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Securities
 12 Months Ended
Dec. 31, 2017
Available-for-sale Securities [Abstract]  
Securities
Securities
At December 31, 2017 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, 2017
 
(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
1,752,236

 
$
1,815

 
$
(27,326
)
 
$
1,726,725

State and municipal securities
 
593,940

 
6,023

 
(3,959
)
 
596,004

U.S. government agency and government-sponsored enterprise securities
 
416,894

 
642

 
(2,762
)
 
414,774

U.S. government securities
 
251

 
—

 
(3
)
 
248

Other securities
 
5,284

 
84

 
(288
)
 
5,080

Total
 
$
2,768,605

 
$
8,564

 
$
(34,338
)
 
$
2,742,831

December 31, 2016
 
 
 
 
 
 
 
 
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


The following table provides the proceeds and gross realized gains and losses on the sales and calls of securities for the periods indicated:
 
 
Years Ended December 31,
 
 
2017
 
2016
 
2015
 
 
(in thousands)
Proceeds from sales and calls of available for sale securities
 
$
30,403

 
$
124,142

 
$
95,375

 
 
 
 
 
 
 
Gross realized gains
 
$
111

 
$
1,181

 
$
1,591

Gross realized losses
 
(122
)
 
—

 
(10
)
Net realized gains
 
$
(11
)
 
$
1,181

 
$
1,581


The scheduled contractual maturities of investment securities available for sale at December 31, 2017 are presented as follows:
 
 
December 31, 2017
 
 
Amortized Cost
 
Fair Value
 
 
(in thousands)
Due within one year
 
$
124,885

 
$
124,763

Due after one year through five years
 
638,921

 
636,860

Due after five years through ten years
 
804,462

 
796,611

Due after ten years
 
1,195,053

 
1,179,517

Other securities with no stated maturity
 
5,284

 
5,080

Total investment securities available-for-sale
 
$
2,768,605

 
$
2,742,831


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, 2017
 
December 31, 2016
 
 
(in thousands)
Washington and Oregon State to secure public deposits
 
$
245,222

 
$
232,714

Federal Reserve Bank to secure borrowings
 
52,917

 
33,825

Other securities pledged
 
121,244

 
132,350

Total securities pledged as collateral
 
$
419,383

 
$
398,889

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, 2017 and 2016:
 
 
Less than 12 Months
 
12 Months or More
 
Total
 
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
December 31, 2017
 
(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
 
$
816,678

 
$
(6,710
)
 
$
717,211

 
$
(20,616
)
 
$
1,533,889

 
(27,326
)
State and municipal securities
 
220,019

 
(1,723
)
 
75,172

 
(2,236
)
 
295,191

 
(3,959
)
U.S. government agency and government-sponsored enterprise securities
 
184,046

 
(1,006
)
 
155,983

 
(1,756
)
 
340,029

 
(2,762
)
U.S. government securities
 
249

 
(3
)
 
—

 
—

 
249

 
(3
)
Other securities
 
—

 
—

 
4,982

 
(288
)
 
4,982

 
(288
)
Total
 
$
1,220,992

 
$
(9,442
)
 
$
953,348

 
$
(24,896
)
 
$
2,174,340

 
$
(34,338
)
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
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
)

At December 31, 2017, there were 396 U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations securities in an unrealized loss position, of which 120 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, 2017.
At December 31, 2017, there were 314 state and municipal government securities in an unrealized loss position, of which 69 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, 2017, 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, 2017.
At December 31, 2017, there were 44 U.S. government agency and government-sponsored enterprise securities in an unrealized loss position, of which 16 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, 2017.
At December 31, 2017, there was one U.S. government security 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, 2017.
At December 31, 2017, there were two other securities in an unrealized loss position, both were mortgage-backed securities funds and 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 these investments to be other-than-temporarily impaired at December 31, 2017 as it has the intent and ability to hold the investments for sufficient time to allow for recovery in the market value.