SECURITIES

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



	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Trading:
Municipal bonds	$	100						$	100
Corporate bonds	27,240							25,664
	$	27,340						$	25,764
Available-for-Sale:
U.S. Government and agency obligations	$	139,329	$	9	$	(3,030	)	$	136,308
Municipal bonds	66,854		152		(1,020		)	65,986
Corporate bonds	5,054		4		(18		)	5,040
Mortgage-backed or related securities	1,218,204		29		(35,715		)	1,182,518
Asset-backed securities	22,456		86		(121		)	22,421
	$	1,451,897	$	280	$	(39,904	)	$	1,412,273
Held-to-Maturity:
U.S. Government and agency obligations	$	1,007	$	18	$	(4	)	$	1,021
Municipal bonds	191,777		1,433		(3,773		)	189,437
Corporate bonds	3,771		—		(20		)	3,751
Mortgage-backed or related securities	62,144		—		(2,259		)	59,885
	$	258,699	$	1,451	$	(6,056	)	$	254,094



	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 September 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):



	September 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	$	101,146	$	(1,940	)	$	27,397	$	(1,090	)	$	128,543	$	(3,030	)
Municipal bonds	25,768		(358		)	20,470		(662		)	46,238		(1,020		)
Corporate bonds	3,837		(11		)	293		(7		)	4,130		(18		)
Mortgage-backed or related securities	902,556		(22,907		)	270,846		(12,808		)	1,173,402		(35,715		)
Asset-backed securities	1,102		(1		)	9,891		(120		)	10,993		(121		)
	$	1,034,409	$	(25,217	)	$	328,897	$	(14,687	)	$	1,363,306	$	(39,904	)
Held-to-Maturity
U.S. Government and agency obligations	$	143	$	(4	)	$	—	$	—		$	143	$	(4	)
Municipal bonds	59,854		(1,227		)	33,614		(2,546		)	93,468		(3,773		)
Corporate bonds	481		(20		)	—		—			481		(20		)
Mortgage-backed or related securities	43,293		(1,457		)	16,593		(802		)	59,886		(2,259		)
	$	103,771	$	(2,708	)	$	50,207	$	(3,348	)	$	153,978	$	(6,056	)

	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 September 30, 2018, there were 336 securities—available-for-sale with unrealized losses, compared to 226 at December 31, 2017. At September 30, 2018, there were 113 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 September 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 nine-month periods ended September 30, 2018 or 2017. The Company did not recognize any OTTI charges or recoveries on securities—trading during the nine-month periods ended September 30, 2018 or 2017. There were no securities—trading in a nonaccrual status at September 30, 2018 or December 31, 2017. Net unrealized holding gains of $3.5 million were recognized during the nine months ended September 30, 2018 compared to $389,000 of net unrealized holdings gains recognized during the nine months ended September 30, 2017.

There were nine sales of securities—available-for-sale during the nine months ended September 30, 2018, and partial calls of securities resulted in a net gain of $51,000 for the nine months ended September 30, 2018. Sales of securities—available-for-sale totaled $35.6 million which resulted in a net gain of $230,000 for the nine months ended September 30, 2017. There were no securities—available-for-sale in a nonaccrual status at September 30, 2018 or December 31, 2017.

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

The amortized cost and estimated fair value of securities at September 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.



	September 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	$	5,004	$	4,990	$	3,331	$	3,322
Maturing after one year through five years	—		—		64,250		63,572		49,608		48,484
Maturing after five years through ten years	—		—		268,844		259,593		83,662		82,497
Maturing after ten years through twenty years	27,240		25,664		222,061		218,114		83,124		83,163
Maturing after twenty years	—		—		891,738		866,004		38,974		36,628
	$	27,340	$	25,764	$	1,451,897	$	1,412,273	$	258,699	$	254,094

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



	September 30, 2018
	Carrying Value		Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	128,020	$	128,101	$	127,902
Interest rate swap counterparties	13,782		14,023		13,494
Repurchase agreements	128,991		132,361		128,991
Other	3,852		3,852		3,658
Total pledged securities	$	274,645	$	278,337	$	274,045