Debt and Equity Securities

The Company did

not

hold any trading securities at

September 30, 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 table summarizes the Company’s portfolio of securities held-to-maturity at

September 30, 2017:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	22,952	$	21,542	$	-	$	1,410

Total other securities		22,952		21,542		-		1,410

FNMA		7,978		7,839		-		139

Total mortgage-backed securities		7,978		7,839		-		139
Total	$	30,930	$	29,381	$	-	$	1,549

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

December 31, 2016:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities 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 available for sale at

September 30, 2017:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	110,000	$	103,126	$	-	$	6,874
Municipals		102,226		104,979		2,753		-
Mutual funds		18,629		18,629		-		-
Collateralized loan obligations		48,398		48,881		483		-
Other		1,083		1,083		-		-
Total other securities		280,336		276,698		3,236		6,874
REMIC and CMO		330,593		330,459		1,953		2,087
GNMA		1,096		1,184		88		-
FNMA		138,995		138,781		547		761
FHLMC		49,557		49,437		23		143
Total mortgage-backed securities		520,241		519,861		2,611		2,991
Total securities available for sale	$	800,577	$	796,559	$	5,847	$	9,865

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

one

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

$0.1

million and

$0.2

million at

September 30, 2017

and

December 31, 2016.

The corporate securities held by the Company at

September 30, 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

September 30, 2017,

by contractual maturity. Expected maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)

Due in one year or less	$	1,085	$	1,085
Due after ten years		21,867		20,457

Total other securities		22,952		21,542
Mortgage-backed securities		7,978		7,839

Total	$	30,930	$	29,381

Securities available for sale:	Amortized Cost		Fair Value
	(In thousands)

Due in one year or less	$	-	$	-
Due after one year through five years		4,335		4,443
Due after five years through ten years		159,666		153,369
Due after ten years		97,706		100,257
Mutual funds		18,629		18,629

Total other securities		280,336		276,698
Mortgage-backed securities		520,241		519,861

Total	$	800,577	$	796,559

The following tables show 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 the dates indicated:

	At September 30, 2017
			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	$	20,457	$	1,410	$	20,457	$	1,410	$	-	$	-
Total other securities		1		20,457		1,410		20,457		1,410		-		-

FNMA		1		7,839		139		7,839		139		-		-
Total mortgage-backed securities		1		7,839		139		7,839		139		-		-
Total		2	$	28,296	$	1,549	$	28,296	$	1,549	$	-	$	-


Available for sale securities
Corporate		14	$	103,126	$	6,874	$	19,154	$	846	$	83,972	$	6,028
Total other securities		14		103,126		6,874		19,154		846		83,972		6,028

REMIC and CMO		23		149,238		2,087		133,091		1,449		16,147		638
FNMA		11		90,337		761		81,621		595		8,716		166
FHLMC		2		48,400		143		48,400		143		-		-
Total mortgage-backed securities		36		287,975		2,991		263,112		2,187		24,863		804
Total		50	$	391,101	$	9,865	$	282,266	$	3,033	$	108,835	$	6,832

	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		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
Collateralized loan obligations		4		16,047		64		16,047		64		-		-
Other		1		298		2		-		-		298		2
Total		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		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

September 30, 2017

and

December 31, 2016.

The unrealized losses in municipal securities held-to-maturity at

September 30, 2017

and

December 31, 2016

were caused by illiquidity in the market and movements in interest rates. The unrealized losses in FNMA securities held-to-maturity at

September 30, 2017

were caused by movements in interest rates. The unrealized losses in securities available for sale at

September 30, 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

September 30, 2017

and

December 31, 2016.

Realized gains and losses on the sales of securities are determined using the specific identification method. The Company sold available for sale securities totaling

$112.4

million during the

three

months ended

September 30, 2017.

The Company did

not

sell any available for sale securities during the

three

months ended

September 30, 2016.

The Company sold available for sale securities totaling

$112.4

million and

$64.6

million during the

nine

months ended

September 30, 2017

and

2016,

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 three months ended September 30,					For the nine months ended September 30,
	2017			2016		2017			2016
	(In thousands)
Gross gains from the sale of securities	$	401		$	-	$	401		$	2,370
Gross losses from the sale of securities		(587	)		-		(587	)		(7	)

Net (losses) gains from the sale of securities	$	(186	)	$	-	$	(186	)	$	2,363