XML 25 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
SECURITIES
 3 Months Ended
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
SECURITIES
The amortized cost and fair value of securities are as follows:
 
(in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
 Value
Securities Available for Sale:
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
U.S. government-sponsored entities
$
364,600

 
$
—

 
$
(5,952
)
 
$
358,648

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,713,036

 
458

 
(41,921
)
 
1,671,573

Agency collateralized mortgage obligations
860,902

 
28

 
(28,580
)
 
832,350

Non-agency collateralized mortgage obligations
1

 
—

 
—

 
1

Commercial mortgage-backed securities
39,183

 
30

 
—

 
39,213

States of the U.S. and political subdivisions
21,138

 
3

 
(118
)
 
21,023

Other debt securities
4,916

 
—

 
(261
)
 
4,655

Total debt securities available for sale
$
3,003,776

 
$
519

 
$
(76,832
)
 
$
2,927,463

December 31, 2017
 
 
 
 
 
 
 
U.S. government-sponsored entities
$
347,767

 
$
52

 
$
(3,877
)
 
$
343,942

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,615,168

 
1,225

 
(17,519
)
 
1,598,874

Agency collateralized mortgage obligations
813,034

 
—

 
(18,077
)
 
794,957

Non-agency collateralized mortgage obligations
1

 
—

 
—

 
1

States of the U.S. and political subdivisions
21,151

 
6

 
(64
)
 
21,093

Other debt securities
4,913

 
—

 
(243
)
 
4,670

Total debt securities
2,802,034

 
1,283

 
(39,780
)
 
2,763,537

Equity securities
587

 
438

 
—

 
1,025

Total securities available for sale
$
2,802,621

 
$
1,721

 
$
(39,780
)
 
$
2,764,562


(in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
 Value
Debt Securities Held to Maturity:
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
U.S. Treasury
$
500

 
$
114

 
$
—

 
$
614

U.S. government-sponsored entities
247,272

 
81

 
(5,716
)
 
241,637

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,174,426

 
491

 
(27,472
)
 
1,147,445

Agency collateralized mortgage obligations
783,151

 
257

 
(29,971
)
 
753,437

Commercial mortgage-backed securities
79,476

 
32

 
(1,245
)
 
78,263

States of the U.S. and political subdivisions
939,175

 
2,483

 
(31,090
)
 
910,568

Total debt securities held to maturity
$
3,224,000

 
$
3,458

 
$
(95,494
)
 
$
3,131,964

December 31, 2017
 
 
 
 
 
 
 
U.S. Treasury
$
500

 
$
134

 
$
—

 
$
634

U.S. government-sponsored entities
247,310

 
93

 
(4,388
)
 
243,015

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,219,802

 
3,475

 
(9,058
)
 
1,214,219

Agency collateralized mortgage obligations
777,146

 
32

 
(20,095
)
 
757,083

Commercial mortgage-backed securities
80,786

 
414

 
(575
)
 
80,625

States of the U.S. and political subdivisions
916,724

 
13,209

 
(7,130
)
 
922,803

Total debt securities held to maturity
$
3,242,268

 
$
17,357

 
$
(41,246
)
 
$
3,218,379



Gross gains and gross losses were realized on securities as follows:

 
Three Months Ended
March 31,
(in thousands)
2018
 
2017
Gross gains
$
—

 
$
3,400

Gross losses
—

 
(775
)
Net gains
$
—

 
$
2,625


As of March 31, 2018, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:

 
Available for Sale
 
Held to Maturity
(in thousands)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Due in one year or less
$
65,814

 
$
65,498

 
$
45,461

 
$
45,221

Due from one to five years
262,236

 
256,811

 
210,014

 
204,580

Due from five to ten years
7,876

 
7,725

 
94,022

 
93,225

Due after ten years
54,728

 
54,292

 
837,450

 
809,793

 
390,654

 
384,326

 
1,186,947

 
1,152,819

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,713,036

 
1,671,573

 
1,174,426

 
1,147,445

Agency collateralized mortgage obligations
860,902

 
832,350

 
783,151

 
753,437

Non-agency collateralized mortgage obligations
1

 
1

 
—

 
—

Commercial mortgage-backed securities
39,183

 
39,213

 
79,476

 
78,263

Total debt securities
$
3,003,776

 
$
2,927,463

 
$
3,224,000

 
$
3,131,964


Maturities may differ from contractual terms because borrowers may have the right to call or prepay obligations with or without penalties. Periodic payments are received on residential mortgage-backed securities based on the payment patterns of the underlying collateral.
Following is information relating to securities pledged:

(dollars in thousands)
March 31,
2018
 
December 31,
2017
Securities pledged (carrying value):
 
 
 
To secure public deposits, trust deposits and for other purposes as required by law
$
3,532,023

 
$
3,491,634

As collateral for short-term borrowings
298,233

 
263,756

Securities pledged as a percent of total securities
62.3
%
 
62.5
%


Following are summaries of the fair values and unrealized losses of temporarily impaired debt securities, segregated by length of impairment:

 
Less than 12 Months
 
12 Months or More
 
Total
(dollars in thousands)
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
Debt Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government-sponsored entities
8

 
$
158,212

 
$
(1,389
)
 
10

 
$
200,436

 
$
(4,563
)
 
18

 
$
358,648

 
$
(5,952
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
59

 
1,212,767

 
(25,545
)
 
28

 
444,583

 
(16,376
)
 
87

 
1,657,350

 
(41,921
)
Agency collateralized mortgage obligations
16

 
470,878

 
(13,274
)
 
33

 
312,687

 
(15,306
)
 
49

 
783,565

 
(28,580
)
States of the U.S. and political subdivisions
7

 
11,434

 
(108
)
 
1

 
877

 
(10
)
 
8

 
12,311

 
(118
)
Other debt securities
—

 
—

 
—

 
3

 
4,655

 
(261
)
 
3

 
4,655

 
(261
)
Total temporarily impaired debt securities AFS
90

 
$
1,853,291

 
$
(40,316
)
 
75

 
$
963,238

 
$
(36,516
)
 
165

 
$
2,816,529

 
$
(76,832
)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government-sponsored entities
7

 
$
106,809

 
$
(363
)
 
10

 
$
201,485

 
$
(3,514
)
 
17

 
$
308,294

 
$
(3,877
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
43

 
976,738

 
(7,723
)
 
28

 
473,625

 
(9,796
)
 
71

 
1,450,363

 
(17,519
)
Agency collateralized mortgage obligations
14

 
409,005

 
(6,231
)
 
33

 
335,452

 
(11,846
)
 
47

 
744,457

 
(18,077
)
States of the U.S. and political subdivisions
7

 
11,254

 
(55
)
 
1

 
879

 
(9
)
 
8

 
12,133

 
(64
)
Other debt securities
—

 
—

 
—

 
3

 
4,670

 
(243
)
 
3

 
4,670

 
(243
)
Total temporarily impaired debt securities AFS
71

 
$
1,503,806

 
$
(14,372
)
 
75

 
$
1,016,111

 
$
(25,408
)
 
146

 
$
2,519,917

 
$
(39,780
)
 
Less than 12 Months
 
12 Months or More
 
Total
(dollars in thousands)
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
Debt Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government-sponsored entities
4

 
$
54,558

 
$
(465
)
 
10

 
$
184,750

 
$
(5,251
)
 
14

 
$
239,308

 
$
(5,716
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
73

 
935,246

 
(20,410
)
 
11

 
173,759

 
(7,062
)
 
84

 
1,109,005

 
(27,472
)
Agency collateralized mortgage obligations
16

 
267,299

 
(5,862
)
 
35

 
444,572

 
(24,109
)
 
51

 
711,871

 
(29,971
)
Commercial mortgage-backed securities
6

 
48,737

 
(637
)
 
3

 
19,909

 
(608
)
 
9

 
68,646

 
(1,245
)
States of the U.S. and political subdivisions
148

 
517,101

 
(16,245
)
 
37

 
112,879

 
(14,845
)
 
185

 
629,980

 
(31,090
)
Total temporarily impaired debt securities HTM
247

 
$
1,822,941

 
$
(43,619
)
 
96

 
$
935,869

 
$
(51,875
)
 
343

 
$
2,758,810

 
$
(95,494
)
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government-sponsored entities
4

 
$
54,790

 
$
(239
)
 
10

 
$
185,851

 
$
(4,149
)
 
14

 
$
240,641

 
$
(4,388
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
36

 
648,485

 
(4,855
)
 
11

 
183,989

 
(4,203
)
 
47

 
832,474

 
(9,058
)
Agency collateralized mortgage obligations
14

 
275,290

 
(1,701
)
 
35

 
473,257

 
(18,394
)
 
49

 
748,547

 
(20,095
)
Commercial mortgage-backed securities
3

 
26,399

 
(123
)
 
2

 
19,443

 
(452
)
 
5

 
45,842

 
(575
)
States of the U.S. and political subdivisions
16

 
56,739

 
(933
)
 
37

 
121,536

 
(6,197
)
 
53

 
178,275

 
(7,130
)
Total temporarily impaired debt securities HTM
73

 
$
1,061,703

 
$
(7,851
)
 
95

 
$
984,076

 
$
(33,395
)
 
168

 
$
2,045,779

 
$
(41,246
)

We do not intend to sell the debt securities and it is not more likely than not that we will be required to sell the securities before recovery of their amortized cost basis.
Other-Than-Temporary Impairment
We evaluate our investment securities portfolio for OTTI on a quarterly basis. Impairment is assessed at the individual security level. We consider an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. We did not recognize any OTTI losses on securities for the three months ended March 31, 2018 or 2017.
States of the U.S. and Political Subdivisions
Our municipal bond portfolio with a carrying amount of $960.2 million as of March 31, 2018 is highly rated with an average entity-specific rating of AA and 100% of the portfolio rated A or better. All of the securities in the municipal portfolio except one are general obligation bonds. Geographically, municipal bonds support our primary footprint as 65% of the securities are from municipalities located throughout Pennsylvania, Ohio, Maryland, North Carolina and South Carolina. The average holding size of the securities in the municipal bond portfolio is $3.0 million. In addition to the strong stand-alone ratings, 62% of the municipalities have some formal credit enhancement insurance that strengthens the creditworthiness of their issue. Management reviews the credit profile of each issuer on a quarterly basis.