4.	Investment Securities

Investment Securities.

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

December 31, 2018

and debt and equity investment securities as of

December 31, 2017:

	As of December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	124,801	$	-	$	50	$	124,751
U.S. government agency entities		6,066		-		195		5,871
U.S. government sponsored entities		400,000		-		11,638		388,362
Mortgage-backed securities		670,874		960		15,089		656,745
Collateralized mortgage obligations		1,005		-		28		977
Corporate debt securities		64,985		818		-		65,803
Total securities available-for-sale	$	1,267,731	$	1,778	$	27,000	$	1,242,509

	As of 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 securities available-for-sale	$	1,336,345	$	13,965	$	16,684	$	1,333,626

The amortized cost and fair value of investment securities at

December 31, 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	$	124,807	$	124,757
Due after one year through five years		465,813		455,010
Due after five years through ten years		6,078		5,856
Due after ten years		671,033		656,886
Total	$	1,267,731	$	1,242,509

There were

sales of mortgage-backed securities during

2018

and

2017.

Proceeds of

$105.9

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

2018

compared to proceeds of

$71.6

million from repayments, maturities, and calls during

2017.

Proceeds from sales of other investment securities were

$99.9

million during

2018

compared to

$111.7

million during

2017.

Proceeds from maturities and calls of other investment securities were

$341.9

million during

2018

compared to

$491.0

million during

2017.

2018,

gains of

$36,000

and losses of

$14,000

were realized on sales and calls of investment securities compared with gains of

$1.7

million and losses of

$710,000

realized in

2017.

The temporarily impaired securities represent

84.9%

of the fair value of investment securities as of

December 31, 2018.

Unrealized losses for securities with unrealized losses for less than

twelve

months represent

0.4%,

and securities with unrealized losses for

twelve

months or more represent

2.8%,

of the historical cost of these securities. Unrealized losses on these securities generally resulted from increases in interest rates or spreads subsequent to the date that these securities were purchased. At

December 31, 2018,

issues of securities had unrealized losses for

months or longer and

issues of securities had unrealized losses of less than

months.

Total unrealized losses of

$27.0

million at

December 31, 2018,

were primarily caused by increases in interest rates or the widening of credit and liquidity spreads since the dates of acquisition. The contractual terms of those investments do

not

permit the issuers to settle the security at a price less than the amortized cost of the investment.

December 31, 2018,

management believed the impairment was temporary and, accordingly,

impairment loss on debt securities has been recognized in our Consolidated Statements of Operations. The Company expects to recover the amortized cost basis of its debt securities and has

intent to sell and believes it is more likely than

not

that it will

not

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

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

December 31, 2018,

and

December 31, 2017:

	As of December 31, 2018
	Temporarily Impaired Securities
	Less than 12 months						12 months or longer						Total
	Fair		Unrealized		No. of		Fair		Unrealized		No. of		Fair		Unrealized		No. of
	Value		Losses		Issuances		Value		Losses		Issuances		Value		Losses		Issuances
	(Dollars in thousands)

Securities Available-for-Sale
U.S. treasury securities	$	124,751	$	51		4	$	-	$	-		-	$	124,751	$	51		4
U.S. government agency entities		3,388		77		2		2,483		118		2		5,871		195		4
U.S. government sponsored entities		-		-		-		388,362		11,637		8		388,362		11,637		8
Mortgage-backed securities		48,528		502		8		507,701		14,587		74		556,229		15,089		82
Collateralized mortgage obligations		-		-		-		977		28		6		977		28		6
Total securities available-for-sale	$	176,667	$	630		14	$	899,523	$	26,370		90	$	1,076,190	$	27,000		104

	As of December 31, 2017
	Temporarily Impaired Securities
	Less than 12 months						12 months or longer						Total
	Fair		Unrealized		No. of		Fair		Unrealized		No. of		Fair		Unrealized		No. of
	Value		Losses		Issuances		Value		Losses		Issuances		Value		Losses		Issuances
	(Dollars in thousands)

Securities Available-for-Sale
U.S. treasury securities	$	199,823	$	62		4	$	49,697	$	295		2	$	249,520	$	357		6
U.S. government agency entities		5,711		70		3		-		-		-		5,711		70		3
U.S. government sponsored entities		-		-		-		390,336		9,664		8		390,336		9,664		8
State and municipal securities		1,914		30		2		-		-		-		1,914		30		2
Mortgage-backed securities		342,436		3,147		48		178,617		3,112		13		521,053		6,259		61
Collateralized mortgage obligations		1,516		17		5		-		-		-		1,516		17		5
Corporate debt securities		5,015		17		1		-		-		-		5,015		17		1
Mutual funds		-		-		-		6,230		270		1		6,230		270		1
Total securities available-for-sale	$	556,415	$	3,343		63	$	624,880	$	13,341		24	$	1,181,295	$	16,684		87

Investment securities having a carrying value of

$28.5

million at

December 31, 2018,

and

$272.2

million at

December 31, 2017,

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

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 year ended

December 31, 2018,

the Company recognized a net loss of

$2.8

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

$25.1

million as of

December 31, 2018,

compared to

$28.1

million as of

December 31, 2017.