CASH 2018 Annual Report

137 NOTE 6. SECURITIES During the first quarter of fiscal 2018, the Company early adopted Accounting Standard Update ("ASU") 2017-12, " Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. " Due to the early adoption of the ASU, the Company transferred $204.7 million of investment securities and $101.3 million of MBS from HTM to AFS during the first quarter of fiscal 2018. In connection with the Crestmark Acquisition, the Company transferred $40.9 million of investment securities from HTM to AFS during the fourth quarter of fiscal 2018, as allowed through ASC 320-10-25-6(c), which allows for the transfer of securities from HTM in the event of a major business combination. Securities available for sale at September 30, 2018 and 2017 were as follows: Available For Sale GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2018 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities $ 45,591 $ 1 $ (1,255) $ 44,337 Obligation of states and political subdivisions 17,154 49 (293) 16,910 Non-bank qualified obligations of states and political subdivisions 1,140,884 826 (31,825) 1,109,885 Asset-backed securities 310,700 2,585 (257) 313,028 Mortgage-backed securities 378,301 — (14,236) 364,065 Total debt securities 1,892,630 3,461 (47,866) 1,848,225 Common equities and mutual funds 3,172 635 (7) 3,800 Total available for sale securities $ 1,895,802 $ 4,096 $ (47,873) $ 1,852,025 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities $ 57,046 $ 825 $ — $ 57,871 Non-bank qualified obligations of states and political subdivisions 938,883 14,983 (3,037) 950,829 Asset-backed securities 94,451 2,381 — 96,832 Mortgage-backed securities 588,918 1,259 (3,723) 586,454 Total debt securities 1,679,298 19,448 (6,760) 1,691,986 Common equities and mutual funds 1,009 436 — 1,445 Total available for sale securities $ 1,680,307 $ 19,884 $ (6,760) $ 1,693,431 Securities held to maturity at September 30, 2018 and 2017 were as follows: Held to Maturity GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2018 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions $ 164,304 $ — $ (10,758) $ 153,546 Mortgage-backed securities 7,850 — (422) 7,428 Total held to maturity securities $ 172,154 $ (11,180) $ 160,974