SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2017 and December 31, 2016 are summarized as follows (in thousands):



	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trading:
U.S. Government and agency obligations	$	1,230						$	1,305
Municipal bonds	330							331
Corporate bonds	27,089							21,675
Equity securities	14							155
	$	28,663						$	23,466
Available-for-Sale:
U.S. Government and agency obligations	$	87,509	$	379	$	(303	)	$	87,585
Municipal bonds	113,794		1,194		(342		)	114,646
Corporate bonds	10,567		79		(44		)	10,602
Mortgage-backed or related securities	1,093,203		4,103		(4,874		)	1,092,432
Asset-backed securities	28,104		157		(54		)	28,207
Equity securities	5,686		10		(111		)	5,585
	$	1,338,863	$	5,922	$	(5,728	)	$	1,339,057
Held-to-Maturity:
U.S. Government and agency obligations	$	1,035	$	24	$	—		$	1,059
Municipal bonds:	193,987		4,638		(1,015		)	197,610
Corporate bonds	4,265		—		—			4,265
Mortgage-backed or related securities	65,465		476		(212		)	65,729
	$	264,752	$	5,138	$	(1,227	)	$	268,663



	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trading:
U.S. Government and agency obligations	$	1,230						$	1,326
Municipal bonds	331							335
Corporate bonds	26,959							21,143
Mortgage-backed or related securities	1,620							1,641
Equity securities	14							123
	$	30,154						$	24,568
Available-for-Sale:
U.S. Government and agency obligations	$	57,288	$	146	$	(456	)	$	56,978
Municipal bonds	110,487		455		(1,089		)	109,853
Corporate bonds	10,255		77		(49		)	10,283
Mortgage-backed or related securities	598,899		2,064		(6,251		)	594,712
Asset-backed securities	29,319		—		(326		)	28,993
Equity securities	88		10		—			98
	$	806,336	$	2,752	$	(8,171	)	$	800,917
Held-to-Maturity:
U.S. Government and agency obligations	$	1,065	$	—	$	(18	)	$	1,047
Municipal bonds:	196,989		4,173		(1,272		)	199,890
Corporate bonds	3,876		—		—			3,876
Mortgage-backed or related securities	65,943		309		(537		)	65,715
	$	267,873	$	4,482	$	(1,827	)	$	270,528

At September 30, 2017 and December 31, 2016, 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, 2017
	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	$	39,846	$	(286	)	$	5,680	$	(17	)	$	45,526	$	(303	)
Municipal bonds	32,559		(169		)	13,023		(173		)	45,582		(342		)
Corporate bonds	300		(1		)	4,814		(43		)	5,114		(44		)
Mortgage-backed or related securities	437,934		(3,417		)	95,051		(1,457		)	532,985		(4,874		)
Asset-backed securities	9,968		(54		)	—		—			9,968		(54		)
Equity securities	5,487		(111		)	—		—			5,487		(111		)
	$	526,094	$	(4,038	)	$	118,568	$	(1,690	)	$	644,662	$	(5,728	)
Held-to-Maturity
Municipal bonds	$	40,230	$	(903	)	$	4,347	$	(112	)	$	44,577	$	(1,015	)
Mortgage-backed or related securities	18,889		(212		)	—		—			18,889		(212		)
	$	59,119	$	(1,115	)	$	4,347	$	(112	)	$	63,466	$	(1,227	)

	December 31, 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	$	39,043	$	(442	)	$	1,012	$	(14	)	$	40,055	$	(456	)
Municipal bonds	60,765		(1,087		)	556		(2		)	61,321		(1,089		)
Corporate bonds	5,206		(49		)	—		—			5,206		(49		)
Mortgage-backed or related securities	403,431		(5,604		)	47,467		(647		)	450,898		(6,251		)
Asset-backed securities	9,928		(101		)	19,064		(225		)	28,992		(326		)
	$	518,373	$	(7,283	)	$	68,099	$	(888	)	$	586,472	$	(8,171	)
Held-to-Maturity
U.S. Government and agency obligations	$	1,047	$	(18	)	$	—	$	—		$	1,047	$	(18	)
Municipal bonds	64,802		(1,267		)	204		(5		)	65,006		(1,272		)
Mortgage-backed or related securities	42,245		(537		)	—		—			42,245		(537		)
	$	108,094	$	(1,822	)	$	204	$	(5	)	$	108,298	$	(1,827	)

At September 30, 2017, there were 221 securities—available-for-sale with unrealized losses, compared to 243 at December 31, 2016. At September 30, 2017, there were 31 securities—held-to-maturity with unrealized losses, compared to 73 at December 31, 2016. Management does not believe that any individual unrealized loss as of September 30, 2017 or December 31, 2016 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.

There were no sales of securities—trading during the nine months ended September 30, 2017 compared with sales of $1.7 million with a resulting net gain of $156,000 for the nine months ending September 30, 2016. The Company did not recognize any OTTI charges or recoveries on securities—trading during the nine months ended September 30, 2017 or the nine months ended September 30, 2016. There were no securities—trading in a nonaccrual status at September 30, 2017 or December 31, 2016. Net unrealized holding gains of $389,000 were recognized during the nine months ended September 30, 2017.

Sales of securities—available-for-sale totaled $35.6 million with a resulting net gain of $230,000 for the nine months ended September 30, 2017. 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. There were no securities—available-for-sale in a nonaccrual status at September 30, 2017 or December 31, 2016.

There were no sales of securities—held-to-maturity during the nine months ended September 30, 2017 or September 30, 2016. There were no securities—held-to-maturity in a nonaccrual status at September 30, 2017 or December 31, 2016.

The amortized cost and estimated fair value of securities at September 30, 2017, 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, 2017
	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	$	130	$	131	$	26,951	$	26,911	$	1,226	$	1,226
Maturing after one year through five years	230		231		110,023		110,293		24,269		24,432
Maturing after five years through ten years	1,200		1,274		265,137		264,366		108,739		110,368
Maturing after ten years through twenty years	17,089		14,248		255,076		256,319		88,407		91,280
Maturing after twenty years	10,000		7,427		675,990		675,583		42,111		41,357
	28,649		23,311		1,333,177		1,333,472		264,752		268,663
Equity securities	14		155		5,686		5,585		—		—
	$	28,663	$	23,466	$	1,338,863	$	1,339,057	$	264,752	$	268,663

The following table presents, as of September 30, 2017, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):



	September 30, 2017
	Carrying Value		Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	127,661	$	127,549	$	130,380
Interest rate swap counterparties	16,172		16,197		16,218
Repurchase agreements	127,632		127,803		127,797
Other	3,949		3,948		3,888
Total pledged securities	$	275,414	$	275,497	$	278,283