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Investments | 12 Months Ended
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Dec. 31, 2019
Investments [Abstract] |
Investments | INVESTMENTS The amortized cost and fair value of investment and marketable equity securities at December 31, 2019 and 2018, were as follows:
| December 31, 2019
(Dollars in thousands) | Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 409,397 |  |  | $ | 602 |  |  | $ | — |  |  | $ | 409,999 |
Government agency | 684,085 |  |  | 928 |  |  | 2,241 |  |  | 682,772 |
Residential mortgage-backed securities | 5,269,060 |  |  | 13,417 |  |  | 15,387 |  |  | 5,267,090 |
Commercial mortgage-backed securities | 373,105 |  |  | 6,974 |  |  | 59 |  |  | 380,020 |
Corporate bonds | 198,278 |  |  | 3,420 |  |  | 132 |  |  | 201,566 |
State, county and municipal | 118,227 |  |  | — |  |  | — |  |  | 118,227 |
Total investment securities available for sale | $ | 7,052,152 |  |  | $ | 25,341 |  |  | $ | 17,819 |  |  | $ | 7,059,674 |
Investment in marketable equity securities | 59,262 |  |  | 23,304 |  |  | 233 |  |  | 82,333 |
Investment securities held to maturity |  |  |  |  |  |  |
Other | 30,996 |  |  | — |  |  | — |  |  | 30,996 |
Total investment securities | $ | 7,142,410 |  |  | $ | 48,645 |  |  | $ | 18,052 |  |  | $ | 7,173,003 |
| December 31, 2018
| 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 |
Residential 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 |  |  |  |  |  |  |
Residential mortgage-backed securities | 2,087,024 |  |  | 16,592 |  |  | 490 |  |  | 2,103,126 |
Commercial mortgage-backed securities | 97,629 |  |  | 747 |  |  | — |  |  | 98,376 |
Total investment securities held to maturity | 2,184,653 |  |  | 17,339 |  |  | 490 |  |  | 2,201,502 |
Total investment securities | $ | 6,865,579 |  |  | $ | 42,774 |  |  | $ | 57,142 |  |  | $ | 6,851,211 |
As described in Note A, Accounting Policies and Basis of Presentation, on November 1, 2019, as part of the adoption of ASU 2019-04, mortgage-backed securities with an amortized cost of $2.08 billion were transferred from investment securities held to maturity to the available for sale portfolio. At the time of the transfer, the securities had a fair value of $2.15 billion. The transfer resulted in a reclassification of unrealized losses of $72.5 million, or $55.8 million net of tax, previously frozen in AOCI as a result of the initial transfer to held to maturity. FCB still has the intent and ability to hold the remainder of the held to maturity portfolio to maturity. On May 1, 2018, mortgage-backed securities with an amortized cost of $2.49 billion were transferred from investment securities available for sale to the held to maturity portfolio. At the time of transfer, the mortgage-backed securities had a fair value of $2.38 billion and a weighted average contractual maturity of 13 years. The unrealized loss on these securities at the date of transfer was $109.5 million, or $84.3 million net of tax, and was reported as a component of AOCI. This unrealized loss was accreted over the remaining expected life of the securities as an adjustment of yield and was partially offset by the amortization of the corresponding discount on the transferred securities. 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 holds approximately 298,000 shares of Visa Class B common stock with a cost basis of zero. BancShares’ Visa Class B shares are not considered to have a readily determinable fair value and are recorded with no fair value. The following table provides the amortized cost and fair value by contractual 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. Residential and commercial mortgage-backed and government agency securities are stated separately as they are not due at a single maturity date.
| December 31, 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 | $ | 406,325 |  |  | $ | 406,927 |  |  | $ | 1,049,253 |  |  | $ | 1,047,380 |
One through five years | 24,496 |  |  | 24,971 |  |  | 205,526 |  |  | 205,805 |
Five through 10 years | 185,209 |  |  | 187,868 |  |  | 134,370 |  |  | 133,626 |
Over 10 years | 109,872 |  |  | 110,026 |  |  | 3,923 |  |  | 4,125 |
Government agency | 684,085 |  |  | 682,772 |  |  | 257,252 |  |  | 256,835 |
Residential mortgage-backed securities | 5,269,060 |  |  | 5,267,090 |  |  | 2,956,793 |  |  | 2,909,339 |
Commercial mortgage-backed securities | 373,105 |  |  | 380,020 |  |  | — |  |  | — |
Total investment securities available for sale | $ | 7,052,152 |  |  | $ | 7,059,674 |  |  | $ | 4,607,117 |  |  | $ | 4,557,110 |
Investment securities held to maturity |  |  |  |  |  |  |
Non-amortizing securities maturing in: |  |  |  |  |  |  |
One year or less | 30,746 |  |  | 30,746 |  |  | — |  |  | — |
One through five years | 250 |  |  | 250 |  |  | — |  |  | — |
Residential mortgage-backed securities | — |  |  | — |  |  | 2,087,024 |  |  | 2,103,126 |
Commercial mortgage-backed securities | — |  |  | — |  |  | 97,629 |  |  | 98,376 |
Total investment securities held to maturity | $ | 30,996 |  |  | $ | 30,996 |  |  | $ | 2,184,653 |  |  | $ | 2,201,502 |
For each period presented, realized gains on investment securities available for sale include the following:
| Year ended December 31
(Dollars in thousands) | 2019 |  | 2018 |  | 2017
Gross gains on retirement/sales of investment securities available for sale | $ | 8,993 |  |  | $ | 353 |  |  | $ | 11,635 |
Gross losses on sales of investment securities available for sale | (1,878 | ) |  | (2 | ) |  | (7,342 | )
Realized gains on investment securities available for sale, net | $ | 7,115 |  |  | $ | 351 |  |  | $ | 4,293 |
For each period presented, realized and unrealized gains or losses on marketable equity securities include the following:
| Year ended December 31
(Dollars in thousands) | 2019 |  | 2018
Marketable equity securities gains (losses), net | $ | 20,625 |  |  | $ | (7,610 | )
Less net gains recognized on marketable equity securities sold | 16,344 |  |  | 1,190 |
Unrealized (losses) gains recognized on marketable equity securities held | $ | 4,281 |  |  | $ | (8,800 | )
The following table provides information regarding investment securities with unrealized losses as of December 31, 2019 and 2018:
| December 31, 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 |  |  |  |  |  |  |  |  |  |  |
Government agency | $ | 347,081 |  |  | $ | 1,827 |  |  | $ | 63,947 |  |  | $ | 414 |  |  | $ | 411,028 |  |  | $ | 2,241 |
Residential mortgage-backed securities | 2,387,293 |  |  | 14,016 |  |  | 264,257 |  |  | 1,371 |  |  | 2,651,550 |  |  | 15,387 |
Commercial mortgage-backed securities | 35,926 |  |  | 59 |  |  | — |  |  | — |  |  | 35,926 |  |  | 59 |
Corporate bonds | 7,714 |  |  | 123 |  |  | 4,749 |  |  | 9 |  |  | 12,463 |  |  | 132 |
Total | $ | 2,778,014 |  |  | $ | 16,025 |  |  | $ | 332,953 |  |  | $ | 1,794 |  |  | $ | 3,110,967 |  |  | $ | 17,819 |
| December 31, 2018
| Less than 12 months |  | 12 months or more |  | Total
| 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 |
Residential 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 |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities | $ | 5,111 |  |  | $ | 181 |  |  | $ | 10,131 |  |  | $ | 309 |  |  | $ | 15,242 |  |  | $ | 490 |
As of December 31, 2019, there were 91 investment securities available for sale with continuous losses for more than 12 months of which 90 are government sponsored, enterprise-issued mortgage-backed securities or government agency securities and 1 is a corporate bond. None of the unrealized losses identified as of December 31, 2019 or December 31, 2018 relate to the marketability of the securities or the issuer’s ability to honor redemption obligations. Rather, the unrealized losses related to changes in interest rates and spreads relative to when the investment 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 losses on these securities were deemed to be OTTI. Investment securities having an aggregate carrying value of $3.93 billion at December 31, 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.

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- 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
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