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Securities Held to Maturity
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Securities Held to Maturity
Securities Held to Maturity

Securities held to maturity at December 31, 2018 and 2017 are summarized as follows:
 
December 31, 2018
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized (losses)
 
Fair value
 
(In thousands)
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
23,404

 
$
45

 
$
(208
)
 
$
23,241

Mortgage-backed securities and collateralized mortgage obligations
238,739

 
28

 
(7,167
)
 
231,600

 
$
262,143

 
$
73

 
$
(7,375
)
 
$
254,841

 
December 31, 2017
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized (losses)
 
Fair value
 
(In thousands)
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
8,402

 
$
—

 
$
(58
)
 
$
8,344

Mortgage-backed securities and collateralized mortgage obligations
231,216

 
—

 
(3,435
)
 
227,781

 
$
239,618

 
$
—

 
$
(3,493
)
 
$
236,125


(4)     Securities Held to Maturity (continued)

The amortized cost and fair value of debt securities held to maturity at December 31, 2018, by contractual final maturity, are shown below. Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
 
December 31, 2018
 
Amortized cost
 
Fair value
 
(In thousands)
 
 
 
 
More than one year to five years
$
5,000

 
$
5,000

More than five years to ten years
8,404

 
8,196

More than ten years
10,000

 
10,045

 
23,404

 
23,241

Mortgage-backed securities and collateralized mortgage obligations
238,739

 
231,600

 
$
262,143

 
$
254,841



Mortgage-backed securities and collateralized mortgage obligations totaling $238.7 million at amortized cost, and $231.6 million at fair value, are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

There were no sales of securities from the held to maturity portfolio for the years ended December 31, 2018, September 30, 2017 and 2016, and the three months ended December 31, 2017. Proceeds from calls and maturities of securities held to maturity for the years ended December 31, 2018 and September 30, 2017, totaled $5.4 million and $769,000, respectively. There were no calls or maturities of securities held to maturity for the year ended September 30, 2016 and the three months ended December 31, 2017.
    
Securities held to maturity having a carrying value of $187.0 million and $141.0 million, at December 31, 2018 and December 31, 2017, respectively, were pledged to secure public funds on deposit at the Bank as required and permitted by law.

The following table summarizes the fair value and gross unrealized losses of those securities that reported an unrealized loss at December 31, 2018 and 2017 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:
 
December 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
$
—

 
$
—

 
$
8,197

 
$
(208
)
 
$
8,197

 
$
(208
)
Mortgage-backed securities and collateralized mortgage obligations
11,265

 
(69
)
 
213,246

 
(7,098
)
 
224,511

 
(7,167
)

$
11,265

 
$
(69
)
 
$
221,443

 
$
(7,306
)
 
$
232,708

 
$
(7,375
)











(4)     Securities Held to Maturity (continued)

 
December 31, 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
$
8,344

 
$
(58
)
 
$
—

 
$
—

 
$
8,344

 
$
(58
)
Mortgage-backed securities and collateralized mortgage obligations
196,049

 
(2,920
)
 
29,531

 
(515
)
 
225,580

 
(3,435
)
 
$
204,393

 
$
(2,978
)
 
$
29,531

 
$
(515
)
 
$
233,924

 
$
(3,493
)

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 December 31, 2018, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

The number of securities in an unrealized loss position as of December 31, 2018 totaled 88, compared with 84 at December 31, 2017. All temporarily impaired securities were investment grade as of December 31, 2018 and 2017.

The Company did not record an other-than-temporary impairment charge on securities held to maturity for the years ended December 31, 2018, September 30, 2017 and 2016, and the three months ended December 31, 2017.

During the year ended September 30, 2017, the Company transferred certain available for sale securities with an amortized cost of $103.7 million and a fair value of $103.3 million to the held to maturity portfolio, largely because of the nature of the securities, which were community investment related mortgage-backed securities issued by government agencies, or due to their longer durations.
Securities Available for Sale

Securities available for sale at December 31, 2018 and 2017 are summarized as follows:
 
December 31, 2018
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized (losses)
 
Fair value
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
54,821

 
$
53

 
$
(717
)
 
$
54,157

Mortgage-backed securities and collateralized mortgage obligations
934,631

 
2,812

 
(17,436
)
 
920,007

Municipal obligations
987

 
—

 
—

 
987

Corporate debt securities
54,493

 
129

 
(1,155
)
 
53,467

Trust preferred securities
5,000

 
—

 
(750
)
 
4,250

Equity securities
1,196

 
694

 
—

 
1,890

 
$
1,051,128

 
$
3,688

 
$
(20,058
)
 
$
1,034,758

 
December 31, 2017
 
Amortized cost
 
Gross unrealized gains
 
Gross unrealized (losses)
 
Fair value
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
39,909

 
$
17

 
$
(282
)
 
$
39,644

Mortgage-backed securities and collateralized mortgage obligations
615,924

 
383

 
(9,695
)
 
606,612

Municipal obligations
1,957

 
—

 
—

 
1,957

Corporate debt securities
54,489

 
536

 
(511
)
 
54,514

Trust preferred securities
5,000

 
—

 
(344
)
 
4,656

Equity securities
2,328

 
859

 
—

 
3,187

 
$
719,607

 
$
1,795

 
$
(10,832
)
 
$
710,570



The amortized cost and fair value of debt securities available for sale at December 31, 2018, by contractual final maturity, excluding equity securities is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
 
December 31, 2018
 
Amortized cost
 
Fair value
 
(In thousands)
 
 
 
 
One year or less
$
797

 
$
797

More than one year to five years
50,131

 
49,613

More than five years to ten years
59,373

 
57,971

More than ten years
5,000

 
4,480

 
115,301

 
112,861

Mortgage-backed securities and collateralized mortgage obligations
934,631

 
920,007

 
$
1,049,932

 
$
1,032,868


(3)     Securities Available for Sale (continued)

Mortgage-backed securities and collateralized mortgage obligations totaling $934.6 million at amortized cost, and $920.0 million at fair value, are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During the year ended December 31, 2018, proceeds from calls of securities available for sale totaled $11.5 million, resulting in gross realized gains of $116,000 and no gross unrealized losses. Proceeds from maturities of securities available for sale totaled $2.4 million.

During the three months ended December 31, 2017, proceeds from sales of securities available for sale totaled $92,000, resulting in no gross unrealized gains and gross realized losses of $60,000. There were no calls or maturities of securities available for sale during the period.

During the year ended September 30, 2017, proceeds from sales of securities available for sale totaled $187.4 million, resulting in gross realized gains of $1.5 million and gross realized losses of $3.2 million. Proceeds from calls and maturities of securities available for sale totaled $17.2 million.

During the year ended September 31, 2016, proceeds from sales of securities available for sale totaled $164.2 million, resulting in gross realized gains of $1.1 million and gross realized losses of $743,000. Proceeds from calls and maturities of securities available for sale totaled $5.4 million.

Securities available for sale having a carrying value of $232.7 million and $301.1 million, respectively, at December 31, 2018 and 2017, respectively, are pledged to secure securities sold under repurchase agreements or for public funds on deposit at the Bank as required and permitted by law.

The following table summarizes the fair value and gross unrealized losses of those securities that reported an unrealized loss at December 31, 2018 and 2017 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:
 
December 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
$
14,668

 
$
(202
)
 
$
29,437

 
$
(515
)
 
$
44,105

 
$
(717
)
Mortgage-backed securities and collateralized mortgage obligations
176,614

 
(1,034
)
 
509,397

 
(16,402
)
 
686,011

 
(17,436
)
Corporate debt securities
26,480

 
(512
)
 
9,358

 
(643
)
 
35,838

 
(1,155
)
Trust preferred securities
—

 
—

 
4,250

 
(750
)
 
4,250

 
(750
)
 
$
217,762

 
$
(1,748
)
 
$
552,442

 
$
(18,310
)
 
$
770,204

 
$
(20,058
)














(3)     Securities Available for Sale (continued)
 
December 31, 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
$
29,654

 
$
(282
)
 
$
—

 
$
—

 
$
29,654

 
$
(282
)
Mortgage-backed securities and collateralized mortgage obligations
514,283

 
(8,037
)
 
48,788

 
(1,658
)
 
563,071

 
(9,695
)
Corporate debt securities
4,866

 
(135
)
 
4,624

 
(376
)
 
9,490

 
(511
)
Trust preferred securities
—

 
—

 
4,656

 
(344
)
 
4,656

 
(344
)
 
$
548,803

 
$
(8,454
)
 
$
58,068

 
$
(2,378
)
 
$
606,871

 
$
(10,832
)

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 December 31, 2018, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

The number of securities in an unrealized loss position as of December 31, 2018 totaled 151, compared with 111 at December 31, 2017. All temporarily impaired securities were investment grade as of December 31, 2018 and 2017.

The Company did not record an other-than-temporary impairment charge on securities available for sale for the years ended December 31, 2018, September 30, 2017 and 2016, and the three months ended December 31, 2017.