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Investment Securities
 6 Months Ended
Jun. 30, 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:
 
June 30, 2019
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
131,238

 
$
1,051

 
$
(20
)
 
$
132,269

U.S. Government agencies
167,847

 
3,093

 
—

 
170,940

Municipal
138,097

 
4,627

 
(115
)
 
142,609

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
97,065

 
91

 
(7,293
)
 
89,863

Other
1,000

 
50

 
—

 
1,050

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
1,606,549

 
13,402

 
(10,727
)
 
1,609,224

Collateralized mortgage obligations
39,774

 
603

 
(178
)
 
40,199

Total available-for-sale securities
$
2,181,570

 
$
22,917

 
$
(18,333
)
 
$
2,186,154

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
952,526

 
$
3,241

 
$
(2,603
)
 
$
953,164

Municipal
239,108

 
6,521

 
(315
)
 
245,314

Total held-to-maturity securities
$
1,191,634

 
$
9,762

 
$
(2,918
)
 
$
1,198,478

Equity securities with readily determinable fair value
$
42,087

 
$
2,984

 
$
(752
)
 
$
44,319

 
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.
 
June 30, 2018
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
30,506

 
$
—

 
$
(290
)
 
$
30,216

U.S. Government agencies
114,692

 
17

 
(301
)
 
114,408

Municipal
131,488

 
1,945

 
(840
)
 
132,593

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
98,285

 
104

 
(4,012
)
 
94,377

Other
1,000

 
—

 
—

 
1,000

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
1,589,815

 
164

 
(70,815
)
 
1,519,164

Collateralized mortgage obligations
51,617

 
5

 
(2,593
)
 
49,029

Total available-for-sale securities
$
2,017,403

 
$
2,235

 
$
(78,851
)
 
$
1,940,787

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
639,433

 
$
—

 
$
(34,040
)
 
$
605,393

Municipal
251,401

 
927

 
(5,879
)
 
246,449

Total held-to-maturity securities
$
890,834

 
$
927

 
$
(39,919
)
 
$
851,842

Equity securities with readily determinable fair value
$
34,230

 
$
4,783

 
$
(1,174
)
 
$
37,839

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

Equity securities without readily determinable fair values totaled $27.3 million as of June 30, 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 a $110,000 upward adjustment and no downward adjustments on such securities in the second 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 June 30, 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
$
—

 
$
—

 
$
24,982

 
$
(20
)
 
$
24,982

 
$
(20
)
U.S. Government agencies
—

 
—

 
—

 
—

 
—

 
—

Municipal
5,512

 
(3
)
 
6,566

 
(112
)
 
12,078

 
(115
)
Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
9,965

 
(33
)
 
66,716

 
(7,260
)
 
76,681

 
(7,293
)
Other
—

 
—

 
—

 
—

 
—

 
—

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
665

 
(7
)
 
841,068

 
(10,720
)
 
841,733

 
(10,727
)
Collateralized mortgage obligations
—

 
—

 
8,335

 
(178
)
 
8,335

 
(178
)
Total available-for-sale securities
$
16,142

 
$
(43
)
 
$
947,667

 
$
(18,290
)
 
$
963,809

 
$
(18,333
)
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
$
14,221

 
$
(68
)
 
$
180,104

 
$
(2,535
)
 
$
194,325

 
$
(2,603
)
Municipal
3,701

 
(36
)
 
14,505

 
(279
)
 
18,206

 
(315
)
Total held-to-maturity securities
$
17,922

 
$
(104
)
 
$
194,609

 
$
(2,814
)
 
$
212,531

 
$
(2,918
)


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 June 30, 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 June 30,
 
Six months ended June 30,
(Dollars in thousands)
2019
 
2018
 
2019
 
2018
Realized gains on investment securities
$
530

 
$
6

 
$
547

 
$
6

Realized losses on investment securities
(7
)
 
(26
)
 
(91
)
 
(1,001
)
Net realized gains (losses) on investment securities
523

 
$
(20
)
 
456

 
$
(995
)
Unrealized gains on equity securities with readily determinable fair value
703

 
229

 
2,134

 
2,102

Unrealized losses on equity securities with readily determinable fair value
(209
)
 
(222
)
 
(209
)
 
(1,065
)
Net unrealized gains on equity securities with readily determinable fair value
494

 
7

 
1,925

 
1,037

Upward adjustments of equity securities without readily determinable fair values
110

 
25

 
110

 
156

Downward adjustments of equity securities without readily determinable fair values
—

 
—

 
—

 
—

Impairment of equity securities without readily determinable fair values
(263
)
 
—

 
(263
)
 
(537
)
Adjustment and impairment, net, of equity securities without readily determinable fair values
(153
)
 
25

 
(153
)
 
(381
)
Other than temporary impairment charges
—

 
—

 
—

 
—

Gains (losses) on investment securities, net
$
864

 
$
12

 
$
2,228

 
$
(339
)
Proceeds from sales of available-for-sale securities
$
404,462

 
$
—

 
$
667,918

 
$
208,991

Proceeds from sales of equity securities with readily determinable fair value
11,000

 
—

 
11,000

 
—

Proceeds from sales and capital distributions of equity securities without readily determinable fair value
396

 
616

 
609

 
616



During the three months and six months ended June 30, 2019, the Company recorded $263,000 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 June 30, 2019, December 31, 2018 and June 30, 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:
 
June 30, 2019
 
December 31, 2018
 
June 30, 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
$
114,853

 
$
115,231

 
$
82,206

 
$
82,153

 
$
147,550

 
$
147,271

Due in one to five years
137,427

 
139,958

 
168,855

 
169,307

 
103,903

 
103,919

Due in five to ten years
114,428

 
109,246

 
121,129

 
115,206

 
117,799

 
114,640

Due after ten years
168,539

 
172,296

 
128,339

 
129,580

 
6,719

 
6,764

Mortgage-backed
1,646,323

 
1,649,423

 
1,684,965

 
1,629,835

 
1,641,432

 
1,568,193

Total available-for-sale securities
$
2,181,570

 
$
2,186,154

 
$
2,185,494

 
$
2,126,081

 
$
2,017,403

 
$
1,940,787

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
$
7,573

 
$
7,566

 
$
10,009

 
$
9,979

 
$
5,667

 
$
5,658

Due in one to five years
27,768

 
27,952

 
29,436

 
28,995

 
32,392

 
31,863

Due in five to ten years
321,474

 
325,009

 
295,897

 
290,206

 
214,991

 
208,835

Due after ten years
834,819

 
837,951

 
732,097

 
706,916

 
637,784

 
605,486

Total held-to-maturity securities
$
1,191,634

 
$
1,198,478

 
$
1,067,439

 
$
1,036,096

 
$
890,834

 
$
851,842



Securities having a fair value of $1.9 billion at June 30, 2019 as well as securities having a fair value of $1.7 billion and $1.7 billion at December 31, 2018 and June 30, 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 June 30, 2019, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity.