| Investment Securities |
Investment Securities
The following table presents the amortized cost and estimated fair values of investment securities: | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value | June 30, 2019 | (in thousands) | Available for Sale | | | | | | | | State and municipal securities | $ | 307,911 |
| | $ | 8,508 |
| | $ | (85 | ) | | $ | 316,334 |
| Corporate debt securities | 194,858 |
| | 4,885 |
| | (2,321 | ) | | 197,422 |
| Collateralized mortgage obligations | 889,053 |
| | 12,190 |
| | (2,126 | ) | | 899,117 |
| Residential mortgage-backed securities | 331,566 |
| | 1,623 |
| | (3,914 | ) | | 329,275 |
| Commercial mortgage-backed securities | 433,027 |
| | 7,406 |
| | (152 | ) | | 440,281 |
| Auction rate securities | 107,410 |
| | — |
| | (4,045 | ) | | 103,365 |
| Total | $ | 2,263,825 |
| | $ | 34,612 |
| | $ | (12,643 | ) | | $ | 2,285,794 |
| | | | | | | | | Held to Maturity | | | | | | | | State and municipal securities | $ | 155,861 |
| | $ | 8,700 |
| | $ | — |
| | $ | 164,561 |
| Residential mortgage-backed securities | 411,703 |
| | 13,464 |
| | — |
| | 425,167 |
| Total | $ | 567,564 |
| | $ | 22,164 |
| | $ | — |
| | $ | 589,728 |
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| | | | | | | | | | | | | | | | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value | December 31, 2018 | (in thousands) | Available for Sale | | | | | | | | U.S. Government sponsored agency securities | $ | 31,586 |
| | $ | 185 |
| | $ | (139 | ) | | $ | 31,632 |
| State and municipal securities | 282,383 |
| | 2,178 |
| | (5,466 | ) | | 279,095 |
| Corporate debt securities | 111,454 |
| | 1,432 |
| | (3,353 | ) | | 109,533 |
| Collateralized mortgage obligations | 841,294 |
| | 2,758 |
| | (11,972 | ) | | 832,080 |
| Residential mortgage-backed securities | 476,973 |
| | 1,583 |
| | (15,212 | ) | | 463,344 |
| Commercial mortgage-backed securities | 264,165 |
| | 524 |
| | (3,073 | ) | | 261,616 |
| Auction rate securities | 107,410 |
| | — |
| | (4,416 | ) | | 102,994 |
| Total | $ | 2,115,265 |
| | $ | 8,660 |
| | $ | (43,631 | ) | | $ | 2,080,294 |
| | | | | | | | | Held to Maturity | | | | | | | | State and municipal securities | $ | 156,134 |
| | $ | 1,166 |
| | $ | (93 | ) | | $ | 157,207 |
| Residential mortgage-backed securities | 450,545 |
| | 3,667 |
| | — |
| | 454,212 |
| Total | $ | 606,679 |
| | $ | 4,833 |
| | $ | (93 | ) | | $ | 611,419 |
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Securities carried at $857.1 million at June 30, 2019 and $973.4 million at December 31, 2018, were pledged as collateral to secure public and trust deposits and customer repurchase agreements. The amortized cost and estimated fair values of debt securities as of June 30, 2019, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities as certain investment securities are subject to call or prepayment with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | | | | Available for Sale | | Held to Maturity | | | Amortized
Cost | | Estimated
Fair Value | | Amortized
Cost | | Estimated
Fair Value | | (in thousands) | Due in one year or less | | $ | 5,828 |
| | $ | 5,828 |
| | $ | — |
| | $ | — |
| Due from one year to five years | | 38,664 |
| | 39,900 |
| | — |
| | — |
| Due from five years to ten years | | 175,654 |
| | 178,922 |
| | 2,154 |
| | 2,277 |
| Due after ten years | | 390,033 |
| | 392,471 |
| | 153,707 |
| | 162,284 |
| | | 610,179 |
| | 617,121 |
| | 155,861 |
| | 164,561 |
| Residential mortgage-backed securities(1) | | 331,566 |
| | 329,275 |
| | 411,703 |
| | 425,167 |
| Commercial mortgage-backed securities(1) | | 433,027 |
| | 440,281 |
| | — |
| | — |
| Collateralized mortgage obligations(1) | | 889,053 |
| | 899,117 |
| | — |
| | — |
| Total | | $ | 2,263,825 |
| | $ | 2,285,794 |
| | $ | 567,564 |
| | $ | 589,728 |
| | | | | | | | | | (1) Maturities for mortgage-backed securities and collateralized mortgage obligations are dependent upon the interest rate environment and prepayments on the underlying loans. |
The following table presents information related to the gross realized gains and losses on the sales of investment securities: | | | | | | | | | | | | | | Gross
Realized
Gains | | Gross
Realized
Losses | | Net Gains | Three months ended June 30, 2019 | (in thousands) | Debt securities | $ | 3,012 |
| | $ | (2,836 | ) | | $ | 176 |
| Total | $ | 3,012 |
| | $ | (2,836 | ) | | $ | 176 |
| Three months ended June 30, 2018 | | | | | | Debt securities | $ | 1,530 |
| | $ | (1,526 | ) | | $ | 4 |
| Total | $ | 1,530 |
| | $ | (1,526 | ) | | $ | 4 |
| | | | | | | Six months ended June 30, 2019 | | | | | | Debt securities | $ | 3,269 |
| | $ | (3,028 | ) | | $ | 241 |
| Total | $ | 3,269 |
| | $ | (3,028 | ) | | $ | 241 |
| Six months ended June 30, 2018 | | | | | | Equity securities | $ | 9 |
| | $ | — |
| | $ | 9 |
| Debt securities | 1,540 |
| | (1,526 | ) | | 14 |
| Total | $ | 1,549 |
| | $ | (1,526 | ) | | $ | 23 |
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The following table presents a summary of the cumulative credit related other-than-temporary impairment charges, recognized as components of earnings, for debt securities held by the Corporation at June 30, 2019 and 2018: | | | | | | | | | | | | | | | | | | Three months ended June 30 | | Six months ended June 30 | | 2019 | | 2018 | | 2019 | | 2018 | | (in thousands) | Balance of cumulative credit losses on debt securities, beginning of period | $ | (11,510 | ) | | $ | (11,510 | ) | | $ | (11,510 | ) | | $ | (11,510 | ) | Reductions for securities sold during the period | 10,520 |
| | — |
| | 10,520 |
| | — |
| Balance of cumulative credit losses on debt securities, end of period | $ | (990 | ) | | $ | (11,510 | ) | | $ | (990 | ) | | $ | (11,510 | ) |
The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2019 and December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or longer | | Total | June 30, 2019 | Number of Securities | | Estimated Fair Value | | Unrealized Losses | | Number of Securities | | Estimated Fair Value | | Unrealized Losses | | Estimated Fair Value | | Unrealized Losses | Available for Sale | | | (in thousands) | State and municipal securities | 3 |
| | $ | 15,714 |
| | $ | (44 | ) | | 4 |
| | $ | 17,403 |
| | $ | (41 | ) | | $ | 33,117 |
| | $ | (85 | ) | Corporate debt securities | 3 |
| | 7,054 |
| | (8 | ) | | 14 |
| | 25,988 |
| | (2,313 | ) | | 33,042 |
| | (2,321 | ) | Collateralized mortgage obligations | — |
| | — |
| | — |
| | 39 |
| | 110,517 |
| | (2,126 | ) | | 110,517 |
| | (2,126 | ) | Residential mortgage-backed securities | — |
| | — |
| | — |
| | 61 |
| | 285,675 |
| | (3,914 | ) | | 285,675 |
| | (3,914 | ) | Commercial mortgage-backed securities | 1 |
| | 11,926 |
| | (143 | ) | | 2 |
| | 17,475 |
| | (9 | ) | | 29,401 |
| | (152 | ) | Auction rate securities | — |
| | — |
| | — |
| | 177 |
| | 103,365 |
| | (4,045 | ) | | 103,365 |
| | (4,045 | ) | Total | 7 |
| | $ | 34,694 |
| | $ | (195 | ) | | 297 |
| | $ | 560,423 |
| | $ | (12,448 | ) | | $ | 595,117 |
| | $ | (12,643 | ) | | | | | | | | | | | | | | | | |
No Held to Maturity investments were in an unrealized loss position at June 30, 2019. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or longer | | Total | December 31, 2018 | Number of Securities | | Estimated
Fair Value | | Unrealized
Losses | | Number of Securities | | Estimated
Fair Value | | Unrealized
Losses | | Estimated
Fair Value | | Unrealized
Losses | Available for Sale | (in thousands) | U.S. Government sponsored agency securities | 1 |
| | $ | 4,961 |
| | $ | (31 | ) | | 1 |
| | $ | 5,770 |
| | $ | (108 | ) | | $ | 10,731 |
| | $ | (139 | ) | State and municipal securities | 33 |
| | 72,950 |
| | (1,292 | ) | | 38 |
| | 83,770 |
| | (4,174 | ) | | 156,720 |
| | (5,466 | ) | Corporate debt securities | 8 |
| | 24,419 |
| | (227 | ) | | 14 |
| | 25,642 |
| | (3,126 | ) | | 50,061 |
| | (3,353 | ) | Collateralized mortgage obligations | 39 |
| | 136,563 |
| | (1,050 | ) | | 89 |
| | 388,173 |
| | (10,922 | ) | | 524,736 |
| | (11,972 | ) | Residential mortgage-backed securities | 17 |
| | 18,220 |
| | (222 | ) | | 110 |
| | 402,779 |
| | (14,990 | ) | | 420,999 |
| | (15,212 | ) | Commercial mortgage-backed securities | 1 |
| | 9,778 |
| | (35 | ) | | 25 |
| | 197,326 |
| | (3,038 | ) | | 207,104 |
| | (3,073 | ) | Auction rate securities | — |
| | — |
| | — |
| | 177 |
| | 102,994 |
| | (4,416 | ) | | 102,994 |
| | (4,416 | ) | Total | 99 |
| | $ | 266,891 |
| | $ | (2,857 | ) | | 454 |
| | $ | 1,206,454 |
| | $ | (40,774 | ) | | $ | 1,473,345 |
| | $ | (43,631 | ) | Held to Maturity | | | | | | | | | | | | | | | | State and municipal securities | 6 |
| | $ | 20,601 |
| | $ | (93 | ) | | — |
| | $ | — |
| | $ | — |
| | $ | 20,601 |
| | $ | (93 | ) | Total | 6 |
| | $ | 20,601 |
| | $ | (93 | ) | | — |
| | $ | — |
| | $ | — |
| | $ | 20,601 |
| | $ | (93 | ) |
The Corporation’s collateralized mortgage obligations and mortgage-backed securities have contractual terms that generally do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. The change in fair value of these securities is attributable to changes in interest rates and not credit quality, and the Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. Therefore, the Corporation does not consider these investments to be other-than-temporarily impaired as of June 30, 2019.
As of June 30, 2019, all of the auction rate securities (auction rate certificates, or "ARCs") were rated above investment grade. Based on management’s evaluations, none of the ARCs were subject to any other-than-temporary impairment charges for the three and six months ended June 30, 2019. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.
Based on management’s evaluations, no corporate debt securities were subject to any other-than-temporary impairment charges for the three and six months ended June 30, 2019. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.
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