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Note 3 - Investment Securities | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
3. | Investment Securities
Investment Securities. The following tables reflect the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of debt securities available-for-sale as of December 31, 2019 and December 31, 2018:
|  | As of December 31, 2019 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
|  | (In thousands) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 74,926 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 74,936 |
U.S. government agency entities |  |  | 90,452 |  |  |  | 663 |  |  |  | 319 |  |  |  | 90,796 |
U.S. government sponsored entities |  |  | 225,000 |  |  |  | — |  |  |  | 557 |  |  |  | 224,443 |
Mortgage-backed securities |  |  | 880,040 |  |  |  | 8,574 |  |  |  | 824 |  |  |  | 887,790 |
Collateralized mortgage obligations |  |  | 569 |  |  |  | — |  |  |  | 17 |  |  |  | 552 |
Corporate debt securities |  |  | 172,743 |  |  |  | 605 |  |  |  | 23 |  |  |  | 173,325 |
Total securities available-for-sale |  | $ | 1,443,730 |  |  | $ | 9,852 |  |  | $ | 1,740 |  |  | $ | 1,451,842 |
|  | As of December 31, 2018 |
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  |  |  |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Fair Value |
|  | (In thousands) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 124,801 |  |  | $ | — |  |  | $ | 50 |  |  | $ | 124,751 |
U.S. government agency entities |  |  | 6,066 |  |  |  | — |  |  |  | 195 |  |  |  | 5,871 |
U.S. government sponsored entities |  |  | 400,000 |  |  |  | — |  |  |  | 11,638 |  |  |  | 388,362 |
Mortgage-backed securities |  |  | 670,874 |  |  |  | 960 |  |  |  | 15,089 |  |  |  | 656,745 |
Collateralized mortgage obligations |  |  | 1,005 |  |  |  | — |  |  |  | 28 |  |  |  | 977 |
Corporate debt securities |  |  | 64,985 |  |  |  | 818 |  |  |  | — |  |  |  | 65,803 |
Total securities available-for-sale |  | $ | 1,267,731 |  |  | $ | 1,778 |  |  | $ | 27,000 |  |  | $ | 1,242,509 |
The amortized cost and fair value of investment securities at December 31, 2019, 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 |
|  | As of December 31, 2019 |
|  | Amortized Cost |  |  | Fair Value |
|  | (In thousands) |
Due in one year or less |  | $ | 168,831 |  |  | $ | 168,894 |
Due after one year through five years |  |  | 304,348 |  |  |  | 304,337 |
Due after five years through ten years |  |  | 50,587 |  |  |  | 50,593 |
Due after ten years |  |  | 919,964 |  |  |  | 928,018 |
Total |  | $ | 1,443,730 |  |  | $ | 1,451,842 |
Proceeds from the sale of investment securities were $293.8 million during 2019 compared to $99.9 million during 2018. Proceeds from repayments, maturities and calls of investment securities during 2019 were $296.7 million compared to $447.8 million during 2018. In 2019, the Company recorded realized gains of $583 thousand and losses of $372 thousand on sales of investment securities compared to realized gains of $36 thousand and losses of $14 thousand in 2018. The temporarily impaired securities represent 34.0% of the fair value of investment securities as of December 31, 2019. Unrealized losses for securities with unrealized losses for less than twelve months represent 0.2%, and securities with unrealized losses for twelve months or longer represent 0.4%, of the historical cost of these securities. Unrealized losses on these securities generally resulted from increases in interest rates or spreads subsequent to the date that these securities were purchased. Total unrealized losses of $1.7 million at December 31, 2019, were primarily caused by increases in interest rates or the widening of credit and liquidity spreads since the dates of acquisition. The contractual terms of those investments do not permit the issuers to settle the security at a price less than the amortized cost of the investment. At December 31, 2019, management believed the impairment was temporary and, accordingly, no impairment loss on debt securities has been recognized in our Consolidated Statements of Operations. The Company expects to recover the amortized cost basis of its debt securities and has no intent to sell and believes it is more likely than not that it will not be required to sell available-for-sale debt securities that have declined below their cost before their anticipated recovery. The tables below show the fair value and unrealized losses of the temporarily impaired securities in our investment securities portfolio as of December 31, 2019, and December 31, 2018:
|  | As of December 31, 2019 |
|  | 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. government agency entities |  | $ | 48,829 |  |  | $ | 172 |  |  | $ | 3,570 |  |  | $ | 147 |  |  | $ | 52,399 |  |  | $ | 319 |
U.S. government sponsored entities |  |  | — |  |  |  | — |  |  |  | 224,443 |  |  |  | 557 |  |  |  | 224,443 |  |  |  | 557 |
Mortgage-backed securities |  |  | 43,719 |  |  |  | 36 |  |  |  | 120,801 |  |  |  | 788 |  |  |  | 164,520 |  |  |  | 824 |
Collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | 552 |  |  |  | 17 |  |  |  | 552 |  |  |  | 17 |
Corporate debt securities |  |  | 51,791 |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | 51,791 |  |  |  | 23 |
Total securities available-for-sale |  | $ | 144,339 |  |  | $ | 231 |  |  | $ | 349,366 |  |  | $ | 1,509 |  |  | $ | 493,705 |  |  | $ | 1,740 |
|  | As of December 31, 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) |
Securities Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  | $ | 124,751 |  |  | $ | 51 |  |  | $ | — |  |  | $ | — |  |  | $ | 124,751 |  |  | $ | 51 |
U.S. government agency entities |  |  | 3,388 |  |  |  | 77 |  |  |  | 2,483 |  |  |  | 118 |  |  |  | 5,871 |  |  |  | 195 |
U.S. government sponsored entities |  |  | — |  |  |  | — |  |  |  | 388,362 |  |  |  | 11,637 |  |  |  | 388,362 |  |  |  | 11,637 |
Mortgage-backed securities |  |  | 48,528 |  |  |  | 502 |  |  |  | 507,701 |  |  |  | 14,587 |  |  |  | 556,229 |  |  |  | 15,089 |
Collateralized mortgage obligations |  |  | — |  |  |  | — |  |  |  | 977 |  |  |  | 28 |  |  |  | 977 |  |  |  | 28 |
Total securities available-for-sale |  | $ | 176,667 |  |  | $ | 630 |  |  | $ | 899,523 |  |  | $ | 26,370 |  |  | $ | 1,076,190 |  |  | $ | 27,000 |
Investment securities having a carrying value of $20.1 million at December 31, 2019, and $28.5 million at December 31, 2018, were pledged to secure public deposits, other borrowings, treasury tax and loan, securities sold under agreements to repurchase, and foreign exchange transactions. 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 year ended December 31, 2019, the Company recognized a net gain of $5.7 million due to the increase in fair value of equity investments with readily determinable fair values. For the year ended December 31, 2018, the Company recognized a net loss of $2.8 million due to the decrease in fair value of equity investments with readily determinable fair values. Equity securities were $28.0 million as of December 31, 2019, compared to $25.1 million as of December 31, 2018.

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