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Investment Securities | 9 Months Ended
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Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES The amortized cost and fair value of investment securities that are classified as held-to-maturity (“HTM”) and available-for-sale (“AFS”) are as follows:
| September 30, 2019 |  | December 31, 2018
(In thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Estimated Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Estimated Fair Value
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 16,990 |  |  | $ | — |  |  | $ | (49 | ) |  | $ | 16,941 |
Mortgage-backed securities | 11,549 |  |  | 93 |  |  | (42 | ) |  | 11,600 |  |  | 13,346 |  |  | 5 |  |  | (412 | ) |  | 12,939 |
State and political subdivisions | 28,692 |  |  | 931 |  |  | — |  |  | 29,623 |  |  | 256,863 |  |  | 3,029 |  |  | (954 | ) |  | 258,938 |
Other securities | 1,996 |  |  | 83 |  |  | — |  |  | 2,079 |  |  | 1,995 |  |  | 17 |  |  | — |  |  | 2,012 |
Total HTM | $ | 42,237 |  |  | $ | 1,107 |  |  | $ | (42 | ) |  | $ | 43,302 |  |  | $ | 289,194 |  |  | $ | 3,051 |  |  | $ | (1,415 | ) |  | $ | 290,830 |
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | $ | 177,712 |  |  | $ | 1,629 |  |  | $ | (1,202 | ) |  | $ | 178,139 |  |  | $ | 157,523 |  |  | $ | 518 |  |  | $ | (3,740 | ) |  | $ | 154,301 |
Mortgage-backed securities | 1,332,130 |  |  | 9,405 |  |  | (3,741 | ) |  | 1,337,794 |  |  | 1,552,487 |  |  | 3,097 |  |  | (32,684 | ) |  | 1,522,900 |
State and political subdivisions | 658,984 |  |  | 22,290 |  |  | (72 | ) |  | 681,202 |  |  | 320,142 |  |  | 171 |  |  | (5,470 | ) |  | 314,843 |
Other securities | 158,280 |  |  | 719 |  |  | — |  |  | 158,999 |  |  | 157,471 |  |  | 2,251 |  |  | (14 | ) |  | 159,708 |
Total AFS | $ | 2,327,106 |  |  | $ | 34,043 |  |  | $ | (5,015 | ) |  | $ | 2,356,134 |  |  | $ | 2,187,623 |  |  | $ | 6,037 |  |  | $ | (41,908 | ) |  | $ | 2,151,752 |
Securities with limited marketability, such as stock in the Federal Reserve Bank and the FHLB, are carried at cost and are reported as other AFS securities in the table above. Certain investment securities are valued at less than their historical cost. Total fair value of these investments at September 30, 2019 and December 31, 2018, was $710.6 million and $1.7 billion, which is approximately 29.6% and 70.3%, respectively, of the Company’s combined AFS and HTM investment portfolios. The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019:
| Less Than 12 Months |  | 12 Months or More |  | Total
(In thousands) | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | 3,408 |  |  | $ | (15 | ) |  | $ | 2,575 |  |  | $ | (27 | ) |  | $ | 5,983 |  |  | $ | (42 | )
State and political subdivisions | 635 |  |  | — |  |  | 15 |  |  | — |  |  | 650 |  |  | — |
Total HTM | $ | 4,043 |  |  | $ | (15 | ) |  | $ | 2,590 |  |  | $ | (27 | ) |  | $ | 6,633 |  |  | $ | (42 | )
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | $ | 16,662 |  |  | $ | (36 | ) |  | $ | 90,974 |  |  | $ | (1,166 | ) |  | $ | 107,636 |  |  | $ | (1,202 | )
Mortgage-backed securities | 133,538 |  |  | (528 | ) |  | 435,207 |  |  | (3,213 | ) |  | 568,745 |  |  | (3,741 | )
State and political subdivisions | 24,278 |  |  | (41 | ) |  | 3,297 |  |  | (31 | ) |  | 27,575 |  |  | (72 | )
Total AFS | $ | 174,478 |  |  | $ | (605 | ) |  | $ | 529,478 |  |  | $ | (4,410 | ) |  | $ | 703,956 |  |  | $ | (5,015 | )
The declines reflected in the preceding table primarily resulted from the rate for these investments yielding less than current market rates. Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary. Management does not have the intent to sell these securities, and management believes it is more likely than not the Company will not have to sell these securities before recovery of their amortized cost basis less any current period credit losses. Declines in the fair value of HTM and AFS securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Management has the ability and intent to hold the securities classified as HTM until they mature, at which time the Company expects to receive full value for the securities. Furthermore, as of September 30, 2019, management also had the ability and intent to hold the securities classified as AFS for a period of time sufficient for a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2019, management believes the impairments detailed in the table above are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. Income earned on securities for the three and nine months ended September 30, 2019 and 2018, is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Taxable: |  |  |  |  |  |  |  |  |
Held-to-maturity | $ | 248 |  |  | $ | 528 |  |  | $ | 975 |  |  | $ | 1,641 |
Available-for-sale | 10,166 |  |  | 10,364 |  |  | 34,422 |  |  | 29,614 |
Non-taxable: |  |  |  |  |  |  |
Held-to-maturity | 83 |  |  | 1,828 |  |  | 1,334 |  |  | 5,661 |
Available-for-sale | 4,870 |  |  | 1,920 |  |  | 12,542 |  |  | 4,642 |
Total | $ | 15,367 |  |  | $ | 14,640 |  |  | $ | 49,273 |  |  | $ | 41,558 |
The amortized cost and estimated fair value by maturity of securities are shown in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities.
| Held-to-Maturity |  | Available-for-Sale
(In thousands) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
One year or less | $ | 5,039 |  |  | $ | 5,057 |  |  | $ | 7,599 |  |  | $ | 7,605 |
After one through five years | 17,346 |  |  | 17,703 |  |  | 70,442 |  |  | 70,750 |
After five through ten years | 5,561 |  |  | 5,858 |  |  | 139,421 |  |  | 142,101 |
After ten years | 2,742 |  |  | 3,084 |  |  | 632,504 |  |  | 652,404 |
Securities not due on a single maturity date | 11,549 |  |  | 11,600 |  |  | 1,332,130 |  |  | 1,337,794 |
Other securities (no maturity) | — |  |  | — |  |  | 145,010 |  |  | 145,480 |
Total | $ | 42,237 |  |  | $ | 43,302 |  |  | $ | 2,327,106 |  |  | $ | 2,356,134 |
The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $1.12 billion at September 30, 2019 and $1.02 billion at December 31, 2018. There were approximately $7.6 million of gross realized gains and $3,000 of gross realized losses from the sale of securities during the three months ended September 30, 2019, and approximately $12.9 million of gross realized gains and $3,000 of gross realized losses from the sale of securities during the nine months ended September 30, 2019. During the third quarter 2019, the Company sold approximately $89 million of bonds as part of a plan to rebalance its investment portfolio resulting in a net gain on the sale of securities of $7.3 million. The gross realized gains recognized for the nine months ended September 30, 2019 is primarily due to the bond sale conducted during the third quarter 2019 as previously discussed and the adjustments made to the bond portfolio during the first quarter based upon projected cash flow changes. There were approximately $41,000 of gross realized gains and no gross realized losses from the sale of securities during the three months ended September 30, 2018, and approximately $54,000 of gross realized gains and $1,000 of gross realized losses from the sale of securities during the nine months ended September 30, 2018. The state and political subdivision debt obligations are predominately non-rated bonds representing small issuances, primarily in Arkansas, Missouri, Oklahoma, Tennessee and Texas issues, which are evaluated on an ongoing basis.

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