3.	Securities

The amortized cost, estimated fair value and unrealized gains (losses) of available for sale (“AFS”) securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
As of March 31, 2019
Federal agency	$	29,990	$	10	$	364	$	29,636
State & municipal		598		-		-		598
Mortgage-backed:
Government-sponsored enterprises		482,357		1,155		4,022		479,490
U.S. government agency securities		36,601		384		308		36,677
Collateralized mortgage obligations:
Government-sponsored enterprises		333,838		623		4,568		329,893
U.S. government agency securities		76,469		166		1,070		75,565
Total AFS securities	$	959,853	$	2,338	$	10,332	$	951,859
As of December 31, 2018
Federal agency	$	84,982	$	10	$	693	$	84,299
State & municipal		30,136		16		237		29,915
Mortgage-backed:
Government-sponsored enterprises		493,225		439		10,354		483,310
U.S. government agency securities		29,190		270		475		28,985
Collateralized mortgage obligations:
Government-sponsored enterprises		332,409		344		7,211		325,542
U.S. government agency securities		47,684		137		1,376		46,445
Total AFS securities	$	1,017,626	$	1,216	$	20,346	$	998,496

The components of net realized gains (losses) on the sale of AFS securities are as follows. These amounts were reclassified out of AOCI and into earnings:

	Three Months Ended March 31,
(In thousands)	2019			2018
Gross realized gains	$	53		$	-
Gross realized (losses)		(152	)		-
Net AFS realized (losses)	$	(99	)	$	-

Included in net gains (losses) from sale transactions, the Company recorded gains from calls on AFS securities of approximately $4 thousand for the three months ended March 31, 2019. There were no recorded gains from calls on AFS securities included in net gains (losses) from sales transactions for the three months ended March 31, 2018.

The amortized cost, estimated fair value and unrealized gains (losses) of securities held to maturity (“HTM”) are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
As of March 31, 2019
Federal agency	$	19,995	$	55	$	-	$	20,050
Mortgage-backed:
Government-sponsored enterprises		160,566		1,281		981		160,866
U.S. government agency securities		14,545		460		-		15,005
Collateralized mortgage obligations:
Government-sponsored enterprises		247,418		1,388		2,230		246,576
U.S. government agency securities		103,741		1,329		-		105,070
State & municipal		234,300		1,254		360		235,194
Total HTM securities	$	780,565	$	5,767	$	3,571	$	782,761
As of December 31,2018
Federal agency	$	19,995	$	52	$	-	$	20,047
Mortgage-backed:
Government-sponsored enterprises		164,618		712		2,773		162,557
U.S. government agency securities		15,230		403		-		15,633
Collateralized mortgage obligations:
Government-sponsored enterprises		257,475		1,097		3,897		254,675
U.S. government agency securities		83,148		767		-		83,915
State & municipal		243,133		331		1,616		241,848
Total HTM securities	$	783,599	$	3,362	$	8,286	$	778,675

AFS and HTM securities with amortized costs totaling $1.5 billion at March 31, 2019 and December 31, 2018 were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at March 31, 2019 and December 31, 2018, AFS and HTM securities with an amortized cost of $207.5 million and $215.3 million, respectively, were pledged as collateral for securities sold under the repurchase agreements.

The following table sets forth information with regard to investment securities with unrealized losses segregated according to the length of time the securities had been in a continuous unrealized loss position:

	Less than 12 months							12 months or longer							Total
(In thousands)	Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions
As of March 31, 2019
AFS securities:
Federal agency	$	-	$	-			-	$	9,636	$	(364	)		1	$	9,636	$	(364	)		1
Mortgage-backed		234		(2	)		2		352,339		(4,328	)		90		352,573		(4,330	)		92
Collateralized mortgage obligations		36,739		(166	)		5		311,623		(5,472	)		64		348,362		(5,638	)		69
Total securities with unrealized losses	$	36,973	$	(168	)		7	$	673,598	$	(10,164	)		155	$	710,571	$	(10,332	)		162

HTM securities:
Mortgaged-backed	$	-	$	-			-	$	82,204	$	(981	)		6	$	82,204	$	(981	)		6
Collateralized mortgage obligations		-		-			-		125,486		(2,230	)		24		125,486		(2,230	)		24
State & municipal		-		-			-		19,302		(360	)		30		19,302		(360	)		30
Total securities with unrealized losses	$	-	$	-			-	$	226,992	$	(3,571	)		60	$	226,992	$	(3,571	)		60

As of December 31, 2018
AFS securities:
Federal agency	$	-	$	-			-	$	64,294	$	(693	)		6	$	64,294	$	(693	)		6
State & municipal		1,715		(3	)		3		22,324		(234	)		35		24,039		(237	)		38
Mortgage-backed		18,462		(65	)		12		428,440		(10,764	)		101		446,902		(10,829	)		113
Collateralized mortgage obligations		12,118		(69	)		5		320,908		(8,518	)		62		333,026		(8,587	)		67
Total securities with unrealized losses	$	32,295	$	(137	)		20	$	835,966	$	(20,209	)		204	$	868,261	$	(20,346	)		224

HTM securities:
Mortgage -backed	$	-	$	-			-	$	82,579	$	(2,773	)		6	$	82,579	$	(2,773	)		6
Collateralized mortgage obligations		4,386		(7	)		2		145,396		(3,890	)		26		149,782		(3,897	)		28
State & municipal		18,907		(84	)		30		58,258		(1,532	)		86		77,165		(1,616	)		116
Total securities with unrealized losses	$	23,293	$	(91	)		32	$	286,233	$	(8,195	)		118	$	309,526	$	(8,286	)		150

Declines in the fair value of AFS and HTM securities below their amortized cost, less any current period credit loss, that are deemed to be other-than-temporary are reflected in earnings as realized losses or in other comprehensive income (“OCI”). The classification is dependent upon whether the Company intends to sell the security, or whether it is more likely than not, that the Company will be required to sell the security before recovery. The other-than-temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI shall be separated into (a) the amount representing the credit loss and (b) the amount related to all other factors. The amount of the total OTTI related to the credit loss shall be recognized in earnings. The amount of the total OTTI related to other factors shall be recognized in OCI, net of applicable taxes.

In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the historical and implied volatility of the fair value of the security.

Management has the intent to hold the securities classified as HTM until they mature, at which time it is believed the Company will receive full value for the securities. The unrealized losses on HTM debt securities are due to increases in market interest rates over yields at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. The fair value is expected to recover as the bonds approach their respective maturity date or repricing date or if market yields for such investments decline.

Management also has the intent to hold and will not be required to sell, the debt securities classified as AFS for a period of time sufficient for a recovery of cost, which may be at maturity. The unrealized losses on AFS debt securities are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. For AFS debt securities, OTTI losses are recognized in earnings if the Company intends to sell the security. In other cases the Company considers the relevant factors noted above, as well as the Company’s intent and ability to retain its investment for a period of time sufficient to allow for any anticipated recovery in market value and whether evidence exists to support a realizable value equal to or greater than the cost basis. Any impairment loss on an equity security is equal to the full difference between the cost basis and the fair value of the security.

As of March 31, 2019 and December 31, 2018, management believes the impairments detailed in the table above are temporary. There were no OTTI losses realized in the Company’s consolidated statements of income for the three months ended March 31, 2019, and March 31, 2018.

The following table sets forth information with regard to gains and losses on equity securities:

	Three Months Ended March 31,
(In thousands)	2019		2018
Net gains and losses recognized on equity securities	$	156	$	72
Less: Net gains and losses recognized during the period on equity securities sold during the period		-		44
Unrealized gains and losses recognized on equity securities still held	$	156	$	28

As of March 31, 2019 and December 31, 2018, the carrying value of equity securities without readily determinable fair values was $4.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of concern as of March 31, 2019 and March 31, 2018. There were no impairments, downward or upward adjustments recognized for equity securities without readily determinable fair values during the quarters ended March 31, 2019 and March 31, 2018.

The following table sets forth information with regard to contractual maturities of debt securities at March 31, 2019:

(In thousands)	Amortized Cost		Estimated Fair Value
AFS debt securities:
Within one year	$	610	$	610
From one to five years		51,922		51,573
From five to ten years		161,292		160,434
After ten years		746,029		739,242
Total AFS debt securities	$	959,853	$	951,859
HTM debt securities:
Within one year	$	78,118	$	78,118
From one to five years		64,632		64,930
From five to ten years		204,726		204,881
After ten years		433,089		434,832
Total HTM debt securities	$	780,565	$	782,761

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. Government securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at March 31, 2019 and December 31, 2018.