Note 2: Securities

Trading Securities

Securities that are held principally for resale in the near term are recorded as trading securities at fair value with changes in fair value recorded in earnings. Trading securities include FHA and conventional participation certificates. The fair value changes recorded in earnings totaled $1.5 million and $1.7 million for the three-month periods ended March 31, 2018 and 2017, respectively.

Securities Available-For-Sale

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:


	March 31, 2018
			Gross		Gross		Approximate
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Available-for-sale securities:
Treasury notes	$	3,494	$	—	$	21	$	3,473
Federal agencies		379,719		—		2,103		377,616
Equities		69		18		—		87
Municipals		6,430		—		—		6,430
Mortgage-backed - Government-sponsored entity (GSE) - residential		25,851		—		—		25,851
Total available-for-sale securities	$	415,563	$	18	$	2,124	$	413,457


	December 31, 2017
			Gross		Gross		Approximate
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Available-for-sale securities:
Treasury notes	$	1,000	$	—	$	8	$	992
Federal agencies		376,414		—		1,683		374,731
Municipals		6,688		—		—		6,688
Mortgage-backed - Government-sponsored entity (GSE) - residential		25,960		—		—		25,960
Total available-for-sale securities	$	410,062	$	—	$	1,691	$	408,371

The amortized cost and fair value of available-for-sale securities at March 31, 2018 and December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers 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.


	March 31, 2018				December 31, 2017
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Contractual Maturity	(In thousands)
Within one year	$	184,928	$	184,268	$	164,997	$	164,321
After one through five years		198,515		197,051		212,905		211,890
After five through ten years		—		—		—		—
After ten years		6,200		6,200		6,200		6,200
		389,643		387,519		384,102		382,411
Mortgage-backed - Government-sponsored entity (GSE) - residential		25,851		25,851		25,960		25,960
Equities		69		87		—		—
	$	415,563	$	413,457	$	410,062	$	408,371

No securities available-for-sale were sold during the three months ended March 31, 2018.

The following tables show the Company’s investments’ gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018 and December 31, 2017:


	March 31, 2018
					12 Months or
	Less than 12 Months				Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Available-for-sale securities:
Treasury notes	$	—	$	—	$	3,473	$	21	$	3,473	$	21
Federal agencies		173,816		633		203,800		1,470		377,616		2,103
	$	173,816	$	633	$	207,273	$	1,491	$	381,089	$	2,124


	December 31, 2017
					12 Months or
	Less than 12 Months				Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Available-for-sale securities:
Treasury notes	$	992	$	8	$	—	$	—	$	992	$	8
Federal agencies		191,064		903		183,667		780		374,731		1,683
	$	192,056	$	911	$	183,667	$	780	$	375,723	$	1,691

Other-than-temporary Impairment

Unrealized losses on securities have not been recognized to income because the Company has the intent and ability to hold the securities for the foreseeable future, and the decline in fair value is primarily due to increased market interest rates. The fair value is expected to recover as the bonds approach the maturity date.