CASH 2018 Annual Report

138 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,247 $ 157 $ (36) $ 19,368 Non-bank qualified obligations of states and political subdivisions 430,593 4,744 (2,976) 432,361 Mortgage-backed securities 113,689 — (1,233) 112,456 Total held to maturity securities $ 563,529 $ 4,901 $ (4,245) $ 564,185 Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary. This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows. Management also determines whether the Company intends to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity. To the extent the Company determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: available for sale, held to maturity or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income. HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not have any trading securities at September 30, 2018. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2018, and 2017, were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2018 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Small business administration securities $ 43,097 $ (1,255) $ — $ — $ 43,097 $ (1,255) Obligations of states and political subdivisions 11,036 (279) 881 (14) 11,917 (293) Non-bank qualified obligations of states and political subdivisions 626,693 (13,539) 358,095 (18,286) 984,788 (31,825) Asset-backed securities 146,638 (257) — — 146,638 (257) Mortgage-backed securities 121,217 (3,292) 242,849 (10,944) 364,066 (14,236) Total debt securities 948,681 (18,622) 601,825 (29,244) 1,550,506 (47,866) Common equities and mutual funds 1,818 (7) — — 1,818 (7) Total available for sale securities $ 950,499 $ (18,629) $ 601,825 $ (29,244) $ 1,552,324 $ (47,873)