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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2020
Investments Debt And Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of September 30, 2020, and December 31, 2019, were as follows:

 

(dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

182,605

 

 

$

245

 

 

$

(1,405

)

 

$

181,445

 

Debt Securities Issued by States and Political Subdivisions

 

 

45,313

 

 

 

1,491

 

 

 

(1

)

 

 

46,803

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

937

 

 

 

79

 

 

 

—

 

 

 

1,016

 

Debt Securities Issued by Corporations

 

 

221,935

 

 

 

4,273

 

 

 

(1,754

)

 

 

224,454

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,483,465

 

 

 

37,344

 

 

 

(307

)

 

 

1,520,502

 

Residential - U.S. Government-Sponsored Enterprises

 

 

917,366

 

 

 

19,904

 

 

 

(202

)

 

 

937,068

 

Commercial - Government Agencies

 

 

267,225

 

 

 

11,863

 

 

 

(63

)

 

 

279,025

 

Total Mortgage-Backed Securities

 

 

2,668,056

 

 

 

69,111

 

 

 

(572

)

 

 

2,736,595

 

Total

 

$

3,118,846

 

 

$

75,199

 

 

$

(3,732

)

 

$

3,190,313

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

62,505

 

 

$

211

 

 

$

(2

)

 

$

62,714

 

Debt Securities Issued by States and Political Subdivisions

 

 

54,001

 

 

 

1,022

 

 

 

—

 

 

 

55,023

 

Debt Securities Issued by Corporations

 

 

12,770

 

 

 

279

 

 

 

—

 

 

 

13,049

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

792,360

 

 

 

33,324

 

 

 

(19

)

 

 

825,665

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,184,472

 

 

 

52,270

 

 

 

(121

)

 

 

2,236,621

 

Commercial - Government Agencies

 

 

92,722

 

 

 

2,967

 

 

 

(93

)

 

 

95,596

 

Total Mortgage-Backed Securities

 

 

3,069,554

 

 

 

88,561

 

 

 

(233

)

 

 

3,157,882

 

Total

 

$

3,198,830

 

 

$

90,073

 

 

$

(235

)

 

$

3,288,668

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

222,365

 

 

$

213

 

 

$

(1,447

)

 

$

221,131

 

Debt Securities Issued by States and Political Subdivisions

 

 

54,480

 

 

 

631

 

 

 

(14

)

 

 

55,097

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

22,128

 

 

 

19

 

 

 

—

 

 

 

22,147

 

Debt Securities Issued by Corporations

 

 

335,553

 

 

 

1,401

 

 

 

(633

)

 

 

336,321

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,164,466

 

 

 

11,627

 

 

 

(3,267

)

 

 

1,172,826

 

Residential - U.S. Government-Sponsored Enterprises

 

 

584,272

 

 

 

4,363

 

 

 

(1,874

)

 

 

586,761

 

Commercial - Government Agencies

 

 

224,372

 

 

 

2,889

 

 

 

(2,541

)

 

 

224,720

 

Total Mortgage-Backed Securities

 

 

1,973,110

 

 

 

18,879

 

 

 

(7,682

)

 

 

1,984,307

 

Total

 

$

2,607,636

 

 

$

21,143

 

 

$

(9,776

)

 

$

2,619,003

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

274,375

 

 

$

1,319

 

 

$

(31

)

 

$

275,663

 

Debt Securities Issued by States and Political Subdivisions

 

 

54,811

 

 

 

1,236

 

 

 

—

 

 

 

56,047

 

Debt Securities Issued by Corporations

 

 

14,975

 

 

 

—

 

 

 

(138

)

 

 

14,837

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,067,416

 

 

 

13,247

 

 

 

(5,348

)

 

 

1,075,315

 

Residential - U.S. Government-Sponsored Enterprises

 

 

1,546,479

 

 

 

13,871

 

 

 

(2,478

)

 

 

1,557,872

 

Commercial - Government Agencies

 

 

84,238

 

 

 

317

 

 

 

(1,407

)

 

 

83,148

 

Total Mortgage-Backed Securities

 

 

2,698,133

 

 

 

27,435

 

 

 

(9,233

)

 

 

2,716,335

 

Total

 

$

3,042,294

 

 

$

29,990

 

 

$

(9,402

)

 

$

3,062,882

 

 
Analysis of the Contractual Maturities of Investment Securities

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of September 30, 2020.  Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

 

(dollars in thousands)

 

Amortized

Cost

 

 

Fair Value

 

Available-for-Sale:

 

 

 

 

 

 

 

 

Due in One Year or Less

 

$

61,913

 

 

$

61,802

 

Due After One Year Through Five Years

 

 

59,080

 

 

 

60,281

 

Due After Five Years Through Ten Years

 

 

148,282

 

 

 

151,301

 

Due After Ten Years

 

 

—

 

 

 

—

 

 

 

 

269,275

 

 

 

273,384

 

Debt Securities Issued by Government Agencies

 

 

181,515

 

 

 

180,334

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,483,465

 

 

 

1,520,502

 

Residential - U.S. Government-Sponsored Enterprises

 

 

917,366

 

 

 

937,068

 

Commercial - Government Agencies

 

 

267,225

 

 

 

279,025

 

Total Mortgage-Backed Securities

 

 

2,668,056

 

 

 

2,736,595

 

Total

 

$

3,118,846

 

 

$

3,190,313

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

Due in One Year or Less

 

 

80,075

 

 

 

80,356

 

Due After One Year Through Five Years

 

 

49,201

 

 

 

50,430

 

 

 

 

129,276

 

 

 

130,786

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

792,360

 

 

 

825,665

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,184,472

 

 

 

2,236,621

 

Commercial - Government Agencies

 

 

92,722

 

 

 

95,596

 

Total Mortgage-Backed Securities

 

 

3,069,554

 

 

 

3,157,882

 

Total

 

$

3,198,830

 

 

$

3,288,668

 

 
Schedule of Gains (Losses) on Sales of Investment Securities

The table below presents the gains and losses from the sales of investment securities for the three and nine months ended September 30, 2020, and September 30, 2019:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Gross Gains on Sales of Investment Securities

 

$

—

 

 

$

38

 

 

$

14,257

 

 

$

7,701

 

Gross Losses on Sales of Investment Securities

 

 

(1,121

)

 

 

(1,507

)

 

 

(3,132

)

 

 

(10,781

)

Net Gains (Losses) on Sales of Investment Securities

 

$

(1,121

)

 

$

(1,469

)

 

$

11,125

 

 

$

(3,080

)

 
Schedule of AFS Debt Securities in an Unrealized Loss Position

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

(dollars in thousands)

 

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

 

Gross

Unrealized

Losses

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury

   and Government Agencies

 

$

134,162

 

 

$

(1,363

)

 

$

24,886

 

 

$

(42

)

 

$

159,048

 

 

$

(1,405

)

Debt Securities Issued by States

   and Political Subdivisions

 

 

26

 

 

 

(1

)

 

 

60

 

 

 

—

 

 

 

86

 

 

 

(1

)

Debt Securities Issued by Corporations

 

 

75,000

 

 

 

(642

)

 

 

65,000

 

 

 

(1,112

)

 

 

140,000

 

 

 

(1,754

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

30,216

 

 

 

(223

)

 

 

136,396

 

 

 

(84

)

 

 

166,612

 

 

 

(307

)

Residential - U.S. Government-Sponsored

   Enterprises

 

 

—

 

 

 

—

 

 

 

95,943

 

 

 

(202

)

 

 

95,943

 

 

 

(202

)

Commercial-Government Agencies

 

 

—

 

 

 

—

 

 

 

25,188

 

 

 

(63

)

 

 

25,188

 

 

 

(63

)

Total Mortgage-Backed Securities

 

 

30,216

 

 

 

(223

)

 

 

257,527

 

 

 

(349

)

 

 

287,743

 

 

 

(572

)

Total

 

$

239,404

 

 

$

(2,229

)

 

$

347,473

 

 

$

(1,503

)

 

$

586,877

 

 

$

(3,732

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury

   and Government Agencies

 

$

65,479

 

 

$

(188

)

 

$

101,761

 

 

$

(1,259

)

 

$

167,240

 

 

$

(1,447

)

Debt Securities Issued by States

   and Political Subdivisions

 

 

6,788

 

 

 

(14

)

 

 

440

 

 

 

—

 

 

 

7,228

 

 

 

(14

)

Debt Securities Issued by Corporations

 

 

25,892

 

 

 

(326

)

 

 

74,693

 

 

 

(307

)

 

 

100,585

 

 

 

(633

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

119,271

 

 

 

(526

)

 

 

170,805

 

 

 

(2,741

)

 

 

290,076

 

 

 

(3,267

)

Residential - U.S. Government-Sponsored Enterprises

 

 

187,861

 

 

 

(816

)

 

 

73,720

 

 

 

(1,058

)

 

 

261,581

 

 

 

(1,874

)

Commercial - Government Agencies

 

 

59,826

 

 

 

(319

)

 

 

52,965

 

 

 

(2,222

)

 

 

112,791

 

 

 

(2,541

)

Total Mortgage-Backed Securities

 

 

366,958

 

 

 

(1,661

)

 

 

297,490

 

 

 

(6,021

)

 

 

664,448

 

 

 

(7,682

)

Total

 

$

465,117

 

 

$

(2,189

)

 

$

474,384

 

 

$

(7,587

)

 

$

939,501

 

 

$

(9,776

)

 
Schedule of Interest Income from Taxable and Non-taxable Investment Securities

Interest income from taxable and non-taxable investment securities for the three and nine months ended September 30, 2020, and September 30, 2019, were as follows:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Taxable

 

$

30,027

 

 

$

35,584

 

 

$

96,150

 

 

$

102,912

 

Non-Taxable

 

 

498

 

 

 

724

 

 

 

1,637

 

 

 

5,970

 

Total Interest Income from Investment Securities

 

$

30,525

 

 

$

36,308

 

 

$

97,787

 

 

$

108,882

 

 
Schedule of Carrying Value of Federal Home Loan Bank of Des Moines Stock and Federal Reserve Bank Stock

As of September 30, 2020, and December 31, 2019, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

 

(dollars in thousands)

 

September 30,

2020

 

 

December 31,

2019

 

Federal Home Loan Bank Stock

 

$

15,174

 

 

$

13,000

 

Federal Reserve Bank Stock

 

 

18,123

 

 

 

21,093

 

Total

 

$

33,297

 

 

$

34,093