Investment Securities (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Investment securities available for sale |
The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2019 were as follows: | | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | | | | | | | | | Investment securities available for sale | | | | | Obligations of state and political subdivisions (municipal securities)(a) | $ | 529,908 | | $ | 16,269 | | $ | (18) | | $ | 546,160 | | | | | | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 131,158 | | 1,562 | | (59) | | 132,660 | | | GNMA | 982,941 | | 3,887 | | (1,689) | | 985,139 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,929 | | 1,799 | | — | | 21,728 | | | GNMA | 1,314,836 | | 7,403 | | (12,032) | | 1,310,207 | | | FFELP asset-backed securities | 270,178 | | — | | (6,485) | | 263,693 | | | Other debt securities | 3,000 | | — | | — | | 3,000 | | | Total investment securities available for sale | $ | 3,251,950 | | $ | 30,920 | | $ | (20,284) | | $ | 3,262,586 | | | Investment securities held to maturity | | | | | | U.S. Treasury securities | $ | 999 | | $ | 19 | | $ | — | | $ | 1,018 | | Obligations of state and political subdivisions (municipal securities)(a) | 1,418,569 | | 69,775 | | (1,118) | | 1,487,227 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 81,676 | | 1,759 | | (15) | | 83,420 | | | GNMA | 269,523 | | 1,882 | | (1,108) | | 270,296 | | | GNMA commercial mortgage-related securities | 434,317 | | 6,308 | | (6,122) | | 434,503 | | | Total investment securities held to maturity | $ | 2,205,083 | | $ | 79,744 | | $ | (8,363) | | $ | 2,276,465 | |
(a) As permitted by ASU 2019-04, which was adopted during the third quarter of 2019, the Corporation made a one-time election during the third quarter of 2019 to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale. The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows:
| | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | | | | | | | | | Investment securities available for sale | | | | | | U.S. Treasury securities | $ | 1,000 | | $ | — | | $ | (1) | | $ | 999 | | | Residential mortgage-related securities: | | | | | | FNMA / FHLMC | 296,296 | | 2,466 | | (3,510) | | 295,252 | | | GNMA | 2,169,943 | | 473 | | (41,885) | | 2,128,531 | | | Private-label | 1,007 | | — | | (4) | | 1,003 | | | GNMA commercial mortgage-related securities | 1,273,309 | | — | | (52,512) | | 1,220,797 | | | FFELP asset-backed securities | 297,347 | | 711 | | (698) | | 297,360 | | | Other debt securities | 3,000 | | — | | — | | 3,000 | | | Total investment securities available for sale | $ | 4,041,902 | | $ | 3,649 | | $ | (98,610) | | $ | 3,946,941 | | | Investment securities held to maturity | | | | | | Obligations of state and political subdivisions (municipal securities) | $ | 1,790,683 | | $ | 8,255 | | $ | (15,279) | | $ | 1,783,659 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 92,788 | | 169 | | (1,795) | | 91,162 | | | GNMA | 351,606 | | 1,611 | | (8,181) | | 345,035 | | | GNMA commercial mortgage-related securities | 505,434 | | 7,559 | | (22,579) | | 490,414 | | | Total investment securities held to maturity | $ | 2,740,511 | | $ | 17,593 | | $ | (47,835) | | $ | 2,710,271 | |
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| Investment securities held to maturity |
The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2019 were as follows: | | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | | | | | | | | | Investment securities available for sale | | | | | Obligations of state and political subdivisions (municipal securities)(a) | $ | 529,908 | | $ | 16,269 | | $ | (18) | | $ | 546,160 | | | | | | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 131,158 | | 1,562 | | (59) | | 132,660 | | | GNMA | 982,941 | | 3,887 | | (1,689) | | 985,139 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,929 | | 1,799 | | — | | 21,728 | | | GNMA | 1,314,836 | | 7,403 | | (12,032) | | 1,310,207 | | | FFELP asset-backed securities | 270,178 | | — | | (6,485) | | 263,693 | | | Other debt securities | 3,000 | | — | | — | | 3,000 | | | Total investment securities available for sale | $ | 3,251,950 | | $ | 30,920 | | $ | (20,284) | | $ | 3,262,586 | | | Investment securities held to maturity | | | | | | U.S. Treasury securities | $ | 999 | | $ | 19 | | $ | — | | $ | 1,018 | | Obligations of state and political subdivisions (municipal securities)(a) | 1,418,569 | | 69,775 | | (1,118) | | 1,487,227 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 81,676 | | 1,759 | | (15) | | 83,420 | | | GNMA | 269,523 | | 1,882 | | (1,108) | | 270,296 | | | GNMA commercial mortgage-related securities | 434,317 | | 6,308 | | (6,122) | | 434,503 | | | Total investment securities held to maturity | $ | 2,205,083 | | $ | 79,744 | | $ | (8,363) | | $ | 2,276,465 | |
(a) As permitted by ASU 2019-04, which was adopted during the third quarter of 2019, the Corporation made a one-time election during the third quarter of 2019 to transfer municipal securities with an amortized cost of $692 million from held to maturity to available for sale. The amortized cost and fair values of securities available for sale and held to maturity at December 31, 2018 were as follows:
| | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | | | | | | | | | Investment securities available for sale | | | | | | U.S. Treasury securities | $ | 1,000 | | $ | — | | $ | (1) | | $ | 999 | | | Residential mortgage-related securities: | | | | | | FNMA / FHLMC | 296,296 | | 2,466 | | (3,510) | | 295,252 | | | GNMA | 2,169,943 | | 473 | | (41,885) | | 2,128,531 | | | Private-label | 1,007 | | — | | (4) | | 1,003 | | | GNMA commercial mortgage-related securities | 1,273,309 | | — | | (52,512) | | 1,220,797 | | | FFELP asset-backed securities | 297,347 | | 711 | | (698) | | 297,360 | | | Other debt securities | 3,000 | | — | | — | | 3,000 | | | Total investment securities available for sale | $ | 4,041,902 | | $ | 3,649 | | $ | (98,610) | | $ | 3,946,941 | | | Investment securities held to maturity | | | | | | Obligations of state and political subdivisions (municipal securities) | $ | 1,790,683 | | $ | 8,255 | | $ | (15,279) | | $ | 1,783,659 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 92,788 | | 169 | | (1,795) | | 91,162 | | | GNMA | 351,606 | | 1,611 | | (8,181) | | 345,035 | | | GNMA commercial mortgage-related securities | 505,434 | | 7,559 | | (22,579) | | 490,414 | | | Total investment securities held to maturity | $ | 2,740,511 | | $ | 17,593 | | $ | (47,835) | | $ | 2,710,271 | |
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| Amortized cost and fair values of investment securities available for sale and held to maturity by contractual maturity |
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of investment securities available for sale and held to maturity at December 31, 2019, are shown below: | | | | | | | | | | | | | | | | | Available for Sale | | Held to Maturity | | | ($ in Thousands) | Amortized
Cost | Fair
Value | Amortized
Cost | Fair
Value | | Due in one year or less | $ | 2,795 | | $ | 2,800 | | $ | 29,033 | | $ | 29,218 | | | Due after one year through five years | 32,399 | | 32,901 | | 82,023 | | 83,245 | | | Due after five years through ten years | 317,292 | | 326,361 | | 136,138 | | 140,704 | | | Due after ten years | 180,422 | | 187,098 | | 1,172,373 | | 1,235,077 | | | Total debt securities | 532,908 | | 549,160 | | 1,419,568 | | 1,488,245 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 131,158 | | 132,660 | | 81,676 | | 83,420 | | | GNMA | 982,941 | | 985,139 | | 269,523 | | 270,296 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,929 | | 21,728 | | — | | — | | | GNMA | 1,314,836 | | 1,310,207 | | 434,317 | | 434,503 | | | FFELP asset-backed securities | 270,178 | | 263,693 | | — | | — | | | Total investment securities | $ | 3,251,950 | | $ | 3,262,586 | | $ | 2,205,083 | | $ | 2,276,465 | | | Ratio of Fair Value to Amortized Cost | | 100.3 | % | | 103.2 | % |
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| Realized gains and losses and proceeds from sale |
Investment securities gains (losses), net includes proceeds from the sale of investment securities as well as any applicable write-ups or write-downs of investment securities. The proceeds from the sale and write-up of investment securities for each of the three years ended December 31 are shown below. There were no other-than-temporary impairment write-downs on investment securities for 2019, 2018, or 2017. | | | | | | | | | | | | | ($ in Thousands) | 2019 | 2018 | 2017 | | Gross gains on available for sale securities | $ | 6,374 | | $ | 1,954 | | $ | — | | | Gross gains on held to maturity securities | — | | — | | 439 | | | Total gains | 6,374 | | 1,954 | | 439 | | | Gross (losses) on available for sale securities | (13,861) | | (3,938) | | — | | | Gross (losses) on held to maturity securities | — | | — | | (5) | | | Total (losses) | (13,861) | | (3,938) | | (5) | | | Write-up of equity securities without readily determinable fair values | 13,444 | | — | | — | | | Investment securities gains (losses), net | $ | 5,957 | | $ | (1,985) | | $ | 434 | | | Proceeds from sales of investment securities | $ | 1,367,476 | | $ | 601,130 | | $ | 18,467 | |
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| Unrealized losses and fair value of available for sale and held to maturity securities, by investment category and time length |
The following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | | 12 months or more | | | Total | | | ($ in Thousands) | Number
of
Securities | Unrealized
(Losses) | Fair
Value | Number
of
Securities | Unrealized
(Losses) | Fair
Value | Unrealized (Losses) | Fair
Value | | Investment securities available for sale | | | | | | | | | | | | | | | | | | | Obligations of state and political subdivisions (municipal securities) | 4 | | $ | (18) | | 1,225 | | — | | $ | — | | $ | — | | $ | (18) | | $ | 1,225 | | | Residential mortgage-related securities | | | | | | | | | | FNMA / FHLMC | — | | — | | — | | 4 | | (59) | | 34,807 | | (59) | | 34,807 | | | GNMA | 18 | | (924) | | 322,394 | | 3 | | (766) | | 79,461 | | (1,689) | | 401,856 | | | | | | | | | | | | | | | | | | | | | GNMA commercial mortgage-related securities | 22 | | (810) | | 258,218 | | 42 | | (11,222) | | 621,307 | | (12,032) | | 879,524 | | | FFELP asset-backed securities | 19 | | (6,092) | | 250,780 | | 2 | | (393) | | 12,913 | | (6,485) | | 263,693 | | | Other debt securities | 2 | | — | | 2,000 | | — | | — | | — | | — | | 2,000 | | | Total | 65 | | $ | (7,843) | | $ | 834,616 | | 51 | | $ | (12,440) | | $ | 748,487 | | $ | (20,284) | | $ | 1,583,104 | | | Investment securities held to maturity | | | | | | | | | | Obligations of state and political subdivisions (municipal securities) | 52 | | $ | (1,105) | | $ | 77,562 | | 6 | | $ | (13) | | $ | 2,378 | | $ | (1,118) | | $ | 79,940 | | | Residential mortgage-related securities | | | | | | | | | | FNMA / FHLMC | 1 | | (6) | | 1,242 | | 1 | | (9) | | 833 | | (15) | | 2,075 | | | GNMA | 12 | | (1,059) | | 187,261 | | 8 | | (49) | | 6,587 | | (1,108) | | 193,849 | | | GNMA commercial mortgage-related securities | 2 | | (29) | | 26,202 | | 21 | | (6,093) | | 357,733 | | (6,122) | | 383,935 | | | Total | 67 | | $ | (2,199) | | $ | 292,267 | | 36 | | $ | (6,164) | | $ | 367,532 | | $ | (8,363) | | $ | 659,799 | |
For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities available for sale and held to maturity, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | | 12 months or more | | | Total | | | ($ in Thousands) | Number
of
Securities | Unrealized
(Losses) | Fair
Value | Number
of
Securities | Unrealized
(Losses) | Fair
Value | Unrealized
(Losses) | Fair
Value | | Investment securities available for sale | | | | | | | | | | U.S. Treasury securities | — | | $ | — | | $ | — | | 1 | | $ | (1) | | $ | 999 | | $ | (1) | | $ | 999 | | | | | | | | | | | | Residential mortgage-related securities | | | | | | | | | | FNMA / FHLMC | 15 | | (31) | | 17,993 | | 17 | | (3,479) | | 189,405 | | (3,510) | | 207,398 | | | GNMA | 12 | | (4,529) | | 452,183 | | 79 | | (37,355) | | 1,598,159 | | (41,885) | | 2,050,342 | | | Private-label | 1 | | (4) | | 1,003 | | — | | — | | — | | (4) | | 1,003 | | | GNMA commercial mortgage-related securities | — | | — | | — | | 93 | | (52,512) | | 1,220,854 | | (52,512) | | 1,220,854 | | | FFELP asset-backed securities | 13 | | (698) | | 142,432 | | — | | — | | — | | (698) | | 142,432 | | | | | | | | | | | | Total | 41 | | $ | (5,262) | | $ | 613,612 | | 190 | | $ | (93,347) | | $ | 3,009,417 | | $ | (98,610) | | $ | 3,623,028 | | | Investment securities held to maturity | | | | | | | | | | Obligations of state and political subdivisions (municipal securities) | 272 | | $ | (2,860) | | $ | 313,212 | | 752 | | $ | (12,419) | | $ | 509,374 | | $ | (15,279) | | $ | 822,586 | | | Residential mortgage-related securities | | | | | | | | | | FNMA / FHLMC | 13 | | (780) | | 57,896 | | 22 | | (1,015) | | 28,888 | | (1,795) | | 86,784 | | | GNMA | 13 | | (414) | | 19,822 | | 66 | | (7,767) | | 320,387 | | (8,181) | | 340,209 | | | GNMA commercial mortgage-related securities | — | | — | | — | | 25 | | (22,579) | | 490,414 | | (22,579) | | 490,414 | | | Total | 298 | | $ | (4,053) | | $ | 390,929 | | 865 | | $ | (43,780) | | $ | 1,349,063 | | $ | (47,835) | | $ | 1,739,992 | |
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