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Equity Securities at Fair Value
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Equity Securities at Fair Value Debt Securities Available for Sale

Debt securities available for sale at December 31, 2019 and 2018 are summarized as follows:
 
December 31, 2019
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
42,081

 
$
321

 
$
(16
)
 
$
42,386

Mortgage-backed securities and collateralized mortgage obligations
968,165

 
12,981

 
(1,265
)
 
979,881

Municipal obligations
2,284

 
1

 
(1
)
 
2,284

Corporate debt securities
68,613

 
945

 
(378
)
 
69,180

Trust preferred securities
5,000

 
—

 
(395
)
 
4,605

 
$
1,086,143

 
$
14,248

 
$
(2,055
)
 
$
1,098,336

 
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 December 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.
 
December 31, 2019
 
Amortized Cost
 
Fair Value
 
(In thousands)
 
 
 
 
One year or less
$
31,901

 
$
31,955

More than one year to five years
27,366

 
27,729

More than five years to ten years
53,235

 
53,669

More than ten years
5,476

 
5,102

 
117,978

 
118,455

Mortgage-backed securities and collateralized mortgage obligations
968,165

 
979,881

 
$
1,086,143

 
$
1,098,336



Mortgage-backed securities and collateralized mortgage obligations totaling $968.2 million at amortized cost, and $979.9 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 year ended December 31, 2019, proceeds from the sales of debt securities available for sale totaled $65.2 million, resulting in gross gains of $2.2 million and gross losses of $22,000. Proceeds from called debt securities available for sale totaled $24.1 million resulting in gross gains of $174,000 and no gross losses. Proceeds from one matured debt security available for sale totaled $797,000.

During the year ended December 31, 2018, proceeds from calls of debt 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, there were no sales, calls or maturities of debt securities available for sale during the period.

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

Debt securities available for sale having a carrying value of $462.0 million and $232.7 million, respectively, at December 31, 2019 and 2018, respectively, were pledged as security for public funds on deposit at the Bank as required and permitted by law, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowing at the Federal Reserve Bank of New York.

The following table summarizes the fair value and gross unrealized losses of those securities that reported an unrealized loss at December 31, 2019 and 2018 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:
 
December 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
$
5,106

 
$
(13
)
 
$
4,988

 
$
(3
)
 
$
10,094

 
$
(16
)
Mortgage-backed securities and collateralized mortgage obligations
178,665

 
(946
)
 
58,208

 
(319
)
 
236,873

 
(1,265
)
Municipal obligations
696


(1
)

—


—


696


(1
)
Corporate debt securities
2,588

 
(5
)
 
4,627

 
(373
)
 
7,215

 
(378
)
Trust preferred securities
—

 
—

 
4,605

 
(395
)
 
4,605

 
(395
)
 
$
187,055

 
$
(965
)
 
$
72,428

 
$
(1,090
)
 
$
259,483

 
$
(2,055
)













(4)     Debt Securities Available for Sale (continued)
 
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 December 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 December 31, 2019 totaled 97, compared with 151 at December 31, 2018. All temporarily impaired securities were investment grade as of December 31, 2019 and 2018.

The Company did not record an other-than-temporary impairment charge on debt securities available for sale during the years ended December 31, 2019 and 2018, September 30, 2017, and the three months ended December 31, 2017.
Debt Securities Held to Maturity

Debt securities held to maturity at December 31, 2019 and 2018 are summarized as follows:
 
December 31, 2019
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized (Losses)
 
Fair Value
 
(In thousands)
 
 
 
 
 
 
 
 
U.S. government and agency obligations
$
20,000

 
$
26

 
$
(66
)
 
$
19,960

Mortgage-backed securities and collateralized mortgage obligations
265,756

 
4,048

 
(259
)
 
269,545

 
$
285,756

 
$
4,074

 
$
(325
)
 
$
289,505

 
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



(5)     Debt Securities Held to Maturity (continued)

The amortized cost and fair value of debt securities held to maturity at December 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.
 
December 31, 2019
 
Amortized Cost
 
Fair Value
 
(In thousands)
 
 
 
 
More than ten years
$
20,000

 
$
19,960

Mortgage-backed securities and collateralized mortgage obligations
265,756

 
269,545

 
$
285,756

 
$
289,505


Mortgage-backed securities and collateralized mortgage obligations totaling $265.8 million at amortized cost, and $269.5 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.

There were no sales of debt securities held to maturity for the years ended December 31, 2019 and 2018, September 30, 2017, and the three months ended December 31, 2017. Proceeds from calls of debt securities held to maturity for the year ended December 31, 2019 totaled $33.4 million, resulting in $24,000 of gross gains and no gross losses. Proceeds from calls and maturities of debt securities held to maturity for the years ended December 31, 2018 and September 30, 2017 totaled $5.4 million and $769,000, respectively. No gross gains or losses were recognized. There were no calls or maturities of debt securities held to maturity for the three months ended December 31, 2017.
    
Debt securities held to maturity having a carrying value of $236.0 million and $187.0 million, respectively, at December 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, pledged for outstanding borrowings at the Federal Home Loan Bank, and pledged for potential borrowing at the Federal Reserve Bank of New York.

The following table summarizes the fair value and gross unrealized losses of those securities that reported an unrealized loss at December 31, 2019 and 2018 and if the unrealized loss position was continuous for the twelve months prior to those respective dates:
 
December 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
$
9,934

 
$
(66
)
 
$
—

 
$
—

 
$
9,934

 
$
(66
)
Mortgage-backed securities and collateralized mortgage obligations
27,911

 
(251
)
 
772

 
(8
)
 
28,683

 
(259
)
 
$
37,845

 
$
(317
)
 
$
772

 
$
(8
)
 
$
38,617

 
$
(325
)











(5)     Debt Securities Held to Maturity (continued)

 
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 December 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 December 31, 2019 totaled 22, compared with 88 at December 31, 2018. All temporarily impaired securities were investment grade as of December 31, 2019 and 2018.

The Company did not record an other-than-temporary impairment charge on debt securities held to maturity for the years ended December 31, 2019 and 2018, September 30, 2017, and the three months ended December 31, 2017.

During the year ended September 30, 2017, the Company transferred certain debt securities available for sale 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.Equity Securities at Fair Value

The Company has an equity securities portfolio which consists of stock in other financial institutions, a payment technology company, and a community bank correspondent services company, which is reported at fair value on the Company's Consolidated Statements of Financial Condition. The fair value of the equities portfolio at December 31, 2019 and 2018 was $2.9 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 increase in the fair value of equity securities of $305,000 for the year ended December 31, 2019 as a component of non-interest income.

During the year ended December 31, 2019, proceeds from the sale of equity securities totaled $1.1 million, resulting in gross gains of $236,000 and no gross losses. During the years ended December 31, 2018 and September 30, 2017, there were no sales of equity securities. During the three months ended December 31, 2017, proceeds from sales of equity securities totaled $92,000, resulting in no gross realized gains and $60,000 in gross realized losses.