4.	Debt and Equity Securities

The Company did

not

hold any trading securities at

March 31, 2018

and

December 31, 2017.

Securities available for sale are recorded at fair value. Securities held-to-maturity are recorded at amortized cost.

The following table summarizes the Company’s portfolio of securities held-to-maturity at

March 31, 2018:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	23,267	$	21,347	$	-	$	1,920

Total other securities		23,267		21,347		-		1,920

FNMA		7,968		7,564		-		404

Total mortgage-backed securities		7,968		7,564		-		404
Total	$	31,235	$	28,911	$	-	$	2,324

The following table summarizes the Company’s portfolio of securities held-to-maturity at

December 31, 2017:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Securities held-to-maturity:
Municipals	$	22,913	$	21,889	$	-	$	1,024

Total municipals		22,913		21,889		-		1,024

FNMA		7,973		7,810		-		163

Total mortgage-backed securities		7,973		7,810		-		163

Total	$	30,886	$	29,699	$	-	$	1,187

The following table summarizes the Company’s portfolio of securities available for sale at

March 31, 2018:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	110,000	$	101,578	$	-	$	8,422
Municipals		101,129		102,289		1,191		31
Mutual funds		11,451		11,451		-		-
Other		1,162		1,162		-		-
Total other securities		223,742		216,480		1,191		8,453
REMIC and CMO		346,414		338,368		188		8,234
GNMA		940		1,004		64		-
FNMA		131,918		128,535		68		3,451
FHLMC		45,938		44,874		15		1,079
Total mortgage-backed securities		525,210		512,781		335		12,764
Total securities available for sale	$	748,952	$	729,261	$	1,526	$	21,217

The following table summarizes the Company’s portfolio of securities available for sale at

December 31, 2017:

					Gross		Gross
	Amortized				Unrealized		Unrealized
	Cost		Fair Value		Gains		Losses
	(In thousands)
Corporate	$	110,000	$	102,767	$	-	$	7,233
Municipals		101,680		103,199		1,519		-
Mutual funds		11,575		11,575		-		-
Collateralized loan obligations		10,000		10,053		53		-
Other		1,110		1,110		-		-
Total other securities		234,365		228,704		1,572		7,233
REMIC and CMO		328,668		325,302		595		3,961
GNMA		1,016		1,088		72		-
FNMA		136,198		135,474		330		1,054
FHLMC		48,103		47,786		18		335
Total mortgage-backed securities		513,985		509,650		1,015		5,350
Total securities available for sale	$	748,350	$	738,354	$	2,587	$	12,583

Mortgage-backed securities shown in the table above include

one

private issue collateralized mortgage obligation (“CMO”) that is collateralized by commercial real estate mortgages with an amortized cost and market value of

$21,000

December 31, 2017.

We did

not

hold any private issue CMO that is collateralized by commercial real estate mortgages at

March 31, 2018.

The corporate securities held by the Company at

March 31, 2018

and

December 31, 2017

are issued by U.S. banking institutions.

The following tables detail the amortized cost and fair value of the Company’s securities classified as held-to-maturity and available for sale at

March 31, 2018,

by contractual maturity. Expected maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized
Securities held-to-maturity:	Cost		Fair Value
	(In thousands)
Due in one year or less	$	1,398	$	1,398
Due after ten years		21,869		19,949
Total other securities		23,267		21,347
Mortgage-backed securities		7,968		7,564
Total	$	31,235	$	28,911

	Amortized
Securities available for sale:	Cost		Fair Value
	(In thousands)
Due in one year or less	$	-	$	-
Due after one year through five years		4,277		4,299
Due after five years through ten years		125,670		117,351
Due after ten years		82,344		83,379
Total other securities		212,291		205,029
Mutual funds		11,451		11,451
Mortgage-backed securities		525,210		512,781
Total	$	748,952	$	729,261

The following tables show the Company’s securities with gross unrealized losses and their fair value, aggregated by category and length of time that individual securities have been in a continuous unrealized loss position, at the dates indicated:

	At March 31, 2018
			Total				Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
			(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	19,949	$	1,920	$	-	$	-	$	19,949	$	1,920
Total other securities		1		19,949		1,920		-		-		19,949		1,920

FNMA		1		7,564		404		7,564		404		-		-
Total mortgage-backed securities		1		7,564		404		7,564		404		-		-
Total		2	$	27,513	$	2,324	$	7,564	$	404	$	19,949	$	1,920

Available for sale securities
Corporate		14	$	101,578	$	8,422	$	9,469	$	531	$	92,109	$	7,891
Municipals		3		5,107		31		5,107		31		-		-
Total other securities		17		106,685		8,453		14,576		562		92,109		7,891

REMIC and CMO		46		306,808		8,234		223,172		4,458		83,636		3,776
FNMA		20		126,645		3,451		116,149		2,971		10,496		480
FHLMC		2		44,001		1,079		41,061		961		2,940		118
Total mortgage-backed securities		68		477,454		12,764		380,382		8,390		97,072		4,374
Total		85	$	584,139	$	21,217	$	394,958	$	8,952	$	189,181	$	12,265

	At December 31, 2017
			Total				Less than 12 months				12 months or more
					Unrealized				Unrealized				Unrealized
	Count		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
	(Dollars in thousands)
Held-to-maturity securities
Municipals		1	$	20,844	$	1,024	$	20,844	$	1,024	$	-	$	-
Total other securities		1		20,844		1,024		20,844		1,024		-		-

FNMA		1		7,810		163		7,810		163		-		-
Total mortgage-backed securities		1		7,810		163		7,810		163		-		-
Total securities held-to-maturity		2	$	28,654	$	1,187	$	28,654	$	1,187	$	-	$	-

Available for sale securities
Corporate		14	$	102,767	$	7,233	$	9,723	$	277	$	93,044	$	6,956
Total other securities		14		102,767		7,233		9,723		277		93,044		6,956

REMIC and CMO		36		249,596		3,961		162,781		1,406		86,815		2,555
FNMA		17		120,510		1,054		109,258		850		11,252		204
FHLMC		2		46,829		335		43,258		294		3,571		41
Total mortgage-backed securities		55		416,935		5,350		315,297		2,550		101,638		2,800
Total securities available for sale		69	$	519,702	$	12,583	$	325,020	$	2,827	$	194,682	$	9,756

OTTI losses on impaired securities must be fully recognized in earnings if an investor has the intent to sell the debt security or if it is more likely than

not

that the investor will be required to sell the debt security before recovery of its amortized cost. However, even if an investor does

not

expect to sell a debt security in an unrealized loss position, the investor must evaluate the expected cash flows to be received and determine if a credit loss has occurred. In the event that a credit loss has occurred, only the amount of impairment associated with the credit loss is recognized in earnings in the Consolidated Statements of Income. Amounts relating to factors other than credit losses are recorded in accumulated other comprehensive loss (“AOCL”) within Stockholders’ Equity. Unrealized losses on available for sale securities, that are deemed to be temporary, are recorded in AOCL, net of tax.

The Company reviewed each investment that had an unrealized loss at

March 31, 2018

and

December 31, 2017.

The unrealized losses in held-to-maturity municipal securities at

March 31, 2018

and

December 31, 2017

were caused by illiquidity in the market and movements in interest rates. The unrealized losses in held-to-maturity FNMA securities at

March 31, 2018

and

December 31, 2017

were caused by movements in interest rates. The unrealized losses in securities available for sale at

March 31, 2018

and

December 31, 2017

were caused by movements in interest rates.

It is

not

anticipated that these securities would be settled at a price that is less than the amortized cost of the Company’s investment. Each of these securities is performing according to its terms and, in the opinion of management, will continue to perform according to its terms. The Company does

not

have the intent to sell these securities and it is more likely than

not

the Company will

not

be required to sell the securities before recovery of the securities’ amortized cost basis. This conclusion is based upon considering the Company’s cash and working capital requirements and contractual and regulatory obligations,

none

of which the Company believes would cause the sale of the securities. Therefore, the Company did

not

consider these investments to be other-than-temporarily impaired at

March 31, 2018

and

December 31, 2017.

The Company did

not

sell any securities during the

three

months ended

March 31, 2018

and

2017.