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

March

31,

2017

and

December

31,

2016.

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

The following tables summarize the Company’s portfolio of securities held-to-maturity at the periods indicated:

	At March 31, 2017
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securites held-to-maturity:
Municipals	$	36,406	$	34,152	$	-	$	2,254

Total	$	36,406	$	34,152	$	-	$	2,254

	At December 31, 2016
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securites held-to-maturity:
Municipals	$	37,735	$	35,408	$	-	$	2,327

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

The following tables summarize the Company’s portfolio of securities available for sale at the periods indicated:

	At March 31, 2017
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	110,000	$	103,694	$	-	$	6,306
Municipals		124,296		127,281		2,985		-
Mutual funds		21,431		21,431		-		-
Collateralized loan obligations		85,470		86,438		968		-
Other		7,396		7,394		-		2
Total other securities		348,593		346,238		3,953		6,308
REMIC and CMO		426,537		425,209		1,826		3,154
GNMA		1,250		1,352		102		-
FNMA		107,176		106,140		396		1,432
FHLMC		5,256		5,204		31		83
Total mortgage-backed securities		540,219		537,905		2,355		4,669
Total securities available for sale	$	888,812	$	884,143	$	6,308	$	10,977

	At December 31, 2016
	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized 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 tables above include

one

private issue CMO that is collateralized by commercial real estate mortgages with an amortized cost and market value of

$0.2

million at

March

31,

2017

and

December

31,

2016.

The corporate securities held by the Company at

March

31,

2017

and

December

31,

2016

are issued by U.S. banking institutions.

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at

March

31,

2017

by contractual maturity. 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.

Held-to-maturity	Amortized Cost		Fair Value
	(In thousands)

Due in one year or less	$	14,540	$	14,540
Due after ten years		21,866		19,612

Total securities held-to-maturity	$	36,406	$	34,152

Available for sale	Amortized Cost		Fair Value
	(In thousands)

Due in one year or less	$	-	$	-
Due after one year through five years		1,766		1,774
Due after five years through ten years		121,217		119,423
Due after ten years		204,179		203,610

Total other securities		327,162		324,807
Mutual funds		21,431		21,431
Mortgage-backed securities		540,219		537,905

Total securities available for sale	$	888,812	$	884,143

The following tables show 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 the periods indicated:

	At March 31, 2017
			Total				Less than 12 months				12 months or more
	Count		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
			(Dollars in thousands)
Held-to-maturity securities

Municipals		1	$	19,612	$	2,254	$	19,612	$	2,254	$	-	$	-
Total securities held-to-maturity		1	$	19,612	$	2,254	$	19,612	$	2,254	$	-	$	-

Available for sale securities
Corporate		14	$	103,694	$	6,306	$	19,209	$	791	$	84,485	$	5,515
Other		1		299		2		-		-		299		2
Total other securities		15		103,993		6,308		19,209		791		84,784		5,517

REMIC and CMO		34		208,825		3,154		195,016		2,516		13,809		638
FNMA		17		75,059		1,432		69,340		1,089		5,719		343
FHLMC		1		3,972		83		3,972		83		-		-
Total mortgage-backed securities		52		287,856		4,669		268,328		3,688		19,528		981
Total securities available for sale		67	$	391,849	$	10,977	$	287,537	$	4,479	$	104,312	$	6,498

	At December 31, 2016
			Total				Less than 12 months				12 months or more
	Count		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized 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

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 in an unrealized loss position, 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. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCL, net of tax.

The Company reviewed each investment that had an unrealized loss at

March

31,

2017

and

December

31,

2016.

The unrealized losses in securities held-to-maturity at

March

31,

2017

and

December

31,

2016

were caused by illiquidity in the market and movements in interest rates.

The unrealized losses in securities available for sale at

March

31,

2017

and

December

31,

2016

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

March

31,

2017

and

December

31,

2016.

The Company did

not

sell any securities during the

three

months ended

March

31,

2017

and

2016.