SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair value of securities at June 30, 2018 and December 31, 2017 are summarized as follows (in thousands):



	June 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trading:
Municipal bonds	$	100						$	100
Corporate bonds	27,203							25,540
	$	27,303						$	25,640
Available-for-Sale:
U.S. Government and agency obligations	$	143,733	$	12	$	(2,720	)	$	141,025
Municipal bonds	65,563		242		(761		)	65,044
Corporate bonds	5,053		5		(20		)	5,038
Mortgage-backed or related securities	1,188,772		51		(26,403		)	1,162,420
Asset-backed securities	26,804		121		(140		)	26,785
	$	1,429,925	$	431	$	(30,044	)	$	1,400,312
Held-to-Maturity:
U.S. Government and agency obligations	$	1,152	$	28	$	(3	)	$	1,177
Municipal bonds	194,431		2,105		(3,115		)	193,421
Corporate bonds	3,805		—		(10		)	3,795
Mortgage-backed or related securities	63,788		—		(1,863		)	61,925
	$	263,176	$	2,133	$	(4,991	)	$	260,318



	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trading:
Municipal bonds	$	100						$	100
Corporate bonds	27,132							22,058
Equity securities	14							160
	$	27,246						$	22,318
Available-for-Sale:
U.S. Government and agency obligations	$	72,829	$	68	$	(431	)	$	72,466
Municipal bonds	68,513		665		(445		)	68,733
Corporate bonds	5,431		6		(44		)	5,393
Mortgage-backed or related securities	745,956		1,003		(7,402		)	739,557
Asset-backed securities	27,667		184		(93		)	27,758
Equity securities	5,716		10		(148		)	5,578
	$	926,112	$	1,936	$	(8,563	)	$	919,485
Held-to-Maturity:
U.S. Government and agency obligations	$	1,024	$	29	$	—		$	1,053
Municipal bonds	189,860		3,385		(1,252		)	191,993
Corporate bonds	3,978		7		—			3,985
Mortgage-backed or related securities	65,409		266		(518		)	65,157
	$	260,271	$	3,687	$	(1,770	)	$	262,188

At June 30, 2018 and December 31, 2017, 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):



	June 30, 2018
	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	$	109,860	$	(2,091	)	$	23,566	$	(629	)	$	133,426	$	(2,720	)
Municipal bonds	28,771		(373		)	13,466		(389		)	42,237		(762		)
Corporate bonds	4,123		(19		)	—		—			4,123		(19		)
Mortgage-backed or related securities	995,793		(21,357		)	125,657		(5,046		)	1,121,450		(26,403		)
Asset-backed securities	759		(1		)	9,874		(139		)	10,633		(140		)
	$	1,139,306	$	(23,841	)	$	172,563	$	(6,203	)	$	1,311,869	$	(30,044	)
Held-to-Maturity
U.S. Government and agency obligations	$	146	$	(3	)	$	—	$	—		$	146	$	(3	)
Municipal bonds	53,087		(890		)	30,815		(2,225		)	83,902		(3,115		)
Corporate bonds	490		(10		)	—		—			490		(10		)
Mortgage-backed or related securities	57,619		(1,607		)	4,254		(256		)	61,873		(1,863		)
	$	111,342	$	(2,510	)	$	35,069	$	(2,481	)	$	146,411	$	(4,991	)

	December 31, 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	$	31,276	$	(211	)	$	23,341	$	(220	)	$	54,617	$	(431	)
Municipal bonds	20,879		(185		)	13,360		(260		)	34,239		(445		)
Corporate bonds	296		(4		)	4,682		(40		)	4,978		(44		)
Mortgage-backed or related securities	559,916		(5,138		)	100,662		(2,264		)	660,578		(7,402		)
Asset-backed securities	—		—			9,926		(93		)	9,926		(93		)
Equity securities	5,480		(148		)	—		—			5,480		(148		)
	$	617,847	$	(5,686	)	$	151,971	$	(2,877	)	$	769,818	$	(8,563	)
Held-to-Maturity
Municipal bonds	21,839		(171		)	34,314		(1,081		)	56,153		(1,252		)
Mortgage-backed or related securities	38,023		(378		)	4,434		(140		)	42,457		(518		)
	$	59,862	$	(549	)	$	38,748	$	(1,221	)	$	98,610	$	(1,770	)

At June 30, 2018, there were 305 securities—available-for-sale with unrealized losses, compared to 226 at December 31, 2017. At June 30, 2018, there were 98 securities—held-to-maturity with unrealized losses, compared to 66 at December 31, 2017. Management does not believe that any individual unrealized loss as of June 30, 2018 or December 31, 2017 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 six-month periods ended June 30, 2018 or 2017. The Company did not recognize any OTTI charges or recoveries on securities—trading during the six-month periods ended June 30, 2018 or 2017. There were no securities—trading in a nonaccrual status at June 30, 2018 or December 31, 2017. Net unrealized holding gains of $3.4 million were recognized during the six months ended June 30, 2018 compared to $315,000 of net unrealized holdings gains recognized during the six months ended June 30, 2017.

There were nine sales of securities—available-for-sale during the six months ended June 30, 2018, and partial calls of securities resulted in a net gain of $51,000 for the six months ended June 30, 2018. Sales of securities—available-for-sale totaled $15.6 million which resulted in a net gain of $41,000 for the six months ended June 30, 2017. There were no securities—available-for-sale in a nonaccrual status at June 30, 2018 or December 31, 2017.

There were no sales of securities—held-to-maturity during the six-month periods ended June 30, 2018 and 2017 although there were partial calls of securities that resulted in a net gain of $2,000 for the six months ended June 30, 2018. There were no securities—held-to-maturity in a nonaccrual status at June 30, 2018 or December 31, 2017.

The amortized cost and estimated fair value of securities at June 30, 2018, 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.



	June 30, 2018
	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	$	100	$	100	$	6,059	$	6,045	$	2,292	$	2,291
Maturing after one year through five years	—		—		60,892		59,950		40,544		40,024
Maturing after five years through ten years	—		—		280,920		273,773		94,377		93,574
Maturing after ten years through twenty years	27,203		25,540		193,883		191,218		85,138		85,732
Maturing after twenty years	—		—		888,171		869,326		40,825		38,697
	$	27,303	$	25,640	$	1,429,925	$	1,400,312	$	263,176	$	260,318

The following table presents, as of June 30, 2018, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):



	June 30, 2018
	Carrying Value		Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	128,867	$	128,919	$	129,642
Interest rate swap counterparties	14,535		14,719		14,312
Repurchase agreements	123,817		126,129		123,817
Other	3,876		3,876		3,701
Total pledged securities	$	271,095	$	273,643	$	271,472