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Note 7 - Investment Securities | 9 Months Ended
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Sep. 30, 2018
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 7. Investment Securities Securities available-for-sale were $1.3 billion as of September 30, 2018, compared to $1.3 billion as of December 31, 2017. The following tables reflect the amortized cost, gross unrealized gains, gross unrealized losses, and fair value of debt securities available-for-sale as of September 30, 2018, and debt and equity investment securities as of December 31, 2017:
|  | September 30, 2018 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
|  | (In thousands) |
Debt Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 199,488 |  |  | $ | - |  |  | $ | 114 |  |  | $ | 199,374 |
U.S. government agency entities |  |  | 6,721 |  |  |  | - |  |  |  | 210 |  |  |  | 6,511 |
U.S. government sponsored entities |  |  | 400,000 |  |  |  | - |  |  |  | 16,553 |  |  |  | 383,447 |
Mortgage-backed securities |  |  | 648,532 |  |  |  | 130 |  |  |  | 22,023 |  |  |  | 626,639 |
Collateralized mortgage obligations |  |  | 1,119 |  |  |  | - |  |  |  | 33 |  |  |  | 1,086 |
Corporate debt securities |  |  | 64,983 |  |  |  | 1,020 |  |  |  | - |  |  |  | 66,003 |
Total |  | $ | 1,320,843 |  |  | $ | 1,150 |  |  | $ | 38,933 |  |  | $ | 1,283,060 |
|  | December 31, 2017 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
|  | (In thousands) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 249,877 |  |  | $ | - |  |  | $ | 357 |  |  | $ | 249,520 |
U.S. government agency entities |  |  | 9,047 |  |  |  | 11 |  |  |  | 70 |  |  |  | 8,988 |
U.S. government sponsored entities |  |  | 400,000 |  |  |  | - |  |  |  | 9,664 |  |  |  | 390,336 |
State and municipal securities |  |  | 1,944 |  |  |  | - |  |  |  | 30 |  |  |  | 1,914 |
Mortgage-backed securities |  |  | 577,987 |  |  |  | 241 |  |  |  | 6,259 |  |  |  | 571,969 |
Collateralized mortgage obligations |  |  | 1,533 |  |  |  | - |  |  |  | 17 |  |  |  | 1,516 |
Corporate debt securities |  |  | 80,007 |  |  |  | 1,291 |  |  |  | 17 |  |  |  | 81,281 |
Mutual funds |  |  | 6,500 |  |  |  | - |  |  |  | 270 |  |  |  | 6,230 |
Preferred stock of government sponsored entities |  |  | 5,842 |  |  |  | 4,260 |  |  |  | - |  |  |  | 10,102 |
Other equity securities |  |  | 3,608 |  |  |  | 8,162 |  |  |  | - |  |  |  | 11,770 |
Total |  | $ | 1,336,345 |  |  | $ | 13,965 |  |  | $ | 16,684 |  |  | $ | 1,333,626 |
The amortized cost and fair value of investment securities as of September 30, 2018, by contractual maturities, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.
|  | Securities Available-For-Sale |
|  | Amortized cost |  |  | Fair value |
|  | (In thousands) |
Due in one year or less |  | $ | 199,497 |  |  | $ | 199,383 |
Due after one year through five years |  |  | 465,892 |  |  |  | 450,363 |
Due after five years through ten years |  |  | 6,434 |  |  |  | 6,163 |
Due after ten years |  |  | 649,020 |  |  |  | 627,151 |
Total |  | $ | 1,320,843 |  |  | $ | 1,283,060 |
There were no sales of mortgage-backed securities during the first nine months of 2018 and the first nine months of 2017. Proceeds from repayments, maturities and calls of mortgage-backed securities were $79.4 million and $48.5 million for the nine months ended September 30, 2018 and 2017, respectively. Proceeds of $99.6 million were received from the sale of other investment securities during the first nine months of 2018, compared to proceeds of $99.5 million from the sale of other investment securities during the first nine months of 2017. Proceeds from maturities and calls of other investment securities were $266.9 million during the nine months ended September 30, 2018, compared to $341.3 million during the same period a year ago. There were $14,000 of losses realized on sales of investment securities during the nine months ended September 30, 2018, compared to $438,000 of losses in the same period a year ago. There were no other than temporary impairment write-downs recorded during the first nine months of 2018 and the first nine months of 2017. The adoption of ASU 2016 - 01 resulted in approximately $8.6 million being reclassified from accumulated other comprehensive income to retained earnings, representing an increase to retained earnings as of January 1, 2018. For the nine months ended September 30, 2018, the Company recognized a net loss of $4.6 million due to the decrease in fair value of equity investments with readily determinable fair values. Equity securities were $23.5 million as of September 30, 2018, compared to $28.1 million as of December 31, 2017. The tables below show the fair value and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of September 30, 2018, and December 31, 2017:
|  | September 30, 2018 |
|  | Temporarily impaired securities |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
|  | (In thousands) |
Debt Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 199,374 |  |  | $ | 114 |  |  | $ | - |  |  | $ | - |  |  | $ | 199,374 |  |  | $ | 114 |
U.S. government agency entities |  |  | 5,208 |  |  |  | 160 |  |  |  | 1,304 |  |  |  | 50 |  |  |  | 6,512 |  |  |  | 210 |
U.S. government sponsored entities |  |  | - |  |  |  | - |  |  |  | 383,447 |  |  |  | 16,553 |  |  |  | 383,447 |  |  |  | 16,553 |
Mortgage-backed securities |  |  | 247,059 |  |  |  | 6,088 |  |  |  | 372,218 |  |  |  | 15,935 |  |  |  | 619,277 |  |  |  | 22,023 |
Collateralized mortgage obligations |  |  | - |  |  |  | - |  |  |  | 1,086 |  |  |  | 33 |  |  |  | 1,086 |  |  |  | 33 |
Total debt securities |  | $ | 451,641 |  |  | $ | 6,362 |  |  | $ | 758,055 |  |  | $ | 32,571 |  |  | $ | 1,209,696 |  |  | $ | 38,933 |
Equity Securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock of government sponsored entities |  |  | 6,397 |  |  |  | 3,706 |  |  |  | - |  |  |  | - |  |  |  | 6,397 |  |  |  | 3,706 |
Mutual funds |  |  | - |  |  |  | - |  |  |  | 6,034 |  |  |  | 195 |  |  |  | 6,034 |  |  |  | 195 |
Other equity securities |  |  | 1,008 |  |  |  | 679 |  |  |  | - |  |  |  | - |  |  |  | 1,008 |  |  |  | 679 |
Total equity securities |  | $ | 7,405 |  |  | $ | 4,385 |  |  | $ | 6,034 |  |  | $ | 195 |  |  | $ | 13,439 |  |  | $ | 4,580 |
|  | December 31, 2017 |
|  | Temporarily impaired securities |
|  | Less than 12 months |  |  | 12 months or longer |  |  | Total |
|  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |  |  | Fair |  |  | Unrealized |
|  | Value |  |  | Losses |  |  | Value |  |  | Losses |  |  | Value |  |  | Losses |
|  | (In thousands) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 199,823 |  |  | $ | 62 |  |  | $ | 49,697 |  |  | $ | 295 |  |  | $ | 249,520 |  |  | $ | 357 |
U.S. government agency entities |  |  | 5,711 |  |  |  | 70 |  |  |  | - |  |  |  | - |  |  |  | 5,711 |  |  |  | 70 |
U.S. government sponsored entities |  |  | - |  |  |  | - |  |  |  | 390,336 |  |  |  | 9,664 |  |  |  | 390,336 |  |  |  | 9,664 |
State and municipal securities |  |  | 1,914 |  |  |  | 30 |  |  |  | - |  |  |  | - |  |  |  | 1,914 |  |  |  | 30 |
Mortgage-backed securities |  |  | 342,436 |  |  |  | 3,147 |  |  |  | 178,617 |  |  |  | 3,112 |  |  |  | 521,053 |  |  |  | 6,259 |
Collateralized mortgage obligations |  |  | 1,516 |  |  |  | 17 |  |  |  | - |  |  |  | - |  |  |  | 1,516 |  |  |  | 17 |
Corporate debt securities |  |  | 5,015 |  |  |  | 17 |  |  |  | - |  |  |  | - |  |  |  | 5,015 |  |  |  | 17 |
Mutual funds |  |  | - |  |  |  | - |  |  |  | 6,230 |  |  |  | 270 |  |  |  | 6,230 |  |  |  | 270 |
Total |  | $ | 556,415 |  |  | $ | 3,343 |  |  | $ | 624,880 |  |  | $ | 13,341 |  |  | $ | 1,181,295 |  |  | $ | 16,684 |
As of September 30, 2018, the Company had unrealized losses on available-for-sale securities of $38.9 million. The unrealized losses on these securities were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. The issuers have not, to the Company’s knowledge, established any cause for default on these securities. Management believes the impairment was temporary and, accordingly, no impairment loss on these securities has been recognized in our condensed consolidated statements of operations. The Company expects to recover the amortized cost basis of its securities and has no intent to sell, and will not be required to sell, available-for-sale securities that have declined below their cost before their anticipated recovery. Investment securities having a carrying value of $33.1 million as of September 30, 2018, and $272.2 million as of December 31, 2017, were pledged to secure public deposits, other borrowings, treasury tax and loan, and securities sold under agreements to repurchase.

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