7.	INVESTMENT AND MORTGAGE-BACKED SECURITIES

The Company adopted ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018. As a result of adoption all registered mutual funds were reclassified as marketable equity securities on the Consolidated Statement of Financial Condition and are recorded at fair value with changes in fair value recorded through the income statement. Additionally, $153 of unrealized gains, net of taxes, was reclassified from accumulated other comprehensive income to beginning retained earnings on January 1, 2018. Marketable equity securities are excluded from the tables below.

The following tables summarize the major categories of securities owned by the Company as of the dates indicated:

	At March 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available-for-sale:
Agency Notes	$	25,124	$	52	$	3	$	25,173
Corporate Securities		29,131		166		64		29,233
Pass-through MBS issued by Government-sponsored Enterprises ("GSEs")		346,338		2,829		560		348,607
Agency CMOs		109,244		142		776		108,610
Total securities available-for-sale	$	509,837	$	3,189	$	1,403	$	511,623

	At December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available-for-sale:
Agency Notes	$	25,110	$	45	$	10	$	25,145
Corporate Securities		11,167		0		32		11,135
Pass-through MBS issued by GSEs		356,039		574		2,000		354,613
Agency CMOs		113,470		157		1,635		111,992
Total securities available-for-sale	$	505,786	$	776	$	3,677	$	502,885

The carrying amount of securities pledged as collateral for the Bank's first loss guarantee was $23,786 and $27,248 at March 31, 2019 and December 31, 2018, respectively.

At March 31, 2019, the available-for-sale agency notes possessed a weighted average contractual maturity of 3.9 years. At March 31, 2019, available-for-sale agency CMO and MBS securities possessed a weighted average contractual maturity of 12.9 years. At March 31, 2019, the corporate securities possessed had a weighted average contractual maturity of 5.9 years.

	For the Three Months Ended March 31,
	2019			2018
Pass through MBS issued by GSEs:
Proceeds	$	6,117		$	—
Gross gains		—			—
Tax expense on gain		—			—
Gross losses		174			—
Tax benefit on loss		(56	)		—
Agency CMOs:
Proceeds		9,382			158,484
Gross gains		98			1,370
Tax expense on gain		31			440
Gross losses		—			—
Tax benefit on loss		—			—

The Company holds marketable equity securities as the underlying mutual fund investments of the BMP, held in a rabbi trust. The Company may sell these securities on a periodic basis in order to pay retirement benefits to plan retirees. There are no gains or losses recognized from the sales of marketable equity securities. A summary of the sales of marketable equity securities is listed below for the periods indicated:

	For the Three Months Ended March 31,
	2019		2018
Proceeds:
Marketable equity securities	$	137	$	393

The remaining gain or loss on securities shown in the unaudited condensed consolidated statements of income was due to market valuation changes. Net gains (losses) of $268 and $(4) were recognized on marketable equity securities for the three-month period ended March 31, 2019 and March 31, 2018, respectively.

The following table summarizes the gross unrealized losses and fair value of investment securities aggregated by investment category and the length of time the securities were in a continuous unrealized loss position as of the dates indicated:

	March 31, 2019
	Less than 12 Consecutive Months				12 Consecutive Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities available-for-sale:
Agency Notes	$	5,121	$	3	$	—	$	—	$	5,121	$	3
Corporate Securities		10,104		64		—		—		10,104		64
Pass through MBS issued by GSEs		—		—		81,834		560		81,834		560
Agency CMOs		86,626		716		4,583		60		91,209		776

	December 31, 2018
	Less than 12 Consecutive Months				12 Consecutive Months or Longer				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Securities available-for-sale:
Agency Notes	$	5,100	$	10	$	—	$	—	$	5,100	$	10
Corporate Securities		11,135		32		—		—		11,135		32
Pass through MBS issued by GSEs		216,451		1,049		45,489		951		261,940		2,000
Agency CMOs		52,605		439		39,833		1,196		92,438		1,635

The issuers of securities available-for-sale are U.S. government-sponsored entities or agencies. The decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality. It is likely that the Company will not be required to sell the securities before their anticipated recovery, and as such, the Company does not consider these securities to be other-than-temporarily-impaired at March 31, 2019.