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Debt Securities (Tables)

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Amortized cost, gross unrealized gains and losses and fair value of debt securities

The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s debt securities:


	June 30, 2020
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Available-for-sale
U.S. government and federal agency	$	42,016	391	(172)	42,235
U.S. government sponsored enterprises	10,788		75	—	10,863
State and local governments	1,198,293		79,406	(147)	1,277,552
Corporate bonds	374,193		14,389	(207)	388,375
Residential mortgage-backed securities	835,036		22,648	(43)	857,641
Commercial mortgage-backed securities	899,167		58,117	—	957,284
Total available-for-sale	$	3,359,493	175,026	(569)	3,533,950
Held-to-maturity
State and local governments	$	203,275	12,608	—	215,883
Total held-to-maturity	$	203,275	12,608	—	215,883


	December 31, 2019
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Available-for-sale
U.S. government and federal agency	$	20,061	48	(65)	20,044
U.S. government sponsored enterprises	42,724		953	—	43,677
State and local governments	679,784		22,694	(80)	702,398
Corporate bonds	155,665		1,938	(1)	157,602
Residential mortgage-backed securities	731,766		7,507	(549)	738,724
Commercial mortgage-backed securities	891,374		22,825	(1,392)	912,807
Total available-for-sale	$	2,521,374	55,965	(2,087)	2,575,252
Held-to-maturity
State and local governments	$	224,611	9,785	—	234,396
Total held-to-maturity	$	224,611	9,785	—	234,396

Amortized cost and fair value of securities by contractual maturity

The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at June 30, 2020. Actual maturities may differ from expected or contractual maturities since some issuers have the right to prepay obligations with or without prepayment penalties.


	June 30, 2020
	Available-for-Sale				Held-to-Maturity
(Dollars in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	144,070	145,977	—	—
Due after one year through five years	269,452		281,526	17,132	18,339
Due after five years through ten years	261,463		275,179	71,471	76,970
Due after ten years	950,305		1,016,343	114,672	120,574
	1,625,290		1,719,025	203,275	215,883
Mortgage-backed securities ¹	1,734,203		1,814,925	—	—
Total	$	3,359,493	3,533,950	203,275	215,883

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¹ 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 debt securities and the associated gains and losses

Proceeds from sales and calls of debt securities and the associated gains and losses that have been included in earnings are listed below:


	Three Months ended				Six Months ended
(Dollars in thousands)	June 30, 2020		June 30, 2019	June 30, 2020	June 30, 2019
Available-for-sale
Proceeds from sales and calls of debt securities	$	37,711	172,323	114,784	476,371
Gross realized gains ¹	142		1,347	1,104	4,284
Gross realized losses ¹	(14)		(1,213)	(114)	(3,929)
Held-to-maturity
Proceeds from calls of debt securities	—		2,630	20,250	32,575
Gross realized gains ¹	—		—	1	2
Gross realized losses ¹	—		—	—	(10)

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

AFS debt securities in an unrealized loss position with no ACL recorded

The following table summarizes available-for-sale debt securities that were in an unrealized loss position for which an ACL has not been recorded, based on the length of time the individual securities have been in an unrealized loss position. The number of available-for-sale debt securities in an unrealized position is also disclosed.


	June 30, 2020
	Number of Securities	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	9	$	4,999		(163)		738		(9)		5,737		(172)

State and local governments	31	21,080			(147)		—		—		21,080		(147)
Corporate bonds	9	20,148			(207)		—		—		20,148		(207)
Residential mortgage-backed securities	15	17,637			(43)		27		—		17,664		(43)

Total available-for-sale	64	$	63,864		(560)		765		(9)		64,629		(569)


	December 31, 2019
	Number of Securities	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	20	$	464		—		9,902		(65)		10,366		(65)

State and local governments	12	19,044			(80)		—		—		19,044		(80)
Corporate bonds	2	7,378			(1)		—		—		7,378		(1)
Residential mortgage-backed securities	35	85,562			(234)		29,038		(315)		114,600		(549)
Commercial mortgage-backed securities	19	177,051			(1,293)		7,697		(99)		184,748		(1,392)
Total available-for-sale	88	$	289,499		(1,608)		46,637		(479)		336,136		(2,087)

Credit Quality Indictors for HTM Debt Securities

The following table summarizes the amortized cost of held-to-maturity debt securities aggregated by NRSRO credit rating:


(Dollars in thousands)	June 30, 2020		December 31, 2019
Held-to-maturity
S&P: AAA / Moody’s: Aaa	$	47,360	65,217
S&P: AA+, AA, AA- / Moody’s: Aa1, Aa2, Aa3	128,281		130,316
S&P: A+, A, A- / Moody’s: A1, A2, A3	27,252		28,689

Not rated by either entity	382		389

Total held-to-maturity	$	203,275	224,611