NYCB 2017 Annual Report

96 The following table summarizes the Company’s portfolio of securities held to maturity at December 31, 2016: (in thousands) Amortized Cost Carrying Amount Gross Unrealized Gain Gross Unrealized Loss Fair Value Mortgage-Related Securities: GSE certificates $ 2,193,489 $2,193,489 $ 64,431 $ 2,399 $ 2,255,521 GSE CMOs 1,019,074 1,019,074 36,895 57 1,055,912 Total mortgage-related securities $ 3,212,563 $3,212,563 $101,326 $ 2,456 $ 3,311,433 Other Securities: U. S. Treasury obligations $ 200,293 $ 200,293 $ -- $ 73 $ 200,220 GSE debentures 88,457 88,457 3,836 -- 92,293 Corporate bonds 74,217 74,217 9,549 -- 83,766 Municipal bonds 71,554 71,554 -- 1,789 69,765 Capital trust notes 74,284 65,692 2,662 11,872 56,482 Total other securities $ 508,805 $ 500,213 $ 16,047 $13,734 $ 502,526 Total securities held to maturity (1) $ 3,721,368 $3,712,776 $117,373 $16,190 $ 3,813,959 (1) Held-to-maturity securities are reported at a carrying amount equal to amortized cost less the non-credit portion of OTTI recorded in AOCL. At December 31, 2016, the non-credit portion of OTTI recorded in AOCL was $8.6 million (before taxes). At December 31, 2017 and 2016, respectively, the Company had $603.8 million and $590.9 million of FHLB- NY stock, at cost. The Company is required to maintain an investment in FHLB-NY stock in order to have access to the funding it provides. The following table summarizes the gross proceeds, gross realized gains, and gross realized losses from the sale of available-for-sale securities during the years ended December 31, 2017, 2016, and 2015: December 31, (in thousands) 2017 2016 2015 Gross proceeds $453,878 $322,038 $278,689 Gross realized gains 3,848 3,128 1,159 Gross realized losses 860 -- 4 In addition, during the twelve months ended December 31, 2017, the Company sought to take advantage of favorable bond market conditions and sold held-to-maturity securities with an amortized cost of $521.0 million resulting in gross proceeds of $547.9 million including a gross realized gain of $26.9 million. Accordingly, the Company transferred the remaining $3.0 billion of held-to-maturity securities to available-for-sale with a net unrealized gain of $82.8 million classified in other comprehensive loss in the Consolidated Statements of Condition. Having the securities portfolio classified as available-for- sale improves the Company’s interest rate risk sensitivity and liquidity measures and provides the Company with more options in meeting the expected future Liquidity Coverage Ratio (“LCR”) requirements. In the following table, the beginning balance represents the credit loss component for debt securities on which OTTI occurred prior to January 1, 2017. For credit-impaired debt securities, OTTI recognized in earnings after that date is presented as an addition in two components, based upon whether the current period is the first time a debt security was credit-impaired (initial credit impairment) or is not the first time a debt security was credit-impaired (subsequent credit impairment). (in thousands) For the Twelve Months Ended December 31, 2017 Beginning credit loss amount as of December 31, 2016 $197,552 Add: Initial other-than-temporary credit losses -- Subsequent other-than-temporary credit losses -- Amount previously recognized in AOCL -- Less: Realized losses for securities sold -- Securities intended or required to be sold -- Increase in cash flows on debt securities 1,219 Ending credit loss amount as of December 31, 2017 $196,333