4. SECURITIES

The following table summarizes the amortized cost and fair value of the available for sale and held to maturity investment securities portfolio at March 31, 2015 and December 31, 2014 and the corresponding amounts of unrealized gains and losses therein:

	March 31, 2015
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available for sale:
U.S. GSE securities	$	68,409	$	25	$	(544	)	$	67,890
State and municipal obligations	62,567		458		(86		)	62,939
U.S. GSE residential mortgage-backed securities	128,542		1,337		(33		)	129,846
U.S. GSE residential collateralized mortgage obligations	204,172		666		(1,600		)	203,238
U.S. GSE commercial mortgage-backed securities	2,999		—		(18		)	2,981
U.S. GSE commercial collateralized mortgage obligations	21,672		34		(114		)	21,592
Other Asset backed securities	24,241		—		(961		)	23,280
Corporate Bonds	17,954		322		(44		)	18,232
Total available for sale	530,556		2,842		(3,400		)	529,998

Held to maturity:
U.S. GSE securities	11,291		187		—			11,478
State and municipal obligations	63,829		2,072		(10		)	65,891
U.S. GSE residential mortgage-backed securities	6,355		—		(21		)	6,334
U.S. GSE residential collateralized mortgage obligations	57,728		909		(419		)	58,218
U.S. GSE commercial mortgage-backed securities	13,127		369		—			13,496
U.S. GSE commercial collateralized mortgage obligations	36,387		661		(148		)	36,900
Corporate Bonds	22,963		115		(23		)	23,055
Total held to maturity	211,680		4,313		(621		)	215,372
Total securities	$	742,236	$	7,155	$	(4,021	)	$	745,370

	December 31, 2014
			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
(In thousands)	Cost		Gains		Losses			Value
Available for sale:
U.S. GSE securities	$	97,560	$	4	$	(2,139	)	$	95,425
State and municipal obligations	63,583		318		(208		)	63,693
U.S. GSE residential mortgage-backed securities	100,931		534		(40		)	101,425
U.S. GSE residential collateralized mortgage obligations	261,256		310		(2,967		)	258,599
U.S. GSE commercial mortgage-backed securities	3,016		—		(71		)	2,945
U.S. GSE commercial collateralized mortgage obligations	24,179		44		(141		)	24,082
Other Asset backed securities	24,190		—		(1,153		)	23,037
Corporate Bonds	17,952		161		(135		)	17,978
Total available for sale	592,667		1,371		(6,854		)	587,184

Held to maturity:
U.S. GSE securities	11,283		135		(41		)	11,377
State and municipal obligations	64,864		1,658		(98		)	66,424
U.S. GSE residential mortgage-backed securities	6,667		—		(97		)	6,570
U.S. GSE residential collateralized mortgage obligations	59,539		507		(862		)	59,184
U.S. GSE commercial mortgage-backed securities	13,213		233		(26		)	13,420
U.S. GSE commercial collateralized mortgage obligations	36,413		267		(431		)	36,249
Corporate Bonds	22,948		139		(22		)	23,065
Total held to maturity	214,927		2,939		(1,577		)	216,289
Total securities	$	807,594	$	4,310	$	(8,431	)	$	803,473

The following table summarizes the amortized cost, fair value and maturities of the available for sale and held to maturity investment securities portfolio at March 31, 2015. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	March 31, 2015
	Amortized		Fair
(In thousands)	Cost		Value
Maturity
Available for sale:
Within one year	$	11,349	$	11,392
One to five years	52,385		52,274
Five to ten years	86,485		86,676
Beyond ten years	380,337		379,656
Total	$	530,556	$	529,998

Held to maturity:
Within one year	$	17,627	$	17,664
One to five years	35,439		35,726
Five to ten years	55,092		57,403
Beyond ten years	103,522		104,579
Total	$	211,680	$	215,372

Securities with unrealized losses at March 31, 2015 and December 31, 2014, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, are as follows:

	Less than 12 months				Greater than 12 months
March 31, 2015			Unrealized				Unrealized
(In thousands)	Fair Value		losses		Fair Value		losses
Available for sale:
U.S. GSE securities	$	19,806	$	194	$	29,886	$	350
State and municipal obligations	9,496		46		6,024		40
U.S. GSE residential mortgage-backed securities	5,185		5		1,557		28
U.S. GSE residential collateralized mortgage obligations	37,795		197		79,948		1,403
U.S. GSE commercial mortgage-backed securities	2,981		18		—		—
U.S. GSE commercial collateralized mortgage obligations	3,113		56		11,264		58
Other Asset backed securities	23,280		961		—		—
Corporate Bonds	4,956		44		—		—
Total available for sale	106,612		1,521		128,679		1,879

Held to maturity:
State and municipal obligations	2,970		10		—		—
U.S. GSE residential mortgage-backed securities	6,334		21		—		—
U.S. GSE residential collateralized mortgage obligations	—		—		20,545		419
U.S. GSE commercial collateralized mortgage obligations	—		—		3,840		148
Corporate Bonds	6,981		19		1,996		4
Total held to maturity	$	16,285	$	50	$	26,381	$	571

	Less than 12 months				Greater than 12 months
December 31, 2014			Unrealized				Unrealized
(In thousands)	Fair Value		losses		Fair Value		losses
Available for sale:
U.S. GSE securities	$	4,991	$	8	$	90,233	$	2,131
State and municipal obligations	12,330		79		14,592		129
U.S. GSE residential mortgage-backed securities	—		—		1,554		40
U.S. GSE residential collateralized mortgage obligations	60,126		349		122,179		2,618
U.S. GSE commercial mortgage-backed securities	—		—		2,944		71
U.S. GSE commercial collateralized mortgage obligations	13,830		108		4,636		33
Other Asset backed securities	23,038		1,153		—		—
Corporate Bonds	9,865		135		—		—
Total available for sale	124,180		1,832		236,138		5,022

Held to maturity:
U.S. GSE securities	—		—		7,414		41
State and municipal obligations	11,343		97		202		1
U.S. GSE residential mortgage-backed securities	—		—		6,569		97
U.S. GSE residential collateralized mortgage obligations	10,422		46		30,413		816
U.S. GSE commercial mortgage-backed securities	—		—		4,188		26
U.S. GSE commercial collateralized mortgage obligations	14,392		73		8,611		358
Corporate Bonds	3,978		22		—		—
Total held to maturity	$	40,135	$	238	$	57,397	$	1,339

Other-Than-Temporary-Impairment

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available for sale or held-to-maturity are generally evaluated for OTTI under FASB ASC 320, Accounting for Certain Investments in Debt and Equity Securities. In determining OTTI under the FASB ASC 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

At March 31, 2015, the majority of unrealized losses on both the available for sale and held to maturity securities are related to the Company’s U.S. GSE securities and U.S. GSE residential collateralized mortgage obligations. The decrease in fair value of the U.S. GSE securities and U.S. GSE residential collateralized mortgage obligations is attributable to changes in interest rates and not credit quality. The Company does not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. Therefore, the Company does not consider these securities to be other-than-temporarily impaired at March 31, 2015.

There were $73.8 million of proceeds from sales of securities with gross gains of approximately $0.5 million and gross losses of approximately $0.5 million realized for the three months ended March 31, 2015. There were $198.8 million of proceeds from sales of securities with gross gains of approximately $0.3 million and gross losses of $1.4 million realized for the three months ended March 31, 2014. Proceeds from calls of securities were $0.2 million and $0.3 million for the three months ended March 31, 2015 and 2014, respectively.

Securities having a fair value of approximately $433.0 million and $451.1 million at March 31, 2015 and December 31, 2014, respectively, were pledged to secure public deposits and Federal Home Loan Bank and Federal Reserve Bank overnight borrowings. The Company did not hold any trading securities during the three months ended March 31, 2015 or the year ended December 31, 2014.

The Bank is a member of the Federal Home Loan Bank (“FHLB”) of New York. Members are required to own a particular amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The Bank is a member of the Atlantic Central Banker’s Bank (“ACBB”) and is required to own ACBB stock. The Bank is also a member of the Federal Reserve Bank (“FRB”) system and required to own FRB stock. FHLB, ACBB and FRB stock is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. The Bank owned approximately $8.6 million and $10.0 million in FHLB, ACBB and FRB stock at March 31, 2015 and December 31, 2014. These amounts were reported as restricted securities in the consolidated balance sheets.