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Investments (Tables)

6 Months Ended

Jun. 30, 2019

Aggregate Values And Unrealized Gains And Losses Of Investment Securities

The amortized cost and fair value of investment securities at June 30, 2019 and December 31, 2018, were as follows:



	June 30, 2019
(Dollars in thousands)	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	946,859	$	1,625	$	82	$	948,402
Government agency	533,269		1,724		189		534,804
Mortgage-backed securities	2,734,696		7,420		8,418		2,733,698
Corporate bonds	147,901		1,591		355		149,137
Total investment securities available for sale	4,362,725		12,360		9,044		4,366,041
Investment in marketable equity securities	80,542		31,163		216		111,489
Investment securities held to maturity
Mortgage-backed securities	2,182,500		67,235		—		2,249,735
Other	35,548		—		—		35,548
Total investment securities held to maturity	2,218,048		67,235		—		2,285,283
Total investment securities	$	6,661,315	$	110,758	$	9,260	$	6,762,813

	December 31, 2018
(Dollars in thousands)	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,249,243	$	633	$	2,166	$	1,247,710
Government agency	257,252		222		639		256,835
Mortgage-backed securities	2,956,793		5,309		52,763		2,909,339
Corporate bonds	143,829		261		864		143,226
Total investment securities available for sale	4,607,117		6,425		56,432		4,557,110
Investment in marketable equity securities	73,809		19,010		220		92,599
Investment securities held to maturity
Mortgage-backed securities	2,184,653		17,339		490		2,201,502
Total investment securities	$	6,865,579	$	42,774	$	57,142	$	6,851,211

Investment Securities Maturity Information

The following table provides the amortized cost and fair value by contractual maturity for investment securities available for sale and held to maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Repayments of mortgage-backed securities are dependent on the repayments of the underlying loan balances, while repayments of certain corporate bonds are subject to call provisions that can be exercised by the issuer at their discretion.



	June 30, 2019				December 31, 2018
(Dollars in thousands)	Cost		Fair value		Cost		Fair value
Investment securities available for sale
Non-amortizing securities maturing in:
One year or less	$	897,407	$	898,632	$	1,049,253	$	1,047,380
One through five years	54,935		55,320		205,526		205,805
Five through 10 years	138,484		139,462		134,370		133,626
Over 10 years	3,934		4,125		3,923		4,125
Government agency	533,269		534,804		257,252		256,835
Mortgage-backed securities	2,734,696		2,733,698		2,956,793		2,909,339
Total investment securities available for sale	$	4,362,725	$	4,366,041	$	4,607,117	$	4,557,110
Investment securities held to maturity
Non-amortizing securities maturing in:
One year or less	34,550		34,550		—		—
One through five years	998		998		—		—
Mortgage-backed securities	2,182,500		2,249,735		2,184,653		2,201,502
Total investment securities held to maturity	$	2,218,048	$	2,285,283	$	2,184,653	$	2,201,502

Marketable Securities Gains (Losses)

The following table provides the realized and unrealized gains on marketable equity securities for the three and six months ended June 30, 2019:



	Three months ended June 30				Six months ended June 30
(Dollars in thousands)	2019		2018		2019		2018
Marketable equity securities gains, net	$	3,144	$	4,440	$	14,472	$	5,411
Less net gains recognized on marketable equity securities sold	2,271		139		2,315		235
Unrealized gains recognized on marketable equity securities held	$	873	$	4,301	$	12,157	$	5,176

Investment Securities With Unrealized Losses

The following table provides information regarding securities with unrealized losses as of June 30, 2019 and December 31, 2018:



	June 30, 2019
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale
U.S. Treasury	$	—	$	—	$	150,248	$	82	$	150,248	$	82
Government agency	39,456		25		58,879		164		98,335		189
Mortgage-backed securities	109,521		288		1,448,894		8,130		1,558,415		8,418
Corporate bonds	31,090		222		7,560		133		38,650		355
Total	$	180,067	$	535	$	1,665,581	$	8,509	$	1,845,648	$	9,044

	December 31, 2018
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale
U.S. Treasury	$	248,983	$	113	$	848,622	$	2,053	$	1,097,605	$	2,166
Government agency	115,273		601		2,310		38		117,583		639
Mortgage-backed securities	262,204		2,387		1,940,695		50,376		2,202,899		52,763
Corporate bonds	79,066		842		5,000		22		84,066		864
Total	$	705,526	$	3,943	$	2,796,627	$	52,489	$	3,502,153	$	56,432
Investment securities held to maturity
Mortgage-backed securities	$	5,111	$	181	$	10,131	$	309	$	15,242	$	490

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

INVESTMENTS

The amortized cost and fair value of investment securities at June 30, 2019 and December 31, 2018, were as follows:



	June 30, 2019
(Dollars in thousands)	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	946,859	$	1,625	$	82	$	948,402
Government agency	533,269		1,724		189		534,804
Mortgage-backed securities	2,734,696		7,420		8,418		2,733,698
Corporate bonds	147,901		1,591		355		149,137
Total investment securities available for sale	4,362,725		12,360		9,044		4,366,041
Investment in marketable equity securities	80,542		31,163		216		111,489
Investment securities held to maturity
Mortgage-backed securities	2,182,500		67,235		—		2,249,735
Other	35,548		—		—		35,548
Total investment securities held to maturity	2,218,048		67,235		—		2,285,283
Total investment securities	$	6,661,315	$	110,758	$	9,260	$	6,762,813

	December 31, 2018
(Dollars in thousands)	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,249,243	$	633	$	2,166	$	1,247,710
Government agency	257,252		222		639		256,835
Mortgage-backed securities	2,956,793		5,309		52,763		2,909,339
Corporate bonds	143,829		261		864		143,226
Total investment securities available for sale	4,607,117		6,425		56,432		4,557,110
Investment in marketable equity securities	73,809		19,010		220		92,599
Investment securities held to maturity
Mortgage-backed securities	2,184,653		17,339		490		2,201,502
Total investment securities	$	6,865,579	$	42,774	$	57,142	$	6,851,211

Investments in mortgage-backed securities represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in government agency securities represent securities issued by the United States Small Business Administration. Investments in corporate bonds and marketable equity securities represent positions in securities of other financial institutions. Other available for sale investments include trust preferred securities of financial institutions. Other held to maturity investments include certificates of deposit with other financial institutions, acquired in the Biscayne Bancshares acquisition. BancShares also holds approximately 298,000 shares of Visa Class B common stock. BancShares' Visa Class B shares are not considered to have a readily determinable fair value and are included in the Consolidated Balance Sheet with no fair value.



	June 30, 2019				December 31, 2018
(Dollars in thousands)	Cost		Fair value		Cost		Fair value
Investment securities available for sale
Non-amortizing securities maturing in:
One year or less	$	897,407	$	898,632	$	1,049,253	$	1,047,380
One through five years	54,935		55,320		205,526		205,805
Five through 10 years	138,484		139,462		134,370		133,626
Over 10 years	3,934		4,125		3,923		4,125
Government agency	533,269		534,804		257,252		256,835
Mortgage-backed securities	2,734,696		2,733,698		2,956,793		2,909,339
Total investment securities available for sale	$	4,362,725	$	4,366,041	$	4,607,117	$	4,557,110
Investment securities held to maturity
Non-amortizing securities maturing in:
One year or less	34,550		34,550		—		—
One through five years	998		998		—		—
Mortgage-backed securities	2,182,500		2,249,735		2,184,653		2,201,502
Total investment securities held to maturity	$	2,218,048	$	2,285,283	$	2,184,653	$	2,201,502

There were gross gains of $5.7 million on sales of investment securities available for sale for the three and six months ended June 30, 2019. There were no gross losses on sales of investment securities available for sale during this period. There were no gross gains or losses on sales of investment securities available for sale for the six months ended June 30, 2018.

The following table provides the realized and unrealized gains on marketable equity securities for the three and six months ended June 30, 2019:



	Three months ended June 30				Six months ended June 30
(Dollars in thousands)	2019		2018		2019		2018
Marketable equity securities gains, net	$	3,144	$	4,440	$	14,472	$	5,411
Less net gains recognized on marketable equity securities sold	2,271		139		2,315		235
Unrealized gains recognized on marketable equity securities held	$	873	$	4,301	$	12,157	$	5,176

The following table provides information regarding securities with unrealized losses as of June 30, 2019 and December 31, 2018:



	June 30, 2019
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale
U.S. Treasury	$	—	$	—	$	150,248	$	82	$	150,248	$	82
Government agency	39,456		25		58,879		164		98,335		189
Mortgage-backed securities	109,521		288		1,448,894		8,130		1,558,415		8,418
Corporate bonds	31,090		222		7,560		133		38,650		355
Total	$	180,067	$	535	$	1,665,581	$	8,509	$	1,845,648	$	9,044

	December 31, 2018
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale
U.S. Treasury	$	248,983	$	113	$	848,622	$	2,053	$	1,097,605	$	2,166
Government agency	115,273		601		2,310		38		117,583		639
Mortgage-backed securities	262,204		2,387		1,940,695		50,376		2,202,899		52,763
Corporate bonds	79,066		842		5,000		22		84,066		864
Total	$	705,526	$	3,943	$	2,796,627	$	52,489	$	3,502,153	$	56,432
Investment securities held to maturity
Mortgage-backed securities	$	5,111	$	181	$	10,131	$	309	$	15,242	$	490

As of June 30, 2019, there were 200 investment securities available for sale that had continuous losses for more than 12 months of which 197 were government sponsored enterprise-issued mortgage-backed securities or government agency securities, one was a U.S. Treasury security and two were corporate bonds.

None of the unrealized losses identified as of June 30, 2019 or December 31, 2018 relate to the marketability of the securities or the issuers' ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the debt securities were purchased. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Therefore, none of the securities were deemed to be other than temporarily impaired.

Debt securities having an aggregate carrying value of $3.75 billion at June 30, 2019 and $4.03 billion at December 31, 2018 were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law.