SECURITIES AVAILABLE FOR SALE, HELD TO MATURITY, AND OTHER

As the Company adopted ASU-2016-01 "Recognition and Measurement of Financial Assets and Financial Liabilities" during the current period, all changes in the fair value of marketable equity securities, including other-than-temporary impairment, are immediately recognized in earnings.

The following is a summary of securities available for sale, held to maturity, and other:



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2018
Securities available for sale and other
Debt securities:
Municipal bonds and obligations	$	112,857	$	2,784	$	(721	)	$	114,920
Agency collateralized mortgage obligations	932,723		29		(19,816		)	912,936
Agency mortgage-backed securities	195,526		95		(5,523		)	190,098
Agency commercial mortgage-backed securities	63,561		—		(3,003		)	60,558
Corporate bonds	100,963		861		(32		)	101,792
Trust preferred securities	11,297		266		—			11,563
Other bonds and obligations	9,473		104		(45		)	9,532
Total debt securities	1,426,400		4,139		(29,140		)	1,401,399
Other securities:
Marketable equity securities	59,261		—		—			59,261
Total securities available for sale and other	1,485,661		4,139		(29,140		)	1,460,660
Securities held to maturity
Municipal bonds and obligations	269,636		4,251		(2,980		)	270,907
Agency collateralized mortgage obligations	73,207		433		(1,078		)	72,562
Agency mortgage-backed securities	7,712		—		(316		)	7,396
Agency commercial mortgage-backed securities	10,465		—		(509		)	9,956
Tax advantaged economic development bonds	33,996		361		(1,203		)	33,154
Other bonds and obligations	321		—		—			321
Total securities held to maturity	395,337		5,045		(6,086		)	394,296
Total	$	1,880,998	$	9,184	$	(35,226	)	$	1,854,956



(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2017
Securities available for sale and other
Debt securities:
Municipal bonds and obligations	$	113,427	$	5,012	$	(206	)	$	118,233
Agency collateralized mortgage obligations	859,705		397		(8,944		)	851,158
Agency mortgage-backed securities	218,926		279		(2,265		)	216,940
Agency commercial mortgage-backed securities	64,025		41		(1,761		)	62,305
Corporate bonds	110,076		882		(237		)	110,721
Trust preferred securities	11,334		343		—			11,677
Other bonds and obligations	9,757		154		(31		)	9,880
Total debt securities	1,387,250		7,108		(13,444		)	1,380,914
Other securities:
Marketable equity securities	36,483		9,211		(509		)	45,185
Total securities available for sale and other	1,423,733		16,319		(13,953		)	1,426,099
Securities held to maturity
Municipal bonds and obligations	270,310		8,675		(90		)	278,895
Agency collateralized mortgage obligations	73,742		1,045		(486		)	74,301
Agency mortgage-backed securities	7,892		—		(164		)	7,728
Agency commercial mortgage-backed securities	10,481		—		(268		)	10,213
Tax advantaged economic development bonds	34,357		596		(1,135		)	33,818
Other bonds and obligations	321		—		—			321
Total securities held to maturity	397,103		10,316		(2,143		)	405,276
Total	$	1,820,836	$	26,635	$	(16,096	)	$	1,831,375

The amortized cost and estimated fair value of available for sale (“AFS”) and held to maturity (“HTM”) securities segregated by contractual maturity at March 31, 2018 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable.



	Available for sale				Held to maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
Within 1 year	$	387	$	388	$	15,013	$	15,336
Over 1 year to 5 years	33,130		33,297		13,189		13,174
Over 5 years to 10 years	75,568		76,746		7,999		8,079
Over 10 years	125,505		127,376		267,752		267,793
Total bonds and obligations	234,590		237,807		303,953		304,382
Mortgage-backed securities	1,191,810		1,163,592		91,384		89,914
Total	$	1,426,400	$	1,401,399	$	395,337	$	394,296

Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows:



	Less Than Twelve Months				Over Twelve Months				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
(In thousands)	Losses		Value		Losses		Value		Losses		Value
March 31, 2018
Securities available for sale
Debt securities:
Municipal bonds and obligations	$	128	$	4,399	$	593	$	8,582	$	721	$	12,981
Agency collateralized mortgage obligations	16,667		816,169		3,149		78,858		19,816		895,027
Agency mortgage-backed securities	2,715		123,776		2,808		62,093		5,523		185,869
Agency commercial mortgage-backed securities	268		13,647		2,735		46,911		3,003		60,558
Corporate bonds	32		7,544		—		—		32		7,544
Other bonds and obligations	18		1,084		27		1,997		45		3,081
Total securities available for sale	19,828		966,619		9,312		198,441		29,140		1,165,060

Securities held to maturity
Municipal bonds and obligations	2,779		112,585		201		1,915		2,980		114,500
Agency collateralized mortgage obligations	444		32,112		634		12,317		1,078		44,429
Agency mortgage-backed securities	—		—		316		7,397		316		7,397
Agency commercial mortgage-backed securities	—		—		509		9,956		509		9,956
Tax advantaged economic development bonds	1,203		15,712		—		—		1,203		15,712
Total securities held to maturity	4,426		160,409		1,660		31,585		6,086		191,994
Total	$	24,254	$	1,127,028	$	10,972	$	230,026	$	35,226	$	1,357,054

December 31, 2017
Securities available for sale
Debt securities:
Municipal bonds and obligations	$	—	$	—	$	206	$	8,985	$	206	$	8,985
Agency collateralized mortgage obligations	6,849		655,479		2,095		80,401		8,944		735,880
Agency mortgage-backed securities	765		95,800		1,500		65,323		2,265		161,123
Agency commercial mortgage-backed securities	334		17,379		1,427		39,268		1,761		56,647
Corporate bonds	1		328		236		15,769		237		16,097
Trust preferred securities	—		—		—		—		—		—
Other bonds and obligations	11		1,096		20		2,004		31		3,100
Total securities available for sale	7,960		770,082		5,484		211,750		13,444		981,832

Securities held to maturity
Municipal bonds and obligations	35		10,213		55		2,059		90		12,272
Agency collateralized mortgage obligations	—		—		486		12,946		486		12,946
Agency mortgage-backed securities	—		—		164		7,728		164		7,728
Agency commercial mortgage-backed securities	—		—		268		10,213		268		10,213
Tax advantaged economic development bonds	1,135		7,305		—		—		1,135		7,305
Total securities held to maturity	1,170		17,518		973		32,946		2,143		50,464
Total	$	9,130	$	787,600	$	6,457	$	244,696	$	15,587	$	1,032,296

Debt Securities

The Company expects to recover its amortized cost basis on all debt securities in its AFS and HTM portfolios. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of March 31, 2018, prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover.

The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS and HTM portfolios were not other-than-temporarily impaired at March 31, 2018:

AFS municipal bonds and obligations

At March 31, 2018, 13 of the total 258 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 5.3% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.

AFS collateralized mortgage obligations

At March 31, 2018, 229 out of the total 243 securities in the Company’s portfolio of AFS collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 2.2% of the amortized cost of securities in unrealized loss positions. The Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”) guarantee the contractual cash flows of all of the Company’s collateralized mortgage obligations. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS commercial and residential mortgage-backed securities

At March 31, 2018, 73 out of the total 101 securities in the Company’s portfolio of AFS mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 3.3% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company’s mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

AFS corporate bonds

At March 31, 2018, 4 out of the total 20 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 0.2% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities.

AFS other bonds and obligations

At March 31, 2018, 6 out of the total 9 securities in the Company’s portfolio of other bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 1.5% of the amortized cost of securities in unrealized loss positions. The securities are all investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing.

HTM Municipal bonds and obligations

At March 31, 2018, 73 of the 227 securities in the Company’s portfolio of municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 2.5% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company feels the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the quarter. All securities are performing.

HTM collateralized mortgage obligations

At March 31, 2018, 4 of the 9 securities in the Company’s portfolio of HTM collateralized mortgage obligations were in unrealized loss positions. Aggregate unrealized losses represented 4.1% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of all of the Company's collateralized residential mortgage obligations. The securities are investment grade rated, and there were no material underlying credit downgrades during the quarter. All securities are performing.

HTM commercial and residential mortgage-backed securities

At March 31, 2018, 2 out of a total of 2 securities in the Company’s portfolio of HTM mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 4.5% of the amortized cost of securities in unrealized loss positions. The FNMA, FHLMC, and GNMA guarantee the contractual cash flows of the Company’s residential mortgage-backed securities. The securities are investment grade rated and there were no material underlying credit downgrades during the quarter. All securities are performing.

HTM tax-advantaged economic development bonds

At March 31, 2018, 3 out of the total 7 securities in the Company’s portfolio of tax advantaged economic development bonds were in an unrealized loss position. Aggregate unrealized losses represented 7.1% of the amortized cost of the security in an unrealized loss position. One of the above mentioned tax advantaged economic bond was downgraded to special mention during 2017. The Company believes that more likely than not all the principal outstanding will be collected. All securities are performing.