3. SECURITIES

The following tables reflect the amortized cost, estimated fair value, and gross unrealized gains and losses of AFS and HTM securities at the dates presented. The majority of the MBS and investment securities portfolios are composed of securities issued by GSEs.



	September 30, 2014
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(Dollars in thousands)
AFS:
GSE debentures	$	554,811	$	413	$	5,469	$	549,755
MBS	271,138		16,640		172		287,606
Trust preferred securities	2,493		—		197		2,296
Municipal bonds	1,116		17		—		1,133
	829,558		17,070		5,838		840,790
HTM:
MBS	1,514,941		31,130		12,935		1,533,136
Municipal bonds	37,758		654		24		38,388
	1,552,699		31,784		12,959		1,571,524
	$	2,382,257	$	48,854	$	18,797	$	2,412,314



	September 30, 2013
			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(Dollars in thousands)
AFS:
GSE debentures	$	709,118	$	996	$	7,886	$	702,228
MBS	345,263		18,701		—		363,964
Trust preferred securities	2,594		—		171		2,423
Municipal bonds	1,308		44		—		1,352
	1,058,283		19,741		8,057		1,069,967
HTM:
MBS	1,683,744		39,878		16,984		1,706,638
Municipal bonds	34,279		943		14		35,208
	1,718,023		40,821		16,998		1,741,846
	$	2,776,306	$	60,562	$	25,055	$	2,811,813

The following tables summarize the estimated fair value and gross unrealized losses of those securities on which an unrealized loss at the dates presented was reported and the continuous unrealized loss position for less than 12 months and equal to or greater than 12 months as of the dates presented.



	September 30, 2014
	Less Than 12 Months					Equal to or Greater Than 12 Months
		Estimated		Unrealized			Estimated		Unrealized
	Count	Fair Value		Losses		Count	Fair Value		Losses
	(Dollars in thousands)
AFS:
GSE debentures	3	$	70,666	$	209	18	$	403,389	$	5,260
MBS	63	18,571		172		—	—		—
Trust preferred securities	—	—		—		1	2,296		197
	66	$	89,237	$	381	19	$	405,685	$	5,457


HTM:
MBS	24	$	353,344	$	2,194	25	$	409,275	$	10,741
Municipal bonds	9	4,688		19		1	739		5
	33	$	358,032	$	2,213	26	$	410,014	$	10,746



	September 30, 2013
	Less Than 12 Months					Equal to or Greater Than 12 Months
		Estimated		Unrealized			Estimated		Unrealized
	Count	Fair Value		Losses		Count	Fair Value		Losses
	(Dollars in thousands)
AFS:
GSE debentures	19	$	426,482	$	7,213	1	$	24,327	$	673
Trust preferred securities	—	—		—		1	2,423		171
	19	$	426,482	$	7,213	2	$	26,750	$	844


HTM:
MBS	40	$	710,291	$	16,984	—	$	—	$	—
Municipal bonds	3	1,299		14		—	—		—
	43	$	711,590	$	16,998	—	$	—	$	—

The unrealized losses at September 30, 2014 were primarily a result of an increase in market yields from the time the securities were purchased. In general, as market yields rise, the fair value of securities will decrease; as market yields fall, the fair value of securities will increase. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Additionally, the impairment is also considered temporary because scheduled coupon payments have been made, it is anticipated that the entire principal balance will be collected as scheduled, and management neither intends to sell the securities, nor is it more likely than not that the Company will be required to sell the securities before the recovery of the remaining amortized cost amount, which could be at maturity. As a result of the analysis, management does not believe any other-than-temporary impairments existed at September 30, 2014. See "Note 1 - Summary of Significant Accounting Policies - Securities" for additional information regarding our impairment review and classification process for securities.

The amortized cost and estimated fair value of debt securities as of September 30, 2014, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to prepayment or early call privileges by the issuer.



	AFS				HTM
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(Dollars in thousands)
One year or less	$	200	$	200	$	3,153	$	3,178
One year through five years	501,577		497,891		24,634		25,215
Five years through ten years	54,150		52,797		9,971		9,995
Ten years and thereafter	2,493		2,296		—		—
	558,420		553,184		37,758		38,388
MBS	271,138		287,606		1,514,941		1,533,136
	$	829,558	$	840,790	$	1,552,699	$	1,571,524

The following table presents the taxable and non-taxable components of interest income on investment securities for the periods presented.



	For the Year Ended
	September 30,
	2014		2013		2012
	(Dollars in thousands)
Taxable	$	6,440	$	8,796	$	14,309
Non-taxable	945		1,216		1,635
	$	7,385	$	10,012	$	15,944

The following table summarizes the amortized cost and estimated fair value of securities pledged as collateral as of the dates presented.



	September 30,
	2014				2013
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(Dollars in thousands)
FHLB borrowings	$	487,736	$	488,368	$	—	$	—
Public unit deposits	282,464		284,251		272,016		274,917
Repurchase agreements	239,922		247,306		353,648		364,593
Federal Reserve Bank	25,969		27,067		34,261		35,477
	$	1,036,091	$	1,046,992	$	659,925	$	674,987

All dispositions of securities during fiscal years 2014, 2013, and 2012 were the result of principal repayments, calls, or maturities.