XML 22 R10.htm IDEA: XBRL DOCUMENT v3.19.1
Securities Available for Sale and Held to Maturity
 3 Months Ended
Mar. 31, 2019
Investments Debt And Equity Securities [Abstract]  
Securities Available for Sale and Held to Maturity

Note 2 – 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 March 31, 2019 and December 31, 2018 ($ in thousands):

 

 

 

Securities Available for Sale

 

 

Securities Held to Maturity

 

March 31, 2019

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair

Value

 

U.S. Government agency obligations

 

$

28,900

 

 

$

101

 

 

$

(993

)

 

$

28,008

 

 

$

3,747

 

 

$

129

 

 

$

—

 

 

$

3,876

 

Obligations of states and political

   subdivisions

 

 

50,660

 

 

 

303

 

 

 

(9

)

 

 

50,954

 

 

 

35,352

 

 

 

386

 

 

 

(141

)

 

 

35,597

 

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

67,345

 

 

 

186

 

 

 

(1,355

)

 

 

66,176

 

 

 

11,710

 

 

 

102

 

 

 

(128

)

 

 

11,684

 

Issued by FNMA and FHLMC

 

 

656,926

 

 

 

418

 

 

 

(11,386

)

 

 

645,958

 

 

 

111,962

 

 

 

130

 

 

 

(1,834

)

 

 

110,258

 

Other residential mortgage-backed

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

794,838

 

 

 

388

 

 

 

(10,660

)

 

 

784,566

 

 

 

559,690

 

 

 

777

 

 

 

(8,405

)

 

 

552,062

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA,

   FHLMC or GNMA

 

 

148,668

 

 

 

254

 

 

 

(1,139

)

 

 

147,783

 

 

 

161,858

 

 

 

700

 

 

 

(1,177

)

 

 

161,381

 

Total

 

$

1,747,337

 

 

$

1,650

 

 

$

(25,542

)

 

$

1,723,445

 

 

$

884,319

 

 

$

2,224

 

 

$

(11,685

)

 

$

874,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

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 March 31, 2019, the net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive loss in the accompanying balance sheet totaled approximately $15.0 million ($11.2 million, net of tax) compared to approximately $15.7 million ($11.8 million, net of tax) at December 31, 2018.

Temporarily Impaired Securities

The tables below include securities with gross unrealized losses segregated by length of impairment at March 31, 2019 and December 31, 2018 ($ in thousands):

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

March 31, 2019

 

Estimated

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Estimated

Fair Value

 

 

Gross

Unrealized

Losses

 

U.S. Government agency obligations

 

$

—

 

 

$

—

 

 

$

23,223

 

 

$

(993

)

 

$

23,223

 

 

$

(993

)

Obligations of states and political subdivisions

 

 

1,366

 

 

 

(6

)

 

 

11,095

 

 

 

(144

)

 

 

12,461

 

 

 

(150

)

Mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage pass-through securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Guaranteed by GNMA

 

 

3,117

 

 

 

(12

)

 

 

57,808

 

 

 

(1,471

)

 

 

60,925

 

 

 

(1,483

)

Issued by FNMA and FHLMC

 

 

16

 

 

 

(1

)

 

 

703,426

 

 

 

(13,219

)

 

 

703,442

 

 

 

(13,220

)

Other residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC or

   GNMA

 

 

4,548

 

 

 

(5

)

 

 

1,098,914

 

 

 

(19,060

)

 

 

1,103,462

 

 

 

(19,065

)

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued or guaranteed by FNMA, FHLMC or

   GNMA

 

 

14,532

 

 

 

(83

)

 

 

228,767

 

 

 

(2,233

)

 

 

243,299

 

 

 

(2,316

)

Total

 

$

23,579

 

 

$

(107

)

 

$

2,123,233

 

 

$

(37,120

)

 

$

2,146,812

 

 

$

(37,227

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

 

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 March 31, 2019.  There were no other-than-temporary impairments for the three months ended March 31, 2019 and 2018.

Security Gains and Losses

During the three months ended March 31, 2019 and 2018, there were no gross realized gains or losses as a result of calls and dispositions of securities.  Realized gains and losses are determined using the specific identification method and are included in noninterest income as security gains (losses), net.

Securities Pledged

Securities with a carrying value of $2.239 billion and $2.144 billion at March 31, 2019 and December 31, 2018, respectively, were pledged to collateralize public deposits and securities sold under repurchase agreements and for other purposes as permitted by law.  At both March 31, 2019 and December 31, 2018, 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 March 31, 2019, 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

Available for Sale

 

 

Securities

Held to Maturity

 

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

 

Amortized

Cost

 

 

Estimated

Fair Value

 

Due in one year or less

 

$

25,576

 

 

$

25,599

 

 

$

170

 

 

$

170

 

Due after one year through five years

 

 

24,719

 

 

 

24,915

 

 

 

34,642

 

 

 

34,891

 

Due after five years through ten years

 

 

3,557

 

 

 

3,501

 

 

 

4,287

 

 

 

4,412

 

Due after ten years

 

 

25,708

 

 

 

24,947

 

 

 

—

 

 

 

—

 

 

 

 

79,560

 

 

 

78,962

 

 

 

39,099

 

 

 

39,473

 

Mortgage-backed securities

 

 

1,667,777

 

 

 

1,644,483

 

 

 

845,220

 

 

 

835,385

 

Total

 

$

1,747,337

 

 

$

1,723,445

 

 

$

884,319

 

 

$

874,858