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Securities
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
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.