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Investment Securities
 6 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments Securities
Investment Securities

Securities Available-for-Sale

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for securities available-for-sale at March 31, 2018 and September 30, 2017:
 
March 31, 2018
 
Amortized cost

Gross unrealized gains

Gross unrealized (losses)

Fair value
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
54,799


26


(928
)

$
53,897

Mortgage-backed securities and collateralized mortgage obligations
754,862


406


(20,069
)

735,199

Municipal obligations
1,295


—


—


1,295

Corporate debt securities
54,490


270


(748
)

54,012

Trust preferred securities
5,000


—


(348
)

4,652

Equity securities
2,328


830


—


3,158

 
$
872,774


1,532


(22,093
)

$
852,213

    
 
September 30, 2017
 
Amortized cost

Gross unrealized gains

Gross unrealized (losses)

Fair value
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
24,954


35


(116
)

$
24,873

Mortgage-backed securities and collateralized mortgage obligations
479,927


652


(7,088
)

473,491

Municipal obligations
1,357


—


—


1,357

Corporate debt securities
49,489


536


(532
)

49,493

Trust preferred securities
5,000


—


(292
)

4,708

Equity securities
2,482


826


(54
)

3,254

 
$
563,209


2,049


(8,082
)

$
557,176



The table below presents the amortized cost and fair value of debt securities available-for-sale at March 31, 2018 by contractual maturity excluding equity securities. Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

March 31, 2018

Amortized cost

Fair value

(In thousands)
 
 
 
 
One year or less
$
1,104


$
1,105

More than one year to five years
45,121


44,385

More than five years to ten years
59,359


59,204

More than ten years
10,000


9,162


$
115,584


$
113,856

Mortgage-backed securities and collateralized mortgage obligations
754,862


735,199


$
870,446


$
849,055


    
Mortgage-backed securities and collateralized mortgage obligations totaling $754.9 million at amortized cost and $735.2 million at fair value are excluded from the maturity table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

For the three months ended March 31, 2018, proceeds from the sales of securities-available for sale totaled $9.7 million, resulting in $116 thousand of gross gains and zero losses. For the six months ended March 31, 2018, proceeds from sales of securities available-for-sale totaled $9.8 million, resulting in $116 thousand of gross gains and $61 thousand of gross losses.

There were no sales of securities from the available-for-sale investment portfolio for the three months ended March 31, 2017. For the six months ended March 31, 2017, proceeds from the sales of securities available-for-sale totaled $57.4 million, resulting in gross gains of $500 thousand and gross losses of $89 thousand.

Securities available-for-sale with a fair value of $187.6 million and $302.9 million at March 31, 2018 and September 30, 2017 were sold under agreements to repurchase or were pledged as security for deposits of public funds as required and permitted by law.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at March 31, 2018 and September 30, 2017 and if the unrealized loss position was continuous for the twelve months prior to March 31, 2018 and September 30, 2017:

March 31, 2018

Less than 12 months

12 months or longer

Total

Fair Value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

(In thousands)












U.S. government and agency obligations
$
44,092


(722
)

4,774


(206
)

48,866


$
(928
)
Mortgage-backed securities and collateralized mortgage obligations
485,994


(11,572
)

156,550


(8,497
)

642,544


(20,069
)
Corporate debt securities
14,894


(98
)

9,351


(650
)

24,245


(748
)
Trust preferred securities
4,652


(348
)

—


—


4,652


(348
)

$
549,632


(12,740
)

170,675


(9,353
)

720,307


$
(22,093
)


September 30, 2017

Less than 12 months

12 months or longer

Total

Fair Value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

(In thousands)












U.S. government and agency obligations
$
14,831


(116
)

—


—


14,831


$
(116
)
Mortgage-backed securities and collateralized mortgage obligations
329,554


(5,346
)

49,695


(1,742
)

379,249


(7,088
)
Corporate debt securities
9,824


(176
)

9,644


(356
)

19,468


(532
)
Trust preferred securities
—


—


4,708


(292
)

4,708


(292
)
Equity securities
98


(54
)

—


—


98


(54
)

$
354,307


(5,692
)

64,047


(2,390
)

418,354


$
(8,082
)

The Company evaluates securities for other-than-temporary impairment at each reporting period and more frequently when economic or market conditions warrant such evaluation. The temporary loss position associated with securities available-for-sale was the result of changes in market interest rates relative to the coupon of the individual security and changes in credit spreads. The Company does not have the intent to sell securities in a temporary loss position at March 31, 2018, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

The Company did not record an other-than-temporary impairment charge on securities in the available-for-sale portfolio for the three and six months ended March 31, 2018 and 2017.

Securities Held-to-Maturity

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for securities held-to-maturity at March 31, 2018 and September 30, 2017:


March 31, 2018

Amortized cost

Gross unrealized gains

Gross unrealized (losses)

Fair value

(In thousands)








U.S. government and agency obligations
$
13,402


—


(243
)

$
13,159

Mortgage-backed securities and collateralized mortgage obligations
240,729


530


(8,941
)

232,318


$
254,131


530


(9,184
)

$
245,477



September 30, 2017

Amortized cost

Gross unrealized gains

Gross unrealized (losses)

Fair value

(In thousands)








U.S. government and agency obligations
$
3,407


—


(7
)

$
3,400

Mortgage-backed securities and collateralized mortgage obligations
129,532


—


(1,110
)

128,422


$
132,939


—


(1,117
)

$
131,822

The table below presents the amortized cost and fair value of debt securities held-to-maturity at March 31, 2018 by contractual maturity. Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.

March 31, 2018

Amortized cost

Fair value

(In Thousands)




More than five years to ten years
$
13,402


$
13,159


13,402


13,159

Mortgage-backed securities and collateralized mortgage obligations
240,729


232,318


$
254,131


$
245,477



Mortgage-backed securities and collateralized mortgage obligations totaling $240.7 million at amortized cost and $232.3 million at fair value are excluded from the maturity table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

Securities held-to-maturity with a fair value of $124.6 million and zero at March 31, 2018 and September 30, 2017 were sold under agreements to repurchase or were pledged as security for deposits of public funds as required and permitted by law.

There were no sales of securities from the held-to-maturity investment portfolio for the three and six months ended March 31, 2018 and 2017.

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at March 31, 2018 and September 30, 2017 and if the unrealized loss position was continuous for the twelve months prior to March 31, 2018 and September 30, 2017:


March 31, 2018

Less than 12 months

12 months or longer

Total

Fair Value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

(In thousands)












U.S. government and agency obligations
$
8,160


(243
)

—


—


8,160


$
(243
)
Mortgage-backed securities and collateralized mortgage obligations
139,886


(4,300
)

69,110


(4,641
)

208,996


(8,941
)

$
148,046


(4,543
)

69,110


(4,641
)

217,156


$
(9,184
)


September 30, 2017

Less than 12 months

12 months or longer

Total

Fair Value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

Fair value

Gross unrealized (losses)

(In thousands)












U.S. government and agency obligations
$
—


—


3,400


(7
)

3,400


$
(7
)
Mortgage-backed securities and collateralized mortgage obligations
29,965


(349
)

96,076


(761
)

126,041


(1,110
)

$
29,965


(349
)

99,476


(768
)

129,441


$
(1,117
)

The Company evaluates securities for other-than-temporary impairment at each reporting period and more frequently when economic or market conditions warrant such evaluation. The temporary loss position associated with securities held-to-maturity was the result of changes in market interest rates relative to the coupon of the individual security and changes in credit spreads. The Company does not have the intent to sell securities in a temporary loss position at March 31, 2018, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

The Company did not record an other-than-temporary impairment charge on securities in the held-to-maturity portfolio for the three and six months ended March 31, 2018 and 2017.