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Investment Securities | 12 Months Ended
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Dec. 31, 2018
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, as of December 31:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (in thousands)
2018 |  |  |  |  |  |  |
Available for Sale |  |  |  |  |  |  |
U.S. Government sponsored agency securities | $ | 31,586 |  |  | $ | 185 |  |  | $ | (139 | ) |  | $ | 31,632 |
State and municipal securities | 282,383 |  |  | 2,178 |  |  | (5,466 | ) |  | 279,095 |
Corporate debt securities | 111,454 |  |  | 1,432 |  |  | (3,353 | ) |  | 109,533 |
Collateralized mortgage obligations | 841,294 |  |  | 2,758 |  |  | (11,972 | ) |  | 832,080 |
Residential mortgage-backed securities | 476,973 |  |  | 1,583 |  |  | (15,212 | ) |  | 463,344 |
Commercial mortgage-backed securities | 264,165 |  |  | 524 |  |  | (3,073 | ) |  | 261,616 |
Auction rate securities | 107,410 |  |  | — |  |  | (4,416 | ) |  | 102,994 |
Total | $ | 2,115,265 |  |  | $ | 8,660 |  |  | $ | (43,631 | ) |  | $ | 2,080,294 |
Held to Maturity |  |  |  |  |  |  |
State and municipal securities | $ | 156,134 |  |  | $ | 1,166 |  |  | $ | (93 | ) |  | $ | 157,207 |
Residential mortgage-backed securities | 450,545 |  |  | 3,667 |  |  | — |  |  | 454,212 |
Total | $ | 606,679 |  |  | $ | 4,833 |  |  | $ | (93 | ) |  | $ | 611,419 |
2017 |  |  |  |  |  |  |
Available for Sale |  |  |  |  |  |  |
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 |
On August 1, 2018, the Corporation transferred debt securities with an amortized cost of $665.5 million and an estimated fair value of $641.7 million from the available for sale classification to the held to maturity classification. These securities consisted of residential mortgage-backed securities ($505.5 million amortized cost and $485.3 million estimated fair value) and state and municipal securities ($160.0 million amortized cost and $156.4 million estimated fair value) and were transferred as the Corporation has the positive intent and ability to hold these securities to maturity. The transfer of debt securities into the held to maturity category from the available for sale category was recorded at fair value on the date of transfer. The net unrealized gains or losses at the transfer date are included in AOCI and are being amortized over the remaining lives of the securities. This amortization is expected to offset the amortization of the related premium or discount created by the investment securities transfer into the held to maturity classification, with no expected impact on future net income. Securities carried at $973.4 million at December 31, 2018 and $1.8 billion at December 31, 2017, 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, 2018, 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.
| Available for Sale |  | Held to Maturity
| Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
| (in thousands)
Due in one year or less | $ | 6,738 |  |  | $ | 6,740 |  |  | $ | — |  |  | $ | — |
Due from one year to five years | 69,672 |  |  | 70,182 |  |  | — |  |  | — |
Due from five years to ten years | 108,091 |  |  | 106,709 |  |  | — |  |  | — |
Due after ten years | 348,332 |  |  | 339,623 |  |  | 156,134 |  |  | 157,207 |
| 532,833 |  |  | 523,254 |  |  | 156,134 |  |  | 157,207 |
Residential mortgage-backed securities(1) | 476,973 |  |  | 463,344 |  |  | 450,545 |  |  | 454,212 |
Commercial mortgage-backed securities(1) | 841,294 |  |  | 832,080 |  |  | — |  |  | — |
Collateralized mortgage obligations (1) | 264,165 |  |  | 261,616 |  |  | — |  |  | — |
Total | $ | 2,115,265 |  |  | $ | 2,080,294 |  |  | $ | 606,679 |  |  | $ | 611,419 |
(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)
2018: |  |  |  |  |
Equity securities | $ | 9 |  |  | $ | — |  |  | $ | 9 |
Debt securities | 1,656 |  |  | (1,628 | ) |  | 28 |
Total | $ | 1,665 |  |  | $ | (1,628 | ) |  | $ | 37 |
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 |
The cumulative balance of credit-related other-than-temporary impairment charges, previously recognized as components of earnings, for debt securities held by the Corporation at December 31, 2018, 2017 and 2016 was $11.5 million. There were no other-than-temporary impairment charges recognized for the years ended December 31, 2018, 2017 and 2016. 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, 2018.
| Less Than 12 months |  | 12 Months or Longer |  | Total
| Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
| (in thousands)
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government sponsored agency securities | 1 |  |  | $ | 4,961 |  |  | $ | (31 | ) |  | 1 |  |  | $ | 5,770 |  |  | $ | (108 | ) |  | $ | 10,731 |  |  | $ | (139 | )
State and municipal securities | 33 |  |  | 72,950 |  |  | (1,292 | ) |  | 38 |  |  | 83,770 |  |  | (4,174 | ) |  | 156,720 |  |  | (5,466 | )
Corporate debt securities | 8 |  |  | 24,419 |  |  | (227 | ) |  | 14 |  |  | 25,642 |  |  | (3,126 | ) |  | 50,061 |  |  | (3,353 | )
Collateralized mortgage obligations | 39 |  |  | 136,563 |  |  | (1,050 | ) |  | 89 |  |  | 388,173 |  |  | (10,922 | ) |  | 524,736 |  |  | (11,972 | )
Residential mortgage-backed securities | 17 |  |  | 18,220 |  |  | (222 | ) |  | 110 |  |  | 402,779 |  |  | (14,990 | ) |  | 420,999 |  |  | (15,212 | )
Commercial mortgage-backed securities | 1 |  |  | 9,778 |  |  | (35 | ) |  | 25 |  |  | 197,326 |  |  | (3,038 | ) |  | 207,104 |  |  | (3,073 | )
Auction rate securities | — |  |  | — |  |  | — |  |  | 177 |  |  | 102,994 |  |  | (4,416 | ) |  | 102,994 |  |  | (4,416 | )
Total available for sale | 99 |  |  | $ | 266,891 |  |  | $ | (2,857 | ) |  | 454 |  |  | $ | 1,206,454 |  |  | $ | (40,774 | ) |  | $ | 1,473,345 |  |  | $ | (43,631 | )
Held to Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal securities | 6 |  |  | $ | 20,601 |  |  | $ | (93 | ) |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20,601 |  |  | $ | (93 | )
Total held to maturity | 6 |  |  | $ | 20,601 |  |  | $ | (93 | ) |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20,601 |  |  | $ | (93 | )
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, 2017.
| Less Than 12 months |  |  |  | 12 Months or Longer |  | Total
| Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
| (in thousands)
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government sponsored agency securities | 2 |  |  | $ | 5,830 |  |  | $ | (26 | ) |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,830 |  |  | $ | (26 | )
State and municipal securities | 4 |  |  | 11,650 |  |  | (50 | ) |  | 48 |  |  | 118,297 |  |  | (2,499 | ) |  | 129,947 |  |  | (2,549 | )
Corporate debt securities | 1 |  |  | 4,544 |  |  | (48 | ) |  | 19 |  |  | 32,163 |  |  | (1,828 | ) |  | 36,707 |  |  | (1,876 | )
Collateralized mortgage obligations | 60 |  |  | 303,932 |  |  | (2,408 | ) |  | 57 |  |  | 187,690 |  |  | (7,387 | ) |  | 491,622 |  |  | (9,795 | )
Residential mortgage-backed securities | 116 |  |  | 511,378 |  |  | (4,348 | ) |  | 89 |  |  | 500,375 |  |  | (10,893 | ) |  | 1,011,753 |  |  | (15,241 | )
Commercial mortgage-backed securities | 22 |  |  | 190,985 |  |  | (2,118 | ) |  | 3 |  |  | 21,770 |  |  | (478 | ) |  | 212,755 |  |  | (2,596 | )
Auction rate securities | — |  |  | — |  |  | — |  |  | 177 |  |  | 98,668 |  |  | (8,742 | ) |  | 98,668 |  |  | (8,742 | )
Total | 205 |  |  | $ | 1,028,319 |  |  | $ | (8,998 | ) |  | 393 |  |  | $ | 958,963 |  |  | $ | (31,827 | ) |  | $ | 1,987,282 |  |  | $ | (40,825 | )
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, 2018. As of December 31, 2018, all 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, 2018. 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. Based on management’s evaluations, no corporate debt securities were subject to any other-than-temporary impairment charges as of December 31, 2018. 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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