| INTEREST-BEARING DEPOSITS AND SECURITIES |
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 |
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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 |
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