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Securities
 6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities
(In Thousands, Except Number of Securities)

The amortized cost and fair value of securities available for sale were as follows as of the dates presented:
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
June 30, 2018
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
$
3,545

 
$
19

 
$
(49
)
 
$
3,515

Obligations of states and political subdivisions
217,847

 
3,787

 
(758
)
 
220,876

Residential mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
493,001

 
336

 
(10,212
)
 
483,125

Government agency collateralized mortgage obligations
303,625

 
59

 
(7,679
)
 
296,005

Commercial mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
27,468

 
251

 
(530
)
 
27,189

Government agency collateralized mortgage obligations
24,585

 
—

 
(264
)
 
24,321

Trust preferred securities
12,402

 
—

 
(2,001
)
 
10,401

Other debt securities
23,555

 
94

 
(302
)
 
23,347

 
$
1,106,028

 
$
4,546

 
$
(21,795
)
 
$
1,088,779

 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
December 31, 2017
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
$
3,554

 
$
40

 
$
(30
)
 
$
3,564

Obligations of states and political subdivisions
228,589

 
6,161

 
(269
)
 
234,481

Residential mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
196,121

 
888

 
(3,059
)
 
193,950

Government agency collateralized mortgage obligations
180,258

 
133

 
(3,752
)
 
176,639

Commercial mortgage backed securities:
 
 
 
 
 
 
 
Government agency mortgage backed securities
31,015

 
389

 
(234
)
 
31,170

Government agency collateralized mortgage obligations
5,019

 
1

 
(14
)
 
5,006

Trust preferred securities
12,442

 
—

 
(3,054
)
 
9,388

Other debt securities
17,106

 
260

 
(76
)
 
17,290

 
$
674,104

 
$
7,872

 
$
(10,488
)
 
$
671,488



There were no sales of securities during the six months ended June 30, 2018. During the first quarter of 2017, the Company sold residential mortgage backed securities with a carrying value of $2,946 at the time of the sale for net proceeds of $2,946 resulting in no gain or loss on the sale. There were no securities sold during the second quarter of 2017.
 
 
 
 
 
 
 
 

At June 30, 2018 and December 31, 2017, securities with a carrying value of $443,011 and $217,867, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $18,278 and $25,888 were pledged as collateral for short-term borrowings and derivative instruments at June 30, 2018 and December 31, 2017, respectively.
The amortized cost and fair value of securities at June 30, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
 
 
 
Available for Sale
 
 
Amortized
Cost
 
Fair
Value
Due within one year
 
$
41,602

 
$
42,138

Due after one year through five years
 
54,549

 
55,472

Due after five years through ten years
 
80,531

 
81,272

Due after ten years
 
65,931

 
64,758

Residential mortgage backed securities:
 
 
 
 
Government agency mortgage backed securities
 
493,001

 
483,125

Government agency collateralized mortgage obligations
 
303,625

 
296,005

Commercial mortgage backed securities:
 
 
 
 
Government agency mortgage backed securities
 
27,468

 
27,189

Government agency collateralized mortgage obligations
 
24,585

 
24,321

Other debt securities
 
14,736

 
14,499

 
 
$
1,106,028

 
$
1,088,779





The following table presents the age of gross unrealized losses and fair value by investment category as of the dates presented:
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
#
 
Fair
Value
 
Unrealized
Losses
 
#
 
Fair
Value
 
Unrealized
Losses
 
#
 
Fair
Value
 
Unrealized
Losses
Available for Sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
1
 
$
492

 
$
(8
)
 
2
 
$
1,980

 
$
(41
)
 
3
 
$
2,472

 
$
(49
)
Obligations of states and political subdivisions

51
 
32,251

 
(386
)
 
13
 
7,800

 
(372
)
 
64
 
40,051

 
(758
)
Residential mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
105
 
361,859

 
(5,623
)
 
47
 
88,914

 
(4,589
)
 
152
 
450,773

 
(10,212
)
Government agency collateralized mortgage obligations
52
 
178,776

 
(3,538
)
 
34
 
74,271

 
(4,141
)
 
86
 
253,047

 
(7,679
)
Commercial mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
8
 
14,530

 
(178
)
 
3
 
5,659

 
(352
)
 
11
 
20,189

 
(530
)
Government agency collateralized mortgage obligations
4
 
24,321

 
(264
)
 
0
 
—

 
—

 
4
 
24,321

 
(264
)
Trust preferred securities
0
 
—

 
—

 
2
 
10,401

 
(2,001
)
 
2
 
10,401

 
(2,001
)
Other debt securities
10
 
10,011

 
(110
)
 
2
 
5,815

 
(192
)
 
12
 
15,826

 
(302
)
Total
231
 
$
622,240

 
$
(10,107
)
 
103
 
$
194,840

 
$
(11,688
)
 
334
 
$
817,080

 
$
(21,795
)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of other U.S. Government agencies and corporations
1
 
$
497

 
$
(3
)
 
2
 
$
1,999

 
$
(27
)
 
3
 
$
2,496

 
$
(30
)
Obligations of states and political subdivisions
23
 
11,860

 
(59
)
 
12
 
7,728

 
(210
)
 
35
 
19,588

 
(269
)
Residential mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
29
 
64,595

 
(659
)
 
44
 
89,414

 
(2,400
)
 
73
 
154,009

 
(3,059
)
Government agency collateralized mortgage obligations
33
 
102,509

 
(1,470
)
 
29
 
62,406

 
(2,282
)
 
62
 
164,915

 
(3,752
)
Commercial mortgage backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency mortgage backed securities
2
 
5,629

 
(17
)
 
3
 
5,872

 
(217
)
 
5
 
11,501

 
(234
)
Government agency collateralized mortgage obligations
1
 
4,986

 
(14
)
 
0
 
—

 
—

 
1
 
4,986

 
(14
)
Trust preferred securities
0
 
—

 
—

 
2
 
9,388

 
(3,054
)
 
2
 
9,388

 
(3,054
)
Other debt securities
2
 
756

 
(12
)
 
2
 
6,308

 
(64
)
 
4
 
7,064

 
(76
)
Total
91
 
$
190,832

 
$
(2,234
)
 
94
 
$
183,115

 
$
(8,254
)
 
185
 
$
373,947

 
$
(10,488
)

 
The Company evaluates its investment portfolio for other-than-temporary-impairment (“OTTI”) on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. Impairment is considered to be other-than-temporary if the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity.

The Company does not intend to sell any securities in an unrealized loss position that it holds, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. As such, the Company did not record any OTTI for the six months ended June 30, 2018 or 2017.
The Company holds investments in pooled trust preferred securities that had an amortized cost basis of $12,402 and $12,442 and a fair value of $10,401 and $9,388 at June 30, 2018 and December 31, 2017, respectively. At June 30, 2018, the investments in pooled trust preferred securities consisted of two securities representing interests in various tranches of trusts collateralized by debt issued by over 160 financial institutions. Management’s determination of the fair value of each of its holdings in pooled trust preferred securities is based on the current credit ratings, the known deferrals and defaults by the underlying issuing financial institutions and the degree to which future deferrals and defaults would be required to occur before the cash flow for the Company’s tranches is negatively impacted. In addition, management continually monitors key credit quality and capital ratios of the issuing institutions. This determination is further supported by quarterly valuations, which are performed by third parties, of each security obtained by the Company. The Company does not intend to sell the investments before recovery of the investments’ amortized cost, and it is not more likely than not that the Company will be required to sell the investments before recovery of the investments’ amortized cost, which may be at maturity. At June 30, 2018, management did not, and does not currently, believe such securities will be settled at a price less than the amortized cost of the investment, but the Company previously concluded that it was probable that there had been an adverse change in estimated cash flows for both trust preferred securities and recognized credit related impairment losses on these securities in 2011. No additional impairment was recognized during the six months ended June 30, 2018.
The following table provides information regarding the Company’s investments in pooled trust preferred securities at June 30, 2018:
 
Name
Single/
Pooled
 
Class/
Tranche
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Loss
 
Lowest
Credit
Rating
 
Issuers
Currently in
Deferral or
Default
XXIII
Pooled
 
B-2
 
$
8,313

 
$
6,751

 
$
(1,562
)
 
BB
 
16
%
XXVI
Pooled
 
B-2
 
4,089

 
3,650

 
(439
)
 
B
 
19
%
 
 
 
 
 
$
12,402

 
$
10,401

 
$
(2,001
)
 
 
 
 


The following table provides a summary of the cumulative credit related losses recognized in earnings for which a portion of OTTI has been recognized in other comprehensive income:
 
 
2018
 
2017
Balance at January 1
$
(261
)
 
$
(3,337
)
Additions related to credit losses for which OTTI was not previously recognized
—

 
—

Increases in credit loss for which OTTI was previously recognized
—

 
—

Reductions for securities sold during the period
—

 
3,076

Balance at June 30
$
(261
)
 
$
(261
)