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Debt Securities Available for Sale
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Debt Securities Available for Sale
Debt Securities Available for Sale

Debt securities available for sale at March 31, 2019 and December 31, 2018 are summarized as follows:
 
March 31, 2019
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
54,621

 
$
240

 
$
(344
)
 
$
54,517

Mortgage-backed securities and collateralized mortgage obligations
970,978

 
6,240

 
(10,089
)
 
967,129

Municipal obligations
190

 
—

 
—

 
190

Corporate debt securities
64,493

 
103

 
(792
)
 
63,804

Trust preferred securities
5,000

 
—

 
(463
)
 
4,537

 
$
1,095,282

 
$
6,583

 
$
(11,688
)
 
$
1,090,177

 
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

 
$
1,049,932

 
$
2,994

 
$
(20,058
)
 
$
1,032,868



The amortized cost and fair value of debt securities available for sale at March 31, 2019, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.
 
March 31, 2019
 
Amortized Cost
 
Fair Value
 
(In thousands)
 
 
 
 
One year or less
$
95

 
$
95

More than one year to five years
60,043

 
59,857

More than five years to ten years
59,166

 
58,616

More than ten years
5,000

 
4,480

 
$
124,304

 
$
123,048

Mortgage-backed securities and collateralized mortgage obligations
970,978

 
967,129

 
$
1,095,282

 
$
1,090,177



Mortgage-backed securities and collateralized mortgage obligations totaling $971.0 million at amortized cost, and $967.1 million at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.
    

4.     Debt Securities Available for Sale (continued)

During the three months ended March 31, 2019, there were no sales or calls of debt securities available for sale. Proceeds from one matured debt security available for sale totaled $797,000.

During the three months ended March 31, 2018, there were no sales of debt securities available for sale. Proceeds from one called debt security available for sale totaled $9.7 million, resulting in $116,000 of gross gains and no gross losses. No debt securities available for sale matured during the period.

Debt securities available for sale having a carrying value of $246.1 million and $232.7 million, respectively, at March 31, 2019 and December 31, 2018, respectively, were pledged as security for public funds on deposit at the Bank 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, 2019 and December 31, 2018 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:
 
March 31, 2019
 
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
$
—

 
$
—

 
$
34,351

 
$
(344
)
 
$
34,351

 
$
(344
)
Mortgage-backed securities and collateralized mortgage obligations
23,038

 
(187
)
 
559,793

 
(9,902
)
 
582,831

 
(10,089
)
Corporate debt securities
21,807

 
(192
)
 
14,395

 
(600
)
 
36,202

 
(792
)
Trust preferred securities
—

 
—

 
4,537

 
(463
)
 
4,537

 
(463
)
 
$
44,845

 
$
(379
)
 
$
613,076

 
$
(11,309
)
 
$
657,921

 
$
(11,688
)
 
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
)

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 debt 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, 2019, 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 March 31, 2019 totaled 133, compared with 151 at December 31, 2018. All temporarily impaired securities were investment grade as of March 31, 2019 and December 31, 2018.

The Company did not record an other-than-temporary impairment charge on debt securities available for sale for the three months ended March 31, 2019 and 2018.
Debt Securities Held to Maturity

Debt securities held to maturity at March 31, 2019 and December 31, 2018 are summarized as follows:
 
March 31, 2019
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
33,406

 
$
73

 
$
(52
)
 
$
33,427

Mortgage-backed securities and collateralized mortgage obligations
254,123

 
513

 
(3,613
)
 
251,023

 
$
287,529

 
$
586

 
$
(3,665
)
 
$
284,450

 
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


    
The amortized cost and fair value of debt securities held to maturity at March 31, 2019, by contractual final maturity, is shown below. Expected maturities may differ from contractual maturities due to prepayment or early call options exercised by the issuer.
 
March 31, 2019
 
Amortized Cost
 
Fair Value
 
(In thousands)
 
 
 
 
More than one year to five years
$
5,000

 
$
5,003

More than five years to ten years
18,406

 
18,361

More than ten years
10,000

 
10,063

 
$
33,406

 
$
33,427

Mortgage-backed securities and collateralized mortgage obligations
254,123

 
251,023

 
$
287,529

 
$
284,450



Mortgage-backed securities and collateralized mortgage obligations totaling $254.1 million at amortized cost, and $251.0 million at fair value, are not classified by maturity in the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During the three months ended March 31, 2019 and 2018, there were no sales or calls of debt securities held to maturity.

Debt securities held to maturity having a carrying value of $222.7 million and $187.0 million, at March 31, 2019 and December 31, 2018, respectively, were pledged as security for public funds on deposit at the Bank as required and permitted by law.

    





5.    Debt Securities Held to Maturity (continued)

The following tables summarize the fair value and gross unrealized losses of those securities that reported an unrealized loss at March 31, 2019 and December 31, 2018 and if the unrealized loss position was continuous for the twelve months prior to March 31, 2019 and December 31, 2018:
 
March 31, 2019
 
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
$
—

 
$
—

 
$
8,353

 
$
(52
)
 
$
8,353

 
$
(52
)
Mortgage-backed securities and collateralized mortgage obligations
10,029

 
(208
)
 
202,541

 
(3,405
)
 
212,570

 
(3,613
)
 
$
10,029

 
$
(208
)
 
$
210,894

 
$
(3,457
)
 
$
220,923

 
$
(3,665
)
 
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
)

    
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 debt 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, 2019, 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 March 31, 2019 totaled 76, compared with 88 at December 31, 2018. All temporarily impaired securities were investment grade as of March 31, 2019 and December 31, 2018.

The Company did not record an other-than-temporary impairment charge on debt securities held to maturity for the three months ended March 31, 2019 and 2018.
Equity Securities at Fair Value

The Company has an equity securities portfolio which consists of investments in other financial institutions and a payment technology company, which is reported at fair value on the Company's consolidated statements of financial condition. The fair value of the equities portfolio at March 31, 2019 and December 31, 2018 was $1.4 million and $1.9 million, respectively.

The Company adopted ASU 2016-01 on January 1, 2019, resulting in a $548,000 after tax cumulative-effect adjustment from other comprehensive income (loss) to retained earnings, as reflected in the consolidated statements of changes in stockholder's equity. The Company recorded the net increase in the fair value of equity securities of $176,000, during the three months ended March 31, 2019, as a component of non-interest income.

During the three months ended March 31, 2019, proceeds from sales of equity securities totaled $764,000, resulting in $126,000 of gross gains and no gross losses. There were no sales of equity securities during the three months ended March 31, 2018.