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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Investments, Debt and Equity Securities [Abstract]

The following tables detail the amortized cost, allowance for credit losses and the estimated fair value of our investments in available-for-sale and held-to-maturity debt securities. None of our investments in debt securities are classified as trading.


	March 31, 2020
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Allowance for Credit Losses		Fair Value
Available-for-Sale Debt Securities
CMO	$	318,881	$	14,564	$	47	$	—	$	333,398
FNMA MBS	1,298,745		62,925		6		—		1,361,664
FHLMC MBS	303,400		16,646		—		—		320,046
GNMA MBS	32,063		1,229		—		—		33,292
	$	1,953,089	$	95,364	$	53	$	—	$	2,048,400
Held-to-Maturity Debt Securities⁽¹⁾
State and political subdivisions	$	133,554	$	3,327	$	—	$	8	$	136,873
Foreign bonds	501		—		—		—		501
	$	134,055	$	3,327	$	—	$	8	$	137,374

⁽¹⁾Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at amortized cost basis at the time of transfer. The amortized cost of transferred held-to-maturity securities included net unrealized gains of $0.5 million at March 31, 2020, related to securities transferred, which are offset in Accumulated other comprehensive income. At the time of transfer, there was no allowance for credit loss on the available-for-sale securities. Subsequent to transfer, the securities were evaluated for credit loss. See Note 2 for updated Significant Accounting Policies on held-to-maturity debt securities.


	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Available-for-Sale Debt Securities
CMO	$	336,194	$	4,578	$	542	$	340,230
FNMA MBS	1,219,522		25,717		2,786		1,242,453
FHLMC MBS	320,896		8,641		591		328,946
GNMA MBS	32,871		477		63		33,285
	$	1,909,483	$	39,413	$	3,982	$	1,944,914
Held-to-Maturity Debt Securities⁽¹⁾
State and political subdivisions	$	131,600	$	3,023	$	—	$	134,623
Foreign bonds	2,001		1		—		2,002
	$	133,601	$	3,024	$	—	$	136,625

⁽¹⁾Held-to–maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of transfer. The amortized cost of held-to-maturity securities included net unrealized gains of $0.6 million at December 31, 2019, related to securities transferred, which are offset in Accumulated other comprehensive income.

Debt Securities, Held-to-maturity


	March 31, 2020
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Allowance for Credit Losses		Fair Value
Available-for-Sale Debt Securities
CMO	$	318,881	$	14,564	$	47	$	—	$	333,398
FNMA MBS	1,298,745		62,925		6		—		1,361,664
FHLMC MBS	303,400		16,646		—		—		320,046
GNMA MBS	32,063		1,229		—		—		33,292
	$	1,953,089	$	95,364	$	53	$	—	$	2,048,400
Held-to-Maturity Debt Securities⁽¹⁾
State and political subdivisions	$	133,554	$	3,327	$	—	$	8	$	136,873
Foreign bonds	501		—		—		—		501
	$	134,055	$	3,327	$	—	$	8	$	137,374


	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Available-for-Sale Debt Securities
CMO	$	336,194	$	4,578	$	542	$	340,230
FNMA MBS	1,219,522		25,717		2,786		1,242,453
FHLMC MBS	320,896		8,641		591		328,946
GNMA MBS	32,871		477		63		33,285
	$	1,909,483	$	39,413	$	3,982	$	1,944,914
Held-to-Maturity Debt Securities⁽¹⁾
State and political subdivisions	$	131,600	$	3,023	$	—	$	134,623
Foreign bonds	2,001		1		—		2,002
	$	133,601	$	3,024	$	—	$	136,625

The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity by major security type for the three months ended March 31, 2020:


(Dollars in thousands)	State and political subdivisions		Foreign bonds
Allowance for credit losses:
Beginning balance	$	—	$	—
Impact of adoption ASC 326	8		—
Provision for credit losses	—		—

Charge-offs, net	—		—

Ending balance	$	8	$	—

Schedule of Maturities of Investment Securities Available-for-Sale and Held-to-Maturity

The scheduled maturities of our available-for-sale debt securities at March 31, 2020 and December 31, 2019 are presented in the table below:


	Available-for-Sale
	Amortized		Fair
(Dollars in thousands)	Cost		Value
March 31, 2020⁽¹⁾
Within one year	$	—	$	—
After one year but within five years	13,677		14,000
After five years but within ten years	188,785		198,340
After ten years	1,750,627		1,836,060
	$	1,953,089	$	2,048,400
December 31, 2019⁽¹⁾
Within one year	$	—	$	—
After one year but within five years	22,136		22,207
After five years but within ten years	194,197		194,376
After ten years	1,693,150		1,728,331
	$	1,909,483	$	1,944,914

⁽¹⁾Actual maturities could differ from contractual maturities.

The scheduled maturities of our held-to-maturity debt securities at March 31, 2020 and December 31, 2019 are presented in the table below:


	Held-to-Maturity
	Amortized		Fair
(Dollars in thousands)	Cost		Value
March 31, 2020 ⁽¹⁾
Within one year	$	1,140	$	1,142
After one year but within five years	4,226		4,252
After five years but within ten years	37,241		37,995
After ten years	91,448		93,985
	$	134,055	$	137,374
December 31, 2019⁽¹⁾
Within one year	$	2,649	$	2,653
After one year but within five years	4,239		4,270
After five years but within ten years	35,288		35,967
After ten years	91,425		93,735
	$	133,601	$	136,625

⁽¹⁾Actual maturities could differ from contractual maturities.

Schedule of Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category

For debt securities with unrealized losses and an allowance has not been recorded, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at March 31, 2020.


	Duration of Unrealized Loss Position
	Less than 12 months						12 months or longer						Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale debt securities:

CMO	$	4,044	$	44	$	826	$	3	$	4,870	$	47
FNMA MBS	4,425		6		—		—		4,425		6


Total	$	8,469	$	50	$	826	$	3	$	9,295	$	53

For debt securities with unrealized losses, the table below shows our gross unrealized losses and fair value by investment category and length of time that individual debt securities were in a continuous unrealized loss position at December 31, 2019.


	Duration of Unrealized Loss Position
	Less than 12 months						12 months or longer						Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Loss		Value		Loss		Value		Loss
Available-for-sale debt securities:

CMO	$	47,376	$	481	$	7,999	$	61	$	55,375	$	542
FNMA MBS	310,312		2,681		6,522		105		316,834		2,786
FHLMC MBS	35,354		541		2,836		50		38,190		591
GNMA MBS	1,847		4		5,742		59		7,589		63
Total temporarily impaired investments	$	394,889	$	3,707	$	23,099	$	275	$	417,988	$	3,982

Held-to-maturity debt securities:

State and political subdivisions ⁽¹⁾	$	523	$	—	$	—	$	—	$	523	$	—

Held-to-maturity, Credit Quality Indicator

The following table summarizes the amortized cost of debt securities held-to-maturity as of March 31, 2020, aggregated by credit quality indicator:


(Dollars in thousands)	State and political subdivisions		Foreign bonds
AA-rated or higher	$	133,129	$	501
BBB-	425		—
Ending balance	$	133,554	$	501

Equity Investments

The following tables detail the amortized cost, and the estimated fair value of our equity investments, which are included in Other investments in the unaudited Consolidated Statements of Financial Condition.


	March 31, 2020
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Equity Investments
Visa Class B shares⁽¹⁾	$	15,716	$	48,504	$	—	$	64,220
Other equity investments⁽²⁾	8,140		—		1,646		6,494
	$	23,856	$	48,504	$	1,646	$	70,714


	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Equity Investments
Visa Class B shares⁽¹⁾	$	15,716	$	45,565	$	—	$	61,281
Other equity investments⁽²⁾	8,140		625		—		8,765
	$	23,856	$	46,190	$	—	$	70,046

⁽¹⁾The Company recorded unrealized gains on our investment in Visa Class B shares of $3.0 million and $3.8 million during the three months ended March 31, 2020 and 2019, respectively which is recorded in Unrealized gain on equity investment, net in our Consolidated Statements of Income.

⁽²⁾The Company recorded an impairment loss of $2.3 million in our investment of Spring EQ during the three months ended March 31, 2020, which is recorded in Unrealized gain on equity investment, net in our Consolidated Statements of Income. There were no impairment losses recorded on the Company's equity investments during the three months ended March 31, 2019