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Securities
 12 Months Ended
Dec. 31, 2016
Available-for-sale Securities [Abstract]  
Securities
Securities
At December 31, 2016 the Company’s securities portfolio primarily consisted of securities issued by the U.S. government, U.S. government agencies, U.S. government-sponsored enterprises and state and municipalities. All of the Company’s mortgage-backed securities and collateralized mortgage obligations are issued by U.S. government agencies and U.S. government-sponsored enterprises and are implicitly guaranteed by the U.S. government. The Company had no other issuances in its portfolio which exceeded ten percent of shareholders’ equity.
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
December 31, 2016
 
(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
1,486,690

 
$
2,760

 
$
(23,718
)
 
$
1,465,732

State and municipal securities
 
473,914

 
6,343

 
(5,197
)
 
475,060

U.S. government agency and government-sponsored enterprise securities
 
332,348

 
1,065

 
(1,511
)
 
331,902

U.S. government securities
 
801

 
—

 
(1
)
 
800

Other securities
 
5,284

 
63

 
(264
)
 
5,083

Total
 
$
2,299,037

 
$
10,231

 
$
(30,691
)
 
$
2,278,577

December 31, 2015
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
1,296,955

 
$
4,525

 
$
(14,991
)
 
$
1,286,489

State and municipal securities
 
480,417

 
12,690

 
(938
)
 
492,169

U.S. government agency and government-sponsored enterprise securities
 
354,515

 
1,113

 
(1,846
)
 
353,782

U.S. government securities
 
20,439

 
—

 
(302
)
 
20,137

Other securities
 
5,284

 
24

 
(191
)
 
5,117

Total
 
$
2,157,610

 
$
18,352

 
$
(18,268
)
 
$
2,157,694


Proceeds from sales of securities available-for-sale were $124.1 million, $95.4 million and $63.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. The following table provides the gross realized gains and losses on the sales and calls of securities for the periods indicated:
 
 
Years Ended December 31,
 
 
2016
 
2015
 
2014
 
 
(in thousands)
Gross realized gains
 
$
1,181

 
$
1,591

 
$
553

Gross realized losses
 
—

 
(10
)
 
(1
)
Net realized gains
 
$
1,181

 
$
1,581

 
$
552


The scheduled contractual maturities of investment securities available for sale at December 31, 2016 are presented as follows:
 
 
December 31, 2016
 
 
Amortized Cost
 
Fair Value
 
 
(in thousands)
Due within one year
 
$
38,596

 
$
38,717

Due after one year through five years
 
515,056

 
517,283

Due after five years through ten years
 
679,739

 
672,018

Due after ten years
 
1,060,362

 
1,045,476

Other securities with no stated maturity
 
5,284

 
5,083

Total investment securities available-for-sale
 
$
2,299,037

 
$
2,278,577


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:
 
 
December 31, 2016
 
December 31, 2015
 
 
(in thousands)
Washington and Oregon State to secure public deposits
 
$
232,714

 
$
341,079

Federal Reserve Bank to secure borrowings
 
33,825

 
48,714

Other securities pledged
 
132,350

 
143,606

Total securities pledged as collateral
 
$
398,889

 
$
533,399

The following tables show 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 December 31, 2016 and 2015:
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
December 31, 2016
 
(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
1,029,116

 
$
(18,788
)
 
$
159,046

 
$
(4,930
)
 
$
1,188,162

 
(23,718
)
State and municipal securities
 
211,342

 
(5,064
)
 
3,384

 
(133
)
 
214,726

 
(5,197
)
U.S. government agency and government-sponsored enterprise securities
 
218,811

 
(1,511
)
 
—

 
—

 
218,811

 
(1,511
)
U.S. government securities
 
251

 
(1
)
 
—

 
—

 
251

 
(1
)
Other securities
 
2,263

 
(51
)
 
2,743

 
(213
)
 
5,006

 
(264
)
Total
 
$
1,461,783

 
$
(25,415
)
 
$
165,173

 
$
(5,276
)
 
$
1,626,956

 
$
(30,691
)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
664,509

 
$
(7,610
)
 
$
214,325

 
$
(7,381
)
 
$
878,834

 
$
(14,991
)
State and municipal securities
 
48,261

 
(358
)
 
31,383

 
(580
)
 
79,644

 
(938
)
U.S. government agency and government-sponsored enterprise securities
 
193,400

 
(1,128
)
 
40,034

 
(718
)
 
233,434

 
(1,846
)
U.S. government securities
 
10,343

 
(136
)
 
9,794

 
(166
)
 
20,137

 
(302
)
Other securities
 
2,300

 
(15
)
 
2,780

 
(176
)
 
5,080

 
(191
)
Total
 
$
918,813

 
$
(9,247
)
 
$
298,316

 
$
(9,021
)
 
$
1,217,129

 
$
(18,268
)

At December 31, 2016, there were 192 U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations securities in an unrealized loss position, of which 50 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 December 31, 2016.
At December 31, 2016, there were 180 state and municipal government securities in an unrealized loss position, of which 5 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 December 31, 2016, 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 is investment grade and 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 December 31, 2016.
At December 31, 2016, there were 22 U.S. government agency and government-sponsored enterprise securities in an unrealized loss position, of which none 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 December 31, 2016.
At December 31, 2016, there was one U.S. government securities in an unrealized loss position, which was not 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 December 31, 2016.
At December 31, 2016, there were two other securities in an unrealized loss position, of which one security, a mortgage-backed securities fund, 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 December 31, 2016 as it has the intent and ability to hold the investment for sufficient time to allow for recovery in the market value.