3.	Securities

The amortized cost, estimated fair value and unrealized gains and losses of available for sale (“AFS”) securities are as follows:

(In thousands)	Amortized cost		Unrealized gains		Unrealized losses		Estimated fair value
September 30, 2017
Federal agency	$	139,935	$	27	$	544	$	139,418
State & municipal		42,880		127		88		42,919
Mortgage-backed:
Government-sponsored enterprises		554,466		3,879		1,115		557,230
U.S. government agency securities		26,760		404		168		26,996
Collateralized mortgage obligations:
Government-sponsored enterprises		523,682		626		5,592		518,716
U.S. government agency securities		53,089		169		662		52,596
Other securities		13,537		6,332		130		19,739
Total securities AFS	$	1,354,349	$	11,564	$	8,299	$	1,357,614
December 31, 2016
Federal agency	$	175,135	$	78	$	805	$	174,408
State & municipal		47,053		153		480		46,726
Mortgage-backed:
Government-sponsored enterprises		513,814		3,345		2,492		514,667
U.S. government agency securities		14,955		411		189		15,177
Collateralized mortgage obligations:
Government-sponsored enterprises		513,431		532		7,688		506,275
U.S. government agency securities		60,822		184		708		60,298
Other securities		15,849		6,394		1,504		20,739
Total securities AFS	$	1,341,059	$	11,097	$	13,866	$	1,338,290

The amortized cost, estimated fair value and unrealized gains and losses of held to maturity (“HTM”) securities are as follows:

(In thousands)	Amortized cost		Unrealized gains		Unrealized losses		Estimated fair value
September 30, 2017
Mortgage-backed:
Government-sponsored enterprises	$	99,502	$	239	$	685	$	99,056
U.S. government agency securities		447		67		-		514
Collateralized mortgage obligations:
Government-sponsored enterprises		195,388		1,135		1,103		195,420
State & municipal		198,972		1,983		534		200,421
Total securities HTM	$	494,309	$	3,424	$	2,322	$	495,411
December 31, 2016
Mortgage-backed:
Government-sponsored enterprises	$	96,668	$	-	$	1,176	$	95,492
U.S. government agency securities		533		87		-		620
Collateralized mortgage obligations:
Government-sponsored enterprises		225,213		1,060		1,508		224,765
State & municipal		205,534		434		1,795		204,173
Total securities HTM	$	527,948	$	1,581	$	4,479	$	525,050

Securities with amortized costs totaling $1.2 billion at September 30, 2017 and $1.5 billion at December 31, 2016 were pledged to secure public deposits and for other purposes required or permitted by law. At September 30, 2017 and December 31, 2016, securities with an amortized cost of $242.6 million and $235.6 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following table sets forth information with regard to investment securities with unrealized losses, segregated according to the length of time the securities had been in a continuous unrealized loss position:

(Dollars in thousands)	Less than 12 months							12 months or longer							Total
Security Type:	Fair Value		Unrealized losses			Number of Positions		Fair Value		Unrealized losses			Number of Positions		Fair Value		Unrealized losses			Number of Positions

September 30, 2017
AFS securities:
Federal agency	$	45,209	$	(49	)		3	$	54,465	$	(495	)		5	$	99,674	$	(544	)		8
State & municipal		14,720		(39	)		24		6,015		(49	)		8		20,735		(88	)		32
Mortgage-backed		181,600		(1,176	)		42		6,577		(107	)		5		188,177		(1,283	)		47
Collateralized mortgage obligations		339,415		(3,175	)		50		119,108		(3,079	)		16		458,523		(6,254	)		66
Other securities		1,997		(3	)		1		2,979		(127	)		1		4,976		(130	)		2
Total securities with unrealized losses	$	582,941	$	(4,442	)		120	$	189,144	$	(3,857	)		35	$	772,085	$	(8,299	)		155

HTM securities:
Mortgage-backed	$	51,166	$	(685	)		4	$	-	$	-			-	$	51,166	$	(685	)		4
Collateralized mortgage obligations		49,394		(160	)		7		31,627		(943	)		4		81,021		(1,103	)		11
State & municipal		16,811		(188	)		21		12,591		(346	)		21		29,402		(534	)		42
Total securities with unrealized losses	$	117,371	$	(1,033	)		32	$	44,218	$	(1,289	)		25	$	161,589	$	(2,322	)		57

December 31, 2016
AFS securities:
Federal agency	$	119,363	$	(805	)		10	$	-	$	-			-	$	119,363	$	(805	)		10
State & municipal		31,873		(478	)		55		483		(2	)		1		32,356		(480	)		56
Mortgage-backed		277,524		(2,668	)		49		985		(13	)		4		278,509		(2,681	)		53
Collateralized mortgage obligations		473,746		(8,396	)		57		-		-			-		473,746		(8,396	)		57
Other securities		-		-			-		4,363		(1,504	)		2		4,363		(1,504	)		2
Total securities with unrealized losses	$	902,506	$	(12,347	)		171	$	5,831	$	(1,519	)		7	$	908,337	$	(13,866	)		178

HTM securities:
Mortgage-backed	$	95,492	$	(1,176	)		5	$	-	$	-			-	$	95,492	$	(1,176	)		5
Collateralized mortgage obligations		108,587		(319	)		12		35,209		(1,189	)		4		143,796		(1,508	)		16
State & municipal		81,984		(1,795	)		155		-		-			-		81,984		(1,795	)		155
Total securities with unrealized losses	$	286,063	$	(3,290	)		172	$	35,209	$	(1,189	)		4	$	321,272	$	(4,479	)		176

Declines in the fair value of HTM and AFS securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses or in other comprehensive income. Depending on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the other-than-temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI shall be separated into (a) the amount representing the credit loss and (b) the amount related to all other factors. The amount of the total OTTI related to the credit loss shall be recognized in earnings. The amount of the total OTTI related to other factors shall be recognized in other comprehensive income, net of applicable taxes.

In estimating OTTI losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the historical and implied volatility of the fair value of the security.

Management has the intent to hold the securities classified as HTM until they mature, at which time it is believed the Company will receive full value for the securities. The unrealized losses on HTM debt securities are due to increases in market interest rates over yields at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. The fair value is expected to recover as the bond approaches their maturity date or repricing date or if market yields for such investments decline.

Management also has the intent to hold and will not be required to sell, the securities classified as AFS for a period of time sufficient for a recovery of cost, which may be until maturity. The unrealized losses on AFS debt securities are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. When necessary, the Company has performed a discounted cash flow analysis to determine whether or not it will receive the contractual principal and interest on certain securities. For AFS debt and equity securities, OTTI losses are recognized in earnings if the Company intends to sell the security. In other cases the Company considers the relevant factors noted above, as well as the Company’s intent and ability to retain its investment for a period of time sufficient to allow for any anticipated recovery in market value and whether evidence exists to support a realizable value equal to or greater than the cost basis. Any impairment loss on an equity security is equal to the full difference between the cost basis and the fair value of the security.

As of September 30, 2017 and December 31, 2016, management believes the impairments detailed in the table above are temporary. There were no impairments realized in the three months ended September 30, 2017. For the nine months ended September 30, 2017, $1.3 million of an OTTI loss on an AFS equity investment was realized in the Company’s unaudited interim consolidated statements of income. There were no OTTI losses realized in the Company’s unaudited interim consolidated statements of income for the three and nine months ended September 30, 2016.

During the three and nine months ended September 30, 2017, the Company sold HTM securities with an amortized cost of $0.8 million and an unrealized loss of $2 thousand. Due to significant deterioration in the creditworthiness of the issuers of the HTM securities, the circumstances caused the Company to change its intent to hold the HTM securities sold to maturity, which did not affect the Company’s intent to hold the remainder of the HTM portfolio to maturity. There were no sales of HTM securities in the three and nine month periods ended September 30, 2016.

The following tables set forth information with regard to contractual maturities of debt securities at September 30, 2017:

(In thousands)	Amortized cost		Estimated fair value
AFS debt securities:
Within one year	$	92,405	$	92,429
From one to five years		84,442		84,598
From five to ten years		179,854		180,667
After ten years		984,111		980,181
	$	1,340,812	$	1,337,875
HTM debt securities:
Within one year	$	28,489	$	28,493
From one to five years		38,321		38,702
From five to ten years		144,621		145,547
After ten years		282,878		282,669
	$	494,309	$	495,411

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. Government securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at September 30, 2017 and December 31, 2016.