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Investment Securities
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities

The following table presents the amortized cost and estimated fair values of investment securities:
September 30, 2019
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
(in thousands)
Available for Sale
 
 
 
 
 
 
 
State and municipal securities
$
530,448

 
$
17,000

 
$
(104
)
 
$
547,344

Corporate debt securities
353,771

 
7,030

 
(2,395
)
 
358,406

Collateralized mortgage obligations
686,577

 
14,120

 
(98
)
 
700,599

Residential mortgage-backed securities
183,696

 
1,162

 
(1,073
)
 
183,785

Commercial mortgage-backed securities
413,011

 
9,145

 
(47
)
 
422,109

Auction rate securities
107,410

 
—

 
(4,112
)
 
103,298

   Total
$
2,274,913

 
$
48,457

 
$
(7,829
)
 
$
2,315,541

 
 
 
 
 
 
 
 
Held to Maturity
 
 
 
 
 
 
 
Residential mortgage-backed securities
390,069

 
13,888

 
—

 
403,957

Total
$
390,069

 
$
13,888

 
$
—

 
$
403,957

December 31, 2018
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
(in thousands)
Available for Sale
 
 
 
 
 
 
 
U.S. Government sponsored agency securities
$
31,586

 
$
185

 
$
(139
)
 
$
31,632

State and municipal securities
282,383

 
2,178

 
(5,466
)
 
279,095

Corporate debt securities
111,454

 
1,432

 
(3,353
)
 
109,533

Collateralized mortgage obligations
841,294

 
2,758

 
(11,972
)
 
832,080

Residential mortgage-backed securities
476,973

 
1,583

 
(15,212
)
 
463,344

Commercial mortgage-backed securities
264,165

 
524

 
(3,073
)
 
261,616

Auction rate securities
107,410

 
—

 
(4,416
)
 
102,994

   Total
$
2,115,265

 
$
8,660

 
$
(43,631
)
 
$
2,080,294

 
 
 
 
 
 
 
 
Held to Maturity
 
 
 
 
 
 
 
State and municipal securities
$
156,134

 
$
1,166

 
$
(93
)
 
$
157,207

Residential mortgage-backed securities
450,545

 
3,667

 
—

 
454,212

Total
$
606,679

 
$
4,833

 
$
(93
)
 
$
611,419



On July 1, 2019, the Corporation transferred state and municipal securities from the held to maturity classification to the available for sale classification as permitted through the early adoption of ASU 2019-04, as disclosed in "Note 1 - Basis of Presentation." 
The amortized cost of the securities transferred was $158.9 million and the estimated fair value was $168.5 million. The Corporation still has the positive intent and ability to hold the remainder of the held to maturity portfolio (residential mortgage-backed securities) to maturity.

Securities carried at $391.5 million at September 30, 2019 and $973.4 million at December 31, 2018, were pledged as collateral to secure public and trust deposits and customer repurchase agreements.

The amortized cost and estimated fair values of debt securities as of September 30, 2019, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities as certain investment securities are subject to call or prepayment with or without call or prepayment penalties.
 
 
Available for Sale
 
Held to Maturity
 
 
Amortized
Cost
 
Estimated
Fair Value
 
Amortized
Cost
 
Estimated
Fair Value
 
(in thousands)
Due in one year or less
 
$
3,722

 
$
3,722

 
$
—

 
$
—

Due from one year to five years
 
38,518

 
39,747

 
—

 
—

Due from five years to ten years
 
332,514

 
337,519

 
—

 
—

Due after ten years
 
616,875

 
628,060

 
—

 
—

 
 
991,629

 
1,009,048

 
—

 
—

Residential mortgage-backed securities(1)
 
183,696

 
183,785

 
390,069

 
403,957

Commercial mortgage-backed securities(1)
 
413,011

 
422,109

 
—

 
—

Collateralized mortgage obligations(1)
 
686,577

 
700,599

 
—

 
—

  Total
 
$
2,274,913

 
$
2,315,541

 
$
390,069

 
$
403,957

 
 
 
 
 
 
 
 
 
(1) Mortgage-backed securities and collateralized mortgage obligations do not have stated maturities and are dependent upon the interest rate environment and prepayments on the underlying loans.

The following table presents information related to the gross realized gains and losses on the sales of investment securities:
 
Gross
Realized
Gains
 
Gross
Realized
Losses
 
Net Gains
Three months ended September 30, 2019
(in thousands)
Debt securities
$
7,938

 
$
(3,446
)
 
$
4,492

Total
$
7,938

 
$
(3,446
)
 
$
4,492

Three months ended September 30, 2018
 
 
 
 
 
Debt securities
$
116

 
$
(102
)
 
$
14

Total
$
116

 
$
(102
)
 
$
14

 
 
 
 
 
 
Nine months ended September 30, 2019
 
 
 
 
 
Debt securities
$
11,207

 
$
(6,474
)
 
$
4,733

Total
$
11,207

 
$
(6,474
)
 
$
4,733

Nine months ended September 30, 2018
 
 
 
 
 
Equity securities
$
9

 
$
—

 
$
9

Debt securities
1,656

 
(1,628
)
 
28

Total
$
1,665

 
$
(1,628
)
 
$
37








The following table presents a summary of the cumulative credit related other-than-temporary impairment charges, recognized as components of earnings, for debt securities held by the Corporation at September 30, 2019 and 2018:
 
Three months ended September 30
 
Nine months ended September 30
 
2019
 
2018
 
2019
 
2018
 
(in thousands)
Balance of cumulative credit losses on debt securities, beginning of period
$
(990
)
 
$
(11,510
)
 
$
(11,510
)
 
$
(11,510
)
Reductions for securities sold during the period
—

 
—

 
10,520

 
—

Balance of cumulative credit losses on debt securities, end of period
$
(990
)
 
$
(11,510
)
 
$
(990
)
 
$
(11,510
)

The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2019 and December 31, 2018:
September 30, 2019
Less than 12 months
 
12 months or longer
 
Total
 
Number of Securities
 
Estimated
Fair Value
 
Unrealized
Losses
 
Number of Securities
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
Available for Sale
 
 
(in thousands)
State and municipal securities
5

 
$
17,058

 
$
(104
)
 
—

 
$
—

 
$
—

 
$
17,058

 
$
(104
)
Corporate debt securities
9

 
72,569

 
(313
)
 
13

 
25,729

 
(2,082
)
 
98,298

 
(2,395
)
Collateralized mortgage obligations
4

 
5,734

 
(2
)
 
5

 
5,886

 
(96
)
 
11,620

 
(98
)
Residential mortgage-backed securities
3

 
9,159

 
(29
)
 
28

 
135,616

 
(1,044
)
 
144,775

 
(1,073
)
Commercial mortgage-backed securities
1

 
11,843

 
(47
)
 
—

 
—

 
—

 
11,843

 
(47
)
Auction rate securities
—

 
—

 
—

 
177

 
103,298

 
(4,112
)
 
103,298

 
(4,112
)
Total(1)
22

 
$
116,363

 
$
(495
)
 
223

 
$
270,529

 
$
(7,334
)
 
$
386,892

 
$
(7,829
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) No Held to Maturity investments were in an unrealized loss position at September 30, 2019.

December 31, 2018
Less than 12 months
 
12 months or longer
 
Total
 
Number of Securities
 
Estimated
Fair Value
 
Unrealized
Losses
 
Number of Securities
 
Estimated
Fair Value
 
Unrealized
Losses
 
Estimated
Fair Value
 
Unrealized
Losses
Available for Sale
(in thousands)
U.S. Government sponsored agency securities
1

 
$
4,961

 
$
(31
)
 
1

 
$
5,770

 
$
(108
)
 
$
10,731

 
$
(139
)
State and municipal securities
33

 
72,950

 
(1,292
)
 
38

 
83,770

 
(4,174
)
 
156,720

 
(5,466
)
Corporate debt securities
8

 
24,419

 
(227
)
 
14

 
25,642

 
(3,126
)
 
50,061

 
(3,353
)
Collateralized mortgage obligations
39

 
136,563

 
(1,050
)
 
89

 
388,173

 
(10,922
)
 
524,736

 
(11,972
)
Residential mortgage-backed securities
17

 
18,220

 
(222
)
 
110

 
402,779

 
(14,990
)
 
420,999

 
(15,212
)
Commercial mortgage-backed securities
1

 
9,778

 
(35
)
 
25

 
197,326

 
(3,038
)
 
207,104

 
(3,073
)
Auction rate securities
—

 
—

 
—

 
177

 
102,994

 
(4,416
)
 
102,994

 
(4,416
)
Total
99

 
$
266,891

 
$
(2,857
)
 
454

 
$
1,206,454

 
$
(40,774
)
 
$
1,473,345

 
$
(43,631
)
Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal securities
6

 
$
20,601

 
$
(93
)
 
—

 
$
—

 
$
—

 
$
20,601

 
$
(93
)
    Total
6

 
$
20,601

 
$
(93
)
 
—

 
$
—

 
$
—

 
$
20,601

 
$
(93
)


The Corporation’s collateralized mortgage obligations and mortgage-backed securities have contractual terms that generally do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. The change in fair value of these securities is attributable to changes in interest rates and not credit quality, and the Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. Therefore, the Corporation does not consider these investments to be other-than-temporarily impaired as of September 30, 2019.

As of September 30, 2019, all of the auction rate securities ("ARCs") were rated above investment grade. Based on management’s evaluations, none of the ARCs were subject to any other-than-temporary impairment charges for the three and nine months ended
September 30, 2019. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

Based on management’s evaluations, no corporate debt securities were subject to any other-than-temporary impairment charges for the three and nine months ended September 30, 2019. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.