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 Fannie Mae and Freddie Mac participation certificates. The unrealized gains included in trading securities totaled $1.7 million and $661,000 at September 30, 2019 and 2018, respectively.

Securities Available-For-Sale

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


	September 30, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Available-for-sale securities:
Treasury notes	$	2,743	$	22	$	—	$	2,765
Federal agencies		257,572		9		193		257,388
Municipals		11,976		784		—		12,760
Mortgage-backed - Government-sponsored entity (GSE) - residential		35,517		246		3		35,760
Total available-for-sale securities	$	307,808	$	1,061	$	196	$	308,673


	December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
Available-for-sale securities:
Treasury notes	$	11,928	$	26	$	13	$	11,941
Federal agencies		237,894		8		972		236,930
Municipals		21,014		336		18		21,332
Mortgage-backed - Government-sponsored entity (GSE) - residential		60,693		254		79		60,868
Total available-for-sale securities	$	331,529	$	624	$	1,082	$	331,071

The amortized cost and fair value of available-for-sale securities at September 30, 2019 and December 31, 2018, 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.


	September 30, 2019				December 31, 2018
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Contractual Maturity	(In thousands)
Within one year	$	16,248	$	16,247	$	179,323	$	178,581
After one through five years		246,533		246,480		72,470		72,282
After five through ten years		1,587		1,686		7,087		7,203
After ten years		7,923		8,500		11,956		12,137
		272,291		272,913		270,836		270,203
Mortgage-backed - Government-sponsored entity (GSE) - residential		35,517		35,760		60,693		60,868
	$	307,808	$	308,673	$	331,529	$	331,071

During the three months ended September 30, 2019, there were no sales of securities available for sale. During the nine months ended September 30, 2019, proceeds from sales of securities available for sale were $31.1 million, and a net gain of $124,000 was recognized, consisting of $361,000 in gains and $237,000 of losses. During the three and nine months ended September 30, 2018, $6.4 million securities available-for-sale were sold and no gain or loss was recognized.

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 September 30, 2019 and December 31, 2018:


	September 30, 2019
					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	$	—	$	—	$	—	$	—	$	—	$	—
Federal agencies		121,552		190		14,996		3		136,548		193
Mortgage-backed - Government-sponsored entity (GSE) - residential		1,114		3		—		—		1,114		3
	$	122,666	$	193	$	14,996	$	3	$	137,662	$	196


	December 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	$	1,990	$	8	$	995	$	5	$	2,985	$	13
Federal agencies		28,296		97		191,280		875		219,576	$	972
Municipals		2,051		18		—		—		2,051	$	18
Mortgage-backed - Government-sponsored entity (GSE) - residential		15,543		79		—		—		15,543		79
	$	47,880	$	202	$	192,275	$	880	$	240,155	$	1,082

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 securities approach the maturity date.