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Investment Securities
 6 Months Ended
Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
INVESTMENT SECURITIES
The amortized cost and fair values of investment securities, with gross unrealized gains and losses, consist of the following:
 
June 30, 2018
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Securities available for sale:
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
40,999

 
$
7

 
$
(715
)
 
$
40,291

Obligations of state and political subdivisions
263,524

 
1,246

 
(3,918
)
 
260,852

Mortgage-backed securities
4,370,968

 
448

 
(141,570
)
 
4,229,846

Other securities
122,149

 
22

 
(2,245
)
 
119,926

Total securities available for sale
$
4,797,640

 
$
1,723

 
$
(148,448
)
 
$
4,650,915

Securities held to maturity:
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
201,472

 
$
569

 
$
(4,118
)
 
$
197,923

Mortgage-backed securities
19,558

 
32

 
(1,204
)
 
18,386

Total securities held to maturity
$
221,030

 
$
601

 
$
(5,322
)
 
$
216,309



 
December 31, 2017
(Dollars in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Securities available for sale:
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
41,003

 
$
18

 
$
(406
)
 
$
40,615

Obligations of state and political subdivisions
271,451

 
4,246

 
(1,493
)
 
274,204

Mortgage-backed securities
4,221,472

 
1,461

 
(61,028
)
 
4,161,905

Other securities
114,005

 
247

 
(914
)
 
113,338

Total securities available for sale
$
4,647,931

 
$
5,972

 
$
(63,841
)
 
$
4,590,062

Securities held to maturity:
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
206,736

 
$
1,530

 
$
(275
)
 
$
207,991

Mortgage-backed securities
20,582

 
41

 
(650
)
 
19,973

Total securities held to maturity
$
227,318

 
$
1,571

 
$
(925
)
 
$
227,964


Securities with carrying values of $2.3 billion were pledged to secure public deposits and other borrowings at June 30, 2018 compared to $2.1 billion at December 31, 2017.

Information pertaining to securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position, is as follows:
 
June 30, 2018
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
(Dollars in thousands)
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
(445
)
 
$
29,554

 
$
(270
)
 
$
9,730

 
$
(715
)
 
$
39,284

Obligations of state and political subdivisions
(991
)
 
77,872

 
(2,927
)
 
66,467

 
(3,918
)
 
144,339

Mortgage-backed securities
(79,939
)
 
2,847,301

 
(61,631
)
 
1,220,866

 
(141,570
)
 
4,068,167

Other securities
(1,217
)
 
87,139

 
(1,028
)
 
23,137

 
(2,245
)
 
110,276

Total securities available for sale
$
(82,592
)
 
$
3,041,866

 
$
(65,856
)
 
$
1,320,200

 
$
(148,448
)
 
$
4,362,066

 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
(3,930
)
 
$
147,033

 
$
(188
)
 
$
6,861

 
$
(4,118
)
 
$
153,894

Mortgage-backed securities
(13
)
 
320

 
(1,191
)
 
17,740

 
(1,204
)
 
18,060

Total securities held to maturity
$
(3,943
)
 
$
147,353

 
$
(1,379
)
 
$
24,601

 
$
(5,322
)
 
$
171,954


 
December 31, 2017
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
(Dollars in thousands)
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
(254
)
 
$
29,744

 
$
(152
)
 
$
9,848

 
$
(406
)
 
$
39,592

Obligations of state and political subdivisions
(326
)
 
31,601

 
(1,167
)
 
68,609

 
(1,493
)
 
100,210

Mortgage-backed securities
(26,263
)
 
2,677,338

 
(34,765
)
 
1,226,058

 
(61,028
)
 
3,903,396

Other securities
(914
)
 
75,302

 
—

 
—

 
(914
)
 
75,302

Total securities available for sale
$
(27,757
)
 
$
2,813,985

 
$
(36,084
)
 
$
1,304,515

 
$
(63,841
)
 
$
4,118,500

 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
(263
)
 
$
65,817

 
$
(12
)
 
$
3,031

 
$
(275
)
 
$
68,848

Mortgage-backed securities
(2
)
 
333

 
(648
)
 
19,269

 
(650
)
 
19,602

Total securities held to maturity
$
(265
)
 
$
66,150

 
$
(660
)
 
$
22,300

 
$
(925
)
 
$
88,450


The Company assessed the nature of the unrealized losses in its portfolio as of June 30, 2018 and December 31, 2017 to determine if there are losses that should be deemed other-than-temporary. In its analysis of these securities, management considered numerous factors to determine whether there were instances where the amortized cost basis of the debt securities would not be fully recoverable, including, but not limited to:
•
The length of time and extent to which the estimated fair value of the securities was less than their amortized cost;
•
Whether adverse conditions were present in the operations, geographic area, or industry of the issuer;
•
The payment structure of the security, including scheduled interest and principal payments, the issuer’s failures to make scheduled payments, if any, and the likelihood of failure to make scheduled payments in the future;
•
Changes to the rating of the security by a rating agency; and
•
Subsequent recoveries or additional declines in fair value after the balance sheet date.
Management believes it has considered these factors, as well as all relevant information available, when determining the expected future cash flows of the securities in question. In each instance, management has determined the cost basis of the securities would be fully recoverable. Management also has the intent to hold debt securities until their maturity or anticipated recovery if the security is classified as available for sale. In addition, management does not believe the Company will be required to sell debt securities before the anticipated recovery of the amortized cost basis of the security. As a result of the Company's analysis, no declines in the estimated fair value of the Company's investment securities were deemed to be other-than-temporary at June 30, 2018 or December 31, 2017.
At June 30, 2018, 656 debt securities had unrealized losses of 3.28% of the securities’ amortized cost basis. At December 31, 2017, 544 debt securities had unrealized losses of 1.52% of the securities’ amortized cost basis. The unrealized losses for each of the securities related to market interest rate changes and not credit concerns of the issuers. Additional information on securities that have been in a continuous loss position for over twelve months at June 30, 2018 and December 31, 2017 is presented in the following table.
(Dollars in thousands)
June 30, 2018
 
December 31, 2017
Number of securities:
 
 
 
Mortgage-backed securities
193

 
181

Obligations of state and political subdivisions
30

 
28

Other
4

 
1

 
227

 
210

Amortized Cost Basis:
 
 
 
Mortgage-backed securities
$
1,301,428

 
$
1,280,739

Obligations of state and political subdivisions
76,443

 
72,820

Other
34,165

 
10,000

 
$
1,412,036

 
$
1,363,559

Unrealized Loss:
 
 
 
Mortgage-backed securities
$
62,822

 
$
35,412

Obligations of state and political subdivisions
3,115

 
1,180

Other
1,298

 
152

 
$
67,235

 
$
36,744



The securities noted above carry a rating of AA+/Aaa by S&P and Moody's.
The amortized cost and estimated fair value of investment securities by maturity at June 30, 2018 are presented 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. Weighted average yields are calculated on the basis of the yield to maturity based on the amortized cost of each security.
 
Securities Available for Sale
 
Securities Held to Maturity
(Dollars in thousands)
Weighted
Average
Yield
 
Amortized
Cost
 
Estimated
Fair
Value
 
Weighted
Average
Yield
 
Amortized
Cost
 
Estimated
Fair
Value
Within one year or less
1.77
%
 
$
18,264

 
$
18,140

 
4.00
%
 
$
1,436

 
$
1,437

One through five years
2.24

 
132,130

 
129,928

 
2.98

 
8,350

 
8,329

After five through ten years
2.42

 
1,034,731

 
1,007,737

 
2.60

 
44,076

 
43,775

Over ten years
2.43

 
3,612,515

 
3,495,110

 
2.63

 
167,168

 
162,768

 
2.42
%
 
$
4,797,640

 
$
4,650,915

 
2.64
%
 
$
221,030

 
$
216,309


The following is a summary of realized gains and losses from the sale of securities classified as available for sale. Gains or losses on securities sold are recorded on the trade date, using the specific identification method.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(Dollars in thousands)
2018
 
2017
 
2018
 
2017
Realized gains
$
30

 
$
242

 
$
39

 
$
242

Realized losses
(27
)
 
(183
)
 
(95
)
 
(183
)
 
$
3

 
$
59

 
$
(56
)
 
$
59


In addition to the gains above, the Company realized certain gains on calls of securities held to maturity that were not significant to the consolidated financial statements.
Other Equity Securities
The Company accounts for the following securities at cost less impairment plus or minus any observable price changes, which approximates fair value, with the exception of CRA and Community Development Investment Funds, which are recorded at fair value. Other Equity Securities, which are presented in “other assets” on the consolidated balance sheets, are as follows:
(Dollars in thousands)
June 30, 2018
 
December 31, 2017
Federal Home Loan Bank (FHLB) stock
$
92,333

 
$
95,171

Federal Reserve Bank (FRB) stock
85,630

 
79,191

CRA and Community Development Investment Funds
1,878

 
—

Other investments
9,938

 
3,008

 
$
189,779

 
$
177,370