| Securities |
Securities
The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale and held-to-maturity at December 31, 2018, are summarized as follows:
| | | | | | | | | | | | | | | | | | December 31, 2018 | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value | | (In thousands) | Available for Sale | | | | | | | | Investment Securities | | | | | | | | Municipal bonds | $ | 882 |
| | $ | — |
| | $ | (13 | ) | | $ | 869 |
| U.S. government agency issued asset-backed securities
(ABS agency) | 26,125 |
| | — |
| | (373 | ) | | 25,752 |
| Corporate issued asset-backed securities (ABS corporate) | 37,897 |
| | — |
| | (1,174 | ) | | 36,723 |
| Corporate issued debt securities (Corporate debt) | 9,986 |
| | 98 |
| | (196 | ) | | 9,888 |
| U.S. Small Business Administration securities (SBA) | 35,936 |
| | 23 |
| | (289 | ) | | 35,670 |
| | | | | | | | | Total | $ | 110,826 |
| | $ | 121 |
| | $ | (2,045 | ) | | $ | 108,902 |
| | | | | | | | | Mortgage-Backed Securities | | | | | | | | U.S. government agency issued mortgage-backed securities
(MBS agency) | $ | 147,205 |
| | $ | 12 |
| | $ | (3,762 | ) | | $ | 143,455 |
| Corporate issued mortgage-backed securities
(MBS corporate) | 10,953 |
| | — |
| | (343 | ) | | 10,610 |
| | | | | | | | | Total | $ | 158,158 |
| | $ | 12 |
| | $ | (4,105 | ) | | $ | 154,065 |
| | | | | | | | | Total securities available for sale | $ | 268,984 |
| | $ | 133 |
| | $ | (6,150 | ) | | $ | 262,967 |
| | | | | | | | | Held to Maturity | | | | | | | | Investment Securities | | | | | | | | Municipal bonds | $ | 11,919 |
| | $ | 43 |
| | $ | — |
| | $ | 11,962 |
| SBA | 302 |
| | — |
| | (1 | ) | | 301 |
| | | | | | | | | Total | $ | 12,221 |
| | $ | 43 |
| | $ | (1 | ) | | $ | 12,263 |
| | | | | | | | | Mortgage-Backed Securities | | | | | | | | MBS agency | $ | 31,282 |
| | $ | 40 |
| | $ | (595 | ) | | $ | 30,727 |
| | | | | | | | | Total securities held to maturity | $ | 43,503 |
| | $ | 83 |
| | $ | (596 | ) | | $ | 42,990 |
|
The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale and held-to-maturity at December 31, 2017, are summarized as follows: | | | | | | | | | | | | | | | | | | December 31, 2017 | | Cost | | Gross
Unrealized Gains | | Gross
Unrealized Losses | | Estimated
Fair Value | | (In thousands) | Available for Sale | | | | | | | | Investment Securities | | | | | | | | Municipal bonds | $ | 13,058 |
| | $ | 391 |
| | $ | (15 | ) | | $ | 13,434 |
| ABS agency | 21,972 |
| | 36 |
| | (238 | ) | | 21,770 |
| ABS corporate | 22,823 |
| | — |
| | (55 | ) | | 22,768 |
| Corporate debt | 19,835 |
| | 195 |
| | (122 | ) | | 19,908 |
| SBA | 47,325 |
| | 98 |
| | (149 | ) | | 47,274 |
| | | | | | | | | Total | $ | 125,013 |
| | $ | 720 |
| | $ | (579 | ) | | $ | 125,154 |
| | | | | | | | | Mortgage-Backed Securities | | | | | | | | MBS agency | $ | 146,532 |
| | $ | 36 |
| | $ | (2,026 | ) | | $ | 144,542 |
| MBS corporate | 20,721 |
| | 18 |
| | (193 | ) | | 20,546 |
| | | | | | | | | Total | $ | 167,253 |
| | $ | 54 |
| | $ | (2,219 | ) | | $ | 165,088 |
| | | | | | | | | Total securities available for sale | $ | 292,266 |
| | $ | 774 |
| | $ | (2,798 | ) | | $ | 290,242 |
| | | | | | | | | Held to Maturity | | | | | | | | Investment Securities | | | | | | | | Municipal bonds | $ | 13,963 |
| | $ | 156 |
| | $ | — |
| | $ | 14,119 |
| SBA | 399 |
| | — |
| | (4 | ) | | 395 |
| | | | | | | | | Total | $ | 14,362 |
| | $ | 156 |
| | $ | (4 | ) | | $ | 14,514 |
| | | | | | | | | Mortgage-Backed Securities | | | | | | | | MBS agency | $ | 35,764 |
| | $ | 338 |
| | $ | (350 | ) | | $ | 35,752 |
| | | | | | | | | Total securities held to maturity | $ | 50,126 |
| | $ | 494 |
| | $ | (354 | ) | | $ | 50,266 |
|
The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available-for-sale and held-to-maturity at June 30, 2017, are summarized as follows: | | | | | | | | | | | | | | | | | | June 30, 2017 | | Cost | | Gross
Unrealized Gains | | Gross
Unrealized Losses | | Estimated
Fair Value | | (In thousands) | Available for Sale | | | | | | | | Investment Securities | | | | | | | | Municipal bonds | $ | 21,540 |
| | $ | 686 |
| | $ | (3 | ) | | $ | 22,223 |
| Agency bonds | 5,050 |
| | — |
| | (124 | ) | | 4,926 |
| ABS agency | 7,883 |
| | — |
| | (235 | ) | | 7,648 |
| ABS corporate | 9,921 |
| | — |
| | (108 | ) | | 9,813 |
| SBA | 14,195 |
| | 36 |
| | (53 | ) | | 14,178 |
| | | | | | | | | Total | $ | 58,589 |
| | $ | 722 |
| | $ | (523 | ) | | $ | 58,788 |
| | | | | | | | | Mortgage-Backed Securities | | | | | | | | MBS agency | $ | 144,380 |
| | $ | 110 |
| | $ | (1,054 | ) | | $ | 143,436 |
| MBS corporate | 26,324 |
| | 126 |
| | (81 | ) | | 26,369 |
| | | | | | | | | Total | $ | 170,704 |
| | $ | 236 |
| | $ | (1,135 | ) | | $ | 169,805 |
| | | | | | | | | Total securities available for sale | $ | 229,293 |
| | $ | 958 |
| | $ | (1,658 | ) | | $ | 228,593 |
| | | | | | | | | Held to Maturity | | | | | | | | Investment Securities | | | | | | | | Municipal bonds | $ | 14,120 |
| | $ | 306 |
| | $ | — |
| | $ | 14,426 |
| SBA | 443 |
| | — |
| | (1 | ) | | 442 |
| | | | | | | | | Total | $ | 14,563 |
| | $ | 306 |
| | $ | (1 | ) | | $ | 14,868 |
| | | | | | | | | Mortgage-Backed Securities | | | | | | | | MBS agency | $ | 37,309 |
| | $ | 566 |
| | $ | (122 | ) | | $ | 37,753 |
| | | | | | | | | Total securities held to maturity | $ | 51,872 |
| | $ | 872 |
| | $ | (123 | ) | | $ | 52,621 |
|
The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or Longer | | Total | | Gross
Unrealized
Losses | | Fair Value | | Gross
Unrealized
Losses | | Fair Value | | Gross
Unrealized
Losses | | Fair Value | | (In thousands) | Available for Sale | | | | | | | | | | | | Investment Securities | | | | | | | | | | | | Municipal bonds | $ | (8 | ) | | $ | 757 |
| | $ | (5 | ) | | $ | 110 |
| | $ | (13 | ) | | $ | 867 |
| ABS Agency | (302 | ) | | 23,286 |
| | (71 | ) | | 2,466 |
| | (373 | ) | | 25,752 |
| ABS corporate | (571 | ) | | 14,527 |
| | (603 | ) | | 22,196 |
| | (1,174 | ) | | 36,723 |
| Corporate debt | — |
| | — |
| | (196 | ) | | 4,791 |
| | (196 | ) | | 4,791 |
| SBA | (44 | ) | | 13,400 |
| | (245 | ) | | 13,089 |
| | (289 | ) | | 26,489 |
| | | | | | | | | | | | | Total | $ | (925 | ) | | $ | 51,970 |
| | $ | (1,120 | ) | | $ | 42,652 |
| | $ | (2,045 | ) | | $ | 94,622 |
| | | | | | | | | | | | | Mortgage-Backed Securities | | | | | | | | | | | | MBS agency | $ | (28 | ) | | $ | 17,996 |
| | $ | (3,734 | ) | | $ | 120,617 |
| | $ | (3,762 | ) | | $ | 138,613 |
| MBS corporate | — |
| | — |
| | (343 | ) | | 10,610 |
| | (343 | ) | | 10,610 |
| | | | | | | | | | | | | Total | $ | (28 | ) | | $ | 17,996 |
| | $ | (4,077 | ) | | $ | 131,227 |
| | $ | (4,105 | ) | | $ | 149,223 |
| | | | | | | | | | | | | Held to Maturity | | | | | | | | | | | | Investment Securities | | | | | | | | | | | | SBA | $ | (1 | ) | | $ | — |
| | $ | — |
| | $ | 301 |
| | $ | (1 | ) | | $ | 301 |
| | | | | | | | | | | | | Mortgage-Backed Securities | | | | | | | | | | | | MBS agency | $ | (70 | ) | | $ | 6,241 |
| | $ | (525 | ) | | $ | 18,073 |
| | $ | (595 | ) | | $ | 24,314 |
|
The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or Longer | | Total | | Gross
Unrealized
Losses | | Fair
Value | | Gross
Unrealized
Losses | | Fair
Value | | Gross
Unrealized
Losses | | Fair
Value | | (In thousands) | Available for Sale | | | | | | | | | | | | Investment Securities | | | | | | | | | | | | Municipal bonds | $ | (11 | ) | | $ | 4,276 |
| | $ | (4 | ) | | $ | 114 |
| | $ | (15 | ) | | $ | 4,390 |
| ABS Agency | — |
| | — |
| | (238 | ) | | 7,294 |
| | (238 | ) | | 7,294 |
| ABS Corporate | (55 | ) | | 22,768 |
| | — |
| | — |
| | (55 | ) | | 22,768 |
| Corporate debt | (122 | ) | | 4,864 |
| | — |
| | — |
| | (122 | ) | | 4,864 |
| SBA | (45 | ) | | 7,421 |
| | (104 | ) | | 8,067 |
| | (149 | ) | | 15,488 |
| Total | $ | (233 | ) | | $ | 39,329 |
| | $ | (346 | ) | | $ | 15,475 |
| | $ | (579 | ) | | $ | 54,804 |
| | | | | | | | | | | | | Mortgage-Backed Securities | | | | | | | | | | | | MBS agency | $ | (394 | ) | | $ | 57,081 |
| | $ | (1,632 | ) | | $ | 85,421 |
| | $ | (2,026 | ) | | $ | 142,502 |
| MBS corporate | (22 | ) | | 5,808 |
| | (171 | ) | | 10,172 |
| | (193 | ) | | 15,980 |
| Total | $ | (416 | ) | | $ | 62,889 |
| | $ | (1,803 | ) | | $ | 95,593 |
| | $ | (2,219 | ) | | $ | 158,482 |
| | | | | | | | | | | | | Held to Maturity | | | | | | | | | | | | Investment Securities | | | | | | | | | | | | SBA | $ | (4 | ) | | $ | 395 |
| | $ | — |
| | $ | — |
| | $ | (4 | ) | | $ | 395 |
| | | | | | | | | | | | | Mortgage-Backed Securities | | | | | | | | | | | | MBS agency | $ | (6 | ) | | $ | 1,001 |
| | $ | (344 | ) | | $ | 18,494 |
| | $ | (350 | ) | | $ | 19,495 |
|
The following table shows the unrealized gross losses and fair value of the investment portfolio by length of time that individual securities in each category have been in a continuous loss position as of June 30, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than Twelve Months | | Twelve Months or Longer | | Total | | Gross
Unrealized
Losses | | Fair
Value | | Gross
Unrealized
Losses | | Fair
Value | | Gross
Unrealized
Losses | | Fair
Value | | (In thousands) | Available for Sale | | | | | | | | | | | | Investment Securities | | | | | | | | | | | | Municipal bonds | $ | (3 | ) | | $ | 116 |
| | $ | — |
| | $ | — |
| | $ | (3 | ) | | $ | 116 |
| Agency bonds | (52 | ) | | 2,498 |
| | (72 | ) | | 2,428 |
| | (124 | ) | | 4,926 |
| ABS Agency | — |
| | — |
| | (235 | ) | | 7,647 |
| | (235 | ) | | 7,647 |
| ABS Corporate | — |
| | — |
| | (108 | ) | | 9,813 |
| | (108 | ) | | 9,813 |
| SBA | (53 | ) | | 8,405 |
| | — |
| | — |
| | (53 | ) | | 8,405 |
| Total | $ | (108 | ) | | $ | 11,019 |
| | $ | (415 | ) | | $ | 19,888 |
| | $ | (523 | ) | | $ | 30,907 |
| | | | | | | | | | | | | Mortgage-Backed Securities | | | | | | | | | | | | MBS agency | $ | (968 | ) | | $ | 102,738 |
| | $ | (86 | ) | | $ | 4,978 |
| | $ | (1,054 | ) | | $ | 107,716 |
| MBS corporate | (81 | ) | | 6,894 |
| | — |
| | — |
| | (81 | ) | | 6,894 |
| Total | $ | (1,049 | ) | | $ | 109,632 |
| | $ | (86 | ) | | $ | 4,978 |
| | $ | (1,135 | ) | | $ | 114,610 |
| | | | | | | | | | | | | Held to Maturity | | | | | | | | | | | | Investment Securities | | | | | | | | | | | | Municipal bonds | $ | (1 | ) | | $ | 261 |
| | $ | — |
| | $ | — |
| | $ | (1 | ) | | $ | 261 |
| | | | | | | | | | | | | Mortgage-Backed Securities | | | | | | | | | | | | MBS agency | $ | (121 | ) | | $ | 18,522 |
| | $ | (1 | ) | | $ | 597 |
| | $ | (122 | ) | | $ | 19,119 |
|
The Company may hold certain investment securities in an unrealized loss position that are not considered OTTI. At December 31, 2018, there were 69 investment securities with $6.7 million of unrealized losses and a fair value of approximately $268.5 million. At December 31, 2017, there were 63 investment securities with $3.2 million of unrealized losses and a fair value of approximately $233.2 million. At June 30, 2017, there were 42 investment securities with $1.8 million of unrealized losses and a fair value of approximately $164.9 million.
Management believes that the unrealized losses on investment securities relate principally to the general change in interest rates and illiquidity, and not credit quality, that has occurred since the initial purchase, and such unrecognized losses or gains will continue to vary with general interest rate level fluctuations in the future. Certain investments in a loss position are guaranteed by government entities or government sponsored entities. The Company does not intend to sell the securities in an unrealized loss position and believes it is not likely it will be required to sell these investments prior to a market price recovery or maturity.
There were no OTTI losses during the year ended December 31, 2018, six months ended December 31, 2017, and years ended June 30, 2017 and 2016.
The amortized cost and estimated fair value of investment securities by contractual maturity are shown in the following tables at the dates indicated. Expected maturities of mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties; therefore, these securities are shown separately. | | | | | | | | | | | | | | | | | | December 31, 2018 | | Available for Sale | | Held to Maturity | | Amortized Cost | | Estimated Fair Value | | Amortized Cost | | Estimated Fair Value | | (In thousands) | Mortgage-backed securities: | | | | | | | | Due within one year | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Due after one through five years | 7,204 |
| | 7,089 |
| | 578 |
| | 569 |
| Due after five through ten years | 11,862 |
| | 11,637 |
| | 2,035 |
| | 1,978 |
| Due after ten years | 139,092 |
| | 135,339 |
| | 28,669 |
| | 28,180 |
| | | | | | | | | Total mortgage-backed securities | 158,158 |
| | 154,065 |
| | 31,282 |
| | 30,727 |
| | | | | | | | | All other investment securities: | | | | | | | | Due within one year | — |
| | — |
| | — |
| | — |
| Due after one through five years | — |
| | — |
| | 734 |
| | 741 |
| Due after five through ten years | 19,564 |
| | 19,362 |
| | 6,728 |
| | 6,743 |
| Due after ten years | 91,262 |
| | 89,540 |
| | 4,759 |
| | 4,779 |
| | | | | | | | | Total all other investment securities | 110,826 |
| | 108,902 |
| | 12,221 |
| | 12,263 |
| | | | | | | | | Total investment securities | $ | 268,984 |
| | $ | 262,967 |
| | $ | 43,503 |
| | $ | 42,990 |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | December 31, 2017 | | Available for Sale | | Held to Maturity | | Amortized Cost | | Estimated Fair Value | | Amortized Cost | | Estimated Fair Value | | (In thousands) | Mortgage-backed securities: | | | | | | | | Due within one year | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Due after one through five years | 7,363 |
| | 7,260 |
| | 1,957 |
| | 1,973 |
| Due after five through ten years | 13,337 |
| | 13,127 |
| | 2,835 |
| | 2,792 |
| Due after ten years | 146,553 |
| | 144,701 |
| | 30,972 |
| | 30,987 |
| | | | | | | | | Total mortgage-backed securities | 167,253 |
| | 165,088 |
| | 35,764 |
| | 35,752 |
| | | | | | | | | All other investment securities: | | | | | | | | Due within one year | — |
| | — |
| | — |
| | — |
| Due after one through five years | 4,388 |
| | 4,380 |
| | — |
| | — |
| Due after five through ten years | 29,482 |
| | 29,661 |
| | 9,491 |
| | 9,574 |
| Due after ten years | 91,143 |
| | 91,113 |
| | 4,871 |
| | 4,940 |
| | | | | | | | | Total all other investment securities | 125,013 |
| | 125,154 |
| | 14,362 |
| | 14,514 |
| | | | | | | | | Total investment securities | $ | 292,266 |
| | $ | 290,242 |
| | $ | 50,126 |
| | $ | 50,266 |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | June 30, 2017 | | Available for Sale | | Held to Maturity | | Amortized Cost | | Estimated Fair Value | | Amortized Cost | | Estimated Fair Value | | (In thousands) | Mortgage-backed securities: | | | | | | | | Due within one year | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| Due after one through five years | — |
| | — |
| | 2,518 |
| | 2,550 |
| Due after five through ten years | 19,009 |
| | 18,919 |
| | 3,260 |
| | 3,233 |
| Due after ten years | 151,695 |
| | 150,886 |
| | 31,531 |
| | 31,970 |
| | | | | | | | | Total mortgage-backed securities | 170,704 |
| | 169,805 |
| | 37,309 |
| | 37,753 |
| | | | | | | | | All other investment securities: | | | | | | | | Due within one year | — |
| | — |
| | — |
| | — |
| Due after one through five years | 6,890 |
| | 6,848 |
| | — |
| | — |
| Due after five through ten years | 22,042 |
| | 22,124 |
| | 9,637 |
| | 9,817 |
| Due after ten years | 29,657 |
| | 29,816 |
| | 4,926 |
| | 5,051 |
| | | | | | | | | Total all other investment securities | 58,589 |
| | 58,788 |
| | 14,563 |
| | 14,868 |
| | | | | | | | | Total investment securities | $ | 229,293 |
| | $ | 228,593 |
| | $ | 51,872 |
| | $ | 52,621 |
| | | | | | | | |
Sales of available-for-sale securities were as follows: | | | | | | | | | | | | | | | | | | For the Year Ended | | For the Six
Months Ended | | Year Ended June 30, | | December 31, 2018 | | December 31, 2017 | | 2017 | | 2016 | | (In thousands) | Proceeds | $ | 56,683 |
| | $ | 20,550 |
| | $ | — |
| | $ | 109,065 |
| Gross gains | 233 |
| | 362 |
| | — |
| | 1,727 |
| Gross losses | (183 | ) | | (133 | ) | | — |
| | (160 | ) |
During the year ended December 31, 2018, the Bank sold certain held to maturity investments that had substantially reached maturity, allowing us to sell the securities without tainting the remaining held to maturity securities portfolio. The held-to-maturity designation of the remaining securities is unchanged. Gross proceeds on the sale of these securities totaled $2.7 million with gross realized gains and losses of $32,000 and $5,000, respectively. |