Investment Securities

3 Months Ended

Mar. 31, 2020

Investments Debt And Equity Securities [Abstract]

Note 3—Investment Securities

A summary of amortized cost and estimated fair value of securities available-for-sale at March 31, 2020 and December 31, 2019 is as follows:

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2020
Securities available-for-sale:
Obligations of U.S. government agencies	$	70,225	$	221	$	458	$	69,988
Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS)
Residential pass-through:
Guaranteed by GNMA		99,869		2,799		—		102,668
Issued by FNMA and FHLMC		1,453,735		52,507		—		1,506,242
Other residential mortgage-backed securities		268,906		11,249		—		280,155
Commercial mortgage-backed securities		271,590		11,580		941		282,229
Total MBS		2,094,100		78,135		941		2,171,294
Obligations of states and municipal subdivisions		211,312		9,431		381		220,362
Total securities available-for-sale	$	2,375,637	$	87,787	$	1,780	$	2,461,644

(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2019
Securities available-for-sale:
Obligations of U.S. government agencies	$	69,464	$	57	$	415	$	69,106
Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS)
Residential pass-through:
Guaranteed by GNMA		98,122		1,205		245		99,082
Issued by FNMA and FHLMC		1,423,771		13,128		1,402		1,435,497
Other residential mortgage-backed securities		292,019		4,197		384		295,832
Commercial mortgage-backed securities		276,533		2,448		3,023		275,958
Total MBS		2,090,445		20,978		5,054		2,106,369
Obligations of states and municipal subdivisions		185,882		7,235		—		193,117
Total securities available-for-sale	$	2,345,791	$	28,270	$	5,469	$	2,368,592

The scheduled contractual maturities of securities available-for-sale at March 31, 2020 were as follows:

	Amortized		Estimated
(In thousands)	Cost		Fair Value
Due in one year or less	$	1,222	$	1,226
Due after one year through five years		1,157		1,148
Due after five years through ten years		61,915		61,672
Due after ten years		217,243		226,304
Mortgage-backed securities		2,094,100		2,171,294
Total	$	2,375,637	$	2,461,644

Gross gains and gross losses on sales of securities available-for-sale for the three months ended March 31, 2020 and 2019 are presented below. There were no other-than-temporary impairment charges included in gross realized losses for the three months ended March 31, 2020 and 2019. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale.

	For the Three Months Ended March 31,
(In thousands)	2020		2019
Gross realized gains	$	2,994	$	3
Gross realized losses		—		(15	)
Realized gains (losses), net	$	2,994	$	(12	)

Securities with a carrying value of $728.7 million and $629.4 million at March 31, 2020 and December 31, 2019, 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
(In thousands)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
March 31, 2020
Obligations of U.S. government agencies	$	29,360	$	278	$	12,896	$	180
Mortgage-backed securities		72,267		574		10,143		367
Obligations of states and municipal subdivisions		22,495		381		—		—
Total	$	124,122	$	1,233	$	23,039	$	547

	Unrealized Loss Analysis
	Losses < 12 Months				Losses > 12 Months
(In thousands)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
December 31, 2019
Obligations of U.S. government agencies	$	33,053	$	209	$	13,703	$	206
Mortgage-backed securities		708,991		4,466		61,506		588
Obligations of states and municipal subdivisions		—		—		—		—
Total	$	742,044	$	4,675	$	75,209	$	794

As of March 31, 2020 and December 31, 2019, approximately 6% and 35%, respectively, of the fair value of securities in the investment portfolio reflected an unrealized loss. As of March 31, 2020, there were 10 securities that had been in a loss position for more than twelve months, and 17 securities that had been in a loss position for less than 12 months. As of March 31, 2020, the unrealized losses were not deemed to be caused by credit-related issues. Credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Any impairment that is not credit-related is recognized in other comprehensive income. None of the unrealized losses relate to the marketability of the securities or the issuer’s ability to honor redemption of the obligations. As of March 31, 2020, allowance for credit losses related to available-for-sale securities is zero as the decline in fair value did not result from credit-related issues. 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.