| INTEREST-BEARING DEPOSITS AND SECURITIES |
SECURITIES
The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2016 and December 31, 2015 are summarized as follows (in thousands): | | | | | | | | | | | | | | | | | | September 30, 2016 | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | Trading: | | | | | | | | U.S. Government and agency obligations | $ | 1,230 |
| | | | | | $ | 1,366 |
| Municipal bonds | 331 |
| | | | | | 336 |
| Corporate bonds | 26,916 |
| | | | | | 20,925 |
| Mortgage-backed or related securities | 7,628 |
| | | | | | 8,173 |
| Equity securities | 14 |
| | | | | | 89 |
| | $ | 36,119 |
| | | | | | $ | 30,889 |
| Available-for-Sale: | | | | | | | | U.S. Government and agency obligations | $ | 57,900 |
| | $ | 298 |
| | $ | (28 | ) | | $ | 58,170 |
| Municipal bonds | 142,234 |
| | 3,236 |
| | (69 | ) | | 145,401 |
| Corporate bonds | 10,386 |
| | 39 |
| | (52 | ) | | 10,373 |
| Mortgage-backed or related securities | 753,344 |
| | 10,094 |
| | (786 | ) | | 762,652 |
| Asset-backed securities | 29,961 |
| | 21 |
| | (262 | ) | | 29,720 |
| Equity securities | 88 |
| | 10 |
| | — |
| | 98 |
| | $ | 993,913 |
| | $ | 13,698 |
| | $ | (1,197 | ) | | $ | 1,006,414 |
| Held-to-Maturity: | | | | | | | | U.S. Government and agency obligations | $ | 1,076 |
| | $ | — |
| | $ | (2 | ) | | $ | 1,074 |
| Municipal bonds: | 199,606 |
| | 8,841 |
| | (12 | ) | | 208,435 |
| Corporate bonds | 4,162 |
| | — |
| | — |
| | 4,162 |
| Mortgage-backed or related securities | 67,131 |
| | 2,501 |
| | — |
| | 69,632 |
| | $ | 271,975 |
| | $ | 11,342 |
| | $ | (14 | ) | | $ | 283,303 |
|
| | | | | | | | | | | | | | | | | | December 31, 2015 | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | Trading: | | | | | | | | U.S. Government and agency obligations | $ | 1,230 |
| | | | | | $ | 1,368 |
| Municipal bonds | 332 |
| | | | | | 341 |
| Corporate bonds | 25,063 |
| | | | | | 18,699 |
| Mortgage-backed or related securities | 12,705 |
| | | | | | 13,663 |
| Equity securities | 14 |
| | | | | | 63 |
| | $ | 39,344 |
| | | | | | $ | 34,134 |
| Available-for-Sale: | | | | | | | | U.S. Government and agency obligations | $ | 30,211 |
| | $ | 213 |
| | $ | (193 | ) | | $ | 30,231 |
| Municipal bonds | 142,898 |
| | 853 |
| | (432 | ) | | 143,319 |
| Corporate bonds | 15,937 |
| | 56 |
| | (12 | ) | | 15,981 |
| Mortgage-backed or related securities | 919,318 |
| | 4,056 |
| | (5,115 | ) | | 918,259 |
| Asset-backed securities | 31,288 |
| | — |
| | (603 | ) | | 30,685 |
| Equity securities | 88 |
| | 10 |
| | — |
| | 98 |
| | $ | 1,139,740 |
| | $ | 5,188 |
| | $ | (6,355 | ) | | $ | 1,138,573 |
| Held-to-Maturity: | | | | | | | | U.S. Government and agency obligations | $ | 1,106 |
| | $ | 5 |
| | $ | — |
| | $ | 1,111 |
| Municipal bonds: | 162,778 |
| | 6,219 |
| | (191 | ) | | 168,806 |
| Corporate bonds | 4,273 |
| | — |
| | — |
| | 4,273 |
| Mortgage-backed or related securities | 52,509 |
| | 253 |
| | (325 | ) | | 52,437 |
| | $ | 220,666 |
| | $ | 6,477 |
| | $ | (516 | ) | | $ | 226,627 |
|
At September 30, 2016 and December 31, 2015, the gross unrealized losses and the fair value for securities available-for-sale and held-to-maturity aggregated by the length of time that individual securities have been in a continuous unrealized loss position was as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2016 | | Less Than 12 Months | | 12 Months or More | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | Available-for-Sale: | | | | | | | | | | | | U.S. Government and agency obligations | $ | 5,784 |
| | $ | (16 | ) | | $ | 1,078 |
| | $ | (12 | ) | | $ | 6,862 |
| | $ | (28 | ) | Municipal bonds | 18,503 |
| | (67 | ) | | 1,060 |
| | (2 | ) | | 19,563 |
| | (69 | ) | Corporate bonds | 5,334 |
| | (52 | ) | | — |
| | — |
| | 5,334 |
| | (52 | ) | Mortgage-backed or related securities | 152,276 |
| | (600 | ) | | 32,760 |
| | (186 | ) | | 185,036 |
| | (786 | ) | Asset-backed securities | — |
| | — |
| | 19,667 |
| | (262 | ) | | 19,667 |
| | (262 | ) | | $ | 181,897 |
| | $ | (735 | ) | | $ | 54,565 |
| | $ | (462 | ) | | $ | 236,462 |
| | $ | (1,197 | ) | Held-to-Maturity | | | | | | | | | | | | U.S. Government and agency obligations | $ | 1,074 |
| | $ | (2 | ) | | $ | — |
| | $ | — |
| | $ | 1,074 |
| | $ | (2 | ) | Municipal bonds | $ | 4,494 |
| | $ | (12 | ) | | $ | — |
| | $ | — |
| | $ | 4,494 |
| | $ | (12 | ) | | $ | 5,568 |
| | $ | (14 | ) | | $ | — |
| | $ | — |
| | $ | 5,568 |
| | $ | (14 | ) | | | | | | | | | | | | | | December 31, 2015 | | Less Than 12 Months | | 12 Months or More | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | Available-for-Sale: | | | | | | | | | | | | U.S. Government and agency obligations | $ | 8,707 |
| | $ | (97 | ) | | $ | 10,489 |
| | $ | (96 | ) | | $ | 19,196 |
| | $ | (193 | ) | Municipal bonds | 69,848 |
| | (426 | ) | | 905 |
| | (6 | ) | | 70,753 |
| | (432 | ) | Corporate bonds | 5,153 |
| | (12 | ) | | — |
| | — |
| | 5,153 |
| | (12 | ) | Mortgage-backed or related securities | 533,143 |
| | (4,380 | ) | | 68,562 |
| | (735 | ) | | 601,705 |
| | (5,115 | ) | Asset-backed securities | 20,893 |
| | (355 | ) | | 9,792 |
| | (248 | ) | | 30,685 |
| | (603 | ) | | $ | 637,744 |
| | $ | (5,270 | ) | | $ | 89,748 |
| | $ | (1,085 | ) | | $ | 727,492 |
| | $ | (6,355 | ) | Held-to-Maturity | | | | | | | | | | | | Municipal bonds | $ | 28,545 |
| | $ | (188 | ) | | $ | 254 |
| | $ | (3 | ) | | $ | 28,799 |
| | $ | (191 | ) | Mortgage-backed or related securities | 34,493 |
| | (323 | ) | | 255 |
| | (2 | ) | | 34,748 |
| | (325 | ) | | $ | 63,038 |
| | $ | (511 | ) | | $ | 509 |
| | $ | (5 | ) | | $ | 63,547 |
| | $ | (516 | ) |
At September 30, 2016, there were 91 securities—available-for-sale with unrealized losses, compared to 242 at December 31, 2015. At September 30, 2016, there were six securities—held-to-maturity with unrealized losses, compared to 32 at December 31, 2015. Management does not believe that any individual unrealized loss as of September 30, 2016, or December 31, 2015 represented other-than-temporary impairment (OTTI). The decline in fair market value of these securities was generally due to changes in interest rates and changes in market-desired spreads subsequent to their purchase.
Sales of securities—trading totaled $1.7 million with a resulting net gain of $156,000 for the nine months ended September 30, 2016 compared to $2.5 million with a resulting net loss of $690,000 for the nine months ended September 30, 2015. The Company did not recognize any OTTI charges or recoveries on securities—trading during the nine months ended September 30, 2016, or the nine months ended September 30, 2015. There were no securities—trading in a nonaccrual status at September 30, 2016, or December 31, 2015. Net unrealized holding gains of $112,000 were recognized during the nine months ended September 30, 2016.
Sales of securities—available-for-sale totaled $233.3 million with a resulting net gain of $374,000 for the nine months ended September 30, 2016. Sales of securities—available-for-sale totaled $40.3 million with a resulting net gain of $126,000 for the nine months ended September 30, 2015. There were no securities—available-for-sale in a nonaccrual status at September 30, 2016 or December 31, 2015.
There were no sales of securities—held-to-maturity during the nine months ended September 30, 2016, or September 30, 2015. There were no securities—held-to-maturity in a nonaccrual status at September 30, 2016 or December 31, 2015.
The amortized cost and estimated fair value of securities at September 30, 2016, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2016 | | Trading | | Available-for-Sale | | Held-to-Maturity | | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | Maturing in one year or less | $ | — |
| | $ | — |
| | $ | 13,178 |
| | $ | 13,175 |
| | $ | 2,561 |
| | $ | 2,583 |
| Maturing after one year through five years | 5,668 |
| | 5,969 |
| | 179,161 |
| | 180,625 |
| | 15,252 |
| | 15,500 |
| Maturing after five years through ten years | 3,245 |
| | 3,596 |
| | 203,970 |
| | 206,203 |
| | 112,199 |
| | 116,736 |
| Maturing after ten years through twenty years | 276 |
| | 310 |
| | 240,518 |
| | 244,927 |
| | 96,601 |
| | 102,641 |
| Maturing after twenty years | 26,916 |
| | 20,925 |
| | 356,998 |
| | 361,386 |
| | 45,362 |
| | 45,843 |
| | 36,105 |
| | 30,800 |
| | 993,825 |
| | 1,006,316 |
| | 271,975 |
| | 283,303 |
| Equity securities | 14 |
| | 89 |
| | 88 |
| | 98 |
| | — |
| | — |
| | $ | 36,119 |
| | $ | 30,889 |
| | $ | 993,913 |
| | $ | 1,006,414 |
| | $ | 271,975 |
| | $ | 283,303 |
|
The following table presents, as of September 30, 2016, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands): | | | | | | | | | | | | | | September 30, 2016 | | Carrying Value | | Amortized Cost | | Fair Value | Purpose or beneficiary: | | | | | | State and local governments public deposits | $ | 204,765 |
| | $ | 203,838 |
| | $ | 213,382 |
| Interest rate swap counterparties | 24,754 |
| | 24,669 |
| | 25,501 |
| Repurchase agreements | 126,873 |
| | 125,666 |
| | 127,958 |
| Other | 1,890 |
| | 1,884 |
| | 1,889 |
| Total pledged securities | $ | 358,282 |
| | $ | 356,057 |
| | $ | 368,730 |
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