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Investment Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
NOTE 3 – INVESTMENT SECURITIES
The following tables present the amortized cost and estimated fair values of investment securities, as of December 31:
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
(in thousands)
2019
 
 
 
 
 
 
 
Available for Sale
 
 
 
 
 
 
 
State and municipal securities
$
638,125

 
$
15,826

 
$
(1,024
)
 
$
652,927

Corporate debt securities
370,401

 
8,490

 
(1,534
)
 
377,357

Collateralized mortgage obligations
682,307

 
11,726

 
(315
)
 
693,718

Residential mortgage-backed securities
177,183

 
1,078

 
(949
)
 
177,312

Commercial mortgage-backed securities
489,603

 
6,471

 
(1,777
)
 
494,297

Auction rate securities
107,410

 
—

 
(5,484
)
 
101,926

   Total
$
2,465,029

 
$
43,591

 
$
(11,083
)
 
$
2,497,537

 
 
 
 
 
 
 
 
Held to Maturity
 
 
 
 
 
 
 
Residential mortgage-backed securities
$
369,841

 
$
13,864

 
$
—

 
$
383,705

   Total
$
369,841

 
$
13,864

 
$
—

 
$
383,705

 
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
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 has the positive intent and ability to hold the remainder of the held to maturity portfolio, consisting of residential mortgage-backed securities, to maturity.

On August 1, 2018, the Corporation transferred debt securities with an amortized cost of $665.5 million and an estimated fair value of $641.7 million from the available for sale classification to the held to maturity classification. These securities consisted of residential mortgage-backed securities ($505.5 million amortized cost and $485.3 million estimated fair value) and state and municipal securities ($160.0 million amortized cost and $156.4 million estimated fair value) and were transferred as the Corporation had the positive intent and ability to hold these securities to maturity. The transfer of debt securities into the held to maturity category from the available for sale category was recorded at fair value on the date of transfer. The net unrealized gains or losses at the transfer date are included in AOCI and are being amortized over the remaining lives of the securities. This amortization is expected to offset the amortization of the related premium or discount created by the investment securities transfer into the held to maturity classification, with no expected impact on future net income.
Securities carried at $462.6 million at December 31, 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 December 31, 2019, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations 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
$
2,830

 
$
2,830

 
$
—

 
$
—

Due from one year to five years
33,027

 
34,250

 
—

 
—

Due from five years to ten years
348,800

 
355,888

 
—

 
—

Due after ten years
731,279

 
739,242

 
—

 
—

 
1,115,936

 
1,132,210

 
—

 
—

Residential mortgage-backed securities(1)
177,183

 
177,312

 
369,841

 
383,705

Commercial mortgage-backed securities(1)
489,603

 
494,297

 
—

 
—

Collateralized mortgage obligations (1)
682,307

 
693,718

 
—

 
—

Total
$
2,465,029

 
$
2,497,537

 
$
369,841

 
$
383,705



(1)
Maturities for mortgage-backed securities and collateralized mortgage obligations are dependent upon the interest rate environment and prepayments on the underlying loans.

The following table presents information related to gross gains and losses on the sales of equity and debt securities:
 
Gross
Realized
Gains
 
Gross
Realized
Losses
 
Net
Gains (Losses)
 
(in thousands)
2019:
 
 
 
 
 
Debt securities
$
11,554

 
$
(6,821
)
 
$
4,733

Total
$
11,554

 
$
(6,821
)
 
$
4,733

2018:
 
 
 
 
 
Equity securities
$
9

 
$
—

 
$
9

Debt securities
1,656

 
(1,628
)
 
28

Total
$
1,665

 
$
(1,628
)
 
$
37

2017:
 
 
 
 
 
Equity securities
$
13,558

 
$
—

 
$
13,558

Debt securities
315

 
(4,802
)
 
(4,487
)
Total
$
13,873

 
$
(4,802
)
 
$
9,071


The following table presents a summary of the cumulative credit related OTTI charges, recognized as components of earnings, for debt securities held by the Corporation at December 31, 2019 and 2018:
 
Year ended December 31
 
2019
 
2018
Balance of cumulative credit losses on debt securities, beginning of period
$
(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
)


The following tables present 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, as of December 31:

 
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
2019
(dollars in thousands)
Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
State and municipal securities
44

 
$
136,344

 
$
(1,024
)
 
—

 
$
—

 
$
—

 
$
136,344

 
$
(1,024
)
Corporate debt securities
5

 
30,719

 
(346
)
 
8

 
18,759

 
(1,188
)
 
49,478

 
(1,534
)
Collateralized mortgage obligations
5

 
33,865

 
(190
)
 
1

 
5,330

 
(125
)
 
39,195

 
(315
)
Residential mortgage-backed securities
5

 
12,247

 
(40
)
 
26

 
127,373

 
(909
)
 
139,620

 
(949
)
Commercial mortgage-backed securities
7

 
121,340

 
(1,777
)
 
—

 
—

 
—

 
121,340

 
(1,777
)
Auction rate securities
—

 
—

 
—

 
177

 
101,926

 
(5,484
)
 
101,926

 
(5,484
)
Total available for sale (1)
66

 
$
334,515

 
$
(3,377
)
 
212

 
$
253,388

 
$
(7,706
)
 
$
587,903

 
$
(11,083
)


(1) No held to maturity securities were in an unrealized loss position as of December 31, 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
2018
(dollars in thousands)
Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 available for sale
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
105

 
$
287,492

 
$
(2,950
)
 
454

 
$
1,206,454

 
$
(40,774
)
 
$
1,493,946

 
$
(43,724
)


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. Because the decline in fair value of these securities is attributable to changes in interest rates and not credit quality, and because 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, the Corporation did not consider these investments to be other-than-temporarily impaired as of December 31, 2019.
As of December 31, 2019, all auction rate certificates ("ARCs") were rated above investment grade. All of the loans underlying the ARCs have principal payments which are guaranteed by the federal government. All of the loans were current and making scheduled payments and, based on management’s evaluations, were not subject to any OTTI charges as of December 31, 2019. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell 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 OTTI charges as of December 31, 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.