XML 85 R11.htm IDEA: XBRL DOCUMENT
v3.19.3

Investments | 9 Months Ended
--- | ---
Sep. 30, 2019
Investments [Abstract] |
Investments | INVESTMENTS The amortized cost and fair value of investment securities at September 30, 2019 and December 31, 2018, were as follows:
| September 30, 2019
(Dollars in thousands) | Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 748,206 |  |  | $ | 1,114 |  |  | $ | 2 |  |  | $ | 749,318 |
Government agency | 666,029 |  |  | 1,404 |  |  | 1,812 |  |  | 665,621 |
Mortgage-backed securities | 3,329,593 |  |  | 10,369 |  |  | 7,343 |  |  | 3,332,619 |
Corporate bonds | 154,943 |  |  | 2,707 |  |  | 325 |  |  | 157,325 |
Total investment securities available for sale | 4,898,771 |  |  | 15,594 |  |  | 9,482 |  |  | 4,904,883 |
Investment in marketable equity securities | 87,588 |  |  | 29,605 |  |  | 339 |  |  | 116,854 |
Investment securities held to maturity |  |  |  |  |  |  |
Mortgage-backed securities | 2,115,141 |  |  | 71,857 |  |  | — |  |  | 2,186,998 |
Other | 30,802 |  |  | — |  |  | — |  |  | 30,802 |
Total investment securities held to maturity | 2,145,943 |  |  | 71,857 |  |  | — |  |  | 2,217,800 |
Total investment securities | $ | 7,132,302 |  |  | $ | 117,056 |  |  | $ | 9,821 |  |  | $ | 7,239,537 |
| December 31, 2018
(Dollars in thousands) | Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 1,249,243 |  |  | $ | 633 |  |  | $ | 2,166 |  |  | $ | 1,247,710 |
Government agency | 257,252 |  |  | 222 |  |  | 639 |  |  | 256,835 |
Mortgage-backed securities | 2,956,793 |  |  | 5,309 |  |  | 52,763 |  |  | 2,909,339 |
Corporate bonds | 143,829 |  |  | 261 |  |  | 864 |  |  | 143,226 |
Total investment securities available for sale | 4,607,117 |  |  | 6,425 |  |  | 56,432 |  |  | 4,557,110 |
Investment in marketable equity securities | 73,809 |  |  | 19,010 |  |  | 220 |  |  | 92,599 |
Investment securities held to maturity |  |  |  |  |  |  |
Mortgage-backed securities | 2,184,653 |  |  | 17,339 |  |  | 490 |  |  | 2,201,502 |
Total investment securities | $ | 6,865,579 |  |  | $ | 42,774 |  |  | $ | 57,142 |  |  | $ | 6,851,211 |
Investments in mortgage-backed securities represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in government agency securities represent securities issued by the United States Small Business Administration. Investments in corporate bonds and marketable equity securities represent positions in securities of other financial institutions. Other held to maturity investments include certificates of deposit with other financial institutions. BancShares also holds approximately 298,000 shares of Visa Class B common stock. BancShares' Visa Class B shares are not considered to have a readily determinable fair value and are included in the Consolidated Balance Sheet with no fair value. The following table provides the amortized cost and fair value by contractual maturity for investment securities available for sale and held to maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Repayments of mortgage-backed securities and government agency securities are dependent on the repayments of the underlying loan balances. Repayments of certain corporate bonds are subject to call provisions that can be exercised by the issuer at their discretion.
| September 30, 2019 |  | December 31, 2018
(Dollars in thousands) | Cost |  | Fair value |  | Cost |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
Non-amortizing securities maturing in: |  |  |  |  |  |  |
One year or less | $ | 748,206 |  |  | $ | 749,318 |  |  | $ | 1,049,253 |  |  | $ | 1,047,380 |
One through five years | 13,364 |  |  | 13,795 |  |  | 205,526 |  |  | 205,805 |
Five through 10 years | 137,638 |  |  | 139,430 |  |  | 134,370 |  |  | 133,626 |
Over 10 years | 3,941 |  |  | 4,100 |  |  | 3,923 |  |  | 4,125 |
Government agency | 666,029 |  |  | 665,621 |  |  | 257,252 |  |  | 256,835 |
Mortgage-backed securities | 3,329,593 |  |  | 3,332,619 |  |  | 2,956,793 |  |  | 2,909,339 |
Total investment securities available for sale | $ | 4,898,771 |  |  | $ | 4,904,883 |  |  | $ | 4,607,117 |  |  | $ | 4,557,110 |
Investment securities held to maturity |  |  |  |  |  |  |
Non-amortizing securities maturing in: |  |  |  |  |  |  |
One year or less | 30,552 |  |  | 30,552 |  |  | — |  |  | — |
One through five years | 250 |  |  | 250 |  |  | — |  |  | — |
Mortgage-backed securities | 2,115,141 |  |  | 2,186,998 |  |  | 2,184,653 |  |  | 2,201,502 |
Total investment securities held to maturity | $ | 2,145,943 |  |  | $ | 2,217,800 |  |  | $ | 2,184,653 |  |  | $ | 2,201,502 |
There were gross gains of $1.3 million and $7.0 million on sales of investment securities available for sale for the three and nine months ended September 30, 2019, respectively. There were gross losses of $190.0 thousand on sales of investment securities available for sale during the three and nine month periods ended September 30, 2019. There were no gross gains or losses on sales of investment securities available for sale for the three and nine months ended September 30, 2018. The following table provides the realized and unrealized gains and losses on marketable equity securities for the three and nine months ended September 30, 2019 and September 30, 2018:
| Three months ended September 30 |  | Nine months ended September 30
(Dollars in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Marketable equity securities (losses) gains, net | $ | (967 | ) |  | $ | 3,854 |  |  | $ | 13,505 |  |  | $ | 9,265 |
Less net gains recognized on marketable equity securities sold | 714 |  |  | 946 |  |  | 3,029 |  |  | 1,181 |
Unrealized (losses) gains recognized on marketable equity securities held | $ | (1,681 | ) |  | $ | 2,908 |  |  | $ | 10,476 |  |  | $ | 8,084 |
The following table provides information regarding securities with unrealized losses as of September 30, 2019 and December 31, 2018:
| September 30, 2019
| Less than 12 months |  | 12 months or more |  | Total
(Dollars in thousands) | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
Investment securities available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 49,867 |  |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 49,867 |  |  | $ | 2 |
Government agency | 323,470 |  |  | 1,471 |  |  | 66,278 |  |  | 341 |  |  | 389,748 |  |  | 1,812 |
Mortgage-backed securities | 1,413,342 |  |  | 4,165 |  |  | 477,249 |  |  | 3,178 |  |  | 1,890,591 |  |  | 7,343 |
Corporate bonds | 31,168 |  |  | 203 |  |  | 6,563 |  |  | 122 |  |  | 37,731 |  |  | 325 |
Total | $ | 1,817,847 |  |  | $ | 5,841 |  |  | $ | 550,090 |  |  | $ | 3,641 |  |  | $ | 2,367,937 |  |  | $ | 9,482 |
| December 31, 2018
| Less than 12 months |  | 12 months or more |  | Total
(Dollars in thousands) | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
Investment securities available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 248,983 |  |  | $ | 113 |  |  | $ | 848,622 |  |  | $ | 2,053 |  |  | $ | 1,097,605 |  |  | $ | 2,166 |
Government agency | 115,273 |  |  | 601 |  |  | 2,310 |  |  | 38 |  |  | 117,583 |  |  | 639 |
Mortgage-backed securities | 262,204 |  |  | 2,387 |  |  | 1,940,695 |  |  | 50,376 |  |  | 2,202,899 |  |  | 52,763 |
Corporate bonds | 79,066 |  |  | 842 |  |  | 5,000 |  |  | 22 |  |  | 84,066 |  |  | 864 |
Total | $ | 705,526 |  |  | $ | 3,943 |  |  | $ | 2,796,627 |  |  | $ | 52,489 |  |  | $ | 3,502,153 |  |  | $ | 56,432 |
Investment securities held to maturity |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | 5,111 |  |  | $ | 181 |  |  | $ | 10,131 |  |  | $ | 309 |  |  | $ | 15,242 |  |  | $ | 490 |
As of September 30, 2019, there were 108 investment securities available for sale that had continuous losses for more than 12 months of which 107 were government sponsored enterprise-issued mortgage-backed securities or government agency securities and one was a corporate bond. None of the unrealized losses identified as of September 30, 2019 or December 31, 2018 relate to the marketability of the securities or the issuers' ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the debt securities were purchased. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Therefore, none of the securities were deemed to be other than temporarily impaired. Debt securities having an aggregate carrying value of $3.40 billion at September 30, 2019 and $4.03 billion at December 31, 2018 were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration