XML 20 R10.htm IDEA: XBRL DOCUMENT v3.5.0.2
Investment Securities
 9 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
Investment Securities

The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s investment securities:
 
September 30, 2016
 
Amortized Cost
 
Gross Unrealized
 
Fair Value
(Dollars in thousands)
 
Gains
 
Losses
 
Available-for-sale
 
 
 
 
 
 
 
U.S. government and federal agency
$
41,727

 
24

 
(158
)
 
41,593

U.S. government sponsored enterprises
16,100

 
267

 
—

 
16,367

State and local governments
816,898

 
40,925

 
(5,764
)
 
852,059

Corporate bonds
401,291

 
3,154

 
(32
)
 
404,413

Residential mortgage-backed securities
962,051

 
16,024

 
(428
)
 
977,647

Total available-for-sale
2,238,067

 
60,394

 
(6,382
)
 
2,292,079

Held-to-maturity
 
 
 
 
 
 
 
State and local governments
679,707

 
39,542

 
(4,354
)
 
714,895

Total held-to-maturity
679,707

 
39,542

 
(4,354
)
 
714,895

Total investment securities
$
2,917,774

 
99,936

 
(10,736
)
 
3,006,974


 
December 31, 2015
 
Amortized Cost
 
Gross Unrealized
 
Fair Value
(Dollars in thousands)
 
Gains
 
Losses
 
Available-for-sale
 
 
 
 
 
 
 
U.S. government and federal agency
$
47,868

 
15

 
(432
)
 
47,451

U.S. government sponsored enterprises
93,230

 
100

 
(163
)
 
93,167

State and local governments
856,738

 
34,159

 
(5,878
)
 
885,019

Corporate bonds
386,629

 
611

 
(3,077
)
 
384,163

Residential mortgage-backed securities
1,203,548

 
6,180

 
(8,768
)
 
1,200,960

Total available-for-sale
2,588,013

 
41,065

 
(18,318
)
 
2,610,760

Held-to-maturity
 
 
 
 
 
 
 
State and local governments
702,072

 
31,863

 
(4,422
)
 
729,513

Total held-to-maturity
702,072

 
31,863

 
(4,422
)
 
729,513

Total investment securities
$
3,290,085

 
72,928

 
(22,740
)
 
3,340,273



The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at September 30, 2016. Actual maturities may differ from expected or contractual maturities since issuers have the right to prepay obligations with or without prepayment penalties.

 
September 30, 2016
 
Available-for-Sale
 
Held-to-Maturity
(Dollars in thousands)
Amortized Cost
 
Fair Value
 
Amortized Cost
 
Fair Value
Due within one year
$
129,520

 
129,979

 
—

 
—

Due after one year through five years
394,977

 
399,137

 
—

 
—

Due after five years through ten years
191,676

 
201,943

 
43,656

 
45,926

Due after ten years
559,843

 
583,373

 
636,051

 
668,969

 
1,276,016

 
1,314,432

 
679,707

 
714,895

Residential mortgage-backed securities 1
962,051

 
977,647

 
—

 
—

Total
$
2,238,067

 
2,292,079

 
679,707

 
714,895

__________
1 Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds.

Proceeds from sales and calls of investment securities and the associated gains and losses that have been included in earnings are listed below:
 
Three Months ended
 
Nine Months ended
(Dollars in thousands)
September 30,
2016
 
September 30,
2015
 
September 30,
2016
 
September 30,
2015
Available-for-sale
 
 
 
 
 
 
 
Proceeds from sales and calls of investment securities
$
59,974

 
39,502

 
148,458

 
114,123

Gross realized gains 1
366

 
516

 
1,309

 
598

Gross realized losses 1
(960
)
 
(566
)
 
(1,960
)
 
(693
)
Held-to-maturity
 
 
 
 
 
 
 
Proceeds from calls of investment securities
340

 
6,697

 
21,965

 
16,762

Gross realized gains 1
—

 
19

 
91

 
34

Gross realized losses 1
—

 
—

 
(146
)
 
(63
)

__________
1 The gain or loss on the sale or call of each investment security is determined by the specific identification method.

Investment securities with an unrealized loss position are summarized as follows:

 
September 30, 2016
 
Less than 12 Months
 
12 Months or More
 
Total
(Dollars in thousands)
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. government and federal agency
$
2,190

 
(7
)
 
30,009

 
(151
)
 
32,199

 
(158
)
State and local governments
45,697

 
(443
)
 
109,147

 
(5,321
)
 
154,844

 
(5,764
)
Corporate bonds
5,049

 
(3
)
 
6,153

 
(29
)
 
11,202

 
(32
)
Residential mortgage-backed securities
75,091

 
(252
)
 
23,241

 
(176
)
 
98,332

 
(428
)
Total available-for-sale
$
128,027

 
(705
)
 
168,550

 
(5,677
)
 
296,577

 
(6,382
)
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
State and local governments
$
13,863

 
(159
)
 
89,024

 
(4,195
)
 
102,887

 
(4,354
)
Total held-to-maturity
$
13,863

 
(159
)
 
89,024

 
(4,195
)
 
102,887

 
(4,354
)
 
 
December 31, 2015
 
Less than 12 Months
 
12 Months or More
 
Total
(Dollars in thousands)
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
Available-for-sale
 
 
 
 
 
 
 
 
 
 
 
U.S. government and federal agency
$
42,493

 
(432
)
 
2

 
—

 
42,495

 
(432
)
U.S. government sponsored enterprises
60,010

 
(163
)
 
—

 
—

 
60,010

 
(163
)
State and local governments
102,422

 
(1,629
)
 
115,943

 
(4,249
)
 
218,365

 
(5,878
)
Corporate bonds
228,258

 
(1,812
)
 
13,962

 
(1,265
)
 
242,220

 
(3,077
)
Residential mortgage-backed securities
730,412

 
(7,226
)
 
53,021

 
(1,542
)
 
783,433

 
(8,768
)
Total available-for-sale
$
1,163,595

 
(11,262
)
 
182,928

 
(7,056
)
 
1,346,523

 
(18,318
)
Held-to-maturity
 
 
 
 
 
 
 
 
 
 
 
State and local governments
$
42,322

 
(594
)
 
81,709

 
(3,828
)
 
124,031

 
(4,422
)
Total held-to-maturity
$
42,322

 
(594
)
 
81,709

 
(3,828
)
 
124,031

 
(4,422
)


Based on an analysis of its investment securities with unrealized losses as of September 30, 2016 and December 31, 2015, the Company determined that none of such securities had other-than-temporary impairment and the unrealized losses were primarily the result of interest rate changes and market spreads subsequent to acquisition. The fair value of the investment securities is expected to recover as payments are received and the securities approach maturity. At September 30, 2016, management determined that it did not intend to sell investment securities with unrealized losses, and there was no expected requirement to sell any of its investment securities with unrealized losses before recovery of their amortized cost.