Investment Securities (Tables)
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6 Months Ended |
Jun. 30, 2019 |
Investments, Debt and Equity Securities [Abstract] |
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Marketable Securities |
The following tables are a summary of the investment securities portfolios as of the dates shown: | | | | | | | | | | | | | | | | | | June 30, 2019 | (Dollars in thousands) | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | Available-for-sale securities | | | | | | | | U.S. Treasury | $ | 131,238 |
| | $ | 1,051 |
| | $ | (20 | ) | | $ | 132,269 |
| U.S. Government agencies | 167,847 |
| | 3,093 |
| | — |
| | 170,940 |
| Municipal | 138,097 |
| | 4,627 |
| | (115 | ) | | 142,609 |
| Corporate notes: | | | | | | | | Financial issuers | 97,065 |
| | 91 |
| | (7,293 | ) | | 89,863 |
| Other | 1,000 |
| | 50 |
| | — |
| | 1,050 |
| Mortgage-backed: (1) | | | | | | | | Mortgage-backed securities | 1,606,549 |
| | 13,402 |
| | (10,727 | ) | | 1,609,224 |
| Collateralized mortgage obligations | 39,774 |
| | 603 |
| | (178 | ) | | 40,199 |
| Total available-for-sale securities | $ | 2,181,570 |
| | $ | 22,917 |
| | $ | (18,333 | ) | | $ | 2,186,154 |
| Held-to-maturity securities | | | | | | | | U.S. Government agencies | $ | 952,526 |
| | $ | 3,241 |
| | $ | (2,603 | ) | | $ | 953,164 |
| Municipal | 239,108 |
| | 6,521 |
| | (315 | ) | | 245,314 |
| Total held-to-maturity securities | $ | 1,191,634 |
| | $ | 9,762 |
| | $ | (2,918 | ) | | $ | 1,198,478 |
| Equity securities with readily determinable fair value | $ | 42,087 |
| | $ | 2,984 |
| | $ | (752 | ) | | $ | 44,319 |
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| | | | | | | | | | | | | | | | | | December 31, 2018 | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | (Dollars in thousands) | | | | Available-for-sale securities | | | | | | | | U.S. Treasury | $ | 126,199 |
| | $ | 391 |
| | $ | (186 | ) | | $ | 126,404 |
| U.S. Government agencies | 139,420 |
| | 917 |
| | (30 | ) | | 140,307 |
| Municipal | 136,831 |
| | 2,427 |
| | (768 | ) | | 138,490 |
| Corporate notes: | | | | | | | | Financial issuers | 97,079 |
| | 35 |
| | (7,069 | ) | | 90,045 |
| Other | 1,000 |
| | — |
| | — |
| | 1,000 |
| Mortgage-backed: (1) | | | | | | | | Mortgage-backed securities | 1,641,146 |
| | 2,510 |
| | (57,317 | ) | | 1,586,339 |
| Collateralized mortgage obligations | 43,819 |
| | 500 |
| | (823 | ) | | 43,496 |
| Total available-for-sale securities | $ | 2,185,494 |
| | $ | 6,780 |
| | $ | (66,193 | ) | | $ | 2,126,081 |
| Held-to-maturity securities | | | | | | | | U.S. Government agencies | $ | 814,864 |
| | $ | 1,141 |
| | $ | (28,576 | ) | | $ | 787,429 |
| Municipal | 252,575 |
| | 1,100 |
| | (5,008 | ) | | 248,667 |
| Total held-to-maturity securities | $ | 1,067,439 |
| | $ | 2,241 |
| | $ | (33,584 | ) | | $ | 1,036,096 |
| Equity securities with readily determinable fair value | $ | 34,410 |
| | $ | 1,532 |
| | $ | (1,225 | ) | | $ | 34,717 |
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| | (1) | Consisting entirely of residential mortgage-backed securities, none of which are subprime. |
| | | | | | | | | | | | | | | | | | June 30, 2018 | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | (Dollars in thousands) | | | | Available-for-sale securities | | | | | | | | U.S. Treasury | $ | 30,506 |
| | $ | — |
| | $ | (290 | ) | | $ | 30,216 |
| U.S. Government agencies | 114,692 |
| | 17 |
| | (301 | ) | | 114,408 |
| Municipal | 131,488 |
| | 1,945 |
| | (840 | ) | | 132,593 |
| Corporate notes: | | | | | | | | Financial issuers | 98,285 |
| | 104 |
| | (4,012 | ) | | 94,377 |
| Other | 1,000 |
| | — |
| | — |
| | 1,000 |
| Mortgage-backed: (1) | | | | | | | | Mortgage-backed securities | 1,589,815 |
| | 164 |
| | (70,815 | ) | | 1,519,164 |
| Collateralized mortgage obligations | 51,617 |
| | 5 |
| | (2,593 | ) | | 49,029 |
| Total available-for-sale securities | $ | 2,017,403 |
| | $ | 2,235 |
| | $ | (78,851 | ) | | $ | 1,940,787 |
| Held-to-maturity securities | | | | | | | | U.S. Government agencies | $ | 639,433 |
| | $ | — |
| | $ | (34,040 | ) | | $ | 605,393 |
| Municipal | 251,401 |
| | 927 |
| | (5,879 | ) | | 246,449 |
| Total held-to-maturity securities | $ | 890,834 |
| | $ | 927 |
| | $ | (39,919 | ) | | $ | 851,842 |
| Equity securities with readily determinable fair value | $ | 34,230 |
| | $ | 4,783 |
| | $ | (1,174 | ) | | $ | 37,839 |
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(1) Consisting entirely of residential mortgage-backed securities, none of which are subprime.
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Investment Securities, Continuous Unrealized Loss Position, Fair Value |
The following table presents the portion of the Company’s available-for-sale and held-to-maturity investment securities portfolios which has gross unrealized losses, reflecting the length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | Continuous unrealized losses existing for less than 12 months | | Continuous unrealized losses existing for greater than 12 months | | Total | (Dollars in thousands) | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | Available-for-sale securities | | | | | | | | | | | | U.S. Treasury | $ | — |
| | $ | — |
| | $ | 24,982 |
| | $ | (20 | ) | | $ | 24,982 |
| | $ | (20 | ) | U.S. Government agencies | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Municipal | 5,512 |
| | (3 | ) | | 6,566 |
| | (112 | ) | | 12,078 |
| | (115 | ) | Corporate notes: | | | | | | | | | | | | Financial issuers | 9,965 |
| | (33 | ) | | 66,716 |
| | (7,260 | ) | | 76,681 |
| | (7,293 | ) | Other | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Mortgage-backed: | | | | | | | | | | | | Mortgage-backed securities | 665 |
| | (7 | ) | | 841,068 |
| | (10,720 | ) | | 841,733 |
| | (10,727 | ) | Collateralized mortgage obligations | — |
| | — |
| | 8,335 |
| | (178 | ) | | 8,335 |
| | (178 | ) | Total available-for-sale securities | $ | 16,142 |
| | $ | (43 | ) | | $ | 947,667 |
| | $ | (18,290 | ) | | $ | 963,809 |
| | $ | (18,333 | ) | Held-to-maturity securities | | | | | | | | | | | | U.S. Government agencies | $ | 14,221 |
| | $ | (68 | ) | | $ | 180,104 |
| | $ | (2,535 | ) | | $ | 194,325 |
| | $ | (2,603 | ) | Municipal | 3,701 |
| | (36 | ) | | 14,505 |
| | (279 | ) | | 18,206 |
| | (315 | ) | Total held-to-maturity securities | $ | 17,922 |
| | $ | (104 | ) | | $ | 194,609 |
| | $ | (2,814 | ) | | $ | 212,531 |
| | $ | (2,918 | ) |
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Schedule of Gross Gains and Losses on Investment Securities |
The following table provides information as to the amount of gross gains and losses, adjustments and impairment on investment securities recognized in earnings and proceeds received through the sale or call of investment securities:
| | | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | (Dollars in thousands) | 2019 | | 2018 | | 2019 | | 2018 | Realized gains on investment securities | $ | 530 |
| | $ | 6 |
| | $ | 547 |
| | $ | 6 |
| Realized losses on investment securities | (7 | ) | | (26 | ) | | (91 | ) | | (1,001 | ) | Net realized gains (losses) on investment securities | 523 |
| | $ | (20 | ) | | 456 |
| | $ | (995 | ) | Unrealized gains on equity securities with readily determinable fair value | 703 |
| | 229 |
| | 2,134 |
| | 2,102 |
| Unrealized losses on equity securities with readily determinable fair value | (209 | ) | | (222 | ) | | (209 | ) | | (1,065 | ) | Net unrealized gains on equity securities with readily determinable fair value | 494 |
| | 7 |
| | 1,925 |
| | 1,037 |
| Upward adjustments of equity securities without readily determinable fair values | 110 |
| | 25 |
| | 110 |
| | 156 |
| Downward adjustments of equity securities without readily determinable fair values | — |
| | — |
| | — |
| | — |
| Impairment of equity securities without readily determinable fair values | (263 | ) | | — |
| | (263 | ) | | (537 | ) | Adjustment and impairment, net, of equity securities without readily determinable fair values | (153 | ) | | 25 |
| | (153 | ) | | (381 | ) | Other than temporary impairment charges | — |
| | — |
| | — |
| | — |
| Gains (losses) on investment securities, net | $ | 864 |
| | $ | 12 |
| | $ | 2,228 |
| | $ | (339 | ) | Proceeds from sales of available-for-sale securities | $ | 404,462 |
| | $ | — |
| | $ | 667,918 |
| | $ | 208,991 |
| Proceeds from sales of equity securities with readily determinable fair value | 11,000 |
| | — |
| | 11,000 |
| | — |
| Proceeds from sales and capital distributions of equity securities without readily determinable fair value | 396 |
| | 616 |
| | 609 |
| | 616 |
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Investments Classified by Contractual Maturity Date |
The amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of June 30, 2019, December 31, 2018 and June 30, 2018, by contractual maturity, are shown in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties: | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2019 | | December 31, 2018 | | June 30, 2018 | (Dollars in thousands) | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | Available-for-sale securities | | | | | | | | | | | | Due in one year or less | $ | 114,853 |
| | $ | 115,231 |
| | $ | 82,206 |
| | $ | 82,153 |
| | $ | 147,550 |
| | $ | 147,271 |
| Due in one to five years | 137,427 |
| | 139,958 |
| | 168,855 |
| | 169,307 |
| | 103,903 |
| | 103,919 |
| Due in five to ten years | 114,428 |
| | 109,246 |
| | 121,129 |
| | 115,206 |
| | 117,799 |
| | 114,640 |
| Due after ten years | 168,539 |
| | 172,296 |
| | 128,339 |
| | 129,580 |
| | 6,719 |
| | 6,764 |
| Mortgage-backed | 1,646,323 |
| | 1,649,423 |
| | 1,684,965 |
| | 1,629,835 |
| | 1,641,432 |
| | 1,568,193 |
| Total available-for-sale securities | $ | 2,181,570 |
| | $ | 2,186,154 |
| | $ | 2,185,494 |
| | $ | 2,126,081 |
| | $ | 2,017,403 |
| | $ | 1,940,787 |
| Held-to-maturity securities | | | | | | | | | | | | Due in one year or less | $ | 7,573 |
| | $ | 7,566 |
| | $ | 10,009 |
| | $ | 9,979 |
| | $ | 5,667 |
| | $ | 5,658 |
| Due in one to five years | 27,768 |
| | 27,952 |
| | 29,436 |
| | 28,995 |
| | 32,392 |
| | 31,863 |
| Due in five to ten years | 321,474 |
| | 325,009 |
| | 295,897 |
| | 290,206 |
| | 214,991 |
| | 208,835 |
| Due after ten years | 834,819 |
| | 837,951 |
| | 732,097 |
| | 706,916 |
| | 637,784 |
| | 605,486 |
| Total held-to-maturity securities | $ | 1,191,634 |
| | $ | 1,198,478 |
| | $ | 1,067,439 |
| | $ | 1,036,096 |
| | $ | 890,834 |
| | $ | 851,842 |
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