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Investment Securities
 3 Months Ended
Mar. 31, 2018
Available-for-sale Securities and Held-to-maturity Securities [Abstract]  
Investment Securities
Investment Securities

The following tables are a summary of the investment securities portfolios as of the dates shown:
 
March 31, 2018
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
25,022

 
$
—

 
$
(295
)
 
$
24,727

U.S. Government agencies
149,899

 
—

 
(563
)
 
149,336

Municipal
120,396

 
2,218

 
(856
)
 
121,758

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
100,294

 
16

 
(1,595
)
 
98,715

Other
1,000

 
—

 
(1
)
 
999

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
1,510,421

 
169

 
(64,077
)
 
1,446,513

Collateralized mortgage obligations
55,836

 
7

 
(2,203
)
 
53,640

Equity securities (2)
—

 
—

 
—

 
—

Total available-for-sale securities
$
1,962,868

 
$
2,410

 
$
(69,590
)
 
$
1,895,688

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
639,442

 
$
—

 
$
(25,891
)
 
$
613,551

Municipal
253,495

 
939

 
(5,458
)
 
248,976

Total held-to-maturity securities
$
892,937

 
$
939

 
$
(31,349
)
 
$
862,527

Equity securities with readily determinable fair value (2)
$
34,230

 
$
4,670

 
$
(1,068
)
 
$
37,832

 
December 31, 2017
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
144,904

 
$
—

 
$
(1,082
)
 
$
143,822

U.S. Government agencies
157,638

 
2

 
(725
)
 
156,915

Municipal
113,197

 
2,712

 
(557
)
 
115,352

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
30,309

 
43

 
(301
)
 
30,051

Other
1,000

 
—

 
(1
)
 
999

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
1,291,695

 
446

 
(31,955
)
 
1,260,186

Collateralized mortgage obligations
60,092

 
64

 
(617
)
 
59,539

Equity securities (2)
34,234

 
3,357

 
(789
)
 
36,802

Total available-for-sale securities
$
1,833,069

 
$
6,624

 
$
(36,027
)
 
$
1,803,666

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
579,062

 
$
23

 
$
(14,066
)
 
$
565,019

Municipal
247,387

 
2,668

 
(2,558
)
 
247,497

Total held-to-maturity securities
$
826,449

 
$
2,691

 
$
(16,624
)
 
$
812,516

(1)
Consisting entirely of residential mortgage-backed securities, none of which are subprime.
(2)
As a result of the adoption of ASU No. 2016-01 effective January 1, 2018, equity securities with readily determinable fair value are no longer presented within available-for-sale securities and are now presented as equity securities with readily determinable fair values in the Company's Consolidated Statements of Condition for the current period.

 
March 31, 2017
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
142,772

 
$
—

 
$
(616
)
 
$
142,156

U.S. Government agencies
178,475

 
31

 
(677
)
 
177,829

Municipal
125,061

 
2,878

 
(376
)
 
127,563

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
65,306

 
107

 
(986
)
 
64,427

Other
1,000

 
—

 
(3
)
 
997

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
1,256,497

 
302

 
(46,423
)
 
1,210,376

Collateralized mortgage obligations
46,035

 
78

 
(445
)
 
45,668

Equity securities (2)
32,634

 
3,106

 
(1,023
)
 
34,717

Total available-for-sale securities
$
1,847,780

 
$
6,502

 
$
(50,549
)
 
$
1,803,733

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
465,891

 
$
115

 
$
(18,664
)
 
$
447,342

Municipal
201,873

 
1,114

 
(2,434
)
 
200,553

Total held-to-maturity securities
$
667,764

 
$
1,229

 
$
(21,098
)
 
$
647,895

(1)
Consisting entirely of residential mortgage-backed securities, none of which are subprime.
(2)
As a result of the adoption of ASU No. 2016-01 effective January 1, 2018, equity securities with readily determinable fair value are no longer presented within available-for-sale securities and are now presented as equity securities with readily determinable fair values in the Company's Consolidated Statements of Condition for the current period.

Equity securities without readily determinable fair values totaled $25.2 million as of March 31, 2018. Equity securities without readily determinable fair values are included as part of accrued interest receivable and other assets in the Company's Consolidated Statements of Condition. In accordance with the adoption of ASU No. 2016-01, in the first quarter of 2018, the Company recorded an upward adjustment on such securities of $131,000 related to observable price changes in orderly transactions for the identical or a similar investment of the same issuer. No downward adjustment of equity securities without readily determinable fair values was recorded during the current period. The Company monitors its equity investments without a readily determinable fair values to identify potential transactions that may indicate an observable price change requiring adjustment to its carrying amount.

The following table presents the portion of the Company’s available-for-sale and held-to-maturity investment securities portfolios which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018:
 
Continuous unrealized
losses existing for
less than 12 months
 
Continuous unrealized
losses existing for
greater than 12 months
 
Total
(Dollars in thousands)
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
$
24,727

 
$
(295
)
 
$
—

 
$
—

 
$
24,727

 
$
(295
)
U.S. Government agencies
14,742

 
(104
)
 
134,594

 
(459
)
 
149,336

 
(563
)
Municipal
35,225

 
(494
)
 
13,794

 
(362
)
 
49,019

 
(856
)
Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
73,037

 
(1,294
)
 
5,665

 
(301
)
 
78,702

 
(1,595
)
Other
—

 
—

 
999

 
(1
)
 
999

 
(1
)
Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
495,082

 
(12,177
)
 
945,641

 
(51,900
)
 
1,440,723

 
(64,077
)
Collateralized mortgage obligations
39,939

 
(1,672
)
 
12,342

 
(531
)
 
52,281

 
(2,203
)
Total available-for-sale securities
$
682,752

 
$
(16,036
)
 
$
1,113,035

 
$
(53,554
)
 
$
1,795,787

 
$
(69,590
)
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
$
311,150

 
$
(7,688
)
 
$
292,800

 
$
(18,203
)
 
$
603,950

 
$
(25,891
)
Municipal
160,027

 
(3,563
)
 
49,129

 
(1,895
)
 
209,156

 
(5,458
)
Total held-to-maturity securities
$
471,177

 
$
(11,251
)
 
$
341,929

 
$
(20,098
)
 
$
813,106

 
$
(31,349
)


The Company conducts a regular assessment of its available-for-sale and held-to-maturity investment securities to determine whether securities are other-than-temporarily impaired considering, among other factors, the nature of the securities, credit ratings or financial condition of the issuer, the extent and duration of the unrealized loss, expected cash flows, market conditions and the Company’s ability to hold the securities through the anticipated recovery period.

The Company does not consider available-for-sale and held-to-maturity securities with unrealized losses at March 31, 2018 to be other-than-temporarily impaired. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost bases, which may be the maturity dates of the securities. The unrealized losses within each category have occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. Securities with continuous unrealized losses existing for more than twelve months were primarily mortgage-backed securities, U.S. government agency securities and municipal securities.

The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities and proceeds received through the sale or call of investment securities:

 
Three months ended March 31,
(Dollars in thousands)
2018
 
2017
Realized gains on available-for-sale debt securities
$
—

 
$
—

Realized losses on available-for-sale debt securities
(975
)
 
(55
)
Net realized losses on available-for-sale debt securities
(975
)
 
$
(55
)
Unrealized gains on equity securities with readily determinable fair value
1,873

 
—

Unrealized losses on equity securities with readily determinable fair value
(843
)
 
—

Net unrealized gains on equity securities with readily determinable fair value
1,030

 
—

Upward adjustments of equity securities without readily determinable fair values
131

 
—

Downward adjustments of equity securities without readily determinable fair values
—

 
—

Impairment of equity securities without readily determinable fair values
(537
)
 
—

Adjustment and impairment, net, of equity securities without readily determinable fair values
(406
)
 
—

Other than temporary impairment charges
—

 
—

Losses on investment securities, net
$
(351
)
 
$
(55
)
Proceeds from sales and calls of available-for-sale securities
$
210,891

 
$
6,005

Proceeds from calls of held-to-maturity securities
4,141

 
51,060

Proceeds from sales of equity securities with readily determinable fair value
—

 
—

Proceeds from sales of equity securities without readily determinable fair value
—

 
—



During the three months ending March 31, 2018, the Company recorded impairment of equity securities without readily determinable fair values totaling $537,000. The Company conducts a quarterly assessment of its equity securities without a readily determinable fair values to determine whether impairment exists in such securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows.

The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of March 31, 2018, December 31, 2017 and March 31, 2017, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties:
 
March 31, 2018
 
December 31, 2017
 
March 31, 2017
(Dollars in thousands)
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
$
180,899

 
$
180,333

 
$
300,833

 
$
299,285

 
$
142,323

 
$
142,001

Due in one to five years
90,073

 
89,953

 
97,019

 
97,326

 
320,945

 
320,278

Due in five to ten years
116,909

 
116,517

 
33,947

 
35,029

 
39,520

 
40,519

Due after ten years
8,730

 
8,732

 
15,249

 
15,499

 
9,826

 
10,174

Mortgage-backed
1,566,257

 
1,500,153

 
1,351,787

 
1,319,725

 
1,302,532

 
1,256,044

Equity securities (1)
—

 
—

 
34,234

 
36,802

 
32,634

 
34,717

Total available-for-sale securities
$
1,962,868

 
$
1,895,688

 
$
1,833,069

 
$
1,803,666

 
$
1,847,780

 
$
1,803,733

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
$
3,786

 
$
3,775

 
$
170

 
$
171

 
$
—

 
$
—

Due in one to five years
34,495

 
33,994

 
38,392

 
38,012

 
32,771

 
32,525

Due in five to ten years
210,705

 
205,823

 
205,227

 
203,680

 
70,533

 
69,348

Due after ten years
643,951

 
618,935

 
582,660

 
570,653

 
564,460

 
546,022

Total held-to-maturity securities
$
892,937

 
$
862,527

 
$
826,449

 
$
812,516

 
$
667,764

 
$
647,895


(1)
As a result of the adoption of ASU No. 2016-01 effective January 1, 2018, equity securities with readily determinable fair value are no longer presented within available-for-sale securities and are now presented as equity securities with readily determinable fair values in the Company's Consolidated Statements of Condition for the current period.

Securities having a fair value of $1.5 billion at March 31, 2018 as well as securities having a fair value of $1.7 billion and $1.3 billion at December 31, 2017 and March 31, 2017, respectively, were pledged as collateral for public deposits, trust deposits, Federal Home Loan Bank ("FHLB") advances, securities sold under repurchase agreements and derivatives. At March 31, 2018, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity.