Securities Available for Sale

The following is a summary of securities available for sale as of the dates indicated:



	At June 30, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Government agency and U.S. Government sponsored enterprises
Collateralized mortgage obligations	$	524,406	$	7,259	$	(185	)	$	531,480
Mortgage-backed securities	494,930		10,266		(186		)	505,010
Trust preferred securities	4,553		—		(840		)	3,713
Municipal bonds	43,895		2,307		(2		)	46,200
Total debt securities	1,067,784		19,832		(1,213		)	1,086,403
Mutual funds	13,425		116		—			13,541
	$	1,081,209	$	19,948	$	(1,213	)	$	1,099,944

	At December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(In thousands)
Debt securities:
U.S. Government agency and U.S. Government sponsored enterprises
Collateralized mortgage obligations	$	454,096	$	839	$	(4,955	)	$	449,980
Mortgage-backed securities	497,889		3,003		(2,845		)	498,047
Trust preferred securities	4,545		—		(796		)	3,749
Municipal bonds	44,105		1,406		—			45,511
Total debt securities	1,000,635		5,248		(8,596		)	997,287
Mutual funds	13,425		—		(156		)	13,269
	$	1,014,060	$	5,248	$	(8,752	)	$	1,010,556

As of June 30, 2016 and December 31, 2015, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

For the three months ended June 30, 2016 and 2015, $6.6 million of unrealized gains and $8.4 million of unrealized losses, respectively, were included in accumulated other comprehensive income (loss). For the six months ended June 30, 2016 and 2015, $22.2 million of unrealized gains and $3.2 million of unrealized losses, respectively, were included in accumulated other comprehensive income (loss). There were no gains or losses reclassified out of accumulated other comprehensive income (loss) for the three months ended June 30, 2016 and 2015. A total of $0 and $424 thousand of net gains on sales of securities were reclassified out of accumulated other comprehensive income (loss) into earnings for the six months ended June 30, 2016 and 2015, respectively.

The proceeds from sales of securities and the associated gross gains and losses recorded in earnings are listed below:



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(In thousands)
Proceeds	$	—	$	—	$	—	$	22,510
Gross gains	—		—		—		437
Gross losses	—		—		—		(13		)

The amortized cost and estimated fair value of investment securities at June 30, 2016, by contractual maturity, are shown below. 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. Securities not due at a single maturity date are shown separately.



	Amortized Cost		Estimated Fair Value
	(In thousands)
Available for sale:
Due within one year	$	—	$	—
Due after one year through five years	2,306		2,477
Due after five years through ten years	29,010		30,423
Due after ten years	17,132		17,014
U.S. Government agency and U.S. Government sponsored enterprises
Collateralized mortgage obligations	524,406		531,479
Mortgage-backed securities	494,930		505,010
Mutual funds	13,425		13,541
	$	1,081,209	$	1,099,944

Securities with carrying values of approximately $380.6 million and $359.6 million at June 30, 2016 and December 31, 2015, respectively, were pledged to secure public deposits, various borrowings and for other purposes as required or permitted by law.

The following tables show our investments’ gross unrealized losses and estimated fair value, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.



	As of June 30, 2016
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
Collateralized mortgage obligations*	1	$	15,337	$	(44	)	4	$	41,563	$	(141	)	5	$	56,900	$	(185	)
Mortgage-backed securities*	4	7,747		(46		)	4	30,313		(140		)	8	38,060		(186		)
Trust preferred securities	—	—		—			1	3,713		(840		)	1	3,713		(840		)
Municipal bonds	1	535		(2		)	—	—		—			1	535		(2		)
Mutual funds	—	—		—			—	—		—			—	—		—
	6	$	23,619	$	(92	)	9	$	75,589	$	(1,121	)	15	$	99,208	$	(1,213	)

* Investments in U.S. Government agency and U.S. Government sponsored enterprises



	As of December 31, 2015
	Less than 12 months						12 months or longer						Total
Description of Securities	Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses			Number of Securities	Fair Value		Gross Unrealized Losses
	(In thousands)
Collateralized mortgage obligations*	31	$	300,202	$	(2,611	)	8	$	70,857	$	(2,344	)	39	$	371,059	$	(4,955	)
Mortgage-backed securities*	28	247,160		(1,487		)	3	27,947		(1,358		)	31	275,107		(2,845		)
Trust Preferred securities	—	—		—			1	3,750		(796		)	1	3,750		(796		)
Municipal bonds	1	127		—			—	—		—			1	127		—
Mutual funds	1	13,269		(156		)	—	—		—			1	13,269		(156		)
	61	$	560,758	$	(4,254	)	12	$	102,554	$	(4,498	)	73	$	663,312	$	(8,752	)

* Investments in U.S. Government agency and U.S. Government sponsored enterprises

The Company evaluates securities for other-than-temporary-impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair values of the securities have been less than the cost of the securities, and management’s intention to sell, or whether it is more likely than not that management will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, the Company considers, among other considerations, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.

The Company has certain collateralized mortgage obligations, mortgage-backed securities and trust preferred securities that were in a continuous unrealized loss position for twelve months or longer as of June 30, 2016. The trust preferred securities at June 30, 2016 had an amortized cost of $4.6 million and an unrealized loss of $840 thousand at June 30, 2016. The trust preferred securities are scheduled to mature in May 2047. These securities were rated investment grade and there were no credit quality concerns with the obligor. The collateralized mortgage obligations and mortgage-backed securities in a continuous loss position for twelve months or longer had an unrealized loss of $141 thousand and $140 thousand, respectively at June 30, 2016. These securities were issued by U.S. Government agency and U.S. Government sponsored enterprises and have high credit ratings of “AA” grade or better. Interest on the trust preferred securities and the U.S. Government agency and U.S. Government sponsored enterprise investments have been paid as agreed, and management believes this will continue in the future and that the securities will be repaid in full as scheduled. The market value declines for these securities were primarily due to movements in interest rates and are not reflective of management’s expectations of the Company’s ability to fully recover these investments, which may be at maturity. For these reasons, no OTTI was recognized on the trust preferred securities and the U.S. Government agency and U.S. Government sponsored collateralized mortgage obligations and mortgage-backed securities that are in an unrealized loss position at June 30, 2016.

The Company considers the losses on the investments in unrealized loss positions at June 30, 2016 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company’s intention not to sell, and management’s determination that it is more likely than not that the Company will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis.