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v3.20.2

Securities | 9 Months Ended
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Sep. 30, 2020
Investments Debt And Equity Securities [Abstract] |
Securities | 3. Securities The following tables set forth the amortized cost, gross unrealized gains and losses, and estimated fair value of debt securities classified as available for sale and held to maturity at September 30, 2020 and December 31, 2019. Amortized cost of securities does not include accrued interest which is reflected in the accrued interest line item on the consolidated balance sheets totaling $23.2 million and $23.9 million at September 30, 2020 and December 31, 2019, respectively.
|  | September 30, 2020 |  |  | December 31, 2019 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |  |  |  |  |
Securities Available for Sale |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |  |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |  |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. Treasury and government agency securities |  | $ | 192,077 |  |  | $ | 6,664 |  |  | $ | 125 |  |  | $ | 198,616 |  |  | $ | 98,320 |  |  | $ | 652 |  |  | $ | 300 |  |  | $ | 98,672 |
Municipal obligations |  |  | 297,712 |  |  |  | 16,291 |  |  |  | 347 |  |  |  | 313,656 |  |  |  | 242,016 |  |  |  | 7,789 |  |  |  | — |  |  |  | 249,805 |
Residential mortgage-backed securities |  |  | 2,536,999 |  |  |  | 70,222 |  |  |  | 531 |  |  |  | 2,606,690 |  |  |  | 1,910,909 |  |  |  | 20,268 |  |  |  | 7,020 |  |  |  | 1,924,157 |
Commercial mortgage-backed securities |  |  | 1,965,664 |  |  |  | 136,056 |  |  |  | 720 |  |  |  | 2,101,000 |  |  |  | 1,570,765 |  |  |  | 19,880 |  |  |  | 4,178 |  |  |  | 1,586,467 |
Collateralized mortgage obligations |  |  | 410,050 |  |  |  | 9,141 |  |  |  | 21 |  |  |  | 419,170 |  |  |  | 807,600 |  |  |  | 3,757 |  |  |  | 3,142 |  |  |  | 808,215 |
Corporate debt securities |  |  | 8,000 |  |  |  | 185 |  |  |  | 2 |  |  |  | 8,183 |  |  |  | 8,000 |  |  |  | 21 |  |  |  | 33 |  |  |  | 7,988 |
﻿ |  | $ | 5,410,502 |  |  | $ | 238,559 |  |  | $ | 1,746 |  |  | $ | 5,647,315 |  |  | $ | 4,637,610 |  |  | $ | 52,367 |  |  | $ | 14,673 |  |  | $ | 4,675,304 |
|  | September 30, 2020 |  |  | December 31, 2019 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |  |  |  |  |
Securities Held to Maturity |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |  |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
(in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |  |  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
U.S. Treasury and government agency securities |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 50,000 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 50,003 |
Municipal obligations |  |  | 630,894 |  |  |  | 49,348 |  |  |  | 17 |  |  |  | 680,225 |  |  |  | 641,019 |  |  |  | 27,146 |  |  |  | 69 |  |  |  | 668,096 |
Residential mortgage-backed securities |  |  | 24,041 |  |  |  | 1,641 |  |  |  | — |  |  |  | 25,682 |  |  |  | 29,687 |  |  |  | 883 |  |  |  | — |  |  |  | 30,570 |
Commercial mortgage-backed securities |  |  | 550,201 |  |  |  | 53,253 |  |  |  | — |  |  |  | 603,454 |  |  |  | 539,371 |  |  |  | 12,474 |  |  |  | 581 |  |  |  | 551,264 |
Collateralized mortgage obligations |  |  | 203,825 |  |  |  | 4,502 |  |  |  | — |  |  |  | 208,327 |  |  |  | 307,932 |  |  |  | 3,597 |  |  |  | 458 |  |  |  | 311,071 |
﻿ |  | $ | 1,408,961 |  |  | $ | 108,744 |  |  | $ | 17 |  |  | $ | 1,517,688 |  |  | $ | 1,568,009 |  |  | $ | 44,103 |  |  | $ | 1,108 |  |  | $ | 1,611,004 |
The following tables present the amortized cost and estimated fair value of debt securities available for sale and held to maturity at September 30, 2020 by contractual maturity. Actual maturities will differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateralized mortgage obligations.
Debt Securities Available for Sale |  | Amortized |  |  | Fair |
(in thousands) |  | Cost |  |  | Value |
Due in one year or less |  | $ | 14,492 |  |  | $ | 14,540 |
Due after one year through five years |  |  | 239,148 |  |  |  | 258,655 |
Due after five years through ten years |  |  | 2,066,697 |  |  |  | 2,196,332 |
Due after ten years |  |  | 3,090,165 |  |  |  | 3,177,788 |
Total available for sale debt securities |  | $ | 5,410,502 |  |  | $ | 5,647,315 |
Debt Securities Held to Maturity |  | Amortized |  |  | Fair |
(in thousands) |  | Cost |  |  | Value |
Due in one year or less |  | $ | 2,196 |  |  | $ | 2,191 |
Due after one year through five years |  |  | 189,141 |  |  |  | 201,869 |
Due after five years through ten years |  |  | 636,976 |  |  |  | 701,345 |
Due after ten years |  |  | 580,648 |  |  |  | 612,283 |
Total held to maturity securities |  | $ | 1,408,961 |  |  | $ | 1,517,688 |
The Company held no securities classified as trading at September 30, 2020 and December 31, 2019. The following table presents the proceeds from, gross gain on, and gross losses on sales of securities during the nine months ended September 30, 2020 and 2019.
|  | Nine Months Ended September 30, |
(in thousands) |  | 2020 |  |  | 2019 |
Proceeds |  | $ | 211,919 |  |  | $ | 143,304 |
Gross gains |  |  | 1,984 |  |  |  | — |
Gross losses |  |  | 1,496 |  |  |  | — |
Securities with carrying values totaling $3.2 billion and $3.3 billion were pledged as collateral at September 30, 2020 and December 31, 2019 respectively, primarily to secure public deposits or securities sold under agreements to repurchase. Credit Quality The Company’s policy is to invest only in securities of investment grade quality. These investments are largely limited to U.S. agency securities and municipal securities. Management has concluded, based on the long history of no credit losses, that the expectation of nonpayment of the held to maturity securities carried at amortized cost is zero for securities that are backed by the full faith and credit of and/or guaranteed by the U.S. government. As such, no allowance for credit losses has been recorded for these securities. The municipal portfolio is analyzed separately for allowance for credit loss in accordance with the applicable guidance for each portfolio as noted below. Effective January 1, 2020, in conjunction with the adoption of CECL, and again at September 30, 2020, the Company evaluated credit impairment for individual securities available for sale whose fair value was below amortized cost with a more than inconsequential risk of default and where the Company had assessed the decline in fair value significant enough to suggest a credit event occurred. There were no securities that met the criteria of a credit loss event and therefore, no allowance for credit loss was recorded for either period. The fair value and gross unrealized losses for securities classified as available for sale with unrealized losses for the periods indicated follow.
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2020 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
(in thousands) |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
U.S. Treasury and government agency securities |  | $ | 44,039 |  |  | $ | 125 |  |  | $ | — |  |  | $ | — |  |  | $ | 44,039 |  |  | $ | 125 |
Municipal obligations |  |  | 26,010 |  |  |  | 347 |  |  |  | — |  |  |  | — |  |  |  | 26,010 |  |  |  | 347 |
Residential mortgage-backed securities |  |  | 229,662 |  |  |  | 529 |  |  |  | 367 |  |  |  | 2 |  |  |  | 230,029 |  |  |  | 531 |
Commercial mortgage-backed securities |  |  | 252,858 |  |  |  | 720 |  |  |  | — |  |  |  | — |  |  |  | 252,858 |  |  |  | 720 |
Collateralized mortgage obligations |  |  | 3,300 |  |  |  | 21 |  |  |  | — |  |  |  | — |  |  |  | 3,300 |  |  |  | 21 |
Corporate debt securities |  |  | 3,498 |  |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | 3,498 |  |  |  | 2 |
﻿ |  | $ | 559,367 |  |  | $ | 1,744 |  |  | $ | 367 |  |  | $ | 2 |  |  | $ | 559,734 |  |  | $ | 1,746 |
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
|  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. Treasury and government agency securities |  | $ | 28,235 |  |  |  | 300 |  |  | $ | — |  |  | $ | — |  |  | $ | 28,235 |  |  | $ | 300 |
Municipal obligations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Residential mortgage-backed securities |  |  | 420,066 |  |  |  | 5,042 |  |  |  | 399,787 |  |  |  | 1,978 |  |  |  | 819,853 |  |  |  | 7,020 |
Commercial mortgage-backed securities |  |  | 458,855 |  |  |  | 3,971 |  |  |  | 14,896 |  |  |  | 207 |  |  |  | 473,751 |  |  |  | 4,178 |
Collateralized mortgage obligations |  |  | 89,689 |  |  |  | 1,315 |  |  |  | 184,389 |  |  |  | 1,827 |  |  |  | 274,078 |  |  |  | 3,142 |
Corporate debt securities |  |  | 1,467 |  |  |  | 33 |  |  |  | — |  |  |  | — |  |  |  | 1,467 |  |  |  | 33 |
﻿ |  | $ | 998,312 |  |  | $ | 10,661 |  |  | $ | 599,072 |  |  | $ | 4,012 |  |  | $ | 1,597,384 |  |  | $ | 14,673 |
Effective January 1, 2020 and in conjunction with the adoption of CECL, and again as of September 30, 2020, the Company evaluated its held to maturity municipal obligation portfolio for credit loss using probability of default and loss given default models. The models were run using a long-term average probability of default migration and with a probability weighting of Moody’s economic forecasts. The economic forecasts were largely weighted to a baseline scenario with some weight given to other scenarios. The September 30, 2020 forecast was further stressed by running a more severe probability of default migration. The resulting credit loss was negligible for both periods and no allowance for credit loss was recorded. The fair value and gross unrealized losses for securities classified as held to maturity with unrealized losses for the periods indicated follow.
Held to Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2020 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
﻿ |  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |  |  |  |  |  |  | Gross |
﻿ |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. Treasury and government agency securities |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Municipal obligations |  |  | 523 |  |  |  | 2 |  |  |  | 2,890 |  |  |  | 15 |  |  |  | 3,413 |  |  |  | 17 |
Residential mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial mortgage-backed securities |  |  | 222 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 222 |  |  |  | — |
Collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
﻿ |  | $ | 745 |  |  | $ | 2 |  |  | $ | 2,890 |  |  | $ | 15 |  |  | $ | 3,635 |  |  | $ | 17 |
Held to Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
﻿ |  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |  |  |  |  |  |  | Gross |
﻿ |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
(in thousands) |  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
U.S. Treasury and government agency securities |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Municipal obligations |  |  | 4,735 |  |  |  | 38 |  |  |  | 3,143 |  |  |  | 31 |  |  |  | 7,878 |  |  |  | 69 |
Residential mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial mortgage-backed securities |  |  | 28,426 |  |  |  | 581 |  |  |  | — |  |  |  | — |  |  |  | 28,426 |  |  |  | 581 |
Collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | 49,110 |  |  |  | 458 |  |  |  | 49,110 |  |  |  | 458 |
﻿ |  | $ | 33,161 |  |  | $ | 619 |  |  | $ | 52,253 |  |  | $ | 489 |  |  | $ | 85,414 |  |  | $ | 1,108 |
As of September 30, 2020 the Company had 40 securities with market values below their cost basis. Unrealized losses in both portfolios relate primarily to changes in interest rates on fixed rate debt securities since the respective purchase dates. In all cases, the indicated impairment on these debt securities would be recovered no later than the security’s maturity date or possibly earlier if the market price for the security increases with a reduction in the yield required by the market. None of the unrealized losses relate to the marketability of the securities or the issuers’ abilities to meet contractual obligations. The Company had adequate liquidity as of September 30, 2020 and December 31, 2019 and did not intend to nor believe that it would be required to sell these securities before recovery of the indicated impairment. The unrealized losses on these securities were determined to be non-credit related as of December 31, 2019 and as noted above, no allowance for credit losses was recorded as of January 1, 2020 or September 30, 2020.

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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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