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Securities
 9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
 
The amortized cost, gross unrealized gains and losses and fair value of securities available for sale and held to maturity at September 30, 2019 and December 31, 2018 are summarized as follows:
 
 
September 30, 2019
(In thousands)
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
Debt securities available for sale
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government agencies
$
10,206

 
$
319

 
$
(1
)
 
$
10,524

Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities
562,270

 
12,096

 
(520
)
 
573,846

Private mortgage-backed securities and collateralized mortgage obligations
60,809

 
1,808

 
(17
)
 
62,600

Collateralized loan obligations
241,387

 
1

 
(1,402
)
 
239,986

Obligations of state and political subdivisions
32,506

 
1,349

 
—

 
33,855

Totals
$
907,178

 
$
15,573


$
(1,940
)

$
920,811

 
 
 
 
 
 
 
 
Debt securities held to maturity
 
 
 
 
 
 
 
Mortgage-backed securities of U.S. government sponsored entities
$
273,644

 
$
3,930

 
$
(1,505
)
 
$
276,069

Totals
$
273,644


$
3,930


$
(1,505
)

$
276,069

 
 
December 31, 2018
(In thousands)
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
Debt securities available for sale
 

 
 

 
 

 
 

U.S. Treasury securities and obligations of U.S. government agencies
$
7,200

 
$
106

 
$
(6
)
 
$
7,300

Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities
567,753

 
300

 
(14,047
)
 
554,006

Private mortgage-backed securities and collateralized mortgage obligations
55,569

 
560

 
(401
)
 
55,728

Collateralized loan obligations
212,807

 
1

 
(3,442
)
 
209,366

Obligations of state and political subdivisions
39,543

 
339

 
(451
)
 
39,431

Totals
$
882,872

 
$
1,306

 
$
(18,347
)
 
$
865,831

 
 
 
 
 
 
 
 
Debt securities held to maturity
 
 
 
 
 
 
 
Mortgage-backed securities of U.S. government sponsored entities
$
304,423

 
$
—

 
$
(7,324
)
 
$
297,099

Private mortgage-backed securities and collateralized mortgage obligations
21,526

 
277

 
(130
)
 
21,673

Collateralized loan obligations
32,000

 
—

 
(877
)
 
31,123

Totals
$
357,949

 
$
277

 
$
(8,331
)
 
$
349,895


Proceeds from sales of securities during the three and nine months ended September 30, 2019 were $49.6 million and $122.9 million, respectively. Included in "Securities losses, net" for the three months ended September 30, 2019 are gross losses of $0.9 million, and for the nine months ended September 30, 2019, are gross gains of $0.3 million and gross losses of $1.8 million. Also included in “Securities losses, net” for the three and nine months ended September 30, 2019 is an increase of $0.1 million and $0.2 million, respectively, in the value of an investment in shares of a mutual fund that invests primarily in CRA-qualified debt securities.

There were no sales of securities during the three and nine months ended September 30, 2018. Included in “Securities losses, net” for the three and nine months ended September 30, 2018, is a decrease of $0.1 million and $0.2 million, respectively, in the value of the CRA-qualified mutual fund investment.

On January 1, 2019, the Company adopted ASU 2017-12 and subsequently transferred held to maturity debt securities with an amortized cost basis of $53.5 million to available for sale. Those securities had unrealized losses of $0.7 million that was recorded in other comprehensive income on the date of transfer.

At September 30, 2019, debt securities with a fair value of $86.1 million were pledged as collateral for United States Treasury deposits, other public deposits and trust deposits. Debt securities with a fair value of $99.9 million were pledged as collateral for repurchase agreements.
 
The amortized cost and fair value of debt securities held to maturity and available for sale at September 30, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because prepayments of the underlying collateral for these securities may occur, due to the right to call or repay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
 
 
Held to Maturity
 
Available for Sale
(In thousands)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Due in less than one year
$
—

 
$
—

 
$
10,047

 
$
10,069

Due after one year through five years
—

 
—

 
134,560

 
134,537

Due after five years through ten years
—

 
—

 
131,057

 
130,712

Due after ten years
—

 
—

 
8,435

 
9,047

 
—

 
—

 
284,099

 
284,365

Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities
273,644

 
276,069

 
562,270

 
573,846

Private mortgage-backed securities and collateralized mortgage obligations
—

 
—

 
60,809

 
62,600

   Totals
$
273,644

 
$
276,069

 
$
907,178

 
$
920,811


 
The estimated fair value of a security is determined based on market quotations when available or, if not available, by using quoted market prices for similar securities, pricing models or discounted cash flows analyses, using observable market data where available. The tables below indicate the fair value of debt securities with unrealized losses and the period of time for which these losses were outstanding at September 30, 2019 and December 31, 2018, respectively.
 
 
September 30, 2019
 
Less Than 12 Months
 
12 Months or Longer
 
Total
(In thousands)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
U.S. Treasury securities and obligations of U.S. government agencies
$
438

 
(1
)
 
$
—

 
$
—

 
$
438

 
$
(1
)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities
83,139

 
(383
)
 
115,545

 
(1,642
)
 
198,684

 
(2,025
)
Private mortgage-backed securities and collateralized mortgage obligations
8,010

 
(17
)
 
—

 
—

 
8,010

 
(17
)
Collateralized loan obligations
118,668

 
(568
)
 
110,516

 
(834
)
 
229,184

 
(1,402
)
   Totals
$
210,255

 
$
(969
)
 
$
226,061

 
$
(2,476
)
 
$
436,316

 
$
(3,445
)
 
December 31, 2018
 
Less Than 12 Months
 
12 Months or Longer
 
Total
(In thousands)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
U.S. Treasury securities and obligations of U.S. government agencies
$
99

 
$
(1
)
 
$
642

 
$
(5
)
 
$
741

 
$
(6
)
Mortgage-backed securities and collateralized mortgage obligations of U.S. government sponsored entities
200,184

 
(2,235
)
 
623,420

 
(19,136
)
 
823,604

 
(21,371
)
Private mortgage-backed securities and collateralized mortgage obligations
20,071

 
(344
)
 
12,739

 
(187
)
 
32,810

 
(531
)
Collateralized loan obligations
238,894

 
(4,319
)
 
—

 
—

 
238,894

 
(4,319
)
Obligations of state and political subdivisions
19,175

 
(241
)
 
9,553

 
(210
)
 
28,728

 
(451
)
   Totals
$
478,423

 
$
(7,140
)
 
$
646,354

 
$
(19,538
)
 
$
1,124,777

 
$
(26,678
)

 
The two tables above include debt securities that were transferred from available for sale into held to maturity during 2014. Those securities had unrealized losses of $3.1 million at the date of transfer, and at September 30, 2019, the unamortized balance was $0.4 million.

At September 30, 2019, the Company had $2.0 million of unrealized losses on mortgage-backed securities and collateralized mortgage obligations of government sponsored entities having a fair value of $198.7 million that were attributable to a combination of factors, including relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Based on the assessment of these mitigating factors, management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities.
 
At September 30, 2019, the Company had unrealized losses of $1.4 million on collateralized loan obligations with a fair value of $229.2 million. The collateral for these securities is first lien senior secured corporate debt. The Company holds senior tranches rated credit A or higher. Management expects to recover the entire amortized cost basis of these securities.

At September 30, 2019, the Company does not intend to sell debt securities that are in an unrealized loss position and it is not more than likely than not that the Company will be required to sell these securities before recovery of the amortized cost basis. Therefore, management does not consider any investment to be other-than-temporarily impaired at September 30, 2019.
  
Included in other assets at September 30, 2019 is $33.0 million of Federal Home Loan Bank and Federal Reserve Bank stock stated at par value. The Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of these cost method investment securities. Also included in other assets is a $6.4 million investment in a CRA-qualified mutual fund carried at fair value.
  
The Company holds 11,330 shares of Visa Class B stock, which following resolution of Visa litigation will be converted to Visa Class A shares. Under the current conversion ratio that became effective September 27, 2019, the Company would receive 1.6228 shares of Class A stock for each share of Class B stock for a total of 18,386 shares of Visa Class A stock. Our ownership of Visa stock is related to prior ownership in Visa's network, while Visa operated as a cooperative. This ownership is recorded on our financial records at zero basis.