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Investment Securities
 9 Months Ended
Sep. 30, 2019
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, consisted of the following:
 
September 30, 2019
(in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Securities available for sale:
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
39,887

 
$
294

 
$
—

 
$
40,181

Obligations of state and political subdivisions
166,034

 
7,333

 
—

 
173,367

Mortgage-backed securities:
 
 
 
 
 
 
 
          Residential agency
3,135,619

 
31,354

 
(3,930
)
 
3,163,043

          Commercial agency
732,669

 
24,239

 
(179
)
 
756,729

Other securities
101,324

 
3,543

 
(105
)
 
104,762

Total securities available for sale
$
4,175,533

 
$
66,763

 
$
(4,214
)
 
$
4,238,082

Securities held to maturity:
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
167,888

 
$
7,725

 
$
—

 
$
175,613

Mortgage-backed securities:
 
 
 
 
 
 
 
          Residential agency
17,119

 
50

 
(196
)
 
16,973

Total securities held to maturity
$
185,007

 
$
7,775

 
$
(196
)
 
$
192,586



 
December 31, 2018
(in thousands)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Securities available for sale:
 
 
 
 
 
 
 
U.S. Government-sponsored enterprise obligations
$
995

 
$
3

 
$
—

 
$
998

Obligations of state and political subdivisions
177,566

 
2,045

 
(723
)
 
178,888

Mortgage-backed securities:
 
 
 
 
 
 
 
           Residential agency
3,837,584

 
8,886

 
(57,073
)
 
3,789,397

           Commercial agency
730,148

 
2,363

 
(14,799
)
 
717,712

Other securities
97,020

 
351

 
(787
)
 
96,584

Total securities available for sale
$
4,843,313

 
$
13,648

 
$
(73,382
)
 
$
4,783,579

Securities held to maturity:
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
188,684

 
$
309

 
$
(2,497
)
 
$
186,496

Mortgage-backed securities:
 
 
 
 
 
 
 
          Residential agency
18,762

 
30

 
(1,011
)
 
17,781

Total securities held to maturity
$
207,446

 
$
339

 
$
(3,508
)
 
$
204,277


Securities with carrying values of $2.1 billion and $2.4 billion were pledged to support repurchase transactions, public funds deposits, and certain long-term borrowings at September 30, 2019 and December 31, 2018, respectively.

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, was as follows:
 
September 30, 2019
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
(in thousands)
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
           Residential agency
$
(1,829
)
 
$
447,333

 
$
(2,101
)
 
$
299,396

 
$
(3,930
)
 
$
746,729

           Commercial agency
(83
)
 
8,961

 
(96
)
 
10,994

 
(179
)
 
19,955

Other securities
(6
)
 
13,368

 
(99
)
 
4,802

 
(105
)
 
18,170

Total securities available for sale
$
(1,918
)
 
$
469,662

 
$
(2,296
)
 
$
315,192

 
$
(4,214
)
 
$
784,854

 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
           Residential agency
$
(2
)
 
$
924

 
$
(194
)
 
$
9,551

 
$
(196
)
 
$
10,475

Total securities held to maturity
$
(2
)
 
$
924

 
$
(194
)
 
$
9,551

 
$
(196
)
 
$
10,475


 
December 31, 2018
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
(in thousands)
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
Securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
(9
)
 
$
4,112

 
$
(714
)
 
$
30,268

 
$
(723
)
 
$
34,380

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
           Residential agency
(816
)
 
197,057

 
(56,257
)
 
2,193,862

 
(57,073
)
 
2,390,919

           Commercial agency
(43
)
 
18,190

 
(14,756
)
 
483,565

 
(14,799
)
 
501,755

Other securities
(94
)
 
18,025

 
(693
)
 
32,577

 
(787
)
 
50,602

Total securities available for sale
$
(962
)
 
$
237,384

 
$
(72,420
)
 
$
2,740,272

 
$
(73,382
)
 
$
2,977,656

 
 
 
 
 
 
 
 
 
 
 
 
Securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
$
(3
)
 
$
2,059

 
$
(2,494
)
 
$
151,699

 
$
(2,497
)
 
$
153,758

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
          Residential agency
—

 
—

 
(1,011
)
 
17,478

 
(1,011
)
 
17,478

Total securities held to maturity
$
(3
)
 
$
2,059

 
$
(3,505
)
 
$
169,177

 
$
(3,508
)
 
$
171,236










The Company held certain investment securities where amortized cost exceeded fair value, resulting in unrealized loss positions, as shown in the tables above. Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security's entire amortized cost basis. As of September 30, 2019, the Company did not intend to sell any of these securities, did not expect to be required to sell these securities, and expected to recover the entire amortized cost of all these securities.
At September 30, 2019, 107 debt securities had unrealized losses of 0.55% of the securities’ amortized cost basis. At December 31, 2018, 488 debt securities had unrealized losses of 2.38% 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 were in a continuous loss position for over twelve months at September 30, 2019 and December 31, 2018 is presented in the following table.
(in thousands)
September 30, 2019
 
December 31, 2018
Number of securities
 
 
 
Mortgage-backed securities:
 
 
 
          Residential agency
66

 
302

          Commercial agency
6

 
72

Obligations of state and political subdivisions
—

 
60

Other securities
4

 
7

 
76

 
441

Amortized Cost Basis
 
 
 
Mortgage-backed securities:
 
 
 
          Residential agency
$
311,242

 
$
2,268,608

          Commercial agency
11,090

 
498,321

Obligations of state and political subdivisions
—

 
185,175

Other securities
4,901

 
33,270

 
$
327,233

 
$
2,985,374

Unrealized Loss
 
 
 
Mortgage-backed securities:
 
 
 
          Residential agency
$
2,295

 
$
57,268

          Commercial agency
96

 
14,756

Obligations of state and political subdivisions
—

 
3,208

Other securities
99

 
693

 
$
2,490

 
$
75,925



The amortized cost and estimated fair value of investment securities by maturity at September 30, 2019 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
(in thousands)
Weighted
Average
Yield
 
Amortized
Cost
 
Estimated
Fair
Value
 
Weighted
Average
Yield
 
Amortized
Cost
 
Estimated
Fair
Value
Within one year or less
2.55
%
 
$
10,720

 
$
10,787

 
2.33
%
 
$
948

 
$
949

One through five years
2.62

 
123,447

 
125,721

 
2.63

 
4,483

 
4,518

After five through ten years
2.76

 
760,325

 
786,040

 
2.35

 
43,085

 
44,653

Over ten years
2.67

 
3,281,041

 
3,315,534

 
2.58

 
136,491

 
142,466

 
2.68
%
 
$
4,175,533

 
$
4,238,082

 
2.53
%
 
$
185,007

 
$
192,586


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 September 30,
 
Nine Months Ended September 30,
(in thousands)
2019
 
2018
 
2019
 
2018
Realized gains
$
27

 
$
—

 
$
1,324

 
$
39

Realized losses
—

 
—

 
(2,311
)
 
(95
)
 
$
27

 
$
—

 
$
(987
)
 
$
(56
)

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, were as follows:
(in thousands)
September 30, 2019
 
December 31, 2018
Federal Home Loan Bank stock
$
87,156

 
$
95,213

Federal Reserve Bank stock
85,630

 
85,630

CRA and Community Development Investment Funds
1,962

 
1,884

Other investments
21,023

 
9,709

 
$
195,771

 
$
192,436