Securities

The Company did

not

hold any trading securities at

September 30, 2018

and

December 31, 2017.

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, 2018:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	23,207	$	20,996	$	-	$	2,211

Total other securities		23,207		20,996		-		2,211

FNMA		7,958		7,221		-		737

Total mortgage-backed securities		7,958		7,221		-		737
Total	$	31,165	$	28,217	$	-	$	2,948

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

December 31, 2017:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	22,913	$	21,889	$	-	$	1,024

Total other securities		22,913		21,889		-		1,024

FNMA		7,973		7,810		-		163

Total mortgage-backed securities		7,973		7,810		-		163
Total	$	30,886	$	29,699	$	-	$	1,187

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

September 30, 2018:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	120,000	$	109,757	$	-	$	10,243
Municipals		100,018		100,546		589		61
Mutual funds		11,405		11,405		-		-
Collateralized loan obligations		10,000		10,000		-		-
Other		1,205		1,205		-		-
Total other securities		242,628		232,913		589		10,304
REMIC and CMO		372,472		360,119		17		12,370
GNMA		805		848		43		-
FNMA		130,397		125,168		47		5,276
FHLMC		43,939		41,984		9		1,964
Total mortgage-backed securities		547,613		528,119		116		19,610
Total securities available for sale	$	790,241	$	761,032	$	705	$	29,914

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

December 31, 2017:

	Amortized Cost		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses
	(In thousands)
Corporate	$	110,000	$	102,767	$	-	$	7,233
Municipals		101,680		103,199		1,519		-
Mutual funds		11,575		11,575		-		-
Collateralized loan obligations		10,000		10,053		53		-
Other		1,110		1,110		-		-
Total other securities		234,365		228,704		1,572		7,233
REMIC and CMO		328,668		325,302		595		3,961
GNMA		1,016		1,088		72		-
FNMA		136,198		135,474		330		1,054
FHLMC		48,103		47,786		18		335
Total mortgage-backed securities		513,985		509,650		1,015		5,350
Total securities available for sale	$	748,350	$	738,354	$	2,587	$	12,583

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

$21,000

December 31, 2017.

We did

not

hold any private issue CMO’s that are collateralized by commercial real estate mortgages at

September 30, 2018.

The corporate securities held by the Company at

September 30, 2018

and

December 31, 2017

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, 2018,

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.

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

Due in one year or less	$	1,568	$	1,568
Due after ten years		21,639		19,428

Total other securities		23,207		20,996
Mortgage-backed securities		7,958		7,221

Total	$	31,165	$	28,217

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

Due in one year or less	$	-	$	-
Due after one year through five years		4,219		4,215
Due after five years through ten years		135,466		125,245
Due after ten years		91,538		92,048

Total other securities		231,223		221,508
Mutual funds		11,405		11,405
Mortgage-backed securities		547,613		528,119

Total	$	790,241	$	761,032

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, 2018
			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	$	19,427	$	2,211	$	-	$	-	$	19,427	$	2,211
Total other securities		1		19,427		2,211		-		-		19,427		2,211

FNMA		1		7,221		737		-		-		7,221		737
Total mortgage-backed securities		1		7,221		737		-		-		7,221		737
Total		2	$	26,648	$	2,948	$	-	$	-	$	26,648	$	2,948


Available for sale securities
Corporate		14	$	99,756	$	10,243	$	-	$	-	$	99,756	$	10,243
Municipals		11		28,686		61		28,686		61		-		-
Total other securities		25		128,442		10,304		28,686		61		99,756		10,243

REMIC and CMO		56		337,184		12,370		189,028		4,658		148,156		7,712
FNMA		23		123,654		5,276		38,461		904		85,193		4,372
FHLMC		2		41,274		1,964		-		-		41,274		1,964
Total mortgage-backed securities		81		502,112		19,610		227,489		5,562		274,623		14,048
Total		106	$	630,554	$	29,914	$	256,175	$	5,623	$	374,379	$	24,291

	At December 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	$	20,844	$	1,024	$	20,844	$	1,024	$	-	$	-
Total other securities		1		20,844		1,024		20,844		1,024		-		-

FNMA		1		7,810		163		7,810		163		-		-
Total mortgage-backed securities		1		7,810		163		7,810		163		-		-

Total securities held-to-maturity		2	$	28,654	$	1,187	$	28,654	$	1,187	$	-	$	-

Available for sale securities
Corporate		14	$	102,767	$	7,233	$	9,723	$	277	$	93,044	$	6,956
Total other securities		14		102,767		7,233		9,723		277		93,044		6,956

REMIC and CMO		36		249,596		3,961		162,781		1,406		86,815		2,555
FNMA		17		120,510		1,054		109,258		850		11,252		204
FHLMC		2		46,829		335		43,258		294		3,571		41
Total mortgage-backed securities		55		416,935		5,350		315,297		2,550		101,638		2,800
Total securities available for sale		69	$	519,702	$	12,583	$	325,020	$	2,827	$	194,682	$	9,756

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, 2018

and

December 31, 2017.

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

September 30, 2018

and

December 31, 2017

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

September 30, 2018

and

December 31, 2017

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

September 30, 2018

and

December 31, 2017

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, 2018

and

December 31, 2017.

Realized gains and losses on the sales of securities are determined using the specific identification method. The Company did

not

sell any securities during the

three

and

nine

months ended

September 30, 2018.

The Company sold available for sale securities totaling

$112.4

million during the

three

and

nine

months ended

September 30, 2017.

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,
	2018		2017			2018		2017
	(In thousands)
Gross gains from the sale of securities	$	-	$	401		$	-	$	401
Gross losses from the sale of securities		-		(587	)		-		(587	)

Net losses from the sale of securities	$	-	$	(186	)	$	-	$	(186	)