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Securities
 3 Months Ended
Mar. 31, 2019
Securities  
Securities

Note 3:  Securities

 

The table below provides the amortized cost, unrealized gains and losses and fair values of securities summarized by major category (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

    

 

    

Gross

    

Gross

    

    

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

March 31, 2019:

    

Cost

    

Gains

    

Losses

    

Value

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

64,506

 

$

76

 

$

(273)

 

$

64,309

Obligations of U.S. government corporations and agencies

 

 

323,686

 

 

2,122

 

 

(388)

 

 

325,420

Obligations of states and political subdivisions

 

 

281,473

 

 

2,357

 

 

(352)

 

 

283,478

Commercial mortgage-backed securities

 

 

55,926

 

 

29

 

 

(393)

 

 

55,562

Residential mortgage-backed securities

 

 

1,051,556

 

 

4,512

 

 

(6,307)

 

 

1,049,761

Corporate debt securities

 

 

138,913

 

 

933

 

 

(81)

 

 

139,765

Total

 

$

1,916,060

 

$

10,029

 

$

(7,794)

 

$

1,918,295

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

    

 

 

    

 

 

    

 

 

    

 

 

Obligations of states and political subdivisions

 

$

15,846

 

$

132

 

$

(3)

 

$

15,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

    

 

    

Gross

    

Gross

    

    

 

 

 

Amortized

 

Unrealized

 

Unrealized

 

Fair

December 31, 2018:

    

Cost

    

Gains

    

Losses

    

Value

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

25,824

 

$

 1

 

$

(414)

 

$

25,411

Obligations of U.S. government corporations and agencies

 

 

53,096

 

 

 7

 

 

(761)

 

 

52,342

Obligations of states and political subdivisions

 

 

171,131

 

 

484

 

 

(1,571)

 

 

170,044

Commercial mortgage-backed securities

 

 

2,003

 

 

 —

 

 

(61)

 

 

1,942

Residential mortgage-backed securities

 

 

322,646

 

 

245

 

 

(7,143)

 

 

315,748

Corporate debt securities

 

 

132,513

 

 

61

 

 

(376)

 

 

132,198

Total

 

$

707,213

 

$

798

 

$

(10,326)

 

$

697,685

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states and political subdivisions

 

$

33,947

 

$

68

 

$

(87)

 

$

33,928

Commercial mortgage-backed securities

 

 

59,054

 

 

11

 

 

(1,003)

 

 

58,062

Residential mortgage-backed securities

 

 

515,659

 

 

1,748

 

 

(6,037)

 

 

511,370

Total

 

$

608,660

 

$

1,827

 

$

(7,127)

 

$

603,360

 

In adopting ASU 2017-12, the Company reassessed classification of certain investments during the first quarter of 2019 and transferred $573.6 million of securities from held to maturity to available for sale. The transfer occurred at fair value and had a related unrealized loss of $4.8 million recorded in other comprehensive income.

 

The amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below.  Mortgages underlying mortgage-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government agencies and corporations (dollars in thousands).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale

 

Held to maturity

 

    

Amortized

    

Fair

    

Amortized

    

Fair

March 31, 2019:

    

Cost

    

Value

    

Cost

    

Value

Due in one year or less

 

$

166,786

 

$

166,734

 

$

1,914

 

$

1,913

Due after one year through five years

 

 

517,731

 

 

519,968

 

 

12,807

 

 

12,909

Due after five years through ten years

 

 

276,057

 

 

277,308

 

 

1,125

 

 

1,153

Due after ten years

 

 

955,486

 

 

954,285

 

 

 —

 

 

 —

Total

 

$

1,916,060

 

$

1,918,295

 

$

15,846

 

$

15,975

 

Realized gains and losses related to sales and calls of securities available for sale are summarized as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 

 

    

2019

    

2018

Gross security gains

 

$

184

 

$

 —

Gross security (losses)

 

 

 —

 

 

 —

Security gains (losses), net(1)

 

$

184

 

$

 —

(1)

Security gains (losses), net reported on the Consolidated Statements of Income in 2019 includes gains of equity securities, excluded in this table.

 

Investment securities with carrying amounts of $564.0 million and $498.3 million on March 31, 2019 and December 31, 2018, respectively, were pledged as collateral for public deposits, securities sold under agreements to repurchase and for other purposes as required or permitted by law.

 

Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For less than

 

For greater

 

 

 

 

 

 

 

12 months, gross

 

than 12 months, gross

 

Total, gross

 

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

March 31, 2019:

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

$

7,484

 

$

(2)

 

$

24,505

 

$

(271)

 

$

31,989

 

$

(273)

Obligations of U.S. government corporations and agencies

 

750

 

 

(2)

 

 

50,966

 

 

(386)

 

 

51,716

 

 

(388)

Obligations of states and political subdivisions

 

11,453

 

 

(28)

 

 

63,959

 

 

(324)

 

 

75,412

 

 

(352)

Commercial mortgage-backed securities

 

 —

 

 

 —

 

 

430

 

 

(393)

 

 

430

 

 

(393)

Residential mortgage-backed securities

 

16,083

 

 

(9)

 

 

551,248

 

 

(6,298)

 

 

567,331

 

 

(6,307)

Corporate debt securities

 

7,561

 

 

(16)

 

 

20,369

 

 

(65)

 

 

27,930

 

 

(81)

Total temporarily impaired securities

$

43,331

 

$

(57)

 

$

711,477

 

$

(7,737)

 

$

754,808

 

$

(7,794)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states and political subdivisions

$

 —

 

$

 —

 

$

2,301

 

$

(3)

 

$

2,301

 

$

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For less than

 

For greater

 

 

 

 

 

 

 

 12 months, gross

 

than 12 months, gross

 

Total, gross

 

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

December 31, 2018:

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

$

995

 

$

(4)

 

$

24,343

 

$

(410)

 

$

25,338

 

$

(414)

Obligations of U.S. government corporations and agencies

 

749

 

 

(3)

 

 

50,744

 

 

(758)

 

 

51,493

 

 

(761)

Obligations of states and political subdivisions

 

49,893

 

 

(460)

 

 

77,651

 

 

(1,111)

 

 

127,544

 

 

(1,571)

Commercial mortgage-backed securities

 

 —

 

 

 —

 

 

1,942

 

 

(61)

 

 

1,942

 

 

(61)

Residential mortgage-backed securities

 

48,387

 

 

(496)

 

 

247,573

 

 

(6,647)

 

 

295,960

 

 

(7,143)

Corporate debt securities

 

90,713

 

 

(268)

 

 

15,083

 

 

(108)

 

 

105,796

 

 

(376)

Total temporarily impaired securities

$

190,737

 

$

(1,231)

 

$

417,336

 

$

(9,095)

 

$

608,073

 

$

(10,326)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states and political subdivisions

$

9,531

 

$

(33)

 

$

9,538

 

$

(54)

 

$

19,069

 

$

(87)

Commercial mortgage-backed securities

 

12,067

 

 

(212)

 

 

45,041

 

 

(791)

 

 

57,108

 

 

(1,003)

Residential mortgage-backed securities

 

77,071

 

 

(974)

 

 

245,128

 

 

(5,063)

 

 

322,199

 

 

(6,037)

Total temporarily impaired securities

$

98,669

 

$

(1,219)

 

$

299,707

 

$

(5,908)

 

$

398,376

 

$

(7,127)

 

Securities are periodically evaluated for other-than-temporary impairment (“OTTI”).   As of March 31, 2019, the Company’s security portfolio consisted of 1,354 securities. The total number of securities in the investment portfolio in an unrealized loss position as of March 31, 2019 was 366 and represented an unrealized loss of 1.02% of the aggregate amortized cost. The unrealized losses relate to changes in market interest rates and market conditions that do not represent credit-related impairments.  Furthermore, the Company does not intend to sell such securities and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the securities. Full collection of the amounts due according to the contractual terms of the securities is expected; therefore, the Company does not consider these investments to be OTTI at March 31, 2019. As of March 31, 2019, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity.