Securities

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Securities

SECURITIES

The significant accounting policies related to securities are presented in Note 1, "Summary of Significant Accounting Policies" to the Consolidated Financial Statements in the Company's 2018 10-K.

A summary of the Company's securities portfolio by category and maturity is presented in the following tables.

Securities Portfolio

(Dollar amounts in thousands)

	As of September 30, 2019									As of December 31, 2018
	Amortized Cost		Gross Unrealized					Fair  Value		Amortized Cost		Gross Unrealized					Fair  Value
			Gains		Losses							Gains		Losses
Securities Available-for-Sale
U.S. treasury securities	$	40,946	$	143	$	(4	)	$	41,085	$	37,925	$	17	$	(175	)	$	37,767
U.S. agency securities	243,863		1,251		(1,027		)	244,087		144,125		45		(1,607		)	142,563
Collateralized mortgage   obligations ("CMOs")	1,567,116		25,483		(2,046		)	1,590,553		1,336,531		3,362		(24,684		)	1,315,209
Other mortgage-backed   securities ("MBSs")	668,935		9,753		(1,181		)	677,507		477,665		520		(11,251		)	466,934
Municipal securities	231,757		5,722		(45		)	237,434		229,600		461		(2,874		)	227,187
Corporate debt securities	114,407		1,389		(724		)	115,072		86,074		—		(3,725		)	82,349
Total securities   available-for-sale	$	2,867,024	$	43,741	$	(5,027	)	$	2,905,738	$	2,311,920	$	4,405	$	(44,316	)	$	2,272,009
Securities Held-to-Maturity
Municipal securities	$	22,566	$	—	$	(584	)	$	21,982	$	10,176	$	—	$	(305	)	$	9,871
Equity Securities								$	40,723								$	30,806

Remaining Contractual Maturity of Securities

(Dollar amounts in thousands)

	As of September 30, 2019
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	178,227	$	180,121	$	9,002	$	8,769
After one year to five years	175,643		177,509		6,158		5,999
After five years to ten years	277,094		280,039		4,456		4,341
After ten years	9		9		2,950		2,873
Securities that do not have a single contractual maturity date	2,236,051		2,268,060		—		—
Total	$	2,867,024	$	2,905,738	$	22,566	$	21,982

The carrying value of securities available-for-sale that were pledged to secure deposits or for other purposes as permitted or required by law totaled $1.7 billion as of September 30, 2019 and $1.2 billion as of December 31, 2018. No securities held-to-maturity were pledged as of September 30, 2019 or December 31, 2018.

During the quarters and nine months ended September 30, 2019 and 2018 there were no realized gains on securities available-for-sale. Certain securities acquired in the Bridgeview transaction in the second quarter of 2019 were sold shortly after the acquisition date for $93.3 million, resulting in no gains or losses as the securities were recorded at fair value upon acquisition.

Accounting guidance requires that the credit portion of an other-than-temporary impairment ("OTTI") charge be recognized through income. If a decline in fair value below carrying value is not attributable to credit deterioration and the Company does not intend to sell the security or believe it would not be more likely than not required to sell the security prior to recovery, the Company records the non-credit related portion of the decline in fair value in other comprehensive income (loss).

There was no outstanding balance of OTTI previously recognized on securities available-for-sale as of either September 30, 2019 or December 31, 2018. During the quarters and nine months ended September 30, 2019 and 2018 no OTTI was recognized on securities available-for-sale.

The following table presents the aggregate amount of unrealized losses and the aggregate related fair values of securities with unrealized losses as of September 30, 2019 and December 31, 2018.

Securities in an Unrealized Loss Position

(Dollar amounts in thousands)

		Less Than 12 Months				12 Months or Longer				Total
	Number of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
As of September 30, 2019
Securities Available-for-Sale
U.S. treasury securities	5	$	1,981	$	1	$	7,003	$	3	$	8,984	$	4
U.S. agency securities	46	62,206		447		60,746		580		122,952		1,027
CMOs	105	60,802		454		288,184		1,592		348,986		2,046
MBSs	54	10,104		38		167,952		1,143		178,056		1,181
Municipal securities	35	1,194		8		13,975		37		15,169		45
Corporate debt securities	8	9,893		107		29,472		617		39,365		724
Total	253	$	146,180	$	1,055	$	567,332	$	3,972	$	713,512	$	5,027
Securities Held-to-Maturity
Municipal securities	31	$	12,467	$	331	$	9,515	$	253	$	21,982	$	584
As of December 31, 2018
Securities Available-for-Sale
U.S. treasury securities	17	$	15,894	$	57	$	13,886	$	118	$	29,780	$	175
U.S. agency securities	74	34,263		320		93,227		1,287		127,490		1,607
CMOs	234	171,901		1,671		863,747		23,013		1,035,648		24,684
MBSs	118	135,791		1,715		284,273		9,536		420,064		11,251
Municipal securities	423	60,863		558		109,935		2,316		170,798		2,874
Corporate debt securities	16	82,349		3,725		—		—		82,349		3,725
Total	882	$	501,061	$	8,046	$	1,365,068	$	36,270	$	1,866,129	$	44,316
Securities Held-to-Maturity
Municipal securities	5	$	—	$	—	$	9,871	$	305	$	9,871	$	305

Substantially all of the Company's CMOs and other MBSs are either backed by U.S. government-owned agencies or issued by U.S. government-sponsored enterprises. Municipal securities are issued by municipal authorities, and the majority are supported by third-party insurance or some other form of credit enhancement. Management does not believe any of these securities with unrealized losses as of September 30, 2019 represent OTTI related to credit deterioration. These unrealized losses are attributed to changes in interest rates and temporary market movements. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.