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Investment Securities
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities

The following tables are a summary of the investment securities portfolios as of the dates shown:
 
March 31, 2019
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
126,236

 
$
579

 
$
(97
)
 
$
126,718

U.S. Government agencies
129,258

 
1,431

 
(2
)
 
130,687

Municipal
132,870

 
3,701

 
(218
)
 
136,353

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
97,072

 
63

 
(4,802
)
 
92,333

Other
1,000

 
—

 
—

 
1,000

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
1,677,903

 
6,041

 
(27,662
)
 
1,656,282

Collateralized mortgage obligations
42,514

 
293

 
(398
)
 
42,409

Total available-for-sale securities
$
2,206,853

 
$
12,108

 
$
(33,179
)
 
$
2,185,782

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
806,293

 
$
1,945

 
$
(14,580
)
 
$
793,658

Municipal
245,249

 
3,669

 
(881
)
 
248,037

Total held-to-maturity securities
$
1,051,542

 
$
5,614

 
$
(15,461
)
 
$
1,041,695

Equity securities with readily determinable fair value
$
45,915

 
$
2,708

 
$
(970
)
 
$
47,653


 
December 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
126,199

 
$
391

 
$
(186
)
 
$
126,404

U.S. Government agencies
139,420

 
917

 
(30
)
 
140,307

Municipal
136,831

 
2,427

 
(768
)
 
138,490

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
97,079

 
35

 
(7,069
)
 
90,045

Other
1,000

 
—

 
—

 
1,000

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
1,641,146

 
2,510

 
(57,317
)
 
1,586,339

Collateralized mortgage obligations
43,819

 
500

 
(823
)
 
43,496

Total available-for-sale securities
$
2,185,494

 
$
6,780

 
$
(66,193
)
 
$
2,126,081

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
814,864

 
$
1,141

 
$
(28,576
)
 
$
787,429

Municipal
252,575

 
1,100

 
(5,008
)
 
248,667

Total held-to-maturity securities
$
1,067,439

 
$
2,241

 
$
(33,584
)
 
$
1,036,096

Equity securities with readily determinable fair value
$
34,410

 
$
1,532

 
$
(1,225
)
 
$
34,717

(1)
Consisting entirely of residential mortgage-backed securities, none of which are subprime.

 
March 31, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
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

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
$
34,230

 
$
4,670

 
$
(1,068
)
 
$
37,832

(1)
Consisting entirely of residential mortgage-backed securities, none of which are subprime.

Equity securities without readily determinable fair values totaled $27.0 million as of March 31, 2019. 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. The Company recorded no upward or downward adjustments on such securities in the first quarter of 2019 related to observable price changes in orderly transactions for the identical or a similar investment of the same issuer. 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, 2019:
 
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
$
—

 
$
—

 
$
24,908

 
$
(97
)
 
$
24,908

 
$
(97
)
U.S. Government agencies
—

 
—

 
208

 
(2
)
 
208

 
(2
)
Municipal
6,448

 
(12
)
 
15,087

 
(206
)
 
21,535

 
(218
)
Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
9,987

 
(11
)
 
72,283

 
(4,791
)
 
82,270

 
(4,802
)
Other
—

 
—

 
—

 
—

 
—

 
—

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
—

 
—

 
1,315,030

 
(27,662
)
 
1,315,030

 
(27,662
)
Collateralized mortgage obligations
—

 
—

 
13,708

 
(398
)
 
13,708

 
(398
)
Total available-for-sale securities
$
16,435

 
$
(23
)
 
$
1,441,224

 
$
(33,156
)
 
$
1,457,659

 
$
(33,179
)
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
$
—

 
$
—

 
$
403,196

 
$
(14,580
)
 
$
403,196

 
$
(14,580
)
Municipal
7,951

 
(111
)
 
50,196

 
(770
)
 
58,147

 
(881
)
Total held-to-maturity securities
$
7,951

 
$
(111
)
 
$
453,392

 
$
(15,350
)
 
$
461,343

 
$
(15,461
)


The Company conducts a regular assessment of its 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 securities with unrealized losses at March 31, 2019 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 corporate notes.

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

 
Three months ended March 31,
(Dollars in thousands)
2019
 
2018
Realized gains on investment securities
$
17

 
$
—

Realized losses on investment securities
(84
)
 
(975
)
Net realized losses on investment securities
(67
)
 
$
(975
)
Unrealized gains on equity securities with readily determinable fair value
1,431

 
1,873

Unrealized losses on equity securities with readily determinable fair value
—

 
(843
)
Net unrealized gains on equity securities with readily determinable fair value
1,431

 
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
—

 
—

Gains (losses) on investment securities, net
$
1,364

 
$
(351
)
Proceeds from sales of available-for-sale securities
$
263,456

 
$
210,891

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

 
—

Proceeds from sales and capital distributions of equity securities without readily determinable fair value
220

 
—



During the three months ended March 31, 2019, the Company recorded no of impairment of equity securities without readily determinable fair values. 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, 2019, December 31, 2018 and March 31, 2018, 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, 2019
 
December 31, 2018
 
March 31, 2018
(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
$
68,996

 
$
69,060

 
$
82,206

 
$
82,153

 
$
180,899

 
$
180,333

Due in one to five years
171,058

 
172,673

 
168,855

 
169,307

 
90,073

 
89,953

Due in five to ten years
116,901

 
113,825

 
121,129

 
115,206

 
116,909

 
116,517

Due after ten years
129,481

 
131,533

 
128,339

 
129,580

 
8,730

 
8,732

Mortgage-backed
1,720,417

 
1,698,691

 
1,684,965

 
1,629,835

 
1,566,257

 
1,500,153

Total available-for-sale securities
$
2,206,853

 
$
2,185,782

 
$
2,185,494

 
$
2,126,081

 
$
1,962,868

 
$
1,895,688

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
$
9,134

 
$
9,112

 
$
10,009

 
$
9,979

 
$
3,786

 
$
3,775

Due in one to five years
27,477

 
27,539

 
29,436

 
28,995

 
34,495

 
33,994

Due in five to ten years
301,971

 
302,066

 
295,897

 
290,206

 
210,705

 
205,823

Due after ten years
712,960

 
702,978

 
732,097

 
706,916

 
643,951

 
618,935

Total held-to-maturity securities
$
1,051,542

 
$
1,041,695

 
$
1,067,439

 
$
1,036,096

 
$
892,937

 
$
862,527



Securities having a fair value of $1.7 billion at March 31, 2019 as well as securities having a fair value of $1.7 billion and $1.5 billion at December 31, 2018 and March 31, 2018, 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, 2019, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity.