XML 28 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Investments
 9 Months Ended
Sep. 30, 2017
Investments [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
    Investments
The following table presents a summary of investment securities:
 
Amortized
Cost
 
Unrealized
 
Fair
Value
Gains
 
Losses
 
(In thousands)
As of September 30, 2017
 
 
 
 
 
 
 
Available-for-sale securities at fair value:
 
 
 
 
 
 
 
U.S. government and agencies
$
35,129

 
$
24

 
$
(590
)
 
$
34,563

Government-sponsored entities
305,210

 
789

 
(1,143
)
 
304,856

Municipal bonds
301,436

 
4,900

 
(1,829
)
 
304,507

Mortgage-backed securities (1)
539,064

 
739

 
(10,180
)
 
529,623

Other
15,796

 
485

 
(3
)
 
16,278

Total
$
1,196,635

 
$
6,937

 
$
(13,745
)
 
$
1,189,827

 
 
 
 
 
 
 
 
Held-to-maturity securities at amortized cost:
 
 
 
 
 
 
 
U.S. government and agencies
$
4,996

 
$
—

 
$
—

 
$
4,996

Mortgage-backed securities (1)
79,094

 
89

 
(301
)
 
78,882

Total
$
84,090

 
$
89

 
$
(301
)
 
$
83,878

 
 
 
 
 
 
 
 
As of December 31, 2016
 
 
 
 
 
 
 
Available-for-sale securities at fair value:
 
 
 
 
 
 
 
U.S. government and agencies
$
40,704

 
$
86

 
$
(854
)
 
$
39,936

Government-sponsored entities
337,865

 
1,058

 
(2,259
)
 
336,664

Municipal bonds
296,271

 
2,116

 
(4,990
)
 
293,397

Mortgage-backed securities (1)
584,960

 
928

 
(15,561
)
 
570,327

Other
23,361

 
447

 
—

 
23,808

Total
$
1,283,161

 
$
4,635

 
$
(23,664
)
 
$
1,264,132

 
 
 
 
 
 
 
 
Held-to-maturity securities at amortized cost:
 
 
 
 
 
 
 
Mortgage-backed securities (1)
$
93,079

 
$
1

 
$
(476
)
 
$
92,604

Total
$
93,079

 
$
1

 
$
(476
)
 
$
92,604

_____________________
(1)
 All mortgage-backed securities are guaranteed by U.S. government agencies or government-sponsored entities.
The following table presents the maturities of available-for-sale investment securities, based on contractual maturity, as of September 30, 2017. Certain securities are callable before their final maturity. Additionally, certain securities (such as mortgage-backed securities) are shown within the table below based on their final (contractual) maturity, but due to prepayments and amortization are expected to have shorter lives.
 
Available-for-sale Securities
Amortized
cost
 
Fair
value
(In thousands)
Within one year
$
60,984

 
$
61,511

After one, but within five years
342,959

 
344,253

After five, but within ten years
321,379

 
315,209

Greater than ten years
471,313

 
468,854

Total
$
1,196,635

 
$
1,189,827


The following table presents the maturities of held-to-maturity investment securities, based on contractual maturity, as of September 30, 2017.
 
Held-to-maturity Securities
Amortized
cost
 
Fair
value
(In thousands)
Within one year
$
4,996

 
$
4,996

After one, but within five years
—

 
—

After five, but within ten years
13,418

 
13,409

Greater than ten years
65,676

 
65,473

Total
$
84,090

 
$
83,878


The following table presents the proceeds from sales, gross realized gains and gross realized losses for available-for-sale securities that were sold or called during the following periods:
 
Three months ended September 30,
 
Nine months ended September 30,
2017
 
2016
 
2017
 
2016
(In thousands)
Proceeds from sales and calls
$
16,207

 
$
12,829

 
$
119,238

 
$
41,961

Realized gains
235

 
273

 
509

 
520

Realized losses
(5
)
 
—

 
(23
)
 
(1
)

The following tables present information regarding securities as of September 30, 2017 and December 31, 2016 having temporary impairment, due to the fair values having declined below the amortized cost of the individual securities, and the time period that the investments have been temporarily impaired.
 
Less than 12 months
 
12 months or longer
 
Total
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
# of
securities
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities
(In thousands)
U.S. government and agencies
$
14,883

 
$
(129
)
 
$
9,690

 
$
(461
)
 
$
24,573

 
$
(590
)
 
4

Government-sponsored entities
101,977

 
(818
)
 
10,351

 
(325
)
 
112,328

 
(1,143
)
 
16

Municipal bonds
42,281

 
(399
)
 
40,093

 
(1,430
)
 
82,374

 
(1,829
)
 
45

Mortgage-backed securities (1)
265,098

 
(3,376
)
 
219,521

 
(6,804
)
 
484,619

 
(10,180
)
 
99

Other
21

 
(3
)
 
—

 
—

 
21

 
(3
)
 
2

Total
$
424,260

 
$
(4,725
)
 
$
279,655

 
$
(9,020
)
 
$
703,915

 
$
(13,745
)
 
166

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities (1)
$
54,384

 
$
(239
)
 
$
4,008

 
$
(62
)
 
$
58,392

 
$
(301
)
 
11

Total
$
54,384

 
$
(239
)
 
$
4,008

 
$
(62
)
 
$
58,392

 
$
(301
)
 
11


 
Less than 12 months
 
12 months or longer
 
Total
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
Fair
value
 
Unrealized
losses
 
# of
securities
 
(In thousands, except number of securities)
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
$
19,094

 
$
(838
)
 
$
643

 
$
(16
)
 
$
19,737

 
$
(854
)
 
4

Government-sponsored entities
125,412

 
(2,259
)
 
—

 
—

 
125,412

 
(2,259
)
 
18

Municipal bonds
182,395

 
(4,957
)
 
2,720

 
(33
)
 
185,115

 
(4,990
)
 
109

Mortgage-backed securities (1)
492,008

 
(13,988
)
 
41,544

 
(1,573
)
 
533,552

 
(15,561
)
 
99

Other
—

 
—

 
—

 
—

 
—

 
—

 
—

Total
$
818,909

 
$
(22,042
)
 
$
44,907

 
$
(1,622
)
 
$
863,816

 
$
(23,664
)
 
230

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities (1)
$
87,483

 
$
(476
)
 
$
—

 
$
—

 
$
87,483

 
$
(476
)
 
15

Total
$
87,483

 
$
(476
)
 
$
—

 
$
—

 
$
87,483

 
$
(476
)
 
15

_____________________
(1)
 All mortgage-backed securities are guaranteed by U.S. government agencies or government-sponsored entities.
As of September 30, 2017, the U.S. government and agencies securities, government-sponsored entities securities, and mortgage-backed securities in the first table above had current Moody’s credit ratings of Aaa. The municipal bonds in the first table above had a current Standard and Poor’s credit rating of at least AA- or a current Moody’s credit rating of at least Aa3. The other securities in the first table above consisted of equity securities. At September 30, 2017, the Company does not consider these investments other-than-temporarily impaired because the decline in fair value on investments is primarily attributed to changes in interest rates and not credit quality.
At September 30, 2017 and December 31, 2016, the amount of investment securities in an unrealized loss position greater than 12 months, as well as in total, was primarily due to changes in interest rates. As of September 30, 2017, the Company had no intent to sell any securities in an unrealized loss position and it is not more likely than not that the Company would be forced to sell any of these securities prior to the full recovery of all unrealized loss amounts.
Cost method investments, which are included in other assets, can be temporarily impaired when the fair values decline below the amortized costs of the individual investments. There were no cost method investments with unrealized losses as of September 30, 2017 or December 31, 2016. The Company’s cost method investments primarily include low income housing partnerships which generate tax credits. The Company also holds partnership interests in venture capital funds formed to provide financing to small businesses and to promote community development. The Company had $40.4 million and $34.2 million in cost method investments included in other assets as of September 30, 2017 and December 31, 2016, respectively.