
28,985
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
332,409
      
344
      
7,211
      
325,542
  
U.S. government agency securities
    
47,684
      
137
      
1,376
      
46,445
  
Total AFS securities
  
$
1,017,626
    
$
1,216
    
$
20,346
    
$
998,496
  

The components of net realized gains (losses) on the sale of AFS securities are as follows. These amounts were reclassified out of AOCI and into earnings. There were no sales of AFS securities during the three months ended June 30, 2019 and 2018.


  
Six Months Ended
June 30,
  
(In thousands)
  
2019
    
2018
  
Gross realized gains
  
$
53
    
$
-
  
Gross realized (losses)
    
(152
)
    
-
  
Net AFS realized (losses)
  
$
(99
)
  
$
-
  

Included in net gains (losses) from sale transactions, the Company recorded gains from calls on AFS securities of approximately $4 thousand for the six months ended June 30, 2019. There were no recorded gains from calls on AFS securities included in net gains (losses) from sales transactions for the three months ended June 30, 2019 and 2018 and for the six months ended June 30, 2018.

The amortized cost, estimated fair value and unrealized gains (losses) of held to maturity (“HTM”) securities are as follows:

(In thousands)
  
Amortized
Cost
    
Unrealized
Gains
    
Unrealized
Losses
    
Estimated
Fair Value
  
As of June 30, 2019
                        
Federal agency
  
$
19,996
    
$
46
    
$
-
    
$
20,042
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
163,049
      
2,334
      
484
      
164,899
  
U.S. government agency securities
    
14,530
      
921
      
-
      
15,451
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
232,825
      
2,712
      
539
      
234,998
  
    U.S. government agency securities
    
103,457
      
3,303
      
-
      
106,760
  
State & municipal
    
210,744
      
2,177
      
76
      
212,845
  
Total HTM securities
  
$
744,601
    
$
11,493
    
$
1,099
    
$
754,995
  
As of December 31, 2018
                                
Federal agency
  
$
19,995
    
$
52
    
$
-
    
$
20,047
  
Mortgage-backed:
                                
Government-sponsored enterprises
    
164,618
      
712
      
2,773
      
162,557
  
U.S. government agency securities
    
15,230
      
403
      
-
      
15,633
  
Collateralized mortgage obligations:
                                
Government-sponsored enterprises
    
257,475
      
1,097
      
3,897
      
254,675
  
   U.S. government agency securities
    
83,148
      
767
      
-
      
83,915
  
State & municipal
    
243,133
      
331
      
1,616
      
241,848
  
Total HTM securities
  
$
783,599
    
$
3,362
    
$
8,286
    
$
778,675
  

AFS and HTM securities with amortized costs totaling $1.4 billion at June 30, 2019 and $1.5 billion at December 31, 2018 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at June 30, 2019 and December 31, 2018, AFS and HTM securities with an amortized cost of $197.4 million and $215.3 million, respectively, were pledged as collateral for securities sold under repurchase agreements.
The following table sets forth information with regard to investment securities with unrealized losses segregated according to the length of time the securities had been in a continuous unrealized loss position:


  
Less Than 12 Months
    
12 Months or Longer
    
Total
  
(In thousands)
  
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
    
Fair
Value
    
Unrealized
Losses
    
Number
of
Positions
  
As of June 30, 2019
                                                      
AFS securities:
                                                      
Federal agency
  
$
-
    
$
-
      
-
    
$
9,822
    
$
(178
)
    
1
    
$
9,822
    
$
(178
)
    
1
  
Mortgage-backed
    
-
      
-
      
-
      
137,139
      
(677
)
    
44
      
137,139
      
(677
)
    
44
  
Collateralized mortgage obligations
    
4,342
      
(10
)
    
2
      
167,735
      
(1,290
)
    
39
      
172,077
      
(1,300
)
    
41
  
Total securities with unrealized losses
  
$
4,342
    
$
(10
)
    
2
    
$
314,696
    
$
(2,145
)
    
84
    
$
319,038
    
$
(2,155
)
    
86
  
                                                                         
HTM securities:
                                                                        
Mortgage-backed
  
$
-
    
$
-
      
-
    
$
40,748
    
$
(484
)
    
4
    
$
40,748
    
$
(484
)
    
4
  
Collateralized mortgage obligations
    
4,561
      
(75
)
    
1
      
29,546
      
(464
)
    
6
      
34,107
      
(539
)
    
7
  
State & municipal
    
-
      
-
      
-
      
8,590
      
(76
)
    
14
      
8,590
      
(76
)
    
14
  
Total securities with unrealized losses
  
$
4,561
    
$
(75
)
    
1
    
$
78,884
    
$
(1,024
)
    
24
    
$
83,445
    
$
(1,099
)
    
25
  
                                                                         
As of December 31, 2018
                                                                        
AFS securities:
                                                                        
Federal agency
  
$
-
    
$
-
      
-
    
$
64,294
    
$
(693
)
    
6
    
$
64,294
    
$
(693
)
    
6
  
State & municipal
    
1,715
      
(3
)
    
3
      
22,324
      
(234
)
    
35
      
24,039
      
(237
)
    
38
  
Mortgage-backed
    
18,462
      
(65
)
    
12
      
428,440
      
(10,764
)
    
101
      
446,902
      
(10,829
)
    
113
  
Collateralized mortgage obligations
    
12,118
      
(69
)
    
5
      
320,908
      
(8,518
)
    
62
      
333,026
      
(8,587
)
    
67
  
Total securities with unrealized losses
  
$
32,295
    
$
(137
)
    
20
    
$
835,966
    
$
(20,209
)
    
204
    
$
868,261
    
$
(20,346
)
    
224
  
                                                                         
HTM securities:
                                                                        
Mortgage-backed
  
$
-
    
$
-
      
-
    
$
82,579
    
$
(2,773
)
    
6
    
$
82,579
    
$
(2,773
)
    
6
  
Collateralized mortgage obligations
    
4,386
      
(7
)
    
2
      
145,396
      
(3,890
)
    
26
      
149,782
      
(3,897
)
    
28
  
State & municipal
    
18,907
      
(84
)
    
30
      
58,258
      
(1,532
)
    
86
      
77,165
      
(1,616
)
    
116
  
Total securities with unrealized losses
  
$
23,293
    
$
(91
)
    
32
    
$
286,233
    
$
(8,195
)
    
118
    
$
309,526
    
$
(8,286
)
    
150
  

Declines in the fair value of HTM securities below their amortized cost, less any current period credit loss, that are deemed to be other-than-temporary are reflected in earnings as realized losses or in other comprehensive income (“OCI”). The classification is dependent upon whether the Company intends to sell the security, or whether it is more likely than not, that the Company will be required to sell the security before recovery. The other-than-temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI shall be separated into (i) the amount representing the credit loss and (ii) the amount related to all other factors. The amount of the total OTTI related to the credit loss shall be recognized in earnings. The amount of the total OTTI related to other factors shall be recognized in OCI, net of applicable taxes.

In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the historical and implied volatility of the fair value of the security.

Management has the intent to hold the securities classified as HTM until they mature, at which time it is believed the Company will receive full value for the securities. The unrealized losses on HTM debt securities are due to increases in market interest rates over yields at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. The fair value is expected to recover as the bond approaches its maturity date or repricing date or if market yields for such investments declines.

Management also has the intent to hold and will not be required to sell, the debt securities classified as AFS for a period of time sufficient for a recovery of cost, which may be until maturity. The unrealized losses on AFS debt securities are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. For AFS debt securities, OTTI losses are recognized in earnings if the Company intends to sell the security. In other cases the Company considers the relevant factors noted above, as well as the Company’s intent and ability to retain its investment for a period of time sufficient to allow for any anticipated recovery in market value and whether evidence exists to support a realizable value equal to or greater than the cost basis. Any impairment loss on an equity security is equal to the full difference between the cost basis and the fair value of the security.

As of June 30, 2019 and December 31, 2018, management believes the impairments detailed in the table above are temporary. There were no OTTI losses realized in the Company’s unaudited interim consolidated statements of income for the three and six months ended June 30, 2019, or in the three and six months ended June 30, 2018.

The following tables set forth information with regard to gains and losses on equity securities:


  
Three Months Ended June 30,
  
(In thousands)
  
2019
    
2018
  
Net gains and losses recognized on equity securities
  
$
(69
)
  
$
91
  
Less: Net gains and losses recognized during the period on equity securities sold during the period
    
-
      
-
  
Unrealized gains and losses recognized on equity securities still held
  
$
(69
)
  
$
91
  


 
Six Months Ended June 30,
  
(In thousands)
  
2019
    
2018
  
Net gains and losses recognized on equity securities
  
$
87
    
$
163
  
Less: Net gains and losses recognized during the period on equity securities sold during the period
    
-
      
44
  
Unrealized gains and losses recognized on equity securities still held
  
$
87
    
$
119
  


The following tables set forth information with regard to contractual maturities of debt securities at June 30, 2019:

(In thousands)
  
Amortized
Cost
    
Estimated
Fair Value
  
AFS debt securities:
            
Within one year
  
$
123
    
$
123
  
From one to five years
    
52,233
      
52,196
  
From five to ten years
    
174,204
      
175,628
  
After ten years
    
747,740
      
751,749
  
Total AFS debt securities
  
$
974,300
    
$
979,696
  
HTM debt securities:
                
Within one year
  
$
60,959
    
$
60,959
  
From one to five years
    
67,594
      
68,031
  
From five to ten years
    
190,717
      
193,697
  
After ten years
    
425,331
      
432,308
  
Total HTM debt securities
  
$
744,601
    
$
754,995
  

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. Government securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at June 30, 2019 and December 31, 2018.