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Debt securities held-to-maturity | 3 Months Ended
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Mar. 31, 2019
Held To Maturity Debt Securities |
Debt Securities, Held-to-maturity |
Investments in debt and marketable equity securities | Note 7 –Debt securities held-to-maturity The following table s present the amortized cost, gross unrealized gains and losses, approximate fair value, weighted average yield and contractual maturities of debt securities held-to-maturi ty at March 31, 2019 and December 31, 2018.
|  | At March 31, 2019 |
|  |  |  | Gross | Gross |  |  | Weighted |
|  | Amortized | unrealized | unrealized | Fair | average |
(In thousands) | cost | gains | losses | value | yield |
Obligations of Puerto Rico, States and political subdivisions |  |  |  |  |  |  |  |  |  |
| Within 1 year | $ | 3,670 | $ | - | $ | 31 | $ | 3,639 | 6.01 | %
| After 1 to 5 years |  | 17,255 |  | - |  | 205 |  | 17,050 | 6.10 |
| After 5 to 10 years |  | 20,585 |  | - |  | 1,502 |  | 19,083 | 3.19 |
| After 10 years |  | 45,831 |  | 5,751 |  | 14 |  | 51,568 | 1.76 |
Total obligations of Puerto Rico, States and political subdivisions |  | 87,341 |  | 5,751 |  | 1,752 |  | 91,340 | 3.13 |
Collateralized mortgage obligations - federal agencies |  |  |  |  |  |  |  |  |  |
| After 5 to 10 years |  | 53 |  | 3 |  | - |  | 56 | 6.44 |
Total collateralized mortgage obligations - federal agencies |  | 53 |  | 3 |  | - |  | 56 | 6.44 |
Securities in wholly owned statutory business trusts |  |  |  |  |  |  |  |  |  |
| After 10 years |  | 11,561 |  | - |  | - |  | 11,561 | 6.51 |
Total securities in wholly owned statutory business trusts |  | 11,561 |  | - |  | - |  | 11,561 | 6.51 |
Other |  |  |  |  |  |  |  |  |  |
| After 1 to 5 years |  | 500 |  | - |  | - |  | 500 | 2.97 |
Total other |  | 500 |  | - |  | - |  | 500 | 2.97 |
Total debt securities held-to-maturity | $ | 99,455 | $ | 5,754 | $ | 1,752 | $ | 103,457 | 3.53 | %
|  | At December 31, 2018 |
|  |  |  | Gross | Gross |  |  | Weighted |
|  | Amortized | unrealized | unrealized | Fair | average |
(In thousands) | cost | gains | losses | value | yield |
Obligations of Puerto Rico, States and political subdivisions |  |  |  |  |  |  |  |  |  |
| Within 1 year | $ | 3,510 | $ | - | $ | 36 | $ | 3,474 | 5.99 | %
| After 1 to 5 years |  | 16,505 |  | - |  | 1,081 |  | 15,424 | 6.07 |
| After 5 to 10 years |  | 23,885 |  | - |  | 1,704 |  | 22,181 | 3.61 |
| After 10 years |  | 45,559 |  | 3,943 |  | 47 |  | 49,455 | 1.79 |
Total obligations of Puerto Rico, States and political subdivisions |  | 89,459 |  | 3,943 |  | 2,868 |  | 90,534 | 3.23 |
Collateralized mortgage obligations - federal agencies |  |  |  |  |  |  |  |  |  |
| After 5 to 10 years |  | 55 |  | 3 |  | - |  | 58 | 5.45 |
Total collateralized mortgage obligations - federal agencies |  | 55 |  | 3 |  | - |  | 58 | 5.45 |
Securities in wholly owned statutory business trusts |  |  |  |  |  |  |  |  |  |
| After 10 years |  | 11,561 |  | - |  | - |  | 11,561 | 6.51 |
Total securities in wholly owned statutory business trusts |  | 11,561 |  | - |  | - |  | 11,561 | 6.51 |
Other |  |  |  |  |  |  |  |  |  |
| After 1 to 5 years |  | 500 |  | - |  | - |  | 500 | 2.97 |
Total other |  | 500 |  | - |  | - |  | 500 | 2.97 |
Total debt securities held-to-maturity | $ | 101,575 | $ | 3,946 | $ | 2,868 | $ | 102,653 | 3.60 | %
Debt securities not due on a single contractual maturity date, such as collateralized mortgage obligations, are classified in the period of final contractual maturity. The expected maturities of collateralized mortgage obligations and certain other securities may differ from their contractual maturities because they may be subject to prepayments or may be called by the issuer. The following tables present the Corporation’s fair value and gross unrealized losses of debt securities held-to-maturity, ag gregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018.
|  | At March 31, 2019
| Less than 12 months | 12 months or more | Total
|  |  |  | Gross |  |  | Gross |  |  | Gross
|  | Fair | unrealized | Fair | unrealized | Fair | unrealized
(In thousands) | value | losses | value | losses | value | losses
Obligations of Puerto Rico, States and political subdivisions | $ | 14,695 | $ | 250 | $ | 11,118 | $ | 1,502 | $ | 25,813 | $ | 1,752
Total debt securities held-to-maturity in an unrealized |  |  |  |  |  |  |  |  |  |  |  |
| loss position | $ | 14,695 | $ | 250 | $ | 11,118 | $ | 1,502 | $ | 25,813 | $ | 1,752
|  | At December 31, 2018
|  | Less than 12 months | 12 months or more | Total
|  |  |  | Gross |  |  | Gross |  |  | Gross
|  | Fair | unrealized | Fair | unrealized | Fair | unrealized
(In thousands) | value | losses | value | losses | value | losses
Obligations of Puerto Rico, States and political subdivisions | $ | 27,471 | $ | 1,165 | $ | 13,307 | $ | 1,703 | $ | 40,778 | $ | 2,868
Total debt securities held-to-maturity in an unrealized |  |  |  |  |  |  |  |  |  |  |  |
| loss position | $ | 27,471 | $ | 1,165 | $ | 13,307 | $ | 1,703 | $ | 40,778 | $ | 2,868
As indicated in Note 6 to these C onsolidated F inancial S tatements, management evaluates debt securities for OTTI declines in fair value on a quarterly basis. The “Obligations of Puerto Rico, States and political subdivisions” classified as held-to-maturity at March 31, 2019 are primarily associated with securities issued by municipalities of Puerto Rico and are generally not rated by a credit rating agency. This includes $42 million of general and special obligation bonds issued by three municipalities of Puerto Rico, which are payable primarily from certain property taxes imposed by the issuing municipality. In the case of general obligations, they also benefit from a pledge of the full faith, credit and unlimited taxing p ower of the issuing municipality, which is required by law to levy property taxes in an amount sufficient for the payment of debt service on such general obligation bonds. The p ortfolio also includes $45 million in securities for which the underl ying source of payment is second mortgage loans in Puerto Rico residential properties, not the central government, but in which a government instrumentality provides a guarantee in the event of default and subsequent foreclosure of the underlying property. The Corporation performs periodic credit quality reviews on these issuers. Based on the quarterly analysis performed, management concluded that no individual debt security held-to-maturity was other-than-temporarily impaired at March 31, 2019. A deterio ration of the Puerto Rico economy or of the fiscal health of the Government of Puerto Rico and/or its instrumentalities (including if any of the issuing municipalities become subject to a debt restructuring proceeding under PROMESA) could further affect the v alue of these securities, resulting in losses to the Corporation. The Corporation does not have the intent to sell debt securities held-to-maturity and it is more likely than not that the Corporation will not have to sell these debt securities prior to recovery of their amortized cost basis. Refer to Note 21 for additional information on the Corporation’s exposure to the Puerto Rico Government.

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