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Investment Securities
 9 Months Ended
Sep. 30, 2015
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
INVESTMENT SECURITIES
The amortized cost and fair values of investment securities, with gross unrealized gains and losses, consist of the following:
 
 
September 30, 2015
 
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Estimated
Fair Value
(Dollars in thousands)
 
 
 
Securities available for sale:
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
277,822

 
$
2,743

 
$
(45
)
 
$
280,520

Obligations of states and political subdivisions
181,626

 
4,502

 
—

 
186,128

Mortgage-backed securities
2,246,002

 
22,157

 
(3,647
)
 
2,264,512

Other securities
96,301

 
694

 
(350
)
 
96,645

Total securities available for sale
$
2,801,751

 
$
30,096

 
$
(4,042
)
 
$
2,827,805

Securities held to maturity:
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
73,821

 
$
2,878

 
$
(74
)
 
$
76,625

Mortgage-backed securities
24,509

 
103

 
(626
)
 
23,986

Total securities held to maturity
$
98,330

 
$
2,981

 
$
(700
)
 
$
100,611

 
 
 
 
 
 
 
 
 
December 31, 2014
 
Amortized Cost
 
Gross
Unrealized Gains
 
Gross
Unrealized Losses
 
Estimated
Fair Value
(Dollars in thousands)
 
 
 
Securities available for sale:
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
317,386

 
$
1,700

 
$
(3,533
)
 
$
315,553

Obligations of states and political subdivisions
86,513

 
3,679

 
(2
)
 
90,190

Mortgage-backed securities
1,741,917

 
16,882

 
(7,184
)
 
1,751,615

Other securities
1,460

 
35

 
—

 
1,495

Total securities available for sale
$
2,147,276

 
$
22,296

 
$
(10,719
)
 
$
2,158,853

Securities held to maturity:
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
10,000

 
$
88

 
$
—

 
$
10,088

Obligations of states and political subdivisions
77,597

 
3,153

 
(145
)
 
80,605

Mortgage-backed securities
29,363

 
151

 
(726
)
 
28,788

Total securities held to maturity
$
116,960

 
$
3,392

 
$
(871
)
 
$
119,481


Securities with carrying values of $1.3 billion and $1.4 billion were pledged to secure public deposits and other borrowings at September 30, 2015 and December 31, 2014, respectively.
Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:
 
 
September 30, 2015
 
Less Than Twelve Months
 
Over Twelve Months
 
Total
 
Gross
Unrealized Losses
 
Estimated
Fair Value
 
Gross
Unrealized Losses
 
Estimated
Fair Value
 
Gross
Unrealized Losses
 
Estimated
Fair Value
(Dollars in thousands)
 
 
 
 
 
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
—

 
$
—

 
$
(45
)
 
$
28,449

 
$
(45
)
 
$
28,449

Mortgage-backed securities
(954
)
 
252,358

 
(2,693
)
 
191,836

 
(3,647
)
 
444,194

Other securities
(346
)
 
27,626

 
(4
)
 
505

 
(350
)
 
28,131

Total securities available for sale
$
(1,300
)
 
$
279,984

 
$
(2,742
)
 
$
220,790

 
$
(4,042
)
 
$
500,774

Securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
(6
)
 
$
3,642

 
$
(68
)
 
$
4,199

 
$
(74
)
 
$
7,841

Mortgage-backed securities
(17
)
 
1,054

 
(609
)
 
18,286

 
(626
)
 
19,340

Total securities held to maturity
$
(23
)
 
$
4,696

 
$
(677
)
 
$
22,485

 
$
(700
)
 
$
27,181

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
Less Than Twelve Months
 
Over Twelve Months
 
Total
 
Gross
Unrealized Losses
 
Estimated
Fair Value
 
Gross
Unrealized Losses
 
Estimated
Fair Value
 
Gross
Unrealized Losses
 
Estimated
Fair Value
(Dollars in thousands)
 
 
 
 
 
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
—

 
$
—

 
$
(3,533
)
 
$
240,498

 
$
(3,533
)
 
$
240,498

Obligations of states and political subdivisions
(2
)
 
185

 
—

 
—

 
(2
)
 
185

Mortgage-backed securities
(1,189
)
 
304,686

 
(5,995
)
 
294,549

 
(7,184
)
 
599,235

Total securities available for sale
$
(1,191
)
 
$
304,871

 
$
(9,528
)
 
$
535,047

 
$
(10,719
)
 
$
839,918

Securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
(9
)
 
$
2,287

 
$
(136
)
 
$
8,590

 
$
(145
)
 
$
10,877

Mortgage-backed securities
—

 
—

 
(726
)
 
20,812

 
(726
)
 
20,812

Total securities held to maturity
$
(9
)
 
$
2,287

 
$
(862
)
 
$
29,402

 
$
(871
)
 
$
31,689



The Company assessed the nature of the losses in its portfolio as of September 30, 2015 and December 31, 2014 to determine if there are losses that should be deemed other-than-temporary. In its analysis of these securities, management considered numerous factors to determine whether there were instances where the amortized cost basis of the debt securities would not be fully recoverable, including, but not limited to:
 
•
The length of time and extent to which the estimated fair value of the securities was less than their amortized cost,
•
Whether adverse conditions were present in the operations, geographic area, or industry of the issuer,
•
The payment structure of the security, including scheduled interest and principal payments, the issuer’s failure to make scheduled payments, if any, and the likelihood of failure to make scheduled payments in the future,
•
Changes to the rating of the security by a rating agency, and
•
Subsequent recoveries or additional declines in fair value after the balance sheet date.
Management believes it has considered these factors, as well as all relevant information available, when determining the expected future cash flows of the securities in question. In each instance, management has determined the cost basis of the securities would be fully recoverable. Management also has the intent to hold debt securities until their maturity or anticipated recovery if the security is classified as available for sale. In addition, management does not believe the Company will be required to sell debt securities before the anticipated recovery of the amortized cost basis of the security. As a result of the Company’s analysis, no declines in the estimated fair value of the Company’s investment securities were deemed to be other-than-temporary at September 30, 2015 or December 31, 2014.
At September 30, 2015, 103 debt securities had unrealized losses of 0.89% of the securities’ amortized cost basis. At December 31, 2014, 112 debt securities had unrealized losses of 1.31% of the securities’ amortized cost basis. The unrealized losses for each of the securities related to market interest rate changes and not credit concerns of the issuers. Additional information on securities that have been in a continuous loss position for over twelve months at September 30, 2015 and December 31, 2014 is presented in the following table.
 
(Dollars in thousands)
September 30, 2015
 
December 31, 2014
Number of securities
 
 
 
Issued by Fannie Mae, Freddie Mac, or Ginnie Mae
39

 
66

Issued by political subdivisions
2

 
5

Other
1

 
—

 
42

 
71

Amortized cost basis
 
 
 
Issued by Fannie Mae, Freddie Mac, or Ginnie Mae
$
241,918

 
$
566,113

Issued by political subdivisions
4,267

 
8,727

Other
509

 
—

 
$
246,694

 
$
574,840

Unrealized loss
 
 
 
Issued by Fannie Mae, Freddie Mac, or Ginnie Mae
$
3,347

 
$
10,254

Issued by political subdivisions
68

 
136

Other
4

 
—

 
$
3,419

 
$
10,390


The Fannie Mae, Freddie Mac, and Ginnie Mae securities are rated AA+ by S&P and Aaa by Moody’s. Two of the securities in a continuous loss position for over twelve months were issued by political subdivisions. The securities issued by political subdivisions have credit ratings by S&P ranging from AA to AAA and credit ratings from Moody’s ranging from Aa2 to Aaa.
The amortized cost and estimated fair value of investment securities by maturity at September 30, 2015 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. Weighted average yields are calculated on the basis of the yield to maturity based on the amortized cost of each security.
 
Securities Available for Sale
 
Securities Held to Maturity
 
Weighted
Average Yield
 
Amortized Cost
 
Estimated
Fair Value
 
Weighted
Average Yield
 
Amortized Cost
 
Estimated
Fair Value
(Dollars in thousands)
 
 
 
 
 
Within one year or less
1.63
%
 
$
25,724

 
$
25,824

 
3.85
%
 
$
75

 
$
75

One through five years
1.69
%
 
298,322

 
301,724

 
2.79
%
 
11,552

 
11,808

After five through ten years
2.23
%
 
516,467

 
524,969

 
3.09
%
 
20,663

 
21,494

Over ten years
2.12
%
 
1,961,238

 
1,975,288

 
2.98
%
 
66,040

 
67,234

 
2.09
%
 
$
2,801,751

 
$
2,827,805

 
2.98
%
 
$
98,330

 
$
100,611


The following is a summary of realized gains and losses from the sale of securities classified as available for sale. Gains or losses on securities sold are recorded on the trade date, using the specific identification method.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(Dollars in thousands)
2015
 
2014
 
2015
 
2014
Realized gains
$
425

 
$
582

 
$
1,786

 
$
609

Realized losses
(145
)
 
—

 
(217
)
 
—

 
$
280

 
$
582

 
$
1,569

 
$
609


In addition to the gains above, the Company realized certain immaterial gains on calls of held to maturity securities.
Other Equity Securities
The Company included the following securities, accounted for at amortized cost, which approximates fair value, in “Other assets” on the consolidated balance sheets:
 
(Dollars in thousands)
September 30, 2015
 
December 31, 2014
Federal Home Loan Bank (FHLB) stock
$
14,603

 
$
38,476

Federal Reserve Bank (FRB) stock
48,584

 
34,348

Other investments
1,158

 
1,306

 
$
64,345

 
$
74,130