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Debt Securities Available-for-Sale | 3 Months Ended
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Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Debt Securities Available-for-Sale | Debt Securities Available-for-Sale The following is a comparative summary of mortgage-backed and other debt securities available-for-sale at March 31, 2019, and December 31, 2018 (in thousands):
| March 31, 2019
|  |  | Gross |  | Gross |  | Estimated
| Amortized |  | unrealized |  | unrealized |  | fair
| cost |  | gains |  | losses |  | value
Mortgage-backed securities: |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
Government sponsored enterprises (GSE) | $ | 404,108 |  |  | $ | 2,656 |  |  | $ | 2,227 |  |  | $ | 404,537 |
Real estate mortgage investment conduits (REMICs): |  |  |  |  |  |  |  |  |  |  |
GSE | 268,399 |  |  | 565 |  |  | 5,472 |  |  | 263,492 |
Non-GSE | 58 |  |  | — |  |  | 1 |  |  | 57 |
| 672,565 |  |  | 3,221 |  |  | 7,700 |  |  | 668,086 |
Other debt securities: |  |  |  |  |  |  |
Municipal bonds | 270 |  |  | 4 |  |  | — |  |  | 274 |
Corporate bonds | 225,599 |  |  | 727 |  |  | 414 |  |  | 225,912 |
| 225,869 |  |  | 731 |  |  | 414 |  |  | 226,186 |
Total debt securities available-for-sale | $ | 898,434 |  |  | $ | 3,952 |  |  | $ | 8,114 |  |  | $ | 894,272 |
| December 31, 2018
|  |  | Gross |  | Gross |  | Estimated
| Amortized |  | unrealized |  | unrealized |  | fair
| cost |  | gains |  | losses |  | value
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
GSE | $ | 317,530 |  |  | $ | 800 |  |  | $ | 3,542 |  |  | $ | 314,788 |
REMICs: |  |  |  |  |  |  |  |  |  |  |
GSE | 258,050 |  |  | 92 |  |  | 7,979 |  |  | 250,163 |
Non-GSE | 59 |  |  | — |  |  | 1 |  |  | 58 |
| 575,639 |  |  | 892 |  |  | 11,522 |  |  | 565,009 |
Other debt securities: |  |  |  |  |  |  |
Municipal bonds | 270 |  |  | 3 |  |  | — |  |  | 273 |
Corporate bonds | 244,892 |  |  | 72 |  |  | 2,215 |  |  | 242,749 |
| 245,162 |  |  | 75 |  |  | 2,215 |  |  | 243,022 |
Total debt securities available-for-sale | $ | 820,801 |  |  | $ | 967 |  |  | $ | 13,737 |  |  | $ | 808,031 |
The following is a summary of the expected maturity distribution of debt securities available-for-sale, other than mortgage-backed securities, at March 31, 2019 (in thousands):
Available-for-sale | Amortized cost |  | Estimated fair value
Due in one year or less | $ | 44,901 |  |  | $ | 44,947 |
Due after one year through five years | 176,033 |  |  | 176,354 |
Due after five years through ten years | 4,935 |  |  | 4,885 |
| $ | 225,869 |  |  | $ | 226,186 |
Contractual maturities for mortgage-backed securities are not included above, as expected maturities on mortgage-backed securities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. Certain securities available-for-sale are pledged or encumbered to secure borrowings under Pledge Agreements and Repurchase Agreements and for other purposes required by law. At March 31, 2019, the fair value of debt securities available-for-sale that were pledged to secure borrowings and deposits was $484.7 million. For the three months ended March 31, 2019, the Company had gross proceeds of $29.2 million on sales of debt securities available-for-sale, with gross realized gains of $155,000 and no gross realized losses. For the three months ended March 31, 2018, the Company had gross proceeds of $19.5 million on sales of debt securities available-for-sale, with gross realized gains of $60,000 and gross realized losses of $5,000. The Company recognized net gains of $1.1 million and $106,000, on its trading securities portfolio during the three months ended March 31, 2019, and March 31, 2018, respectively. Gross unrealized losses on mortgage-backed and other debt securities available-for-sale, and the estimated fair value of the related securities, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019, and December 31, 2018, were as follows (in thousands):
| March 31, 2019
| Less than 12 months |  | 12 months or more |  | Total
| Unrealized |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized |  | Estimated
| losses |  | fair value |  | losses |  | fair value |  | losses |  | fair value
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
GSE | $ | 170 |  |  | $ | 34,164 |  |  | $ | 2,057 |  |  | $ | 96,411 |  |  | $ | 2,227 |  |  | $ | 130,575 |
REMICs: |  |  |  |  |  |  |  |  |  |  |
GSE | 8 |  |  | 19,136 |  |  | 5,464 |  |  | 170,787 |  |  | 5,472 |  |  | 189,923 |
Non-GSE |  |  |  |  |  |  | 1 |  |  | 57 |  |  | 1 |  |  | 57 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | 124 |  |  | 53,417 |  |  | 290 |  |  | 35,806 |  |  | 414 |  |  | 89,223 |
Total | $ | 302 |  |  | $ | 106,717 |  |  | $ | 7,812 |  |  | $ | 303,061 |  |  | $ | 8,114 |  |  | $ | 409,778 |
| December 31, 2018
| Less than 12 months |  | 12 months or more |  | Total
| Unrealized |  | Estimated |  | Unrealized |  | Estimated |  | Unrealized |  | Estimated
| losses |  | fair value |  | losses |  | fair value |  | losses |  | fair value
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Pass-through certificates: |  |  |  |  |  |  |  |  |  |  |
GSE | $ | 404 |  |  | $ | 82,781 |  |  | $ | 3,138 |  |  | $ | 100,109 |  |  | $ | 3,542 |  |  | $ | 182,890 |
REMICs: |  |  |  |  |  |  |  |  |  |  |
GSE | 269 |  |  | 46,921 |  |  | 7,710 |  |  | 181,512 |  |  | 7,979 |  |  | 228,433 |
Non-GSE | — |  |  | — |  |  | 1 |  |  | 58 |  |  | 1 |  |  | 58 |
Other debt securities: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | 1,703 |  |  | 173,219 |  |  | 512 |  |  | 25,675 |  |  | 2,215 |  |  | 198,894 |
Total | $ | 2,376 |  |  | $ | 302,921 |  |  | $ | 11,361 |  |  | $ | 307,354 |  |  | $ | 13,737 |  |  | $ | 610,275 |
The Company held 50 pass-through mortgage-backed securities issued or guaranteed by GSEs, 45 REMIC mortgage-backed securities issued or guaranteed by GSEs, one REMIC mortgage-backed security not issued or guaranteed by a GSE, and seven corporate bonds that were in a continuous unrealized loss position of twelve months or greater at March 31, 2019. There were five pass-through mortgage-backed securities issued or guaranteed by GSEs, one REMIC mortgage-backed security issued or guaranteed by a GSE, and eight corporate bonds that were in an unrealized loss position of less than twelve months at March 31, 2019. All securities referred to above, other than one corporate security with a fair value of $5.0 million and an unrealized loss of $13,000, were rated investment grade at March 31, 2019. Management evaluated these securities and concluded that the declines in value relate to the general interest rate environment and are considered temporary. The securities cannot be prepaid in a manner that would result in the Company not receiving substantially all of its amortized cost. The Company neither has an intent to sell, nor is it more likely than not that the Company will be required to sell, the securities before the recovery of their amortized cost basis or, if necessary, maturity. The fair values of our debt securities available-for-sale could decline in the future if the underlying performance of the collateral for the collateralized mortgage obligations or other securities deteriorates and our credit enhancement levels do not provide sufficient protections to our contractual principal and interest, which may result in other-than-temporary impairment in the future. The Company did no t recognize any other-than-temporary impairment charges during the three months ended March 31, 2019, or March 31, 2018. Equity Securities At March 31, 2019, and December 31, 2018, equity securities totaled $1.5 million and $1.3 million, respectively. Equity securities consist of money market mutual funds, recorded at fair value of $414,000 and $237,000, at March 31, 2019, and December 31, 2018, respectively, and an investment in a private Small Business Administration (“SBA”) Loan Fund recorded at net asset value of $1.1 million at March 31, 2019, and $1.0 million at December 31, 2018. As the SBA Loan Fund operates as a private fund, its shares are not publicly traded and therefore have no readily determinable market value. The investment in the fund is recorded at net asset value as a practical expedient for reporting fair market value.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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