Investment Securities

Securities available-for-sale were

$1.3

billion as of

September 30, 2018,

compared to

$1.3

billion as of

December 31, 2017.

The following tables reflect the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of debt securities available-for-sale as of

September 30, 2018,

and debt and equity investment securities as of

December 31, 2017:

	September 30, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Debt Securities Available-for-Sale
U.S. treasury securities	$	199,488	$	-	$	114	$	199,374
U.S. government agency entities		6,721		-		210		6,511
U.S. government sponsored entities		400,000		-		16,553		383,447
Mortgage-backed securities		648,532		130		22,023		626,639
Collateralized mortgage obligations		1,119		-		33		1,086
Corporate debt securities		64,983		1,020		-		66,003
Total	$	1,320,843	$	1,150	$	38,933	$	1,283,060

	December 31, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	249,877	$	-	$	357	$	249,520
U.S. government agency entities		9,047		11		70		8,988
U.S. government sponsored entities		400,000		-		9,664		390,336
State and municipal securities		1,944		-		30		1,914
Mortgage-backed securities		577,987		241		6,259		571,969
Collateralized mortgage obligations		1,533		-		17		1,516
Corporate debt securities		80,007		1,291		17		81,281
Mutual funds		6,500		-		270		6,230
Preferred stock of government sponsored entities		5,842		4,260		-		10,102
Other equity securities		3,608		8,162		-		11,770
Total	$	1,336,345	$	13,965	$	16,684	$	1,333,626

The amortized cost and fair value of investment securities as of

September 30, 2018,

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	$	199,497	$	199,383
Due after one year through five years		465,892		450,363
Due after five years through ten years		6,434		6,163
Due after ten years		649,020		627,151
Total	$	1,320,843	$	1,283,060

There were

sales of mortgage-backed securities during the

first

nine

months of

2018

and the

first

nine

months of

2017.

Proceeds from repayments, maturities and calls of mortgage-backed securities were

$79.4

million and

$48.5

million for the

nine

months ended

September 30, 2018

and

2017,

respectively. Proceeds of

$99.6

million were received from the sale of other investment securities during the

first

nine

months of

2018,

compared to proceeds of

$99.5

million from the sale of other investment securities during the

first

nine

months of

2017.

Proceeds from maturities and calls of other investment securities were

$266.9

million during the

nine

months ended

September 30, 2018,

compared to

$341.3

million during the same period a year ago. There were

$14,000

of losses realized on sales of investment securities during the

nine

months ended

September 30, 2018,

compared to

$438,000

of losses in the same period a year ago. There were

other than temporary impairment write-downs recorded during the

first

nine

months of

2018

and the

first

nine

months of

2017.

The adoption of ASU

2016

resulted in approximately

$8.6

million being reclassified from accumulated other comprehensive income to retained earnings, representing an increase to retained earnings as of

January 1, 2018.

For the

nine

months ended

September 30, 2018,

the Company recognized a net loss of

$4.6

million due to the decrease in fair value of equity investments with readily determinable fair values. Equity securities were

$23.5

million as of

September 30, 2018,

compared to

$28.1

million as of

December 31, 2017.

The tables below show the fair value and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of

September 30, 2018,

and

December 31, 2017:

	September 30, 2018
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)

Debt Securities Available-for-Sale
U.S. treasury securities	$	199,374	$	114	$	-	$	-	$	199,374	$	114
U.S. government agency entities		5,208		160		1,304		50		6,512		210
U.S. government sponsored entities		-		-		383,447		16,553		383,447		16,553
Mortgage-backed securities		247,059		6,088		372,218		15,935		619,277		22,023
Collateralized mortgage obligations		-		-		1,086		33		1,086		33
Total debt securities	$	451,641	$	6,362	$	758,055	$	32,571	$	1,209,696	$	38,933

Equity Securities
Preferred stock of government sponsored entities		6,397		3,706		-		-		6,397		3,706
Mutual funds		-		-		6,034		195		6,034		195
Other equity securities		1,008		679		-		-		1,008		679
Total equity securities	$	7,405	$	4,385	$	6,034	$	195	$	13,439	$	4,580

	December 31, 2017
	Temporarily impaired securities
	Less than 12 months				12 months or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)

Securities Available-for-Sale
U.S. treasury securities	$	199,823	$	62	$	49,697	$	295	$	249,520	$	357
U.S. government agency entities		5,711		70		-		-		5,711		70
U.S. government sponsored entities		-		-		390,336		9,664		390,336		9,664
State and municipal securities		1,914		30		-		-		1,914		30
Mortgage-backed securities		342,436		3,147		178,617		3,112		521,053		6,259
Collateralized mortgage obligations		1,516		17		-		-		1,516		17
Corporate debt securities		5,015		17		-		-		5,015		17
Mutual funds		-		-		6,230		270		6,230		270
Total	$	556,415	$	3,343	$	624,880	$	13,341	$	1,181,295	$	16,684

As of

September 30, 2018,

the Company had unrealized losses on available-for-sale securities of

$38.9

million. The unrealized losses on these securities were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. 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,

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 securities and has

intent to sell, and will

not

be required to sell, available-for-sale securities that have declined below their cost before their anticipated recovery.

Investment securities having a carrying value of

$33.1

million as of

September 30, 2018,

and

$272.2

million as of

December 31, 2017,

were pledged to secure public deposits, other borrowings, treasury tax and loan, and securities sold under agreements to repurchase.