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Investment Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities

A summary of the available-for-sale and held-to-maturity securities portfolios presenting carrying amounts and gross unrealized gains and losses as of December 31, 2019 and 2018 is as follows:
 
 
December 31, 2019
 
December 31, 2018
(Dollars in thousands)
 
Amortized
Cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Fair Value
 
Amortized
Cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Fair Value
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
120,275

 
$
813

 
$
—

 
$
121,088

 
$
126,199

 
$
391

 
$
(186
)
 
$
126,404

U.S. Government agencies
 
365,639

 
3,557

 
(3,754
)
 
365,442

 
139,420

 
917

 
(30
)
 
140,307

Municipal
 
141,701

 
3,785

 
(168
)
 
145,318

 
136,831

 
2,427

 
(768
)
 
138,490

Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
 
97,051

 
761

 
(4,002
)
 
93,810

 
97,079

 
35

 
(7,069
)
 
90,045

Other
 
1,000

 
31

 
—

 
1,031

 
1,000

 
—

 
—

 
1,000

Mortgage-backed: (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
2,328,383

 
21,240

 
(3,013
)
 
2,346,610

 
1,641,146

 
2,510

 
(57,317
)
 
1,586,339

Collateralized mortgage obligations
 
32,775

 
280

 
(140
)
 
32,915

 
43,819

 
500

 
(823
)
 
43,496

Total available-for-sale securities
 
$
3,086,824

 
$
30,467

 
$
(11,077
)
 
$
3,106,214

 
$
2,185,494

 
$
6,780

 
$
(66,193
)
 
$
2,126,081

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
 
$
902,974

 
$
2,159

 
$
(5,460
)
 
$
899,673

 
$
814,864

 
$
1,141

 
$
(28,576
)
 
$
787,429

Municipal
 
231,426

 
7,536

 
(239
)
 
238,723

 
252,575

 
1,100

 
(5,008
)
 
248,667

Total held-to-maturity securities
 
$
1,134,400

 
$
9,695

 
$
(5,699
)
 
$
1,138,396

 
$
1,067,439

 
$
2,241

 
$
(33,584
)
 
$
1,036,096

Equity securities with readily determinable fair value
 
$
48,044

 
$
3,511

 
$
(715
)
 
$
50,840

 
$
34,410

 
$
1,532

 
$
(1,225
)
 
$
34,717

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

Equity securities without readily determinable fair values totaled $29.5 million as of December 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 $505,000 of upward adjustments and $106,000 of downward adjustments on such securities in 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 tables present the portion of the Company’s available-for-sale and held-to-maturity securities portfolios which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018, respectively:
 
As of December 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
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

U.S. Government agencies
 
193,533

 
(3,754
)
 
—

 
—

 
193,533

 
(3,754
)
Municipal
 
28,246

 
(165
)
 
52

 
(3
)
 
28,298

 
(168
)
Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
 
67,838

 
(3,760
)
 
2,758

 
(242
)
 
70,596

 
(4,002
)
Other
 
—

 
—

 
—

 
—

 
—

 
—

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
751,053

 
(3,013
)
 
—

 
—

 
751,053

 
(3,013
)
Collateralized mortgage obligations
 
9,419

 
(132
)
 
1,305

 
(8
)
 
10,724

 
(140
)
Total available-for-sale securities
 
$
1,050,089

 
$
(10,824
)
 
$
4,115

 
$
(253
)
 
$
1,054,204

 
$
(11,077
)
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
 
$
40,144

 
$
(5,460
)
 
$
—

 
$
—

 
$
40,144

 
$
(5,460
)
Municipal
 
9,797

 
(239
)
 
—

 
—

 
9,797

 
(239
)
Total held-to-maturity securities
 
$
49,941

 
$
(5,699
)
 
$
—

 
$
—

 
$
49,941

 
$
(5,699
)
 
As of December 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
 
$
5,485

 
$
(5
)
 
$
24,829

 
$
(181
)
 
$
30,314

 
$
(186
)
U.S. Government agencies
 
—

 
—

 
11,167

 
(30
)
 
11,167

 
(30
)
Municipal
 
10,676

 
(178
)
 
22,147

 
(590
)
 
32,823

 
(768
)
Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
 
37,076

 
(2,921
)
 
42,934

 
(4,148
)
 
80,010

 
(7,069
)
Other
 
—

 
—

 
—

 
—

 
—

 
—

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
114,958

 
(124
)
 
1,340,916

 
(57,193
)
 
1,455,874

 
(57,317
)
Collateralized mortgage obligations
 
510

 
(1
)
 
34,255

 
(822
)
 
34,765

 
(823
)
Total available-for-sale securities
 
$
168,705

 
$
(3,229
)
 
$
1,476,248

 
$
(62,964
)
 
$
1,644,953

 
$
(66,193
)
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
 
$
—

 
$
—

 
$
601,238

 
$
(28,576
)
 
$
601,238

 
$
(28,576
)
Municipal
 
38,239

 
(637
)
 
158,302

 
(4,371
)
 
196,541

 
(5,008
)
Total held-to-maturity securities
 
$
38,239

 
$
(637
)
 
$
759,540

 
$
(32,947
)
 
$
797,779

 
$
(33,584
)


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 December 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 corporate notes, collateralized mortgage-backed securities, and municipal securities.

The following table provides information as to the amount of gross gains and gross losses realized and proceeds received through the sales and calls of investment securities:
 
 
 
Years Ended December 31,
(Dollars in thousands)
 
2019
 
2018
 
2017
Realized gains on investment securities
 
$
931

 
$
1,144

 
$
147

Realized losses on investment securities
 
(32
)
 
(1,111
)
 
(102
)
Net realized gains on investment securities
 
899

 
$
33

 
$
45

Unrealized gains on equity securities with readily determinable fair value
 
3,057

 
2,771

 
—

Unrealized losses on equity securities with readily determinable fair value
 
(568
)
 
(4,910
)
 
—

Net unrealized gains (losses) on equity securities with readily determinable fair value
 
2,489

 
(2,139
)
 
—

Upward adjustments of equity securities without readily determinable fair values
 
505

 
325

 
—

Downward adjustments of equity securities without readily determinable fair values
 
(106
)
 
—

 
—

Impairment of equity securities without readily determinable fair values
 
(262
)
 
(1,117
)
 
—

Adjustment and impairment, net, of equity securities without readily determinable fair values
 
137

 
(792
)
 
—

Other than temporary impairment charges
 
—

 
—

 
—

Gains (losses) on investment securities, net
 
3,525

 
(2,898
)
 
45

Proceeds from sales of available-for-sale securities
 
972,253

 
214,196

 
344,674

Proceeds from sales of equity securities with readily determinable fair value
 
19,200

 
1,895

 
—

Proceeds from sales and capital distributions of equity securities without readily determinable fair value
 
1,764

 
1,324

 
—



During the year ended December 31, 2019, the Company recorded $262,000 of impairment of equity securities without readily determinable fair values. The Company conducts a quarterly assessment of its equity securities without readily determinable fair values to determine whether impairment exists in such equity securities, considering, among other factors, the nature of the securities, financial condition of the issuer and expected future cash flows.

Net losses/gains on investment securities resulted in income tax expense (benefit) of $913,000, ($737,000) and $18,000 in 2019, 2018 and 2017, respectively.

The amortized cost and fair value of securities as of December 31, 2019 and December 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:
 
 
 
December 31, 2019
 
December 31, 2018
(Dollars in thousands)
 
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Available-for-sale securities
 
 
 
 
 
 
 
 
Due in one year or less
 
$
183,996

 
$
185,035

 
$
82,206

 
$
82,153

Due in one to five years
 
62,679

 
64,064

 
168,855

 
169,307

Due in five to ten years
 
186,683

 
184,666

 
121,129

 
115,206

Due after ten years
 
292,308

 
292,924

 
128,339

 
129,580

Mortgage-backed
 
2,361,158

 
2,379,525

 
1,684,965

 
1,629,835

Total available-for-sale securities
 
$
3,086,824

 
$
3,106,214

 
$
2,185,494

 
$
2,126,081

Held-to-maturity securities
 
 
 
 
 
 
 
 
Due in one year or less
 
$
6,061

 
$
6,074

 
$
10,009

 
$
9,979

Due in one to five years
 
28,697

 
28,986

 
29,436

 
28,995

Due in five to ten years
 
213,104

 
216,957

 
295,897

 
290,206

Due after ten years
 
886,538

 
886,379

 
732,097

 
706,916

Total held-to-maturity securities
 
$
1,134,400

 
$
1,138,396

 
$
1,067,439

 
$
1,036,096



At December 31, 2019 and December 31, 2018, securities having a carrying value of $1.7 billion, were pledged as collateral for public deposits, trust deposits, FHLB advances, securities sold under repurchase agreements and derivatives. At December 31, 2019, there were no securities of a single issuer, other than U.S. Government-sponsored agency securities, which exceeded 10% of shareholders’ equity.