Securities

12 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Securities

Note 3. Securities

The amortized cost and fair value of securities classified as available for sale and held to maturity at December 31, 2019 and 2018 follow.

Securities Available for Sale
	December 31, 2019								December 31, 2018
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury and government agency    securities	$	98,320	$	652	$	300	$	98,672	$	74,339	$	—	$	2,633	$	71,706
Municipal obligations		242,016		7,789		—		249,805		246,713		360		6,646		240,427
Residential mortgage-backed securities		1,910,909		20,268		7,020		1,924,157		1,468,912		4,284		29,794		1,443,402
Commercial mortgage-backed securities		1,570,765		19,880		4,178		1,586,467		799,060		1,953		30,936		770,077
Collateralized mortgage obligations		807,600		3,757		3,142		808,215		163,282		903		2,260		161,925
Corporate debt securities		8,000		21		33		7,988		3,500		—		—		3,500
	$	4,637,610	$	52,367	$	14,673	$	4,675,304	$	2,755,806	$	7,500	$	72,269	$	2,691,037

Securities Held to Maturity
	December 31, 2019								December 31, 2018
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury and government agency    securities	$	50,000	$	3	$	—	$	50,003	$	50,000	$	—	$	478	$	49,522
Municipal obligations		641,019		27,146		69		668,096		688,201		2,347		9,503		681,045
Residential mortgage-backed securities		29,687		883		—		30,570		640,393		1,461		6,117		635,737
Commercial mortgage-backed securities		539,371		12,474		581		551,264		357,175		376		10,882		346,669
Collateralized mortgage obligations		307,932		3,597		458		311,071		1,243,778		1,598		22,493		1,222,883
	$	1,568,009	$	44,103	$	1,108	$	1,611,004	$	2,979,547	$	5,782	$	49,473	$	2,935,856

The Company held no securities classified as trading at December 31, 2019 or 2018.

Under the provisions ASU 2019-04, the Company made a one-time election to transfer securities with an amortized cost of $1.2 billion from the held to maturity portfolio to the available for sale portfolio. The securities transferred are eligible to be hedged under the last of layer method; as such, the reclassification allows the Company to take advantage of the amended fair value hedging rules in the future, should it meet the Company’s investment strategy.  

The following tables present the amortized cost and fair value of debt securities at December 31, 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 collateral mortgage obligations.

(in thousands)	Amortized Cost		Fair Value
Debt Securities Available for Sale
Due in one year or less	$	356	$	363
Due after one year through five years		151,871		154,646
Due after five years through ten years		1,764,275		1,778,398
Due after ten years		2,721,108		2,741,897
Total available for sale debt securities	$	4,637,610	$	4,675,304

(in thousands)	Amortized Cost		Fair Value
Debt Securities Held to Maturity
Due in one year or less	$	50,000	$	50,003
Due after one year through five years		140,009		141,929
Due after five years through ten years		672,094		694,992
Due after ten years		705,906		724,080
Total held to maturity debt securities	$	1,568,009	$	1,611,004

The details for securities classified as available for sale with unrealized losses at December 31, 2019 follow.

Available for sale
	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	$	28,235	$	300	$	—	$	—	$	28,235	$	300
Municipal obligations		—		—		—		—		—		—
Residential mortgage-backed securities		420,066		5,042		399,787		1,978		819,853		7,020
Commercial mortgage-backed securities		458,855		3,971		14,896		207		473,751		4,178
Collateralized mortgage obligations		89,689		1,315		184,389		1,827		274,078		3,142
Corporate debt securities		1,467		33		—		—		1,467		33
.	$	998,312	$	10,661	$	599,072	$	4,012	$	1,597,384	$	14,673

The details for securities classified as available for sale with unrealized losses at December 31, 2018 follow.

Available for sale
	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 details for securities classified as held to maturity with unrealized losses at December 31, 2019 follow.

Held to maturity
	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	$	—	$	—	$	—	$	—	$	—	$	—
Municipal obligations		4,735		38		3,143		31		7,878		69
Residential mortgage-backed securities		—		—		—		—		—		—
Commercial mortgage-backed securities		28,426		581		—		—		28,426		581
Collateralized mortgage obligations		—		—		49,110		458		49,110		458
	$	33,161	$	619	$	52,253	$	489	$	85,414	$	1,108

The details for securities classified as held to maturity with unrealized losses as of December 31, 2018 follow.

Held to maturity
	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 primarily relate to changes in market rates on fixed rate debt securities since the respective purchase date. 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 believes it has adequate liquidity and, therefore, does not plan to and, more likely than not, will not be required to sell these securities before recovery of the indicated impairment. Accordingly, the unrealized losses on these securities have been determined to be temporary.

The following table presents the proceeds from, gross gains on, and gross losses on sales of securities during the years ended December 31, 2019, 2018 and 2017:

	Years Ended December 31,
(in thousands)	2019		2018		2017
Proceeds	$	268,413	$	455,162	$	213,877
Gross gains		—		—		—
Gross losses		—		25,480		—

Securities with carrying values totaling approximately $3.3 billion at December 31, 2019 and $3.4 billion at December 31, 2018 were pledged, primarily to secure public deposits or securities sold under agreements to repurchase.