6. Investment Securities

Investment securities were $1.24 billion as of June 30, 2016, compared to $1.59 billion as of December 31, 2015. The following tables reflect the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of investment securities as of June 30, 2016, and December 31, 2015:

	June 30, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	239,811	$	228	$	-	$	240,039
U.S. government sponsored entities		125,000		142		-		125,142
Mortgage-backed securities		774,629		8,690		6		783,313
Collateralized mortgage obligations		56		-		24		32
Corporate debt securities		74,960		48		1,779		73,229
Mutual funds		6,000		-		47		5,953
Preferred stock of government sponsored entities		2,811		1,349		-		4,160
Other equity securities		3,902		6,134		-		10,036

Total	$	1,227,169	$	16,591	$	1,856	$	1,241,904

	December 31, 2015
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	284,678	$	5	$	395	$	284,288
U.S. government sponsored entities		150,000		-		1,840		148,160
Mortgage-backed securities		1,073,108		560		11,399		1,062,269
Collateralized mortgage obligations		63		-		27		36
Corporate debt securities		74,955		425		1,525		73,855
Mutual funds		6,000		-		167		5,833
Preferred stock of government sponsored entities		2,811		633		228		3,216
Other equity securities		4,108		4,929		342		8,695

Total	$	1,595,723	$	6,552	$	15,923	$	1,586,352

The amortized cost and fair value of investment securities as of June 30, 2016, by contractual maturities, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.

	Securities Available-For-Sale
	Amortized cost		Fair value
	(In thousands)
Due in one year or less	$	169,984	$	170,062
Due after one year through five years		254,283		253,727
Due after five years through ten years		20,324		19,639
Due after ten years (1)		782,578		798,476

Total	$	1,227,169	$	1,241,904

(1)

Equity securities are reported in this category

Proceeds of $241.8 million were received from the sales transactions of mortgage-backed securities during the first six months of 2016. Proceeds of $573.5 million were received from the sale of mortgage-backed securities during the first six months of 2015. Proceeds from repayments, maturities and calls of mortgage-backed securities were $80.7 million and $36.5 million for the six months ended June 30, 2016 and 2015, respectively. There were no sales transactions of other investment securities during the six months ended June 30, 2016. Proceeds of $385.2 million were received from the sale of other investment securities during the six months ended June 30, 2015. Proceeds from maturities and calls of other investment securities were $335.0 million during the six months ended June 30, 2016 compared to zero during the same period a year ago. Gains of $1.7 million and zero losses were realized on sales of investment securities in addition to a permanent impairment write-down of $206,000 that was recorded during the six months ended June 30, 2016 compared to gains of $2.3 million and losses of $1.8 million realized during the same period a year ago.

The tables below show the fair value and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of June 30, 2016, and December 31, 2015:

	June 30, 2016
	Temporarily impaired securities

	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(Dollars in thousands)

Securities Available-for-Sale
Mortgage-backed securities	$	1,724	$	5	$	39	$	1	$	1,763	$	6
Collateralized mortgage obligations		-		-		32		24		32		24
Corporate debt securities		9,847		153		43,374		1,626		53,221		1,779
Mutual funds		-		-		5,953		47		5,953		47

Total	$	11,571	$	158	$	49,398	$	1,698	$	60,969	$	1,856

	December 31, 2015
	Temporarily impaired securities

	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(Dollars in thousands)

Securities Available-for-Sale
U.S. treasury securities	$	224,289	$	395	$	-	$	-	$	224,289	$	395
U.S. government sponsored entities		148,160		1,840		-		-		148,160		1,840
Mortgage-backed securities		1,025,342		11,398		6		1		1,025,348		11,399
Collateralized mortgage obligations		-		-		36		27		36		27
Corporate debt securities		9,950		50		43,525		1,475		53,475		1,525
Mutual funds		-		-		5,833		167		5,833		167
Preferred stock of government sponsored entities		2,488		228		-		-		2,488		228
Other equity securities		158		342		-		-		158		342

Total	$	1,410,387	$	14,253	$	49,400	$	1,670	$	1,459,787	$	15,923

As of June 30, 2016, the Company had unrealized losses of $1.9 million. The unrealized losses on these securities were primarily attributed to yield curve movement, together with the widened liquidity spread and credit spread. The issuers have not, to the Company’s knowledge, established any cause for default on these securities. Management believes the impairment was temporary and, accordingly, no impairment loss on these securities has been recognized in our condensed consolidated statements of operations. The Company expects to recover the amortized cost basis of its debt securities, and has no intent to sell and will not be required to sell available-for-sale debt securities that have declined below their cost before their anticipated recovery.

Investment securities having a carrying value of $471.6 million as of June 30, 2016, and $449.6 million as of December 31, 2015, were pledged to secure public deposits, other borrowings, treasury tax and loan, and securities sold under agreements to repurchase.