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Securities | 3 Months Ended
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Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities Available-for-Sale Debt Securities The following table summarizes available-for-sale debt securities held by the Company at March 31, 2020:
| Available-for-Sale Debt Securities
March 31, 2020 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(In thousands) |  |  |  |  |  |  |
U.S. Treasuries | $ | 1,745 |  |  | $ | 5 |  |  | $ | 0 |  |  | $ | 1,750 |
Obligations of U.S. Government sponsored entities | 302,086 |  |  | 11,384 |  |  | 42 |  |  | 313,428 |
Obligations of U.S. states and political subdivisions | 101,452 |  |  | 1,159 |  |  | 127 |  |  | 102,484 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |
U.S. Government agencies | 171,500 |  |  | 3,469 |  |  | 454 |  |  | 174,515 |
U.S. Government sponsored entities | 739,133 |  |  | 19,013 |  |  | 119 |  |  | 758,027 |
U.S. corporate debt securities | 2,500 |  |  | 0 |  |  | 67 |  |  | 2,433 |
Total available-for-sale debt securities | $ | 1,318,416 |  |  | $ | 35,030 |  |  | $ | 809 |  |  | $ | 1,352,637 |
The following table summarizes available-for-sale debt securities held by the Company at December 31, 2019:
| Available-for-Sale Debt Securities
December 31, 2019 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
(In thousands) |  |  |  |  |  |  |
U.S. Treasuries | $ | 1,840 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,840 |
Obligations of U.S. Government sponsored entities | 367,551 |  |  | 5,021 |  |  | 84 |  |  | 372,488 |
Obligations of U.S. states and political subdivisions | 96,668 |  |  | 1,178 |  |  | 61 |  |  | 97,785 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |
U.S. Government agencies | 164,643 |  |  | 1,327 |  |  | 1,519 |  |  | 164,451 |
U.S. Government sponsored entities | 660,037 |  |  | 2,940 |  |  | 3,387 |  |  | 659,590 |
U.S. corporate debt securities | 2,500 |  |  | 0 |  |  | 67 |  |  | 2,433 |
Total available-for-sale debt securities | $ | 1,293,239 |  |  | $ | 10,466 |  |  | $ | 5,118 |  |  | $ | 1,298,587 |
The Company may from time to time sell investment securities from its available-for-sale portfolio. Realized gains on sales of available-for-sale debt securities were $178,000 for the three months ended March 31, 2020 and $0 for the same period during 2019. Realized losses on sales of available-for-sale debt securities were $0 for the three months ended March 31, 2020 and 2019. The sales of available-for-sale investment securities were the result of general investment portfolio and interest rate risk management. The Company's available-for-sale portfolio includes callable securities that may be called prior to maturity. Realized gains on called available-for-sale debt securities were $251,000 for the three months ended March 31, 2020 and $0 for the three months ended March 31, 2019. The Company also recognized gains of $14,000 and $12,000 for the three months ended March 31, 2020, and March 31, 2019 on equity securities, reflecting the change in fair value. The following table summarizes available-for-sale debt securities that had unrealized losses at March 31, 2020:
| Less than 12 Months |  | 12 Months or Longer |  | Total
(In thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government sponsored entities | $ | 24,209 |  |  | $ | 42 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 24,209 |  |  | $ | 42 |
Obligations of U.S. states and political subdivisions | 18,179 |  |  | 127 |  |  | 0 |  |  | 0 |  |  | 18,179 |  |  | 127 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | 38,813 |  |  | 340 |  |  | 6,618 |  |  | 114 |  |  | 45,431 |  |  | 454 |
U.S. Government sponsored entities | 4,435 |  |  | 10 |  |  | 11,038 |  |  | 109 |  |  | 15,473 |  |  | 119 |
U.S. corporate debt securities | 0 |  |  | 0 |  |  | 2,433 |  |  | 67 |  |  | 2,433 |  |  | 67 |
Total available-for-sale debt securities | $ | 85,636 |  |  | $ | 519 |  |  | $ | 20,089 |  |  | $ | 290 |  |  | $ | 105,725 |  |  | $ | 809 |
The following table summarizes available-for-sale debt securities that had unrealized losses at December 31, 2019:
| Less than 12 Months |  | 12 Months or Longer |  | Total
(In thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government sponsored entities | $ | 18,654 |  |  | $ | 76 |  |  | $ | 3,479 |  |  | $ | 8 |  |  | $ | 22,133 |  |  | $ | 84 |
Obligations of U.S. states and political subdivisions | 10,456 |  |  | 54 |  |  | 2,300 |  |  | 7 |  |  | 12,756 |  |  | 61 |
Mortgage-backed securities – residential, issued by |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | 54,846 |  |  | 489 |  |  | 45,999 |  |  | 1,030 |  |  | 100,845 |  |  | 1,519 |
U.S. Government sponsored entities | 157,801 |  |  | 752 |  |  | 233,999 |  |  | 2,635 |  |  | 391,800 |  |  | 3,387 |
U.S. corporate debt securities | 0 |  |  | 0 |  |  | 2,433 |  |  | 67 |  |  | 2,433 |  |  | 67 |
Total available-for-sale debt securities | $ | 241,757 |  |  | $ | 1,371 |  |  | $ | 288,210 |  |  | $ | 3,747 |  |  | $ | 529,967 |  |  | $ | 5,118 |
The Company evaluates available-for-sale debt securities in unrealized loss positions at each measurement date to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an ACL on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings via credit loss expense. The gross unrealized losses reported for residential mortgage-backed securities relate to investment securities issued by U.S. government sponsored entities such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, and U.S. government agencies such as Government National Mortgage Association. The total gross unrealized losses, shown in the tables above, were primarily attributable to changes in interest rates and levels of market liquidity, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company considers the following factors in determining whether a credit loss exists.
• | The extent to which the fair value is less than the amortized cost basis;
• | The level of credit enhancement provided by the structure which includes, but is not limited to, credit subordination positions, excess spreads, overcollateralization, and protective triggers;
• | Changes in the near term prospects of the issuer or underlying collateral of a security, such as changes in default rates, loss severities given default and significant changes in prepayment assumptions;
• | The level of excess cash flow generated from the underlying collateral supporting the principal and interest payments of the debt securities; and
• | Any adverse change to the credit conditions of the issuer or the security such as credit downgrades by rating agencies.
At January 1, 2020 and March 31, 2020, the Company determined that all impaired available-for-sale debt securities experienced a decline in fair value below the amortized cost basis due to noncredit-related factors. In addition, the Company does not intend to sell other-than-temporarily impaired investment securities that are in an unrealized loss position until recovery of unrealized losses (which may be until maturity), and it is not more-likely-than not that the Company will be required to sell the investment securities, before recovery of their amortized cost basis, which may be at maturity. Therefore, the Company carried no ACL at those respective dates and there was no credit loss expense recognized by the Company during the three months ended March 31, 2020. The amortized cost and estimated fair value of debt securities by contractual maturity are shown in the following table. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities are shown separately since they are not due at a single maturity date.
March 31, 2020 |  |  |
(In thousands) | Amortized Cost |  | Fair Value
Available-for-sale debt securities: |  |  |
Due in one year or less | $ | 63,817 |  |  | $ | 64,031 |
Due after one year through five years | 222,678 |  |  | 232,268 |
Due after five years through ten years | 81,418 |  |  | 83,920 |
Due after ten years | 39,870 |  |  | 39,876 |
Total | 407,783 |  |  | 420,095 |
Mortgage-backed securities | 910,633 |  |  | 932,542 |
Total available-for-sale debt securities | $ | 1,318,416 |  |  | $ | 1,352,637 |
December 31, 2019 |  |  |
(In thousands) | Amortized Cost |  | Fair Value
Available-for-sale debt securities: |  |  |
Due in one year or less | $ | 107,975 |  |  | $ | 108,089 |
Due after one year through five years | 270,477 |  |  | 274,798 |
Due after five years through ten years | 77,710 |  |  | 79,165 |
Due after ten years | 12,397 |  |  | 12,494 |
Total | 468,559 |  |  | 474,546 |
Mortgage-backed securities | 824,680 |  |  | 824,041 |
Total available-for-sale debt securities | $ | 1,293,239 |  |  | $ | 1,298,587 |
The Company also holds non-marketable Federal Home Loan Bank New York (“FHLBNY”) stock, non-marketable Federal Home Loan Bank Pittsburgh (“FHLBPITT”) stock and non-marketable Atlantic Community Bankers Bank stock ("ACBB"), all of which are required to be held for regulatory purposes and for borrowing availability. The required investment in FHLB stock is tied to the Company’s borrowing levels with the FHLB. Holdings of FHLBNY stock, FHLBPITT stock, and ACBB stock totaled $15.6 million, $8.5 million and $95,000 at March 31, 2020, respectively. These securities are carried at par, which is also cost. The FHLBNY and FHLBPITT continue to pay dividends and repurchase stock. Quarterly, we evaluate our investment in the FHLB for impairment. We evaluate recent and long-term operating performance, liquidity, funding and capital positions, stock repurchase history, dividend history and impact of legislative and regulatory changes. Based on our most recent evaluation, as of March 31, 2020, we have determined that no impairment write-downs are currently required.

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