CASH 2018 Annual Report

23 September 30, 2018 1 Year or Less After 1 Year Through 5 Years After 5 Years Through 10 Years After 10 Years Total Investment Securities Carrying Value Carrying Value Carrying Value Carrying Value Amortized Cost Fair Value Available for Sale (Dollars in Thousands) Asset backed securities $ — $ — $ — $ 313,028 $ 310,700 $ 313,028 Small business administration securities — 1,241 29,940 13,156 45,591 44,337 Obligations of states and political subdivisions 1,700 5,941 6,181 3,088 17,154 16,910 Non-bank qualified obligations of states and political subdivisions 829 34,322 314,022 760,712 1,140,884 1,109,885 Total Investment Securities AFS $ 2,529 $ 41,504 $ 350,143 $ 1,089,984 $ 1,514,329 $ 1,484,160 Weighted Average Yield (1) 0.97% 1.80% 2.03% 2.57% 2.79% 2.38% September 30, 2018 1 Year or Less After 1 Year Through 5 Years After 5 Years Through 10 Years After 10 Years Total Investment Securities Carrying Value Carrying Value Carrying Value Carrying Value Amortized Cost Fair Value Held to Maturity (Dollars in Thousands) Non-bank qualified obligations of states and political subdivisions $ — $ — $ — $ 164,304 $ 164,304 $ 153,546 Total Investment Securities HTM $ — $ — $ — $ 164,304 $ 164,304 $ 153,546 Weighted Average Yield (1) —% —% —% 2.91% 2.72% 2.77% (1) Yields on tax-exempt obligations have not been computed on a tax-equivalent basis. Mortgage-Backed Securities The Company’s mortgage-backed and related securities portfolio as of September 30, 2018 consisted entirely of securities issued by U.S. Government agencies or instrumentalities, including those of Ginnie Mae, Fannie Mae, Freddie Mac and Farmer Mac. The Ginnie Mae, Fannie Mae, Freddie Mac and Farmer Mac certificates are modified pass through MBS representing undivided interests in underlying pools of fixed rate, or certain types of adjustable-rate, predominantly single-family mortgages issued by these U.S. Government agencies or instrumentalities. At September 30, 2018, the Company had a diverse portfolio of MBS with an amortized cost of $386.2 million, all at fixed rates of interest. The fair market value of the MBS at September 30, 2018 was $371.5 million. At September 30, 2018, the Company primarily held seasoned 20-year, 30-year, and 40-year pass through MBS. Coupons on these securities ranged from below 3% to 4.5%. MBS generally increase the quality of the Company’s assets by virtue of the insurance or guarantees that back them, are more liquid than individual mortgage loans, and may be used to collateralize borrowings or other obligations of the Company. At September 30, 2018, $175.1 million, or 47%, of the Company’s MBS were pledged to secure various obligations of the Company.