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Securities Available for Sale and Held to Maturity
 12 Months Ended
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract]  
Securities Available for Sale and Held to Maturity

Note 4 – Securities Available for Sale and Held to Maturity

The following tables are a summary of the amortized cost and estimated fair value of securities available for sale and held to maturity at December 31, 2018 and 2017 ($ in thousands):

 

 

 

Securities Available for Sale

 

 

Securities Held to Maturity

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Estimated

 

 

 

 

 

 

Gross

 

 

Gross

 

 

Estimated

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

December 31, 2018

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

U.S. Government agency obligations

 

$

31,235

 

 

$

109

 

 

$

(1,009

)

 

$

30,335

 

 

$

3,736

 

 

$

78

 

 

$

—

 

 

$

3,814

 

Obligations of states and political

   subdivisions

 

 

50,503

 

 

 

200

 

 

 

(27

)

 

 

50,676

 

 

 

35,783

 

 

 

255

 

 

 

(139

)

 

 

35,899

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

69,648

 

 

 

147

 

 

 

(2,301

)

 

 

67,494

 

 

 

12,090

 

 

 

45

 

 

 

(257

)

 

 

11,878

 

Issued by FNMA and FHLMC

 

 

685,520

 

 

 

127

 

 

 

(18,963

)

 

 

666,684

 

 

 

115,133

 

 

 

43

 

 

 

(2,887

)

 

 

112,289

 

Other residential mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

830,129

 

 

 

67

 

 

 

(18,595

)

 

 

811,601

 

 

 

578,827

 

 

 

189

 

 

 

(15,441

)

 

 

563,575

 

Commercial mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

187,494

 

 

 

191

 

 

 

(2,662

)

 

 

185,023

 

 

 

164,074

 

 

 

299

 

 

 

(2,095

)

 

 

162,278

 

Total

 

$

1,854,529

 

 

$

841

 

 

$

(43,557

)

 

$

1,811,813

 

 

$

909,643

 

 

$

909

 

 

$

(20,819

)

 

$

889,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

 

$

45,763

 

 

$

322

 

 

$

(800

)

 

$

45,285

 

 

$

3,692

 

 

$

182

 

 

$

—

 

 

$

3,874

 

Obligations of states and political

   subdivisions

 

 

78,433

 

 

 

850

 

 

 

(54

)

 

 

79,229

 

 

 

46,039

 

 

 

1,044

 

 

 

(59

)

 

 

47,024

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

66,634

 

 

 

215

 

 

 

(1,103

)

 

 

65,746

 

 

 

13,539

 

 

 

207

 

 

 

(73

)

 

 

13,673

 

Issued by FNMA and FHLMC

 

 

824,872

 

 

 

827

 

 

 

(11,249

)

 

 

814,450

 

 

 

133,975

 

 

 

210

 

 

 

(1,559

)

 

 

132,626

 

Other residential mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

1,028,176

 

 

 

1,808

 

 

 

(13,194

)

 

 

1,016,790

 

 

 

678,926

 

 

 

1,209

 

 

 

(11,065

)

 

 

669,070

 

Commercial mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

218,252

 

 

 

426

 

 

 

(1,543

)

 

 

217,135

 

 

 

180,315

 

 

 

1,102

 

 

 

(1,437

)

 

 

179,980

 

Total

 

$

2,262,130

 

 

$

4,448

 

 

$

(27,943

)

 

$

2,238,635

 

 

$

1,056,486

 

 

$

3,954

 

 

$

(14,193

)

 

$

1,046,247

 

 

During 2013, Trustmark reclassified approximately $1.099 billion of securities available for sale to securities held to maturity.  The securities were transferred at fair value, which became the cost basis for the securities held to maturity.  At the date of transfer, the net unrealized holding loss on the available for sale securities totaled approximately $46.6 million ($28.8 million, net of tax).  The net unrealized holding loss is amortized over the remaining life of the securities as a yield adjustment in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security.  There were no gains or losses recognized as a result of the transfer.  At December 31, 2018 and 2017, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive loss in the accompanying balance sheet totaled approximately $15.7 million ($11.8 million, net of tax) and $19.5 million ($12.0 million, net of tax), respectively.

Temporarily Impaired Securities

The table below includes securities with gross unrealized losses segregated by length of impairment at December 31, 2018 and 2017 ($ in thousands):

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

 

Estimated

 

 

Unrealized

 

December 31, 2018

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

 

Fair Value

 

 

Losses

 

U.S. Government agency obligations

 

$

—

 

 

$

—

 

 

$

25,045

 

 

$

(1,009

)

 

$

25,045

 

 

$

(1,009

)

Obligations of states and political

   subdivisions

 

 

4,954

 

 

 

(9

)

 

 

12,802

 

 

 

(157

)

 

 

17,756

 

 

 

(166

)

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

9,163

 

 

 

(54

)

 

 

61,141

 

 

 

(2,504

)

 

 

70,304

 

 

 

(2,558

)

Issued by FNMA and FHLMC

 

 

31,931

 

 

 

(172

)

 

 

731,749

 

 

 

(21,678

)

 

 

763,680

 

 

 

(21,850

)

Other residential mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

46,643

 

 

 

(110

)

 

 

1,296,221

 

 

 

(33,926

)

 

 

1,342,864

 

 

 

(34,036

)

Commercial mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

5,497

 

 

 

(37

)

 

 

272,789

 

 

 

(4,720

)

 

 

278,286

 

 

 

(4,757

)

Total

 

$

98,188

 

 

$

(382

)

 

$

2,399,747

 

 

$

(63,994

)

 

$

2,497,935

 

 

$

(64,376

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government agency obligations

 

$

5,214

 

 

$

(113

)

 

$

29,432

 

 

$

(687

)

 

$

34,646

 

 

$

(800

)

Obligations of states and political

   subdivisions

 

 

19,345

 

 

 

(80

)

 

 

3,874

 

 

 

(33

)

 

 

23,219

 

 

 

(113

)

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

37,304

 

 

 

(351

)

 

 

29,446

 

 

 

(825

)

 

 

66,750

 

 

 

(1,176

)

Issued by FNMA and FHLMC

 

 

506,410

 

 

 

(4,219

)

 

 

369,060

 

 

 

(8,589

)

 

 

875,470

 

 

 

(12,808

)

Other residential mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

755,013

 

 

 

(7,668

)

 

 

534,955

 

 

 

(16,591

)

 

 

1,289,968

 

 

 

(24,259

)

Commercial mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

230,898

 

 

 

(1,719

)

 

 

55,288

 

 

 

(1,261

)

 

 

286,186

 

 

 

(2,980

)

Total

 

$

1,554,184

 

 

$

(14,150

)

 

$

1,022,055

 

 

$

(27,986

)

 

$

2,576,239

 

 

$

(42,136

)

 

The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality.  Because Trustmark does not intend to sell these securities and it is more likely than not that Trustmark will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, Trustmark does not consider these investments to be other-than-temporarily impaired at December 31, 2018. There were no other-than-temporary impairments for the years ended December 31, 2018, 2017 and 2016.

Security Gains and Losses

For the periods presented, gross realized gains or losses as a result of calls and dispositions of securities, as well as any associated proceeds, were as follows ($ in thousands):

 

 

Years Ended December 31,

 

Available for Sale

 

2018

 

 

2017

 

 

2016

 

Proceeds from calls and sales of securities

 

$

—

 

 

$

27,682

 

 

$

24,693

 

Gross realized gains

 

 

—

 

 

 

16

 

 

 

32

 

Gross realized losses

 

 

—

 

 

 

(1

)

 

 

(342

)

 

Securities Pledged

Securities with a carrying value of $2.144 billion and $1.834 billion at December 31, 2018 and 2017, respectively, were pledged to collateralize public deposits and securities sold under repurchase agreements and for other purposes as permitted by law.  At both December 31, 2018 and 2017, none of these securities were pledged under the Federal Reserve Discount Window program to provide additional contingency funding capacity.  

Contractual Maturities

The amortized cost and estimated fair value of securities available for sale and held to maturity at December 31, 2018, by contractual maturity, are shown below ($ in thousands).  Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 

 

 

Securities

 

 

Securities

 

 

 

Available for Sale

 

 

Held to Maturity

 

 

 

Amortized

 

 

Estimated

 

 

Amortized

 

 

Estimated

 

 

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

Due in one year or less

 

$

24,449

 

 

$

24,475

 

 

$

170

 

 

$

170

 

Due after one year through five years

 

 

27,271

 

 

 

27,481

 

 

 

35,073

 

 

 

35,193

 

Due after five years through ten years

 

 

3,056

 

 

 

2,989

 

 

 

4,276

 

 

 

4,350

 

Due after ten years

 

 

26,962

 

 

 

26,066

 

 

 

—

 

 

 

—

 

 

 

 

81,738

 

 

 

81,011

 

 

 

39,519

 

 

 

39,713

 

Mortgage-backed securities

 

 

1,772,791

 

 

 

1,730,802

 

 

 

870,124

 

 

 

850,020

 

Total

 

$

1,854,529

 

 

$

1,811,813

 

 

$

909,643

 

 

$

889,733