Investment Securities (Tables)
|
12 Months Ended |
Dec. 31, 2020 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Investment securities available for sale |
The amortized cost and fair values of securities AFS and HTM at December 31, 2020 were as follows: | | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | Investment securities AFS | | | | | | U.S. Treasury securities | $ | 26,436 | | $ | 95 | | $ | — | | $ | 26,531 | | | Agency securities | 24,985 | | 53 | | — | | 25,038 | | | Obligations of state and political subdivisions (municipal securities) | 425,057 | | 25,605 | | — | | 450,662 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 1,448,806 | | 12,935 | | (500) | | 1,461,241 | | | GNMA | 231,364 | | 4,176 | | (3) | | 235,537 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,654 | | 3,250 | | — | | 22,904 | | | GNMA | 511,429 | | 13,327 | | — | | 524,756 | | | Asset backed securities | | | | | | FFELP | 329,030 | | 1,172 | | (3,013) | | 327,189 | | | SBA | 8,637 | | — | | (53) | | 8,584 | | | Other debt securities | 3,000 | | — | | — | | 3,000 | | | Total investment securities AFS | $ | 3,028,399 | | $ | 60,612 | | $ | (3,570) | | $ | 3,085,441 | | | Investment securities HTM | | | | | | U.S. Treasury securities | $ | 999 | | $ | 25 | | $ | — | | $ | 1,024 | | | Obligations of state and political subdivisions (municipal securities) | 1,441,900 | | 133,544 | | — | | 1,575,445 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 54,599 | | 2,891 | | — | | 57,490 | | | GNMA | 114,553 | | 4,260 | | — | | 118,813 | | | Commercial mortgage-related securities | | | | | | FNMA/FHLMC | 11,211 | | — | | — | | 11,211 | | | GNMA | 255,742 | | 9,218 | | — | | 264,960 | | | Total investment securities HTM | $ | 1,879,005 | | $ | 149,938 | | $ | — | | $ | 2,028,943 | |
The amortized cost and fair values of securities AFS and HTM at December 31, 2019 were as follows: | | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | Investment securities AFS | | | | | | | | | | | Obligations of state and political subdivisions (municipal securities) | $ | 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 AFS | $ | 3,251,950 | | $ | 30,920 | | $ | (20,284) | | $ | 3,262,586 | | | Investment securities HTM | | | | | | U.S. Treasury securities | $ | 999 | | $ | 19 | | $ | — | | $ | 1,018 | | | Obligations of state and political subdivisions (municipal securities) | 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 HTM | $ | 2,205,083 | | $ | 79,744 | | $ | (8,363) | | $ | 2,276,465 | |
|
| Investment securities held to maturity |
The amortized cost and fair values of securities AFS and HTM at December 31, 2020 were as follows: | | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | Investment securities AFS | | | | | | U.S. Treasury securities | $ | 26,436 | | $ | 95 | | $ | — | | $ | 26,531 | | | Agency securities | 24,985 | | 53 | | — | | 25,038 | | | Obligations of state and political subdivisions (municipal securities) | 425,057 | | 25,605 | | — | | 450,662 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 1,448,806 | | 12,935 | | (500) | | 1,461,241 | | | GNMA | 231,364 | | 4,176 | | (3) | | 235,537 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,654 | | 3,250 | | — | | 22,904 | | | GNMA | 511,429 | | 13,327 | | — | | 524,756 | | | Asset backed securities | | | | | | FFELP | 329,030 | | 1,172 | | (3,013) | | 327,189 | | | SBA | 8,637 | | — | | (53) | | 8,584 | | | Other debt securities | 3,000 | | — | | — | | 3,000 | | | Total investment securities AFS | $ | 3,028,399 | | $ | 60,612 | | $ | (3,570) | | $ | 3,085,441 | | | Investment securities HTM | | | | | | U.S. Treasury securities | $ | 999 | | $ | 25 | | $ | — | | $ | 1,024 | | | Obligations of state and political subdivisions (municipal securities) | 1,441,900 | | 133,544 | | — | | 1,575,445 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 54,599 | | 2,891 | | — | | 57,490 | | | GNMA | 114,553 | | 4,260 | | — | | 118,813 | | | Commercial mortgage-related securities | | | | | | FNMA/FHLMC | 11,211 | | — | | — | | 11,211 | | | GNMA | 255,742 | | 9,218 | | — | | 264,960 | | | Total investment securities HTM | $ | 1,879,005 | | $ | 149,938 | | $ | — | | $ | 2,028,943 | |
The amortized cost and fair values of securities AFS and HTM at December 31, 2019 were as follows: | | | | | | | | | | | | | | | | ($ in Thousands) | Amortized
Cost | Gross
Unrealized
Gains | Gross
Unrealized
(Losses) | Fair Value | | | | Investment securities AFS | | | | | | | | | | | Obligations of state and political subdivisions (municipal securities) | $ | 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 AFS | $ | 3,251,950 | | $ | 30,920 | | $ | (20,284) | | $ | 3,262,586 | | | Investment securities HTM | | | | | | U.S. Treasury securities | $ | 999 | | $ | 19 | | $ | — | | $ | 1,018 | | | Obligations of state and political subdivisions (municipal securities) | 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 HTM | $ | 2,205,083 | | $ | 79,744 | | $ | (8,363) | | $ | 2,276,465 | |
|
| 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 AFS and HTM at December 31, 2020, are shown below: | | | | | | | | | | | | | | | | | AFS | HTM | | ($ in Thousands) | Amortized
Cost | Fair
Value | Amortized
Cost | Fair
Value | | Due in one year or less | $ | 7,385 | | $ | 7,394 | | $ | 29,665 | | $ | 29,938 | | | Due after one year through five years | 83,293 | | 84,112 | | 54,313 | | 56,196 | | | Due after five years through ten years | 350,687 | | 371,076 | | 187,853 | | 197,850 | | | Due after ten years | 38,113 | | 42,650 | | 1,171,068 | | 1,292,485 | | | Total debt securities | 479,478 | | 505,231 | | 1,442,900 | | 1,576,469 | | | Residential mortgage-related securities | | | | | | FNMA / FHLMC | 1,448,806 | | 1,461,241 | | 54,599 | | 57,490 | | | GNMA | 231,364 | | 235,537 | | 114,553 | | 118,813 | | | | | | | | Commercial mortgage-related securities | | | | | | FNMA / FHLMC | 19,654 | | 22,904 | | 11,211 | | 11,211 | | | GNMA | 511,429 | | 524,756 | | 255,742 | | 264,960 | | | Asset backed securities | | | | | | FFELP | 329,030 | | 327,189 | | — | | — | | | SBA | 8,637 | | 8,584 | | — | | — | | | Total investment securities | $ | 3,028,399 | | $ | 3,085,441 | | $ | 1,879,005 | | $ | 2,028,943 | | | Ratio of Fair Value to Amortized Cost | | 101.9 | % | | 108.0 | % |
|
| Debt Securities, Held-to-maturity, Credit Quality Indicator [Table Text Block] |
On a quarterly basis, the Corporation refreshes the credit quality of each HTM security. The following table summarizes the credit quality indicators of HTM securities at amortized cost at December 31, 2020: | | | | | | | | | | | | | | | | ($ in Thousands) | AAA | AA | A | Total | | U.S. Treasury securities | $ | 999 | | $ | — | | $ | — | | $ | 999 | | | Obligations of state and political subdivisions (municipal securities) | 567,252 | | 860,607 | | 14,041 | | 1,441,900 | | | Residential mortgage-related securities | | | | | | FNMA/FHLMC | 54,599 | | — | | — | | 54,599 | | | GNMA | 114,553 | | — | | — | | 114,553 | | | Commercial mortgage-related securities | | | | | | FNMA/FHLMC | 11,211 | | — | | — | | 11,211 | | | GNMA | 255,742 | | — | | — | | 255,742 | | | Total HTM securities | $ | 1,004,357 | | $ | 860,607 | | $ | 14,041 | | $ | 1,879,005 | |
|
| 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. | | | | | | | | | | | | | ($ in Thousands) | 2020 | 2019 | 2018 | | Gross gains on AFS securities | $ | 9,312 | | $ | 6,374 | | $ | 1,954 | | | | | | | | | | | Gross (losses) on AFS securities | (90) | | (13,861) | | (3,938) | | | | | | | | | | | Write-up of equity securities without readily determinable fair values | — | | 13,444 | | — | | | Investment securities gains (losses), net | $ | 9,222 | | $ | 5,957 | | $ | (1,985) | | | Proceeds from sales of investment securities | $ | 626,283 | | $ | 1,367,476 | | $ | 601,130 | |
|
| 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 AFS and HTM, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position, at December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 AFS | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential mortgage-related securities | | | | | | | | | | FNMA / FHLMC | 7 | | $ | (500) | | $ | 163,002 | | — | | $ | — | | $ | — | | $ | (500) | | $ | 163,002 | | | GNMA | 2 | | (3) | | 9,784 | | — | | — | | — | | (3) | | 9,784 | | | | | | | | | | | | | | | | | | | | | GNMA commercial mortgage-related securities | 1 | | — | | 287 | | — | | — | | — | | — | | 287 | | | Asset backed securities | | | | | | | | | | FFELP | 1 | | (129) | | 9,267 | | 16 | | (2,885) | | 178,681 | | (3,013) | | 187,948 | | | SBA | 14 | | (53) | | 8,379 | | — | | — | | — | | (53) | | 8,379 | | | Other debt securities | 2 | | — | | 2,000 | | — | | — | | — | | — | | 2,000 | | | Total | 27 | | $ | (685) | | $ | 192,720 | | 16 | | $ | (2,885) | | $ | 178,681 | | $ | (3,570) | | $ | 371,400 | | | Investment securities HTM | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | GNMA residential mortgage-related securities | 1 | | $ | — | | $ | 325 | | — | | $ | — | | $ | — | | $ | — | | $ | 325 | | | | | | | | | | | | Total | 1 | | $ | — | | $ | 325 | | — | | $ | — | | $ | — | | $ | — | | $ | 325 | |
For comparative purposes, the following represents gross unrealized losses and the related fair value of investment securities AFS and HTM, aggregated by investment category and length of time that 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 AFS | | | | | | | | | | | | | | | | | | | 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 HTM | | | | | | | | | | 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 | |
|