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Investment Securities | 12 Months Ended
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Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract] |
Investment Securities |
NOTE 3 – INVESTMENT SECURITIES
The following tables present the amortized cost and estimated fair values of investment securities, which were all classified as available for sale, as of December 31:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (in thousands)
2017 |  |  |  |  |  |  |
U.S. Government sponsored agency securities | $ | 5,962 |  |  | $ | 2 |  |  | $ | (26 | ) |  | $ | 5,938 |
State and municipal securities | 405,860 |  |  | 5,638 |  |  | (2,549 | ) |  | 408,949 |
Corporate debt securities | 96,353 |  |  | 2,832 |  |  | (1,876 | ) |  | 97,309 |
Collateralized mortgage obligations | 611,927 |  |  | 491 |  |  | (9,795 | ) |  | 602,623 |
Residential mortgage-backed securities | 1,132,080 |  |  | 3,957 |  |  | (15,241 | ) |  | 1,120,796 |
Commercial mortgage-backed securities | 215,351 |  |  | — |  |  | (2,596 | ) |  | 212,755 |
Auction rate securities | 107,410 |  |  | — |  |  | (8,742 | ) |  | 98,668 |
Total debt securities | 2,574,943 |  |  | 12,920 |  |  | (40,825 | ) |  | 2,547,038 |
Equity securities | 776 |  |  | 142 |  |  | — |  |  | 918 |
Total | $ | 2,575,719 |  |  | $ | 13,062 |  |  | $ | (40,825 | ) |  | $ | 2,547,956 |
2016 |  |  |  |  |  |  |
U.S. Government sponsored agency securities | $ | 132 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 134 |
State and municipal securities | 405,274 |  |  | 2,043 |  |  | (15,676 | ) |  | 391,641 |
Corporate debt securities | 112,016 |  |  | 1,978 |  |  | (4,585 | ) |  | 109,409 |
Collateralized mortgage obligations | 604,095 |  |  | 1,943 |  |  | (12,178 | ) |  | 593,860 |
Residential mortgage-backed securities | 1,328,192 |  |  | 6,546 |  |  | (16,900 | ) |  | 1,317,838 |
Commercial mortgage-backed securities | 25,100 |  |  | — |  |  | (537 | ) |  | 24,563 |
Auction rate securities | 107,215 |  |  | — |  |  | (9,959 | ) |  | 97,256 |
Total debt securities | 2,582,024 |  |  | 12,512 |  |  | (59,835 | ) |  | 2,534,701 |
Equity securities | 12,231 |  |  | 12,295 |  |  | — |  |  | 24,526 |
Total | $ | 2,594,255 |  |  | $ | 24,807 |  |  | $ | (59,835 | ) |  | $ | 2,559,227 |
Securities carried at $1.8 billion at both December 31, 2017 and 2016 were pledged as collateral to secure public and trust deposits and customer repurchase agreements. The amortized cost and estimated fair values of debt securities as of December 31, 2017, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
| Amortized Cost |  | Estimated Fair Value
| (in thousands)
Due in one year or less | $ | 16,837 |  |  | $ | 16,920 |
Due from one year to five years | 33,191 |  |  | 33,565 |
Due from five years to ten years | 112,181 |  |  | 113,164 |
Due after ten years | 453,376 |  |  | 447,215 |
| 615,585 |  |  | 610,864 |
Residential mortgage-backed securities(1) | 1,132,080 |  |  | 1,120,796 |
Commercial mortgage-backed securities(1) | 215,351 |  |  | 212,755 |
Collateralized mortgage obligations (1) | 611,927 |  |  | 602,623 |
Total debt securities | $ | 2,574,943 |  |  | $ | 2,547,038 |
(1) | Maturities for mortgage-backed securities and collateralized mortgage obligations are dependent upon the interest rate environment and prepayments on the underlying loans.
The following table presents information related to gross gains and losses on the sales of equity and debt securities:
| Gross Realized Gains |  | Gross Realized Losses |  | Net Gains (Losses)
| (in thousands)
2017: |  |  |  |  |
Equity securities | $ | 13,558 |  |  | $ | — |  |  | $ | 13,558 |
Debt securities | 315 |  |  | (4,802 | ) |  | (4,487 | )
Total | $ | 13,873 |  |  | $ | (4,802 | ) |  | $ | 9,071 |
2016: |  |  |  |  |
Equity securities | $ | 2,005 |  |  | $ | (10 | ) |  | $ | 1,995 |
Debt securities | 581 |  |  | (26 | ) |  | 555 |
Total | $ | 2,586 |  |  | $ | (36 | ) |  | $ | 2,550 |
2015: |  |  |  |  |
Equity securities | $ | 6,496 |  |  | $ | (1 | ) |  | $ | 6,495 |
Debt securities | 2,571 |  |  | — |  |  | 2,571 |
Total | $ | 9,067 |  |  | $ | (1 | ) |  | $ | 9,066 |
The following table presents a summary of the cumulative credit related other-than-temporary impairment charges, recognized as components of earnings, for debt securities held by the Corporation at December 31:
| 2017 |  | 2016 |  | 2015
| (in thousands)
Balance of cumulative credit losses on debt securities, beginning of year | $ | (11,510 | ) |  | $ | (11,510 | ) |  | $ | (16,242 | )
Reductions for securities sold during the period | — |  |  | — |  |  | 4,730 |
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | — |  |  | — |  |  | 2 |
Balance of cumulative credit losses on debt securities, end of year | $ | (11,510 | ) |  | $ | (11,510 | ) |  | $ | (11,510 | )
The credit related other-than-temporary impairment charges for debt securities were determined based on expected cash flows models. The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2017. There were no gross unrealized losses on equity securities as of December 31, 2017.
| Less Than 12 months |  | 12 Months or Longer |  | Total
| Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
| (in thousands)
U.S. Government sponsored agency securities | $ | 5,830 |  |  | $ | (26 | ) |  | $ | — |  |  | $ | — |  |  | $ | 5,830 |  |  | $ | (26 | )
State and municipal securities | 11,650 |  |  | (50 | ) |  | 118,297 |  |  | (2,499 | ) |  | 129,947 |  |  | (2,549 | )
Corporate debt securities | 4,544 |  |  | (48 | ) |  | 32,163 |  |  | (1,828 | ) |  | 36,707 |  |  | (1,876 | )
Collateralized mortgage obligations | 303,932 |  |  | (2,408 | ) |  | 187,690 |  |  | (7,387 | ) |  | 491,622 |  |  | (9,795 | )
Residential mortgage-backed securities | 511,378 |  |  | (4,348 | ) |  | 500,375 |  |  | (10,893 | ) |  | 1,011,753 |  |  | (15,241 | )
Commercial mortgage-backed securities | 190,985 |  |  | (2,118 | ) |  | 21,770 |  |  | (478 | ) |  | 212,755 |  |  | (2,596 | )
Auction rate securities | — |  |  | — |  |  | 98,668 |  |  | (8,742 | ) |  | 98,668 |  |  | (8,742 | )
Total | $ | 1,028,319 |  |  | $ | (8,998 | ) |  | $ | 958,963 |  |  | $ | (31,827 | ) |  | $ | 1,987,282 |  |  | $ | (40,825 | )
For comparative purposes, the following table presents gross unrealized losses and the estimated fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2016.
| Less Than 12 months |  | 12 Months or Longer |  | Total
| Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
| (in thousands)
State and municipal securities | $ | 247,509 |  |  | $ | (15,676 | ) |  | $ | — |  |  | $ | — |  |  | $ | 247,509 |  |  | $ | (15,676 | )
Corporate debt securities | 11,922 |  |  | (110 | ) |  | 34,629 |  |  | (4,475 | ) |  | 46,551 |  |  | (4,585 | )
Collateralized mortgage obligations | 166,905 |  |  | (3,899 | ) |  | 258,237 |  |  | (8,279 | ) |  | 425,142 |  |  | (12,178 | )
Mortgage-backed securities | 1,137,510 |  |  | (17,437 | ) |  | — |  |  | — |  |  | 1,137,510 |  |  | (17,437 | )
Auction rate securities | — |  |  | — |  |  | 97,256 |  |  | (9,959 | ) |  | 97,256 |  |  | (9,959 | )
Total | $ | 1,563,846 |  |  | $ | (37,122 | ) |  | $ | 390,122 |  |  | $ | (22,713 | ) |  | $ | 1,953,968 |  |  | $ | (59,835 | )
The Corporation’s collateralized mortgage obligations and mortgage-backed securities have contractual terms that generally do not permit the issuer to settle the securities at a price less than the amortized cost of the investment. Because the decline in fair value of these securities is attributable to changes in interest rates and not credit quality, and because the Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, the Corporation did not consider these investments to be other-than-temporarily impaired as of December 31, 2017. As of December 31, 2017, all student loan auction rate certificates ("ARCs") were rated above investment grade. All of the loans underlying the ARCs have principal payments which are guaranteed by the federal government. All of the loans were current and making scheduled payments and, based on management’s evaluations, were not subject to any other-than-temporary impairment charges as of December 31, 2017. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell these securities prior to a recovery of their fair value to amortized cost, which may be at maturity. The majority of the Corporation’s available for sale corporate debt securities are issued by financial institutions. The following table presents the amortized cost and estimated fair values of corporate debt securities as of December 31:
| 2017 |  | 2016
| Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
| (in thousands)
Single-issuer trust preferred securities | $ | 31,335 |  |  | $ | 30,703 |  |  | $ | 43,746 |  |  | $ | 39,829 |
Subordinated debt | 49,013 |  |  | 49,533 |  |  | 46,231 |  |  | 46,723 |
Senior notes | 12,031 |  |  | 12,392 |  |  | 18,037 |  |  | 18,433 |
Pooled trust preferred securities | — |  |  | 707 |  |  | — |  |  | 422 |
Corporate debt securities issued by financial institutions | 92,379 |  |  | 93,335 |  |  | 108,014 |  |  | 105,407 |
Other corporate debt securities | 3,974 |  |  | 3,974 |  |  | 4,002 |  |  | 4,002 |
Available for sale corporate debt securities | $ | 96,353 |  |  | $ | 97,309 |  |  | $ | 112,016 |  |  | $ | 109,409 |
Single-issuer trust preferred securities had an unrealized loss of $632,000 as of December 31, 2017. Four of the 18 single-issuer trust preferred securities held were rated below investment grade by at least one ratings agency, with an amortized cost of $4.9 million and an estimated fair value of $4.7 million as of December 31, 2017. All of the single-issuer trust preferred securities rated below investment grade were rated "BB" or "Ba." Two single-issuer trust preferred securities with an amortized cost of $3.8 million and an estimated fair value of $3.1 million as of December 31, 2017 were not rated by any ratings agency. Based on management’s evaluations, no corporate debt securities were subject to any other-than-temporary impairment charges as of December 31, 2017. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

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