XML 61 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
Securities
 9 Months Ended
Sep. 30, 2015
Available-for-sale Securities [Abstract]  
Securities
Securities
The following table summarizes the amortized cost, gross unrealized gains and losses and the resulting fair value of securities available for sale:
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
 
(in thousands)
September 30, 2015
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
1,157,054

 
$
12,610

 
$
(5,132
)
 
$
1,164,532

State and municipal securities
 
476,650

 
13,574

 
(755
)
 
489,469

U.S. government agency and government-sponsored enterprise securities
 
345,309

 
2,922

 
(375
)
 
347,856

U.S. government securities
 
20,431

 
1

 
(32
)
 
20,400

Other securities
 
5,284

 
31

 
(148
)
 
5,167

Total
 
$
2,004,728

 
$
29,138

 
$
(6,442
)
 
$
2,027,424

December 31, 2014
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
1,160,378

 
$
10,219

 
$
(8,210
)
 
$
1,162,387

State and municipal securities
 
483,578

 
14,432

 
(1,526
)
 
496,484

U.S. government agency and government-sponsored enterprise securities
 
416,919

 
856

 
(4,069
)
 
413,706

U.S. government securities
 
20,910

 
—

 
(411
)
 
20,499

Other securities
 
5,284

 
20

 
(123
)
 
5,181

Total
 
$
2,087,069

 
$
25,527

 
$
(14,339
)
 
$
2,098,257


Proceeds from sales of securities available-for-sale were $10.6 million and $25.1 million for the three months ended September 30, 2015 and 2014, respectively, and were $82.8 million and $55.8 million for the nine months ended September 30, 2015 and 2014, respectively. The following table provides the gross realized gains and losses on the sales of securities for the periods indicated:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2015
 
2014
 
2015
 
2014
 
 
(in thousands)
Gross realized gains
 
$
236

 
$
33

 
$
1,310

 
$
552

Gross realized losses
 
—

 
—

 
(10
)
 
—

Net realized gains
 
$
236

 
$
33

 
$
1,300

 
$
552


The scheduled contractual maturities of investment securities available for sale at September 30, 2015 are presented as follows:
 
 
September 30, 2015
 
 
Amortized Cost
 
Fair Value
 
 
(in thousands)
Due within one year
 
$
22,054

 
$
22,320

Due after one year through five years
 
418,087

 
421,722

Due after five years through ten years
 
543,698

 
553,422

Due after ten years
 
1,015,605

 
1,024,793

Other securities with no stated maturity
 
5,284

 
5,167

Total investment securities available-for-sale
 
$
2,004,728

 
$
2,027,424


The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:
 
 
September 30, 2015
 
 
(in thousands)
Washington and Oregon State to secure public deposits
 
$
328,476

Federal Reserve Bank to secure borrowings
 
55,578

Other securities pledged
 
149,032

Total securities pledged as collateral
 
$
533,086


The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2015 and December 31, 2014:
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
 
(in thousands)
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
124,092

 
$
(804
)
 
$
204,165

 
$
(4,328
)
 
$
328,257

 
$
(5,132
)
State and municipal securities
 
37,808

 
(161
)
 
29,960

 
(594
)
 
67,768

 
(755
)
U.S. government agency and government-sponsored enterprise securities
 
500

 
(1
)
 
54,892

 
(374
)
 
55,392

 
(375
)
U.S. government securities
 
—

 
—

 
9,925

 
(32
)
 
9,925

 
(32
)
Other securities
 
—

 
—

 
2,807

 
(148
)
 
2,807

 
(148
)
Total
 
$
162,400

 
$
(966
)
 
$
301,749

 
$
(5,476
)
 
$
464,149

 
$
(6,442
)
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
258,825

 
$
(1,287
)
 
$
279,015

 
$
(6,924
)
 
$
537,840

 
$
(8,211
)
State and municipal securities
 
71,026

 
(543
)
 
44,148

 
(982
)
 
115,174

 
(1,525
)
U.S. government agency and government-sponsored enterprise securities
 
105,250

 
(518
)
 
216,221

 
(3,551
)
 
321,471

 
(4,069
)
U.S. government securities
 
—

 
—

 
19,450

 
(411
)
 
19,450

 
(411
)
Other securities
 
2,313

 
(2
)
 
2,834

 
(121
)
 
5,147

 
(123
)
Total
 
$
437,414

 
$
(2,350
)
 
$
561,668

 
$
(11,989
)
 
$
999,082

 
$
(14,339
)

At September 30, 2015, there were 75 U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations securities in an unrealized loss position, of which 38 were in a continuous loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2015.
At September 30, 2015, there were 57 state and municipal government securities in an unrealized loss position, of which 28 were in a continuous loss position for 12 months or more. The unrealized losses on state and municipal securities were caused by interest rate changes or widening of market spreads subsequent to the purchase of the individual securities. Management monitors published credit ratings of these securities for adverse changes. As of September 30, 2015, none of the rated obligations of state and local government entities held by the Company had a below investment grade credit rating. Because the credit quality of these securities are investment grade and the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2015.
At September 30, 2015, there were six U.S. government agency and government-sponsored enterprise securities in an unrealized loss position, five of which were in a continuous loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not currently intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2015.
At September 30, 2015, there was one U.S. government security in an unrealized loss position which was in a continuous loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates relative to where this investment falls within the yield curve and its individual characteristics. Because the Company does not currently intend to sell this security nor does the Company consider it more likely than not that it will be required to sell this security before the recovery of amortized cost basis, which may be upon maturity, the Company does not consider this investment to be other-than-temporarily impaired at September 30, 2015.
At September 30, 2015, there was one other security in an unrealized loss position, which was in a continuous unrealized loss position for 12 months or more. The decline in fair value is attributable to changes in interest rates and the additional risk premium investors are demanding for investment securities with these characteristics. The Company does not consider this investment to be other-than-temporarily impaired at September 30, 2015 as it has the intent and ability to hold the investment for sufficient time to allow for recovery in the market value.