CASH 2018 Annual Report

22 As of September 30, 2018, the Company had total investment securities, excluding MBS, with an amortized cost of $1.68 billion compared to $1.54 billion as of September 30, 2017. At September 30, 2018, $1.21 billion, or 74%, of the Company’s investment securities were pledged to secure various obligations of the Company. Many of the Company’s municipal holdings are able to be pledged at both the FRB and the FHLB. As of September 30, 2018, the Company held obligations of states and political subdivisions of $1.28 billion, representing 76.0% of total investment securities, excluding MBS. This amount is spread among 45 of the 50 states of the U.S. and the District of Columbia, with no individual state (excluding U.S. Government agency or instrumentality backed and/or convertible municipal securities) having a concentration higher than 10% of the total carrying value of the municipal portfolio. Management believes this geographical diversification lessens the credit risk associated with these investments. The Company also monitors concentrations of the ultimate borrower and exposure to counties within each state to further enhance proper diversification. The following table sets forth the carrying value of the Company’s investment securities portfolio, excluding MBS, at the dates indicated. At September 30, 2018 2017 2016 (Dollars in Thousands) Investment Securities AFS Trust preferred and corporate securities $ — $ — $ 12,978 Asset backed securities 313,028 96,832 116,815 Small business administration securities 44,337 57,871 80,719 Obligations of states and political subdivisions 16,910 — — Non-bank qualified obligations of states and political subdivisions 1,109,885 950,829 698,672 Common equities and mutual funds 3,800 1,445 1,125 Subtotal AFS 1,487,960 1,106,977 910,309 Investment Securities HTM Obligations of states and political subdivisions — 19,247 20,626 Non-bank qualified obligations of states and political subdivisions (1) 164,304 430,593 465,469 Subtotal HTM 164,304 449,840 486,095 FHLB Stock 23,400 61,123 47,512 Total Investment Securities and FHLB Stock $ 1,675,664 $ 1,617,940 $ 1,443,916 Other Interest-Earning Assets: Interest bearing deposits in other financial institutions and federal funds sold (2) $ 4,248 $ 1,227,308 $ 513,441 (1) Includes no taxable obligations of states and political subdivisions. (2) From time to time, the Company maintains balances in excess of insured limits at various financial institutions, including the FHLB, the FRB, and other private institutions. At September 30, 2018, the Company had $4.2 million in interest bearing deposits held at the FRB and none at other institutions. At September 30, 2018, the Company did not have interest bearing deposits held at the FHLB and had no federal funds sold at a private institution. The composition and maturities of the Company’s available for sale and held to maturity investment securities portfolio at September 30, 2018, excluding equity securities and mutual funds, FHLB stock and MBS, are indicated in the following table. The actual maturity of certain municipal housing related securities is typically less than its stated contractual maturity due to scheduled principal payments and prepayments of the underlying mortgages.