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Investment Securities
 6 Months Ended
Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIES
 
The amortized cost and fair value of investment securities that are classified as held-to-maturity (“HTM”) and available-for-sale (“AFS”) are as follows:
 
 
June 30, 2019
 
December 31, 2018
(In thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross Unrealized
(Losses)
 
Estimated
Fair
Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross Unrealized
(Losses)
 
Estimated
Fair
Value
Held-to-Maturity
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. Government agencies
$
999

 
$
—

 
$
—

 
$
999

 
$
16,990

 
$
—

 
$
(49
)
 
$
16,941

Mortgage-backed securities
12,225

 
103

 
(59
)
 
12,269

 
13,346

 
5

 
(412
)
 
12,939

State and political subdivisions
32,236

 
1,090

 
(12
)
 
33,314

 
256,863

 
3,029

 
(954
)
 
258,938

Other securities
1,995

 
63

 
—

 
2,058

 
1,995

 
17

 
—

 
2,012

Total HTM
$
47,455


$
1,256


$
(71
)

$
48,640


$
289,194


$
3,051


$
(1,415
)

$
290,830

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
$
197,382

 
$
1,654

 
$
(1,380
)
 
$
197,656

 
$
157,523

 
$
518

 
$
(3,740
)
 
$
154,301

Mortgage-backed securities
1,346,839

 
5,971

 
(7,050
)
 
1,345,760

 
1,552,487

 
3,097

 
(32,684
)
 
1,522,900

State and political subdivisions
617,987

 
18,841

 
(270
)
 
636,558

 
320,142

 
171

 
(5,470
)
 
314,843

Other securities
161,961

 
545

 
(93
)
 
162,413

 
157,471

 
2,251

 
(14
)
 
159,708

Total AFS
$
2,324,169


$
27,011


$
(8,793
)

$
2,342,387


$
2,187,623


$
6,037


$
(41,908
)

$
2,151,752


 
Securities with limited marketability, such as stock in the Federal Reserve Bank and the Federal Home Loan Bank, are carried at cost and are reported as other AFS securities in the table above.

Certain investment securities are valued at less than their historical cost. Total fair value of these investments at June 30, 2019 and December 31, 2018, was $1.0 billion and $1.7 billion, which is approximately 39.8% and 70.3%, respectively, of the Company’s combined AFS and HTM investment portfolios.

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019: 

 
Less Than 12 Months
 
12 Months or More
 
Total
(In thousands)
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
Held-to-Maturity
 

 
 

 
 

 
 

 
 

 
 

U.S. Government agencies
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Mortgage-backed securities
—

 
—

 
5,845

 
(59
)
 
5,845

 
(59
)
State and political subdivisions
—

 
—

 
2,294

 
(12
)
 
2,294

 
(12
)
Total HTM
$
—


$
—


$
8,139


$
(71
)

$
8,139


$
(71
)
 
 
 
 
 
 
 
 
 
 
 
 
Available-for-Sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Government agencies
$
—

 
$
—

 
$
114,443

 
$
(1,380
)
 
$
114,443

 
$
(1,380
)
Mortgage-backed securities
20,839

 
(102
)
 
749,380

 
(6,948
)
 
770,219

 
(7,050
)
State and political subdivisions
23,205

 
(15
)
 
29,156

 
(255
)
 
52,361

 
(270
)
Other securities
4,994

 
(93
)
 
100

 
—

 
5,094

 
(93
)
Total AFS
$
49,038


$
(210
)

$
893,079


$
(8,583
)

$
942,117


$
(8,793
)

 
The declines reflected in the preceding table primarily resulted from the rate for these investments yielding less than current market rates. Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary. Management does not have the intent to sell these securities and management believes it is more likely than not the Company will not have to sell these securities before recovery of their amortized cost basis less any current period credit losses.
 
Declines in the fair value of HTM and AFS securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.
 
Management has the ability and intent to hold the securities classified as HTM until they mature, at which time the Company expects to receive full value for the securities. Furthermore, as of June 30, 2019, management also had the ability and intent to hold the securities classified as AFS for a period of time sufficient for a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of June 30, 2019, management believes the impairments detailed in the table above are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

Income earned on securities for the three and six months ended June 30, 2019 and 2018, is as follows:

 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2019
 
2018
 
2019
 
2018
Taxable:
 
 
 
 
 

 
 

Held-to-maturity
$
289

 
$
546

 
$
727

 
$
1,113

Available-for-sale
11,705

 
10,218

 
24,256

 
19,250

 
 
 
 
 
 
 
 
Non-taxable:
 
 
 
 
 
 
 
Held-to-maturity
89

 
1,897

 
1,251

 
3,833

Available-for-sale
4,511

 
1,635

 
7,672

 
2,722

Total
$
16,594

 
$
14,296

 
$
33,906

 
$
26,918



The amortized cost and estimated fair value by maturity of securities are shown in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities. 

 
Held-to-Maturity
 
Available-for-Sale
(In thousands)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
One year or less
$
6,118

 
$
6,122

 
$
11,673

 
$
11,681

After one through five years
19,353

 
19,716

 
74,767

 
75,019

After five through ten years
5,563

 
5,785

 
151,019

 
153,373

After ten years
4,196

 
4,748

 
589,198

 
605,410

Securities not due on a single maturity date
12,225

 
12,269

 
1,346,839

 
1,345,760

Other securities (no maturity)
—

 
—

 
150,673

 
151,144

Total
$
47,455


$
48,640


$
2,324,169


$
2,342,387


 
The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $1.18 billion at June 30, 2019 and $1.02 billion at December 31, 2018.
 
There were approximately $2.8 million of gross realized gains and no gross realized losses from the sale of securities during the three months ended June 30, 2019, and approximately $5.6 million of gross realized gains and no gross realized losses from the sale of securities during the six months ended June 30, 2019. During the first quarter, the Company made adjustments to the bond portfolio based upon projected cash flow changes due to the present low rate environment. There were approximately $7,000 of gross realized gains and $14,000 of gross realized losses from the sale of securities during the three months ended June 30, 2018, and approximately $13,000 of gross realized gains and $14,000 of gross realized losses from the sale of securities during the six months ended June 30, 2018.
 
The state and political subdivision debt obligations are predominately non-rated bonds representing small issuances, primarily in Arkansas, Missouri, Oklahoma, Tennessee and Texas issues, which are evaluated on an ongoing basis.