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Investment Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
 

The amortized cost and fair value of investment securities that are classified as held-to-maturity (“HTM”) and available-for-sale (“AFS”) are as follows: 
 
Years Ended December 31,
 
2019
 
2018
(In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair
Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
(Losses)
 
Estimated
Fair
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-Maturity
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government agencies
$
—

 
$
—

 
$
—

 
$
—

 
$
16,990

 
$
—

 
$
(49
)
 
$
16,941

Mortgage-backed securities
10,796

 
71

 
(59
)
 
10,808

 
13,346

 
5

 
(412
)
 
12,939

State and political subdivisions
27,082

 
849

 
—

 
27,931

 
256,863

 
3,029

 
(954
)
 
258,938

Other securities
3,049

 
67

 
—

 
3,116

 
1,995

 
17

 
—

 
2,012

Total HTM
$
40,927

 
$
987

 
$
(59
)
 
$
41,855

 
$
289,194

 
$
3,051

 
$
(1,415
)
 
$
290,830

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury
$
449,729

 
$
112

 
$
(112
)
 
$
449,729

 
$
—

 
$
—

 
$
—

 
$
—

U.S. Government agencies
194,207

 
1,313

 
(1,271
)
 
194,249

 
157,523

 
518

 
(3,740
)
 
154,301

Mortgage-backed securities
1,738,584

 
8,510

 
(4,149
)
 
1,742,945

 
1,552,487

 
3,097

 
(32,684
)
 
1,522,900

State and political subdivisions
860,539

 
20,983

 
(998
)
 
880,524

 
320,142

 
171

 
(5,470
)
 
314,843

Other securities
185,087

 
822

 
(18
)
 
185,891

 
157,471

 
2,251

 
(14
)
 
159,708

Total AFS
$
3,428,146

 
$
31,740

 
$
(6,548
)
 
$
3,453,338

 
$
2,187,623

 
$
6,037

 
$
(41,908
)
 
$
2,151,752


 
Securities with limited marketability, such as stock in the Federal Reserve Bank and the FHLB, are carried at cost and are reported as other AFS securities in the table above.
 
Certain investment securities are valued at less than their historical cost. Total fair value of these investments at December 31, 2019 and 2018, was $1.3 billion and $1.7 billion, which is approximately 36.6% and 70.3%, respectively, of the Company’s combined AFS and HTM investment portfolios.

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at: 
 
 
Less Than 12 Months
 
12 Months or More
 
Total
(In thousands)
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-Maturity
 
 

 
 

 
 

 
 

 
 

 
 

Mortgage-backed securities
 
$
3,489

 
$
(30
)
 
$
2,300

 
$
(29
)
 
$
5,789

 
$
(59
)
Total HTM
 
$
3,489

 
$
(30
)
 
$
2,300

 
$
(29
)
 
$
5,789

 
$
(59
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Treasury
 
$
299,667

 
$
(112
)
 
$
—

 
$
—

 
$
299,667

 
$
(112
)
U.S. Government agencies
 
14,454

 
(130
)
 
86,239

 
(1,141
)
 
100,693

 
(1,271
)
Mortgage-backed securities
 
405,540

 
(1,326
)
 
349,293

 
(2,823
)
 
754,833

 
(4,149
)
State and political subdivisions
 
111,088

 
(975
)
 
2,730

 
(23
)
 
113,818

 
(998
)
Other securities
 
3,982

 
(18
)
 
—

 
—

 
3,982

 
(18
)
Total AFS
 
$
834,731

 
$
(2,561
)
 
$
438,262

 
$
(3,987
)
 
$
1,272,993

 
$
(6,548
)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-Maturity
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
992

 
$
(2
)
 
$
15,948

 
$
(47
)
 
$
16,940

 
$
(49
)
Mortgage-backed securities
 
—

 
—

 
12,177

 
(412
)
 
12,177

 
(412
)
State and political subdivisions
 
39,149

 
(208
)
 
50,889

 
(746
)
 
90,038

 
(954
)
Total HTM
 
$
40,141

 
$
(210
)
 
$
79,014

 
$
(1,205
)
 
$
119,155

 
$
(1,415
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale
 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government agencies
 
$
26,562

 
$
(221
)
 
$
108,636

 
$
(3,519
)
 
$
135,198

 
$
(3,740
)
Mortgage-backed securities
 
163,560

 
(1,146
)
 
1,037,679

 
(31,538
)
 
1,201,239

 
(32,684
)
State and political subdivisions
 
129,075

 
(1,406
)
 
132,020

 
(4,064
)
 
261,095

 
(5,470
)
Other securities
 
65

 
(13
)
 
99

 
(1
)
 
164

 
(14
)
Total AFS
 
$
319,262

 
$
(2,786
)
 
$
1,278,434

 
$
(39,122
)
 
$
1,597,696

 
$
(41,908
)

 
The declines reflected in the preceding table primarily resulted from the rate for these investments yielding less than current market rates. Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary. Management does not have the intent to sell these securities, and management believes it is more likely than not the Company will not have to sell these securities before recovery of their amortized cost basis less any current period credit losses.
 
Declines in the fair value of HTM and AFS securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Management has the ability and intent to hold the securities classified as HTM until they mature, at which time the Company expects to receive full value for the securities. Furthermore, as of December 31, 2019, management also had the ability and intent to hold the securities classified as AFS for a period of time sufficient for a recovery of cost. The unrealized losses are largely due
to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2019, management believes the impairments detailed in the table above are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.
 
Income earned on securities for the years ended December 31, 2019, 2018 and 2017, is as follows: 
(In thousands)
 
2019
 
2018
 
2017
Taxable:
 
 

 
 

 
 

Held-to-maturity
 
$
1,207

 
$
2,157

 
$
2,521

Available-for-sale
 
45,934

 
40,926

 
25,996

 
 
 
 
 
 
 
Non-taxable:
 
 
 
 
 
 
Held-to-maturity
 
1,412

 
7,424

 
8,693

Available-for-sale
 
18,345

 
6,811

 
2,905

Total
 
$
66,898

 
$
57,318

 
$
40,115


 
The amortized cost and estimated fair value by maturity of securities are shown in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities. 
 
 
Held-to-Maturity
 
Available-for-Sale
(In thousands)
 
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
One year or less
 
$
4,897

 
$
4,919

 
$
494,432

 
$
494,338

After one through five years
 
15,972

 
16,325

 
72,949

 
73,370

After five through ten years
 
7,387

 
7,928

 
129,088

 
131,267

After ten years
 
1,875

 
1,875

 
825,155

 
842,798

Securities not due on a single maturity date
 
10,796

 
10,808

 
1,738,584

 
1,742,945

Other securities (no maturity)
 
—

 
—

 
167,938

 
168,620

Total
 
$
40,927

 
$
41,855

 
$
3,428,146

 
$
3,453,338


 
Total other short-term investments was $163.7 million as of December 31, 2019. The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $1.7 billion at December 31, 2019 and $1.0 billion at December 31, 2018.
 
There were approximately $13.3 million of gross realized gains and $4,000 of gross realized losses from the sale of securities during the year ended December 31, 2019. The gross realized gains recognized during 2019 were primarily due to adjustments made to the bond portfolio during the first quarter based upon projected cash flow changes and, during the third quarter the Company sold approximately $89 million of bonds as part of a plan to rebalance its investment portfolio resulting in a net gain on the sale of securities of $7.3 million. There were approximately $65,000 of gross realized gains and $4,000 of gross realized losses from the sale of securities during the year ended December 31, 2018. There were approximately $2.4 million of gross realized gains and $1.3 million of gross realized losses from the sale of securities during the year ended December 31, 2017. The income tax expense/benefit related to security gains/losses was 26.135% of the gross amounts in 2019 and 2018 and 39.225% in 2017.
 
The state and political subdivision debt obligations are predominately rated bonds, primarily issued in states in which we are located, and are evaluated on an ongoing basis.