Note 7 - Investment Securities

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

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

7. Investment Securities

The following tables set forth the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of securities available-for-sale as of September 30, 2019, and December 31, 2018:

	September 30, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. government agency entities	$	92,477	$	750	$	273	$	92,954
U.S. government sponsored entities		350,000		—		2,301		347,699
Mortgage-backed securities		880,406		7,714		1,385		886,735
Collateralized mortgage obligations		683		—		18		665
Corporate debt securities		98,865		533		13		99,385
Total	$	1,422,431	$	8,997	$	3,990	$	1,427,438

	December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	124,801	$	—	$	50	$	124,751
U.S. government agency entities		6,066		—		195		5,871
U.S. government sponsored entities		400,000		—		11,638		388,362
Mortgage-backed securities		670,874		960		15,089		656,745
Collateralized mortgage obligations		1,005		—		28		977
Corporate debt securities		64,985		818		—		65,803
Total	$	1,267,731	$	1,778	$	27,000	$	1,242,509

The amortized cost and fair value of securities available-for-sale as of September 30, 2019, by contractual maturities, are set forth in the tables below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.

	September 30, 2019
	Securities Available-For-Sale
	Amortized Cost		Fair Value
	(In thousands)
Due in one year or less	$	19,993	$	20,103
Due after one year through five years		429,449		427,578
Due after five years through ten years		41,718		41,710
Due after ten years		931,271		938,047
Total	$	1,422,431	$	1,427,438

Equity Securities - The adoption of ASU 2016-01 resulted in approximately $8.6 million being reclassified from accumulated other comprehensive income to retained earnings, representing an increase to retained earnings as of January 1, 2018. The Company recognized a net gain of $0.4 million for the three months ended September 30, 2019, due to the increase in fair value of equity investments with readily determinable fair values compared to a net gain of $0.4 million for the three months ended September 30, 2018. The Company recognized a net gain of $7.8 million for the nine months ended September 30, 2019, due to the increase in fair value of equity investments with readily determinable fair values compared to a net loss of $4.6 million for the nine months ended September 30, 2018. Equity securities were $32.9 million and $25.1 million as of September 30, 2019 and December 31, 2018, respectively.

The following tables set forth the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of  September 30, 2019 and  December 31, 2018:

	September 30, 2019
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Securities Available-for-Sale
U.S. government agency entities	$	49,796	$	108	$	3,748	$	165	$	53,544	$	273
U.S. government sponsored entities		—		—		347,699		2,301		347,699		2,301
Mortgage-backed securities		115,727		220		146,666		1,165		262,393		1,385
Collateralized mortgage obligations		—		—		665		18		665		18
Corporate debt securities		28,819		13		—		—		28,819		13
Total	$	194,342	$	341	$	498,778	$	3,649	$	693,120	$	3,990

	December 31, 2018
	Less than 12 Months				12 Months or Longer				Total
			Gross				Gross				Gross
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(In thousands)
Securities Available-for-Sale
U.S. treasury securities	$	124,751	$	50	$	—	$	—	$	124,751	$	50
U.S. government agency entities		3,388		77		2,483		118		5,871		195
U.S. government sponsored entities		—		—		388,362		11,638		388,362		11,638
Mortgage-backed securities		48,528		502		507,701		14,587		556,229		15,089
Collateralized mortgage obligations		—		—		977		28		977		28
Total	$	176,667	$	629	$	899,523	$	26,371	$	1,076,190	$	27,000

To the Company’s knowledge, the unrealized losses were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. The issuers have not, to the Company’s knowledge, established any cause for default on these securities. Management believes the gross unrealized losses detailed in the table above are temporary. The Company expects to recover the amortized cost basis of its securities and has no present intent to sell and will not be required to sell available-for-sale securities that have declined below their cost before their anticipated recovery. Accordingly, noother than temporary impairment write-downs were recorded on the Company’s Condensed Consolidated Statement of Operations and Comprehensive Income in the nine months ended September 30, 2019 and 2018.

Securities available-for-sale having a carrying value of $20.8 million and $28.5 million as of September 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits, other borrowings and treasury tax and loan.