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Securities | 12 Months Ended
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Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities (In Thousands, Except Number of Securities) The amortized cost and fair value of securities held to maturity were as follows as of the dates presented:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2017 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Obligations of states and political subdivisions | — |  |  | — |  |  | — |  |  | — |
| $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
December 31, 2016 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 14,101 |  |  | $ | 4 |  |  | $ | (187 | ) |  | $ | 13,918 |
Obligations of states and political subdivisions | 342,181 |  |  | 8,572 |  |  | (1,778 | ) |  | 348,975 |
| $ | 356,282 |  |  | $ | 8,576 |  |  | $ | (1,965 | ) |  | $ | 362,893 |
In light of the ongoing fiscal uncertainty in many state and local governments, and the fact that the Company’s held to maturity portfolio has historically consisted primarily of municipal securities, the Company analyzes its exposure to potential losses in its security portfolio on at least a quarterly basis. Management reviews the underlying credit rating and analyzes the financial condition of the respective issuers. Although the Company’s analysis of its securities portfolio in the third quarter of 2017 showed that the municipal securities held by the Company had not experienced significant deterioration as of the date of such analysis, the Company transferred all held to maturity securities to available for sale during the third quarter of 2017. This transfer gives management the flexibility to quickly liquidate any municipal securities should further analysis reveal more significant deterioration than has been experienced to date. At the date of transfer, the securities transferred had a carrying value of $365,941, which included an unrealized gain of $13,219. At transfer, the unrealized gain was included in the carrying value of the securities portfolio and in accumulated other comprehensive loss presented in the Consolidated Balance Sheet. The amortized cost and fair value of securities available for sale were as follows as of the dates presented:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2017 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 3,554 |  |  | $ | 40 |  |  | $ | (30 | ) |  | $ | 3,564 |
Obligations of states and political subdivisions | 228,589 |  |  | 6,161 |  |  | (269 | ) |  | 234,481 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 196,121 |  |  | 888 |  |  | (3,059 | ) |  | 193,950 |
Government agency collateralized mortgage obligations | 180,258 |  |  | 133 |  |  | (3,752 | ) |  | 176,639 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 31,015 |  |  | 389 |  |  | (234 | ) |  | 31,170 |
Government agency collateralized mortgage obligations | 5,019 |  |  | 1 |  |  | (14 | ) |  | 5,006 |
Trust preferred securities | 12,442 |  |  | — |  |  | (3,054 | ) |  | 9,388 |
Other debt securities | 17,106 |  |  | 260 |  |  | (76 | ) |  | 17,290 |
| $ | 674,104 |  |  | $ | 7,872 |  |  | $ | (10,488 | ) |  | $ | 671,488 |
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2016 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 2,066 |  |  | $ | 92 |  |  | $ | — |  |  | $ | 2,158 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 414,019 |  |  | 1,941 |  |  | (6,643 | ) |  | 409,317 |
Government agency collateralized mortgage obligations | 171,362 |  |  | 831 |  |  | (3,367 | ) |  | 168,826 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 50,628 |  |  | 696 |  |  | (461 | ) |  | 50,863 |
Government agency collateralized mortgage obligations | 2,528 |  |  | 38 |  |  | (16 | ) |  | 2,550 |
Trust preferred securities | 23,749 |  |  | — |  |  | (5,360 | ) |  | 18,389 |
Other debt securities | 22,053 |  |  | 310 |  |  | (218 | ) |  | 22,145 |
Other equity securities | — |  |  | — |  |  | — |  |  | — |
| $ | 686,405 |  |  | $ | 3,908 |  |  | $ | (16,065 | ) |  | $ | 674,248 |
Securities sold during the twelve months ended December 31, 2017, all of which were securities available for sale, were as follows:
| Carrying Value |  | Net Proceeds |  | Gain/(Loss)
Obligations of other U.S. Government agencies and corporations | $ | 11,088 |  |  | $ | 10,974 |  |  | $ | (114 | )
Obligations of states and political subdivisions | 110,019 |  |  | 112,199 |  |  | 2,180 |
Residential mortgage backed securities: |  |  |  |  |
Government agency mortgage backed securities | 264,924 |  |  | 263,217 |  |  | (1,707 | )
Government agency collateralized mortgage obligations | 72,153 |  |  | 71,781 |  |  | (372 | )
Commercial mortgage backed securities: |  |  |  |  |
Government agency mortgage backed securities | 14,104 |  |  | 14,082 |  |  | (22 | )
Government agency collateralized mortgage obligations | 6,289 |  |  | 6,289 |  |  | — |
Trust preferred securities | 9,346 |  |  | 9,403 |  |  | 57 |
Other debt securities | 7,269 |  |  | 7,395 |  |  | 126 |
| $ | 495,192 |  |  | $ | 495,340 |  |  | $ | 148 |
Included in the table above are certain securities acquired from Metropolitan sold shortly after acquisition. These securities had an aggregate carrying value of $36,021 at the time of sale, and the Company received net proceeds of $36,021, resulting in no gain or loss on the sale. Also included in the table above are certain securities sold by the Company during the fourth quarter of 2017 in an effort to manage its consolidated assets below $10,000,000 at December 31, 2017, in order to delay the adverse impact of the Durbin Amendment to the Dodd-Frank Act, which applies to banking institutions with assets over $10,000,000 at year-end. The Durbin Amendment, among other things, imposes limitations on the amount of debit card interchange fees certain banking institutions may collect. Securities sold to achieve this strategy had an aggregate carrying value of $446,880 on the dates of sale, and the Company collected net proceeds of $446,971, resulting in a $91 net gain on the sales. During the twelve months ended December 31, 2016 and 2015, the Company sold securities with a carrying value at the time of sale of $2,842 and $1,117, respectively, for net proceeds of $4,028 and $1,213, respectively, resulting in a gain of $1,186 and $96, respectively. Also in 2015, the Company sold certain investments acquired from Heritage shortly after acquisition with an aggregate carrying value of $7,231 at the time of sale for net proceeds of $7,231, resulting in no gain or loss on the sale. Gross realized gains and gross realized losses on sales of securities available for sale were as follows for the periods presented:
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
Gross gains on sales of securities available for sale | $ | 2,497 |  |  | $ | 1,257 |  |  | $ | 96 |
Gross losses on sales of securities available for sale | (2,349 | ) |  | (71 | ) |  | — |
Gain on sales of securities available for sale, net | $ | 148 |  |  | $ | 1,186 |  |  | $ | 96 |
At December 31, 2017 and 2016, securities with a carrying value of approximately $217,867 and $642,447, respectively, were pledged to secure government, public, trust, and other deposits. Securities with a carrying value of $25,888 and $24,426 were pledged as collateral for short-term borrowings and derivative instruments at December 31, 2017 and 2016, respectively. The amortized cost and fair value of securities at December 31, 2017 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
| Available for Sale
| Amortized Cost |  | Fair Value
Due within one year | $ | 23,584 |  |  | $ | 23,843 |
Due after one year through five years | 71,430 |  |  | 73,379 |
Due after five years through ten years | 81,302 |  |  | 83,212 |
Due after ten years | 75,410 |  |  | 74,292 |
Residential mortgage backed securities: |  |  |
Government agency mortgage backed securities | 196,121 |  |  | 193,950 |
Government agency collateralized mortgage obligations | 180,258 |  |  | 176,639 |
Commercial mortgage backed securities: |  |  |
Government agency mortgage backed securities | 31,015 |  |  | 31,170 |
Government agency collateralized mortgage obligations | 5,019 |  |  | 5,006 |
Other debt securities | 9,965 |  |  | 9,997 |
| $ | 674,104 |  |  | $ | 671,488 |
The following table presents the gross unrealized losses and fair value of investment securities, aggregated by investment category and the length of time the investments have been in a continuous unrealized loss position, as of the dates presented:
| Less than 12 Months |  | 12 Months or More |  | Total
| # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses
Held to Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 4 |  | $ | 11,915 |  |  | $ | (187 | ) |  | 0 |  | $ | — |  |  | $ | — |  |  | 4 |  | $ | 11,915 |  |  | $ | (187 | )
Obligations of states and political subdivisions | 102 |  | 83,362 |  |  | (1,778 | ) |  | 0 |  | — |  |  | — |  |  | 102 |  | 83,362 |  |  | (1,778 | )
Total | 106 |  | $ | 95,277 |  |  | $ | (1,965 | ) |  | 0 |  | $ | — |  |  | $ | — |  |  | 106 |  | $ | 95,277 |  |  | $ | (1,965 | )
| Less than 12 Months |  | 12 Months or More |  | Total
| # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses |  | # |  | Fair Value |  | Unrealized Losses
Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 1 |  | $ | 497 |  |  | $ | (3 | ) |  | 2 |  | $ | 1,999 |  |  | $ | (27 | ) |  | 3 |  | $ | 2,496 |  |  | $ | (30 | )
Obligations of states and political subdivisions | 23 |  | 11,860 |  |  | (59 | ) |  | 12 |  | 7,728 |  |  | (210 | ) |  | 35 |  | $ | 19,588 |  |  | $ | (269 | )
Residential mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 29 |  | 64,595 |  |  | (659 | ) |  | 44 |  | 89,414 |  |  | (2,400 | ) |  | 73 |  | 154,009 |  |  | (3,059 | )
Government agency collateralized mortgage obligations | 33 |  | 102,509 |  |  | (1,470 | ) |  | 29 |  | 62,406 |  |  | (2,282 | ) |  | 62 |  | 164,915 |  |  | (3,752 | )
Commercial mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 2 |  | 5,629 |  |  | (17 | ) |  | 3 |  | 5,872 |  |  | (217 | ) |  | 5 |  | 11,501 |  |  | (234 | )
Government agency collateralized mortgage obligations | 1 |  | 4,986 |  |  | (14 | ) |  | 0 |  | — |  |  | — |  |  | 1 |  | 4,986 |  |  | (14 | )
Trust preferred securities | 0 |  | — |  |  | — |  |  | 2 |  | 9,388 |  |  | (3,054 | ) |  | 2 |  | 9,388 |  |  | (3,054 | )
Other debt securities | 2 |  | 756 |  |  | (12 | ) |  | 2 |  | 6,308 |  |  | (64 | ) |  | 4 |  | 7,064 |  |  | (76 | )
Other equity securities |  |  | — |  |  | — |  |  | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |
Total | 91 |  | $ | 190,832 |  |  | $ | (2,234 | ) |  | 94 |  | $ | 183,115 |  |  | $ | (8,254 | ) |  | 185 |  | $ | 373,947 |  |  | $ | (10,488 | )
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 0 |  | $ | — |  |  | $ | — |  |  | 0 |  | $ | — |  |  | $ | — |  |  | 0 |  | $ | — |  |  | $ | — |
Residential mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 131 |  | 298,400 |  |  | (6,042 | ) |  | 5 |  | 11,504 |  |  | (601 | ) |  | 136 |  | 309,904 |  |  | (6,643 | )
Government agency collateralized mortgage obligations | 40 |  | 97,356 |  |  | (1,845 | ) |  | 14 |  | 33,786 |  |  | (1,522 | ) |  | 54 |  | 131,142 |  |  | (3,367 | )
Commercial mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 9 |  | 21,933 |  |  | (453 | ) |  | 2 |  | 1,101 |  |  | (8 | ) |  | 11 |  | 23,034 |  |  | (461 | )
Government agency collateralized mortgage obligations | 1 |  | 1,729 |  |  | (16 | ) |  | 0 |  | — |  |  | — |  |  | 1 |  | 1,729 |  |  | (16 | )
Trust preferred securities | 0 |  | — |  |  | — |  |  | 3 |  | 18,389 |  |  | (5,360 | ) |  | 3 |  | 18,389 |  |  | (5,360 | )
Other debt securities | 3 |  | 7,946 |  |  | (208 | ) |  | 2 |  | 2,475 |  |  | (10 | ) |  | 5 |  | 10,421 |  |  | (218 | )
Other equity securities | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |  |  | 0 |  | — |  |  | — |
Total | 184 |  | $ | 427,364 |  |  | $ | (8,564 | ) |  | 26 |  | $ | 67,255 |  |  | $ | (7,501 | ) |  | 210 |  | $ | 494,619 |  |  | $ | (16,065 | )
The Company does not intend to sell any of the securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. As such, the Company did not record any other-than-temporary impairment for the years ended December 31, 2017 or 2016. The Company holds investments in pooled trust preferred securities that had a cost basis of $12,442 and $23,749 and a fair value of $9,388 and $18,389 at December 31, 2017 and 2016, respectively. During 2017, the Company sold one of its pooled trust preferred securities. As of December 31, 2017, the investments in pooled trust preferred securities consisted of two securities representing interests in various tranches of trusts collateralized by debt issued by over 160 financial institutions. Management’s determination of the fair value of each of its holdings in pooled trust preferred securities is based on the current credit ratings, the known deferrals and defaults by the underlying issuing financial institutions and the degree to which future deferrals and defaults would be required to occur before the cash flow for the Company’s tranches is negatively impacted. In addition, management continually monitors key credit quality and capital ratios of the issuing institutions. This determination is further supported by quarterly valuations, which are performed by third parties, of each security obtained by the Company. The Company does not intend to sell the investments, and it is not more likely than not that the Company will be required to sell the investments, before recovery of the investments’ amortized cost, which may be at maturity. At December 31, 2017, management did not, and does not currently, believe such securities will be settled at a price less than the amortized cost of the investment, but the Company previously concluded that it was probable that there had been an adverse change in estimated cash flows for both remaining trust preferred securities and recognized credit related impairment losses on these securities in 2010 and 2011. For the years ended December 31, 2017, 2016 and 2015, the Company determined the pooled trust preferred securities and their estimated cash flow were fairly valued, and no additional impairment was recognized during these periods. The following table provides information regarding the Company’s investments in pooled trust preferred securities at December 31, 2017:
Name |  | Single/ Pooled |  | Class/ Tranche |  | Amortized Cost |  | Fair Value |  | Unrealized Loss |  | Lowest Credit Rating |  | Issuers Currently in Deferral or Default
XXIII |  | Pooled |  | B-2 |  | $ | 8,310 |  |  | $ | 6,086 |  |  | $ | (2,224 | ) |  | BB |  | 16%
XXVI |  | Pooled |  | B-2 |  | 4,132 |  |  | 3,302 |  |  | (830 | ) |  | Ba1 |  | 19%
|  |  |  |  |  | $ | 12,442 |  |  | $ | 9,388 |  |  | $ | (3,054 | ) |  |  |  |
The following table provides a summary of the cumulative credit related losses recognized in earnings for which a portion of OTTI has been recognized in other comprehensive income:
| 2017 |  | 2016
Balance at January 1 | $ | (3,337 | ) |  | $ | (3,337 | )
Additions related to credit losses for which OTTI was not previously recognized | — |  |  | — |
Increases in credit loss for which OTTI was previously recognized | — |  |  | — |
Reductions for securities sold during the period | $ | 3,076 |  |  | $ | — |
Balance at December 31 | $ | (261 | ) |  | $ | (3,337 | )

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