Securities

12 Months Ended

Dec. 31, 2018

Investments Debt And Equity Securities [Abstract]

Note 3—Securities

A summary of amortized cost and estimated fair value of securities available-for-sale and securities held-to-maturity at December 31, 2018 and 2017 is as follows:

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2018
Securities available-for-sale:
U.S. Treasury securities	$	100,413	$	—	$	3,628	$	96,785
Obligations of U.S. government agencies		60,975		316		284		61,007
Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS)
Residential pass-through:
Guaranteed by GNMA		85,052		146		2,093		83,105
Issued by FNMA and FHLMC		594,874		694		10,367		585,201
Other residential mortgage-backed securities		36,339		8		1,178		35,169
Commercial mortgage-backed securities		114,383		287		5,255		109,415
Total MBS		830,648		1,135		18,893		812,890
Obligations of states and municipal subdivisions		229,475		207		13,112		216,570
Total securities available-for-sale	$	1,221,511	$	1,658	$	35,917	$	1,187,252

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2017
Securities available-for-sale:
U.S. Treasury securities	$	100,575	$	—	$	3,731	$	96,844
Obligations of U.S. government agencies		80,552		738		66		81,224
Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS)
Residential pass-through:
Guaranteed by GNMA		106,461		676		1,110		106,027
Issued by FNMA and FHLMC		431,409		1,284		2,271		430,422
Other residential mortgage-backed securities		47,379		97		1,084		46,392
Commercial mortgage-backed securities		76,201		63		4,069		72,195
Total MBS		661,450		2,120		8,534		655,036
Obligations of states and municipal subdivisions		420,111		7,539		3,691		423,959
Total securities available-for-sale	$	1,262,688	$	10,397	$	16,022	$	1,257,063
Securities held-to-maturity:
Obligations of states and municipal subdivisions	$	290	$	21	$	—	$	311

The scheduled contractual maturities of securities available-for-sale and debt securities held-to-maturity at December 31, 2018 were as follows:

	Available-for-Sale
	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due in one year or less	$	—	$	—
Due after one year through five years		107,283		103,638
Due after five years through ten years		53,314		53,568
Due after ten years		230,266		217,156
Mortgage-backed securities		830,648		812,890
Total	$	1,221,511	$	1,187,252

Proceeds from sales, gross gains, and gross losses on sales of securities available-for-sale for the years ended December 31, 2018, 2017 and 2016 are presented below. There were no other-than-temporary impairment charges included in gross realized losses for the years ended December 31, 2018, 2017 and 2016. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.

	For the Year Ended December 31,
(In thousands)	2018			2017			2016
Gross realized gains	$	816		$	167		$	4,172
Gross realized losses		(2,669	)		(313	)		(436	)
Realized (losses) gains on sale of securities available for sale, net	$	(1,853	)	$	(146	)	$	3,736
Proceeds from sales of securities available-for-sale	$	268,799		$	161,401		$	538,960

Securities with a carrying value of $711.2 million and $507.3 million at December 31, 2018 and 2017, respectively, were pledged to secure public deposits, FHLB borrowings, repurchase agreements and for other purposes as required or permitted by law.

Information pertaining to securities available-for-sale with gross unrealized losses aggregated by category and length of time the securities have been in a continuous loss position was as follows:

	Unrealized loss analysis
	Losses < 12 Months				Losses > 12 Months
			Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses
December 31, 2018
U.S. Treasury securities	$	—	$	—	$	96,785	$	3,628
Obligations of U.S. government agencies		25,978		183		10,152		101
Mortgage-backed securities		259,794		2,864		405,974		16,029
Obligations of states and municipal subdivisions		74,503		2,501		125,092		10,611
Total	$	360,275	$	5,548	$	638,003	$	30,369

	Unrealized loss analysis
	Losses < 12 Months				Losses > 12 Months
			Gross				Gross
	Estimated		Unrealized		Estimated		Unrealized
(In thousands)	Fair Value		Losses		Fair Value		Losses
December 31, 2017
U.S. Treasury securities	$	—	$	—	$	96,844	$	3,731
Obligations of U.S. government agencies		1,577		9		14,323		57
Mortgage-backed securities		306,274		1,490		172,324		7,044
Obligations of states and municipal subdivisions		2,601		22		134,870		3,669
Total	$	310,452	$	1,521	$	418,361	$	14,501

As of December 31, 2018 and 2017, approximately 84% and 58%, respectively, of the fair value of securities in the investment portfolio reflected an unrealized loss. As of December 31, 2018, there were 117 securities that had been in a loss position for more than twelve months, and 100 securities that had been in a loss position for less than 12 months. The unrealized losses result from the change in market interest rates for similar securities and do not relate to the marketability of the securities or the issuer’s ability to repay the obligations. The Company has adequate liquidity and, therefore, does not plan to sell and, more likely than not, will not be required to sell these securities before recovery of the indicated impairment. Accordingly, the unrealized losses on these securities have been determined to be temporary. In the second quarter of 2018, we sold approximately $187.8 million of available-for-sale securities as part of an effort to rebalance the portfolio. We reduced our target concentration of tax free municipal securities from 35% down to 25%.