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Securities | 3 Months Ended
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Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities (In Thousands, Except Number of Securities) 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
March 31, 2018 |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | $ | 3,549 |  |  | $ | 27 |  |  | $ | (48 | ) |  | $ | 3,528 |
Obligations of states and political subdivisions | 222,814 |  |  | 4,292 |  |  | (764 | ) |  | 226,342 |
Residential mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 416,954 |  |  | 444 |  |  | (7,928 | ) |  | 409,470 |
Government agency collateralized mortgage obligations | 244,213 |  |  | 42 |  |  | (6,589 | ) |  | 237,666 |
Commercial mortgage backed securities: |  |  |  |  |  |  |
Government agency mortgage backed securities | 27,636 |  |  | 306 |  |  | (440 | ) |  | 27,502 |
Government agency collateralized mortgage obligations | 10,000 |  |  | — |  |  | (128 | ) |  | 9,872 |
Trust preferred securities | 12,429 |  |  | — |  |  | (2,384 | ) |  | 10,045 |
Other debt securities | 23,994 |  |  | 152 |  |  | (206 | ) |  | 23,940 |
| $ | 961,589 |  |  | $ | 5,263 |  |  | $ | (18,487 | ) |  | $ | 948,365 |
| 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 |
There were no sales of securities for the three months ended March 31, 2018. During the same period in 2017, the Company sold residential mortgage backed securities with a carrying value of $2,496 at the time of the sale for net proceeds of $2,496 resulting in no gain or loss on the sale.
At March 31, 2018 and December 31, 2017, securities with a carrying value of $259,688 and $217,867, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $20,644 and $25,888 were pledged as collateral for short-term borrowings and derivative instruments at March 31, 2018 and December 31, 2017, respectively. The amortized cost and fair value of securities at March 31, 2018 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 | $ | 28,692 |  |  | $ | 29,028 |
Due after one year through five years | 67,311 |  |  | 68,747 |
Due after five years through ten years | 78,917 |  |  | 79,724 |
Due after ten years | 72,703 |  |  | 71,335 |
Residential mortgage backed securities: |  |  |
Government agency mortgage backed securities | 416,954 |  |  | 409,470 |
Government agency collateralized mortgage obligations | 244,213 |  |  | 237,666 |
Commercial mortgage backed securities: |  |  |
Government agency mortgage backed securities | 27,636 |  |  | 27,502 |
Government agency collateralized mortgage obligations | 10,000 |  |  | 9,872 |
Other debt securities | 15,163 |  |  | 15,021 |
| $ | 961,589 |  |  | $ | 948,365 |
The following table presents the age of gross unrealized losses and fair value by investment category 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
Available for Sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Obligations of other U.S. Government agencies and corporations | 1 |  | $ | 494 |  |  | $ | (6 | ) |  | 2 |  | $ | 1,981 |  |  | $ | (42 | ) |  | 3 |  | $ | 2,475 |  |  | $ | (48 | )
Obligations of states and political subdivisions | 52 |  | 31,417 |  |  | (392 | ) |  | 12 |  | 7,554 |  |  | (372 | ) |  | 64 |  | 38,971 |  |  | (764 | )
Residential mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 87 |  | 298,721 |  |  | (3,942 | ) |  | 44 |  | 84,166 |  |  | (3,986 | ) |  | 131 |  | 382,887 |  |  | (7,928 | )
Government agency collateralized mortgage obligations | 51 |  | 173,116 |  |  | (3,394 | ) |  | 29 |  | 58,759 |  |  | (3,195 | ) |  | 80 |  | 231,875 |  |  | (6,589 | )
Commercial mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency mortgage backed securities | 7 |  | 8,987 |  |  | (122 | ) |  | 3 |  | 5,732 |  |  | (318 | ) |  | 10 |  | 14,719 |  |  | (440 | )
Government agency collateralized mortgage obligations | 2 |  | 9,872 |  |  | (128 | ) |  | 0 |  | — |  |  | — |  |  | 2 |  | 9,872 |  |  | (128 | )
Trust preferred securities | 0 |  | — |  |  | — |  |  | 2 |  | 10,045 |  |  | (2,384 | ) |  | 2 |  | 10,045 |  |  | (2,384 | )
Other debt securities | 7 |  | 6,140 |  |  | (25 | ) |  | 2 |  | 6,187 |  |  | (181 | ) |  | 9 |  | 12,327 |  |  | (206 | )
Total | 207 |  | $ | 528,747 |  |  | $ | (8,009 | ) |  | 94 |  | $ | 174,424 |  |  | $ | (10,478 | ) |  | 301 |  | $ | 703,171 |  |  | $ | (18,487 | )
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 | )
Total | 91 |  | $ | 190,832 |  |  | $ | (2,234 | ) |  | 94 |  | $ | 183,115 |  |  | $ | (8,254 | ) |  | 185 |  | $ | 373,947 |  |  | $ | (10,488 | )
The Company evaluates its investment portfolio for other-than-temporary-impairment (“OTTI”) on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. Impairment is considered to be other-than-temporary if the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity. The Company does not intend to sell any securities in an unrealized loss position that it holds, 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 at 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 OTTI for the three months ended March 31, 2018 or 2017. The Company holds investments in pooled trust preferred securities that had an amortized cost basis of $12,429 and $12,442 and a fair value of $10,045 and $9,388 at March 31, 2018 and December 31, 2017, respectively. At March 31, 2018, 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 before recovery of the investments’ amortized cost, 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 March 31, 2018, 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 trust preferred securities and recognized credit related impairment losses on these securities in 2011. No additional impairment was recognized during the three months ended March 31, 2018. The following table provides information regarding the Company’s investments in pooled trust preferred securities at March 31, 2018:
Name | Single/ Pooled |  | Class/ Tranche |  | Amortized Cost |  | Fair Value |  | Unrealized Loss |  | Lowest Credit Rating |  | Issuers Currently in Deferral or Default
XXIII | Pooled |  | B-2 |  | $ | 8,318 |  |  | $ | 6,527 |  |  | $ | (1,791 | ) |  | BB |  | 16 | %
XXVI | Pooled |  | B-2 |  | 4,111 |  |  | 3,518 |  |  | (593 | ) |  | B |  | 19 | %
|  |  |  |  | $ | 12,429 |  |  | $ | 10,045 |  |  | $ | (2,384 | ) |  |  |  |
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:
| 2018 |  | 2017
Balance at January 1 | $ | (261 | ) |  | $ | (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 March 31 | $ | (261 | ) |  | $ | (261 | )

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