4 - INVESTMENT SECURITIES

The following tables set forth the amortized cost and estimated fair values of the Bank’s investment securities.



	March 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gains		Losses		Value
Held-to-Maturity Securities:
State and municipals	$	4,809	$	35	$	—	$	4,844
Pass-through mortgage securities		260		13		—		273
Collateralized mortgage obligations		55		—		—		55
	$	5,124	$	48	$	—	$	5,172
Available-for-Sale Securities:
State and municipals	$	408,205	$	5,932	$	(1,792)	$	412,345
Pass-through mortgage securities		66,833		284		(558)		66,559
Collateralized mortgage obligations		151,695		1,755		(163)		153,287
Corporate bonds		119,000		—		(1,270)		117,730
	$	745,733	$	7,971	$	(3,783)	$	749,921

	December 31, 2018
Held-to-Maturity Securities:
State and municipals	$	5,142	$	36	$	—	$	5,178
Pass-through mortgage securities		267		11		—		278
Collateralized mortgage obligations		95		1		—		96
	$	5,504	$	48	$	—	$	5,552
Available-for-Sale Securities:
State and municipals	$	422,235	$	3,220	$	(5,417)	$	420,038
Pass-through mortgage securities		66,631		24		(1,169)		65,486
Collateralized mortgage obligations		154,378		886		(363)		154,901
Corporate bonds		119,000		—		(1,410)		117,590
	$	762,244	$	4,130	$	(8,359)	$	758,015

At March 31, 2019 and December 31, 2018, investment securities with a carrying value of $391,614,000 and $342,712,000, respectively, were pledged as collateral to secure public deposits and borrowed funds.

There were no holdings of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity at March 31, 2019 and December 31, 2018.

Securities With Unrealized Losses. The following tables set forth securities with unrealized losses presented by the length of time the securities have been in a continuous unrealized loss position.



	March 31, 2019
	Less than				12 Months
	12 Months				or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(in thousands)	Value		Loss		Value		Loss		Value		Loss
State and municipals	$	—	$	—	$	60,339	$	(1,792)	$	60,339	$	(1,792)
Pass-through mortgage securities		—		—		28,282		(558)		28,282		(558)
Collateralized mortgage obligations		—		—		7,160		(163)		7,160		(163)
Corporate bonds		117,730		(1,270)		—		—		117,730		(1,270)
Total temporarily impaired	$	117,730	$	(1,270)	$	95,781	$	(2,513)	$	213,511	$	(3,783)

	December 31, 2018
State and municipals	$	102,882	$	(1,639)	$	62,995	$	(3,778)	$	165,877	$	(5,417)
Pass-through mortgage securities		38,421		(142)		23,425		(1,027)		61,846		(1,169)
Collateralized mortgage obligations		32,577		(89)		7,342		(274)		39,919		(363)
Corporate bonds		97,590		(1,410)		—		—		97,590		(1,410)
Total temporarily impaired	$	271,470	$	(3,280)	$	93,762	$	(5,079)	$	365,232	$	(8,359)

Because the unrealized losses reflected in the preceding tables are deemed by management to be attributable to changes in interest rates and not credit losses, and because management does not have the intent to sell these securities and it is not more likely than not that it will be required to sell these securities before their anticipated recovery, the Bank does not consider these securities to be other-than-temporarily impaired at March 31, 2019.

Sales of Available-for-Sale and Held-to-Maturity Securities. There were no sales of available-for-sale or held-to-maturity securities during the three months ended March 31, 2019 and 2018.

Maturities. The following table sets forth by maturity the amortized cost and fair value of the Bank’s state and municipal securities and corporate bonds at March 31, 2019 based on the earlier of their stated maturity or, if applicable, their pre-refunded date. The remaining securities in the Bank’s investment securities portfolio are mortgage-backed securities, consisting of pass-through mortgage securities and collateralized mortgage obligations. Although these securities are expected to have substantial periodic repayments they are reflected in the table below in aggregate amounts.



(in thousands)	Amortized Cost		Fair Value
Held-to-Maturity Securities:
Within one year	$	3,241	$	3,243
After 1 through 5 years		1,568		1,601
After 5 through 10 years		—		—
After 10 years		—		—
Mortgage-backed securities		315		328
	$	5,124	$	5,172
Available-for-Sale Securities:
Within one year	$	38,917	$	39,170
After 1 through 5 years		41,470		41,908
After 5 through 10 years		290,124		291,350
After 10 years		156,694		157,647
Mortgage-backed securities		218,528		219,846
	$	745,733	$	749,921