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SECURITIES (Tables)

3 Months Ended

Mar. 31, 2020

Amortized Cost of AFS Securities by Security Type and Credit Rating

The following table presents the amortized cost of AFS securities as of March 31, 2020 by security type and credit rating (dollars in thousands):


	Three Months Ended March 31, 2020
	U.S. Government and Agency		Obligations of states and political		Corporate and		Mortgage-backed		Other		Total AFS
	securities		subdivisions		other bonds		securities		securities		securities
Credit Rating:
AAA/AA/A	$	2,497	$	514,374	$	32,288	$	38,859	$	—	$	588,018
BBB/BB/B		—		1,033		22,853		—		—		23,886
Not Rated - Agency⁽¹⁾		15,134		—		—		1,153,495		1,608		1,170,237
Not Rated - Non-Agency		—		507		67,091		49,092		1,482		118,172
Total	$	17,631	$	515,914	$	122,232	$	1,241,446	$	3,090	$	1,900,313

(1) Generally considered not to have credit risk given the government guarantees associated with these agencies

Amortized Cost of HTM Securities by Security Type and Credit Rating

The following table presents the amortized cost of HTM securities as of March 31, 2020 by security type and credit rating (dollars in thousands):


	Three Months Ended March 31, 2020
	U.S. Government and Agency		Obligations of states and political		Mortgage-backed		Total HTM
	securities		subdivisions		securities		securities
Credit Rating:
AAA/AA/A	$	—	$	536,747	$	—	$	536,747
Not Rated - Agency⁽¹⁾		2,797		—		5,862		8,659
Not Rated - Non-Agency		—		6,770		—		6,770
Total	$	2,797	$	543,517	$	5,862	$	552,176

(1) Generally considered not to have credit risk given the government guarantees associated with these agencies

Gross Realized Gain and Losses on the Sale of Securities

The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the three months ended March 31, 2020 and 2019 (dollars in thousands).


	Three Months Ended		Three Months Ended
	March 31, 2020		March 31, 2019
Realized gains (losses):
Gross realized gains	$	2,164	$	1,213
Gross realized losses		(228)		(1,062)
Net realized gains	$	1,936	$	151

Proceeds from sales of securities	$	120,701	$	208,249

Available-for-sale Securities

Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of March 31, 2020 are summarized as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

Cost

Gains

(Losses)

Fair Value

March 31, 2020

U.S. government and agency securities

17,631

365

(34)

17,962

Obligations of states and political subdivisions

515,914

31,367

(555)

546,726

Corporate and other bonds ⁽¹⁾

122,232

2,185

(3,449)

120,968

Mortgage-backed securities

Commercial

353,684

13,819

(56)

367,447

Residential

887,762

33,820

(4,872)

916,710

Total mortgage-backed securities

1,241,446

47,639

(4,928)

1,284,157

Other securities

3,090

—

3,090

Total AFS securities

1,900,313

81,556

(8,966)

1,972,903

(1)	Other bonds include asset-backed securities.

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of December 31, 2019 are summarized as follows (dollars in thousands):


	Amortized		Gross Unrealized				Estimated
December 31, 2019	Cost		Gains		(Losses)		Fair Value
U.S. government and agency securities	$	21,149	$	209	$	(38)	$	21,320
Obligations of states and political subdivisions		421,344		25,776		(29)		447,091
Corporate and other bonds ⁽¹⁾		134,342		1,991		(374)		135,959
Mortgage-backed securities
Commercial		416,904		8,786		(643)		425,047
Residential		896,609		17,156		(816)		912,949
Total mortgage-backed securities		1,313,513		25,942		(1,459)		1,337,996
Other securities		3,079		—		—		3,079
Total AFS securities	$	1,893,427	$	53,918	$	(1,900)	$	1,945,445

(1) Other bonds include asset-backed securities

Schedule of Gross Unrealized Losses and Fair Value of Investments

The following table shows the gross unrealized losses and fair value of the Company’s AFS securities with unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2020 and that are not deemed to be other than temporarily impaired as of December 31, 2019. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position (dollars in thousands).


	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
March 31, 2020
U.S. government and agency securities	$	5,338	$	(23)	$	1,619	$	(11)	$	6,957		(34)
Obligations of states and political subdivisions		24,757		(555)		—		—		24,757	$	(555)
Corporate and other bonds⁽¹⁾		40,409		(2,854)		19,922		(595)		60,331		(3,449)
Mortgage-backed securities
Commercial		14,667		(56)		—		—		14,667		(56)
Residential		135,577		(4,436)		14,880		(436)		150,457		(4,872)
Total mortgage-backed securities		150,244		(4,492)		14,880		(436)		165,124		(4,928)
Total AFS securities	$	220,748	$	(7,924)	$	36,421	$	(1,042)	$	257,169	$	(8,966)

December 31, 2019
U.S. government and agency securities	$	7,638	$	(38)	$	—	$	—	$	7,638	$	(38)
Obligations of states and political subdivisions		4,526		(29)		—		—		4,526		(29)
Corporate and other bonds⁽¹⁾		17,323		(83)		19,901		(291)		37,224		(374)
Mortgage-backed securities
Commercial		54,714		(554)		14,966		(89)		69,680		(643)
Residential		114,147		(500)		40,168		(316)		154,315		(816)
Total mortgage-backed securities		168,861		(1,054)		55,134		(405)		223,995		(1,459)
Total AFS securities	$	198,348	$	(1,204)	$	75,035	$	(696)	$	273,383	$	(1,900)

(1) Other bonds includes asset-backed securities.

Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of AFS securities as of March 31, 2020 and December 31, 2019, 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 (dollars in thousands).


	March 31, 2020				December 31, 2019
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	24,916	$	25,080	$	35,177	$	35,329
Due after one year through five years		157,141		162,774		164,605		166,873
Due after five years through ten years		221,929		228,121		249,713		254,790
Due after ten years		1,496,327		1,556,928		1,443,932		1,488,453
Total AFS securities	$	1,900,313	$	1,972,903	$	1,893,427	$	1,945,445

Held-to-maturity Securities

Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of HTM securities as of March 31, 2020 and December 31, 2019, 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 (dollars in thousands).


	March 31, 2020				December 31, 2019
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Due in one year or less	$	—	$	—	$	502	$	504
Due after one year through five years		10,198		10,411		10,258		10,539
Due after five years through ten years		1,760		1,767		1,768		1,800
Due after ten years		540,218		592,602		542,616		590,660
Total HTM securities	$	552,176	$	604,780	$	555,144	$	603,503

Schedule of Carrying Values, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of March 31, 2020 are summarized as follows (dollars in thousands):


	Carrying		Gross Unrealized				Estimated
	Value		Gains		(Losses)		Fair Value
March 31, 2020
U.S. government and agency securities	$	2,797	$	—	$	(69)	$	2,728
Obligations of states and political subdivisions		543,517		52,815		—		596,332
Mortgage-backed securities
Commercial		5,862		—		(142)		5,720
Residential		—		—		—		—
Total mortgage-backed securities		5,862		—		(142)		5,720
Total held-to-maturity securities	$	552,176	$	52,815	$	(211)	$	604,780

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of December 31, 2019 are summarized as follows (dollars in thousands):


	Carrying		Gross Unrealized				Estimated
	Value		Gains		(Losses)		Fair Value
December 31, 2019
U.S. government and agency securities	$	2,813	$	26	$	—	$	2,839
Obligations of states and political subdivisions		545,148		48,274		—		593,422
Mortgage-backed securities
Commercial		7,183		59		—		7,242
Residential		—		—		—		—
Total mortgage-backed securities		7,183		59		—		7,242
Total held-to-maturity securities	$	555,144	$	48,359	$	—	$	603,503