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Debt Securities Held to Maturity
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Debt Securities Held to Maturity
Debt Securities Available for Sale

Debt securities available for sale at September 30, 2019 and December 31, 2018 are summarized as follows:
 
September 30, 2019
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
44,532

 
$
621

 
$
(22
)
 
$
45,131

Mortgage-backed securities and collateralized mortgage obligations
981,205

 
20,742

 
(504
)
 
1,001,443

Municipal obligations
190

 
—

 
—

 
190

Corporate debt securities
64,495

 
774

 
(669
)
 
64,600

Trust preferred securities
5,000

 
—

 
(459
)
 
4,541

 
$
1,095,422

 
$
22,137

 
$
(1,654
)
 
$
1,115,905

 
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 September 30, 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.
 
September 30, 2019
 
Amortized Cost
 
Fair Value
 
(In thousands)
 
 
 
 
One year or less
$
15,098

 
$
15,110

More than one year to five years
40,046

 
40,467

More than five years to ten years
54,073

 
54,483

More than ten years
5,000

 
4,402

 
$
114,217

 
$
114,462

Mortgage-backed securities and collateralized mortgage obligations
981,205

 
1,001,443

 
$
1,095,422

 
$
1,115,905



Mortgage-backed securities and collateralized mortgage obligations totaling $981.2 million at amortized cost, and $1.0 billion 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.
    

5.     Debt Securities Available for Sale (continued)

During the three months ended September 30, 2019, proceeds from the sale of debt securities available for sale totaled $16.1 million, resulting in $1.2 million of gross gains and no gross losses. During the three months ended September 30, 2019, there were no maturities or calls of debt securities available for sale.

During the nine months ended September 30, 2019, proceeds from the sale of debt securities available for sale totaled $31.8 million, resulting in $1.5 million of gross gains and no gross losses. During the nine months ended September 30, 2019, proceeds from one matured debt security available for sale totaled $767,000. There were no calls of debt securities available for sale.

During the three months ended September 30, 2018, proceeds from one called debt security available for sale totaled $1.5 million. No gross gains or losses were recognized on the security called during the quarter. There were no maturities of debt securities available for sale during the quarter.

During the nine months ended September 30, 2018, there were no sales or maturities of debt securities available for sale. During the nine months ended September 30, 2018, proceeds from called debt securities available for sale totaled $11.5 million, resulting in $116,000 in gross gains and no gross losses.

Debt securities available for sale having a carrying value of $203.4 million and $232.7 million, respectively, at September 30, 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 September 30, 2019 and December 31, 2018 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:
 
September 30, 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
$
—

 
$
—

 
$
14,970

 
$
(22
)
 
$
14,970

 
$
(22
)
Mortgage-backed securities and collateralized mortgage obligations
70,393

 
(161
)
 
59,713

 
(343
)
 
130,106

 
(504
)
Corporate debt securities
4,961

 
(39
)
 
9,371

 
(630
)
 
14,332

 
(669
)
Trust preferred securities
—

 
—

 
4,541

 
(459
)
 
4,541

 
(459
)
 
$
75,354

 
$
(200
)
 
$
88,595

 
$
(1,454
)
 
$
163,949

 
$
(1,654
)
 
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
)

    
5.     Debt Securities Available for Sale (continued)

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 September 30, 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 September 30, 2019 totaled 41, compared with 151 at December 31, 2018. All temporarily impaired securities were investment grade as of September 30, 2019 and December 31, 2018.

The Company did not record an other-than-temporary impairment charge on debt securities available for sale during the three and nine months ended September 30, 2019 and 2018.
Debt Securities Held to Maturity

Debt securities held to maturity at September 30, 2019 and December 31, 2018 are summarized as follows:
 
September 30, 2019
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
25,000

 
$
70

 
$
(142
)
 
$
24,928

Mortgage-backed securities and collateralized mortgage obligations
264,089

 
7,342

 
(34
)
 
271,397

 
$
289,089

 
$
7,412

 
$
(176
)
 
$
296,325

 
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 September 30, 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.
 
September 30, 2019
 
Amortized Cost
 
Fair Value
 
(In thousands)
 
 
 
 
More than five years to ten years
$
5,000

 
$
5,002

More than ten years
20,000

 
19,926

 
25,000

 
24,928

Mortgage-backed securities and collateralized mortgage obligations
264,089

 
271,397

 
$
289,089

 
$
296,325



    

6.    Debt Securities Held to Maturity (continued)

Mortgage-backed securities and collateralized mortgage obligations totaling $264.1 million at amortized cost, and $271.4 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 September 30, 2019, there were no sales or maturities of debt securities held to maturity. During the three months ended September 30, 2019, proceeds from calls of debt securities held to maturity totaled $23.4 million, resulting in $24,000 of gross gains and no gross losses.

During the nine months ended September 30, 2019, there were no sales or maturities of debt securities held to maturity. During the nine months ended September 30, 2019, proceeds from calls of debt securities held to maturity totaled $28.4 million, resulting in $24,000 of gross gains and no gross losses.

During the three and nine months ended September 30, 2018, there were no sales, calls or maturities of debt securities held for maturity.

Debt securities held to maturity having a carrying value of $180.4 million and $187.0 million, at September 30, 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 September 30, 2019 and December 31, 2018 and if the unrealized loss position was continuous for the twelve months prior to September 30, 2019 and December 31, 2018:
 
September 30, 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
$
9,858

 
$
(142
)
 
$
—

 
$
—

 
$
9,858

 
$
(142
)
Mortgage-backed securities and collateralized mortgage obligations
5,989

 
(30
)
 
941

 
(4
)
 
6,930

 
(34
)
 
$
15,847

 
$
(172
)
 
$
941

 
$
(4
)
 
$
16,788

 
$
(176
)
 
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 September 30, 2019, nor is it more likely than not that the Company will be required to sell the securities before the anticipated recovery.

    


6.    Debt Securities Held to Maturity (continued)

The number of securities in an unrealized loss position as of September 30, 2019 totaled 20, compared with 88 at December 31, 2018. All temporarily impaired securities were investment grade as of September 30, 2019 and December 31, 2018.

The Company did not record an other-than-temporary impairment charge on debt securities held to maturity during the three and nine months ended September 30, 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 September 30, 2019 and December 31, 2018 was $1.8 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 stockholders' equity. The Company recorded the net (decrease)/increase in the fair value of equity securities of $(59,000) and $189,000, during the three and nine months ended September 30, 2019, as a component of non-interest income.

During the three months ended September 30, 2019, proceeds from the sale of one equity security totaled $161,000, resulting in a gross gain of $70,000. During the nine months ended September 30, 2019, proceeds from sales of equity securities totaled $926,000, resulting in $196,000 of gross gains and no gross losses. During the three and nine months ended September 30, 2018, there were no sales of equity securities.