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

3.  Securities

The amortized cost, gross unrealized gains and losses, and estimated fair value of securities classified as available for sale and held to maturity at September 30, 2019 and December 31, 2018 follow.

 

Securities Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

September 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

U.S. Treasury and government agency securities

 

$

93,415

 

 

$

1,726

 

 

$

—

 

 

$

95,141

 

 

$

74,339

 

 

$

—

 

 

$

2,633

 

 

$

71,706

 

Municipal obligations

 

 

243,941

 

 

 

8,222

 

 

 

—

 

 

 

252,163

 

 

 

246,713

 

 

 

360

 

 

 

6,646

 

 

 

240,427

 

Residential mortgage-backed securities

 

 

1,321,109

 

 

 

20,598

 

 

 

2,236

 

 

 

1,339,471

 

 

 

1,468,912

 

 

 

4,284

 

 

 

29,794

 

 

 

1,443,402

 

Commercial mortgage-backed securities

 

 

1,585,956

 

 

 

39,066

 

 

 

853

 

 

 

1,624,169

 

 

 

799,060

 

 

 

1,953

 

 

 

30,936

 

 

 

770,077

 

Collateralized mortgage obligations

 

 

232,577

 

 

 

2,302

 

 

 

63

 

 

 

234,816

 

 

 

163,282

 

 

 

903

 

 

 

2,260

 

 

 

161,925

 

Corporate debt securities

 

 

3,951

 

 

 

—

 

 

 

54

 

 

 

3,897

 

 

 

3,500

 

 

 

—

 

 

 

—

 

 

 

3,500

 



 

$

3,480,949

 

 

$

71,914

 

 

$

3,206

 

 

$

3,549,657

 

 

$

2,755,806

 

 

$

7,500

 

 

$

72,269

 

 

$

2,691,037

 

 

Securities Held to Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

September 30, 2019

 

 

December 31, 2018

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

U.S. Treasury and government agency securities

 

$

50,000

 

 

$

—

 

 

$

46

 

 

$

49,954

 

 

$

50,000

 

 

$

—

 

 

$

478

 

 

$

49,522

 

Municipal obligations

 

 

647,500

 

 

 

28,613

 

 

 

95

 

 

 

676,018

 

 

 

688,201

 

 

 

2,347

 

 

 

9,503

 

 

 

681,045

 

Residential mortgage-backed securities

 

 

549,929

 

 

 

9,226

 

 

 

355

 

 

 

558,800

 

 

 

640,393

 

 

 

1,461

 

 

 

6,117

 

 

 

635,737

 

Commercial mortgage-backed securities

 

 

539,877

 

 

 

20,099

 

 

 

10

 

 

 

559,966

 

 

 

357,175

 

 

 

376

 

 

 

10,882

 

 

 

346,669

 

Collateralized mortgage obligations

 

 

1,067,756

 

 

 

9,920

 

 

 

2,058

 

 

 

1,075,618

 

 

 

1,243,778

 

 

 

1,598

 

 

 

22,493

 

 

 

1,222,883

 



 

$

2,855,062

 

 

$

67,858

 

 

$

2,564

 

 

$

2,920,356

 

 

$

2,979,547

 

 

$

5,782

 

 

$

49,473

 

 

$

2,935,856

 

 

The following tables present the amortized cost and estimated fair value of debt securities available for sale and held to maturity at September 30, 2019 by contractual maturity.  Actual maturities will differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateralized mortgage obligations.

 

Debt Securities Available for Sale

 

Amortized

 

 

Fair

 

(in thousands)

 

Cost

 

 

Value

 

Due in one year or less

 

$

6,598

 

 

$

6,629

 

Due after one year through five years

 

 

1,529,328

 

 

 

1,558,458

 

Due after five years through ten years

 

 

1,569,872

 

 

 

1,606,207

 

Due after ten years

 

 

375,151

 

 

 

378,363

 

Total available for sale debt securities

 

$

3,480,949

 

 

$

3,549,657

 

 

Debt Securities Held to Maturity

 

Amortized

 

 

Fair

 

(in thousands)

 

Cost

 

 

Value

 

Due in one year or less

 

$

74,476

 

 

$

74,611

 

Due after one year through five years

 

 

1,852,708

 

 

 

1,864,562

 

Due after five years through ten years

 

 

927,878

 

 

 

981,183

 

Due after ten years

 

 

—

 

 

 

—

 

Total held to maturity securities

 

$

2,855,062

 

 

$

2,920,356

 

 

The Company held no securities classified as trading at September 30, 2019 and December 31, 2018.  

The fair value and gross unrealized losses for securities classified as available for sale with unrealized losses for the periods indicated follow.

 

Securities Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

Losses < 12 months

 

 

Losses 12 months or >

 

 

Total

 

(in thousands)

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

 

Fair

Value

 

 

Gross

Unrealized

Losses

 

U.S. Treasury and government agency securities

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Municipal obligations

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage-backed securities

 

 

2

 

 

 

—

 

 

 

438,339

 

 

 

2,236

 

 

 

438,341

 

 

 

2,236

 

Commercial mortgage-backed securities

 

 

108,208

 

 

 

844

 

 

 

15,098

 

 

 

9

 

 

 

123,306

 

 

 

853

 

Collateralized mortgage obligations

 

 

613

 

 

 

—

 

 

 

4,091

 

 

 

63

 

 

 

4,704

 

 

 

63

 

Other debt obligation

 

 

1,903

 

 

 

54

 

 

 

—

 

 

 

—

 

 

 

1,903

 

 

 

54

 



 

$

110,726

 

 

$

898

 

 

$

457,528

 

 

$

2,308

 

 

$

568,254

 

 

$

3,206

 

 

Securities Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

Losses < 12 months

 

 

Losses 12 months or >

 

 

Total

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

(in thousands)

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

U.S. Treasury and government agency securities

 

$

—

 

 

$

—

 

 

$

71,706

 

 

$

2,633

 

 

$

71,706

 

 

$

2,633

 

Municipal obligations

 

 

41,203

 

 

 

591

 

 

 

170,883

 

 

 

6,054

 

 

 

212,086

 

 

 

6,645

 

Residential mortgage-backed securities

 

 

305,090

 

 

 

2,485

 

 

 

762,826

 

 

 

27,309

 

 

 

1,067,916

 

 

 

29,794

 

Commercial mortgage-backed securities

 

 

96,226

 

 

 

1,851

 

 

 

570,485

 

 

 

29,085

 

 

 

666,711

 

 

 

30,936

 

Collateralized mortgage obligations

 

 

254

 

 

 

1

 

 

 

111,804

 

 

 

2,259

 

 

 

112,058

 

 

 

2,260

 



 

$

442,773

 

 

$

4,928

 

 

$

1,687,704

 

 

$

67,340

 

 

$

2,130,477

 

 

$

72,268

 

 

The fair value and gross unrealized losses for securities classified as held to maturity with unrealized losses for the periods indicated follow.

 

Securities Held to Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

Losses < 12 months

 

 

Losses 12 months or >

 

 

Total

 



 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 

 

Gross

 



 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

(in thousands)

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

U.S. Treasury and government agency securities

 

$

—

 

 

 

—

 

 

$

49,954

 

 

$

46

 

 

$

49,954

 

 

$

46

 

Municipal obligations

 

 

3,820

 

 

 

30

 

 

 

6,431

 

 

 

65

 

 

 

10,251

 

 

 

95

 

Residential mortgage-backed securities

 

 

—

 

 

 

—

 

 

 

122,687

 

 

 

355

 

 

 

122,687

 

 

 

355

 

Commercial mortgage-backed securities

 

 

29,101

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

29,101

 

 

 

10

 

Collateralized mortgage obligations

 

 

18,661

 

 

 

65

 

 

 

255,511

 

 

 

1,993

 

 

 

274,172

 

 

 

2,058

 



 

$

51,582

 

 

$

105

 

 

$

434,583

 

 

$

2,459

 

 

$

486,165

 

 

$

2,564

 

 

Securities Held to Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

Losses < 12 months

 

 

Losses 12 months or >

 

 

Total

 



 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Gross

 

 

 

 

 



 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

 

Fair

 

 

Unrealized

 

(in thousands)

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

 

Value

 

 

Losses

 

U.S. Treasury and government agency securities

 

$

—

 

 

$

—

 

 

$

49,521

 

 

$

478

 

 

$

49,521

 

 

$

478

 

Municipal obligations

 

 

233,469

 

 

 

2,256

 

 

 

233,280

 

 

 

7,247

 

 

 

466,749

 

 

 

9,503

 

Residential mortgage-backed securities

 

 

90,730

 

 

 

123

 

 

 

235,251

 

 

 

5,994

 

 

 

325,981

 

 

 

6,117

 

Commercial mortgage-backed securities

 

 

—

 

 

 

—

 

 

 

305,419

 

 

 

10,882

 

 

 

305,419

 

 

 

10,882

 

Collateralized mortgage obligations

 

 

77,394

 

 

 

281

 

 

 

897,153

 

 

 

22,212

 

 

 

974,547

 

 

 

22,493

 



 

$

401,593

 

 

$

2,660

 

 

$

1,720,624

 

 

$

46,813

 

 

$

2,122,217

 

 

$

49,473

 

 

The unrealized losses relate primarily to changes in market rates on fixed rate debt securities since the respective purchase dates. In all cases, the indicated impairment on these debt securities would be recovered no later than the security’s maturity date or possibly earlier if the market price for the security increases with a reduction in the yield required by the market. None of the unrealized losses relate to the marketability of the securities or the issuers’ abilities to meet contractual obligations. The Company had adequate liquidity as of September 30, 2019 and December 31, 2018 and did not intend to nor believe that it would be required to sell these securities before recovery of the indicated impairment. Accordingly, the unrealized losses on these securities were determined to be temporary. Should the Company’s intent to sell these securities change, the difference between the amortized cost and the fair value will be recognized into earnings at that time.

Proceeds from the sales of securities were approximately $143.3 million with no gross gains or losses during the nine months ended September 30, 2019. There were no sales of securities during the nine months ended September 30, 2018.  

Securities with carrying values totaling $3.0 billion and $3.4 billion at September 30, 2019 and December 31, 2018, respectively, were pledged as collateral, primarily to secure public deposits or securities sold under agreements to repurchase.