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Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities

The following tables are a summary of the investment securities portfolios as of the dates shown:
 
June 30, 2020
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
59,949

 
$
590

 
$
—

 
$
60,539

U.S. Government agencies
287,811

 
5,696

 
—

 
293,507

Municipal
147,411

 
3,721

 
(253
)
 
150,879

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
106,744

 
514

 
(5,398
)
 
101,860

Other
1,000

 
19

 
—

 
1,019

Mortgage-backed: (1)
 
 
 
 
 
 
 
Mortgage-backed securities
2,459,274

 
110,354

 
(7
)
 
2,569,621

Collateralized mortgage obligations
17,110

 
427

 
(1
)
 
17,536

Total available-for-sale securities
$
3,079,299

 
$
121,321

 
$
(5,659
)
 
$
3,194,961

Held-to-maturity securities
 
 
 
 
 
 
 
U.S. Government agencies
$
514,404

 
$
4,961

 
$
—

 
$
519,365

Municipal
214,126

 
10,952

 
(157
)
 
224,921

Total held-to-maturity securities
$
728,530

 
$
15,913

 
$
(157
)
 
$
744,286

Less: Allowance for credit losses (2)
(65
)
 
 
 
 
 
 
Held-to-maturity securities, net of allowance for credit losses
$
728,465

 
 
 
 
 
 
Equity securities with readily determinable fair value
$
51,673

 
$
1,164

 
$
(377
)
 
$
52,460

(1)
Consisting entirely of residential mortgage-backed securities, none of which are subprime.
(2)
As of January 1, 2020, the Company adopted ASU 2016-13 related to credit losses on financial assets held at amortized cost. As a result of such adoption, the Company measured an allowance for credit losses related to lifetime expected credit losses on held-to-maturity investment securities.

 
December 31, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
U.S. Treasury
$
120,275

 
$
813

 
$
—

 
$
121,088

U.S. Government agencies
365,639

 
3,557

 
(3,754
)
 
365,442

Municipal
141,701

 
3,785

 
(168
)
 
145,318

Corporate notes:
 
 
 
 
 
 
 
Financial issuers
97,051

 
761

 
(4,002
)
 
93,810

Other
1,000

 
31

 
—

 
1,031

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

 
21,240

 
(3,013
)
 
2,346,610

Collateralized mortgage obligations
32,775

 
280

 
(140
)
 
32,915

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

 
$
30,467

 
$
(11,077
)
 
$
3,106,214

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

 
$
2,159

 
$
(5,460
)
 
$
899,673

Municipal
231,426

 
7,536

 
(239
)
 
238,723

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

 
$
9,695

 
$
(5,699
)
 
$
1,138,396

Equity securities with readily determinable fair value
$
48,044

 
$
3,511

 
$
(715
)
 
$
50,840

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

 
June 30, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
(Dollars in thousands)
 
 
 
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

(1)
Consisting entirely of residential mortgage-backed securities, none of which are subprime.
Investment Securities, Continuous Unrealized Loss Position, Fair Value
The following table presents the portion of the Company’s available-for-sale 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, 2020:
 
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
—

 
—

 
—

 
—

 
—

 
—

Municipal
42,604

 
(238
)
 
944

 
(15
)
 
43,548

 
(253
)
Corporate notes:
 
 
 
 
 
 
 
 
 
 
 
Financial issuers
6,469

 
(526
)
 
62,112

 
(4,872
)
 
68,581

 
(5,398
)
Other
—

 
—

 
—

 
—

 
—

 
—

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
1,068

 
(7
)
 
—

 
—

 
1,068

 
(7
)
Collateralized mortgage obligations
396

 
(1
)
 
—

 
—

 
396

 
(1
)
Total available-for-sale securities
$
50,537

 
$
(772
)
 
$
63,056

 
$
(4,887
)
 
$
113,593

 
$
(5,659
)
Schedule of Gross Gains and Losses on Investment Securities
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)
2020
 
2019
 
2020
 
2019
Realized gains on investment securities
$
151

 
$
530

 
$
647

 
$
547

Realized losses on investment securities
(492
)
 
(7
)
 
(497
)
 
(91
)
Net realized (losses) gains on investment securities
(341
)
 
523

 
150

 
456

Unrealized gains on equity securities with readily determinable fair value
1,647

 
703

 
1,647

 
2,134

Unrealized losses on equity securities with readily determinable fair value
(110
)
 
(209
)
 
(3,656
)
 
(209
)
Net unrealized gains (losses) on equity securities with readily determinable fair value
1,537

 
494

 
(2,009
)
 
1,925

Upward adjustments of equity securities without readily determinable fair values
—

 
110

 
393

 
110

Downward adjustments of equity securities without readily determinable fair values
—

 
—

 
—

 
—

Impairment of equity securities without readily determinable fair values
(388
)
 
(263
)
 
(2,085
)
 
(263
)
Adjustment and impairment, net, of equity securities without readily determinable fair values
(388
)
 
(153
)
 
(1,692
)
 
(153
)
Other than temporary impairment charges (1)
—

 
—

 
—

 
—

Gains (losses) on investment securities, net
$
808

 
$
864

 
$
(3,551
)
 
$
2,228

Proceeds from sales of available-for-sale securities(2)
$
502,185

 
$
404,462

 
$
502,676

 
$
667,918

Proceeds from sales of equity securities with readily determinable fair value
4,000

 
11,000

 
4,030

 
11,000

Proceeds from sales and capital distributions of equity securities without readily determinable fair value
156

 
396

 
444

 
609


(1)
Applicable to periods prior to the adoption of ASU 2016-13.
(2)
Includes proceeds from available-for-sale securities sold in accordance with written covered call options sold to a third party.
Investments Classified by Contractual Maturity Date
The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of June 30, 2020, December 31, 2019 and June 30, 2019, 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, 2020
 
December 31, 2019
 
June 30, 2019
(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
$
120,316

 
$
121,023

 
$
183,996

 
$
185,035

 
$
114,853

 
$
115,231

Due in one to five years
74,427

 
76,284

 
62,679

 
64,064

 
137,427

 
139,958

Due in five to ten years
173,429

 
169,249

 
186,683

 
184,666

 
114,428

 
109,246

Due after ten years
234,743

 
241,248

 
292,308

 
292,924

 
168,539

 
172,296

Mortgage-backed
2,476,384

 
2,587,157

 
2,361,158

 
2,379,525

 
1,646,323

 
1,649,423

Total available-for-sale securities
$
3,079,299

 
$
3,194,961

 
$
3,086,824

 
$
3,106,214

 
$
2,181,570

 
$
2,186,154

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
$
6,988

 
$
7,028

 
$
6,061

 
$
6,074

 
$
7,573

 
$
7,566

Due in one to five years
21,818

 
22,362

 
28,697

 
28,986

 
27,768

 
27,952

Due in five to ten years
146,937

 
153,664

 
213,104

 
216,957

 
321,474

 
325,009

Due after ten years
552,787

 
561,232

 
886,538

 
886,379

 
834,819

 
837,951

Total held-to-maturity securities
$
728,530

 
$
744,286

 
$
1,134,400

 
$
1,138,396

 
$
1,191,634

 
$
1,198,478

Less: Allowance for credit losses(1)
(65
)
 
 
 
 
 
 
 
 
 
 
Held-to-maturity securities, net of allowance for credit losses
$
728,465

 
 
 
 
 
 
 
 
 
 

(1)
As of January 1, 2020, the Company adopted ASU 2016-13 related to credit losses on financial assets held at amortized cost. As a result of such adoption, the Company measured an allowance for credit losses as of June 30, 2020 related to lifetime expected credit losses on held-to-maturity investment securities.