Debt and Equity Securities

The Company’s investments in equity securities that have readily determinable fair values and all investments in debt securities are classified in

one

of the following

three

categories and accounted for accordingly:

(1)

trading securities,

(2)

securities available for sale and

(3)

securities held-to-maturity.

The Company did

not

hold any trading securities at

December

31,

2016

and

2015.

Securities available for sale are recorded at fair value. Securities held-to-maturity are recorded at amortized cost.

The following table summarizes the Company’s portfolio of securities held-to-maturity at

December

31,

2016:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securites held-to-maturity:
Municipals	$	37,735	$	35,408	$	-	$	2,327

Total	$	37,735	$	35,408	$	-	$	2,327

The following table summarizes the Company’s portfolio of securities held-to-maturity at

December

31,

2015:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securites held-to-maturity:
Municipals	$	6,180	$	6,180	$	-	$	-

Total	$	6,180	$	6,180	$	-	$	-

The following table summarizes the Company’s portfolio of securities available for sale at

December

31,

2016:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	110,000	$	102,910	$	-	$	7,090
Municipals		124,984		126,903		1,983		64
Mutual funds		21,366		21,366		-		-
Collateralized loan obligations		85,470		86,365		895		-
Other		7,363		7,361		-		2
Total other securities		349,183		344,905		2,878		7,156
REMIC and CMO		402,636		401,370		1,607		2,873
GNMA		1,319		1,427		108		-
FNMA		109,493		108,351		463		1,605
FHLMC		5,378		5,328		35		85
Total mortgage-backed securities		518,826		516,476		2,213		4,563
Total securities available for sale	$	868,009	$	861,381	$	5,091	$	11,719

Mortgage-backed securities shown in the table above includes

one

private issue collateralized mortgage obligations (“CMO”) that is collateralized by commercial real estate mortgages with an amortized cost and market value of

$0.2

million at

December

31,

2016.

The following table summarizes the Company’s portfolio of securities available for sale at

December

31,

2015:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	115,976	$	111,674	$	134	$	4,436
Municipals		127,696		131,583		3,887		-
Mutual funds		21,290		21,290		-		-
Collateralized loan obligations		53,225		52,898		-		327
Other		7,214		7,212		-		2
Total other securities		325,401		324,657		4,021		4,765
REMIC and CMO		469,987		469,936		3,096		3,147
GNMA		11,635		11,798		302		139
FNMA		170,327		170,057		1,492		1,762
FHLMC		16,961		16,949		87		99
Total mortgage-backed securities		668,910		668,740		4,977		5,147
Total securities available for sale	$	994,311	$	993,397	$	8,998	$	9,912

Mortgage-backed securities shown in the table above includes

one

private issue collateralized mortgage obligations (“CMO”) that is collateralized by commercial real estate mortgages with an amortized cost and market value of

$7.7

million at

December

31,

2015.

The following table details the amortized cost and fair value of the Company’s securities classified as held-to-maturity at

December

31,

2016,

by contractual maturity.

	Amortized
	Cost		Fair Value
	(In thousands)

Due in one year or less	$	15,870	$	15,870
Due after ten years		21,865	$	19,538

Total securities held-to-maturity	$	37,735	$	35,408

The amortized cost and fair value of the Company’s securities, classified as available for sale at

December

31,

2016,

by contractual maturity, are shown below. 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.

	Amortized
	Cost		Fair Value
	(In thousands)

Due in one year or less	$	-	$	-
Due after one year through five years		1,781		1,784
Due after five years through ten years		111,348		108,604
Due after ten years		214,688		213,151

Total other securities		327,817		323,539
Mutual funds		21,366		21,366
Mortgage-backed securities		518,826		516,476

Total securities available for sale	$	868,009	$	861,381

The following table shows the Company’s securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at

December

31,

2016.

			Total				Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities

Municipals		1	$	19,538	$	2,327	$	19,538	$	2,327	$	-	$	-
Total securities held-to-maturity		1	$	19,538	$	2,327	$	19,538	$	2,327	$	-	$	-

Available for sale securities
Corporate		14	$	102,910	$	7,090	$	28,476	$	1,524	$	74,434	$	5,566
Municipals		4		16,047		64		16,047		64		-		-
Other		1		298		2		-		-		298		2
Total other securities		19		119,255		7,156		44,523		1,588		74,732		5,568

REMIC and CMO		35		222,807		2,873		208,827		2,268		13,980		605
FNMA		18		80,924		1,605		74,972		1,250		5,952		355
FHLMC		1		3,993		85		3,993		85		-		-
Total mortgage-backed securities		54		307,724		4,563		287,792		3,603		19,932		960
Total securities available for sale		73	$	426,979	$	11,719	$	332,315	$	5,191	$	94,664	$	6,528

The Company did

not

hold any securities classified as held-to-maturity which had an unrealized loss at

December

31,

2015.

The following table shows the Company’s available for sale securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at

December

31,

2015.

			Total				Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Corporate		12	$	85,563	$	4,436	$	76,218	$	3,782	$	9,345	$	654
Municipals		7		52,898		327		52,898		327		-		-
Other		1		298		2		-		-		298		2
Total other securities		20		138,759		4,765		129,116		4,109		9,643		656

REMIC and CMO		33		238,132		3,147		182,010		1,642		56,122		1,505
GNMA		1		6,977		139		6,977		139		-		-
FNMA		20		102,225		1,762		75,769		1,043		26,456		719
FHLMC		3		14,715		99		14,715		99		-		-
Total mortgage-backed securities		57		362,049		5,147		279,471		2,923		82,578		2,224
Total securities available for sale		77	$	500,808	$	9,912	$	408,587	$	7,032	$	92,221	$	2,880

OTTI losses on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security or if it is more likely than not that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does not expect to sell a debt security, the investor must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in accumulated other comprehensive loss (“AOCL”) within Stockholders’ Equity.

The Company reviewed each investment that had an unrealized loss at

December

31,

2016

and

2015.

An unrealized loss exists when the current fair value of an investment is less than its amortized cost basis. The unrealized loss in securities held-to-maturity at

December

31,

2016

was caused by illiquidity in the market and movements in interest rates. The unrealized losses in total securities available for sale at

December

31,

2016

and

2015

were caused by movements in interest rates. It is not anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does not have the intent to sell these securities and it is more likely than not the Company will not be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations, none of which the Company believes would cause the sale of the securities. Therefore, the Company did

not

consider these investments to be other-than-temporarily impaired at

December

31,

2016

and

2015.

The following table represents the activity related to the credit loss component recognized in earnings on debt securities held by the Company for which a portion of OTTI was recognized in AOCL for the periods indicated:

	For the years ended December 31,
	2016		2015		2014
	(In thousands)
Beginning balance	$	-	$	-	$	3,738

Recognition of actual losses		-		-		-
OTTI charges due to credit loss recorded in earnings		-		-		-
Securities sold during the period		-		-		(3,738	)

Ending balance	$	-	$	-	$	-

The Company sold available for sale securities with book values at the time of sale totaling

$126.0

million,

$163.0

million and

$112.4

million during the years ended

December

31,

2016,

2015

and

2014,

respectively.

The following table represents the gross gains and gross losses realized from the sale of securities available for sale for the periods indicated:

	For the years ended
	December 31,
	2016			2015			2014
	(In thousands)
Gross gains from the sale of securities	$	2,370		$	2,899		$	5,247
Gross losses from the sale of securities		(846	)		(2,732	)		(2,372	)

Net gains from the sale of securities	$	1,524		$	167		$	2,875

Included in “Other assets” within our Consolidated Statements of Financial Condition are amounts held in a rabbi trust for certain non-qualified deferred compensation plans totaling

$15.7

million and

$14.8

million at

December

31,

2016

and

2015,

respectively.