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Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Summary of Amortized Cost and Estimated Fair Value of Investment Securities
The amortized cost and estimated fair value of investment securities are summarized below. The majority of securities held are available-for-sale securities with fair value based on quoted prices for similar assets in active markets or quoted prices for identical assets in markets that are not active. Estimated fair values were obtained from an independent pricing service based upon market quotes.
 
 
 
March 31, 2019
 
 
 
Amortized

Cost
 
 
Gross

Unrealized

Holding
Gain
 
 
Gross

Unrealized

Holding
Loss
 
 
Fair Value
 
 
Total 
Percent
 
 
 
(Dollars in thousands)
 
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities
 
$
1,424,937
 
 
$
6,107
 
 
$
(8,540
)
 
$
1,422,504
 
 
 
85.00
%
CMO/REMIC - residential
 
 
206,956
 
 
 
470
 
 
 
(2,301
)
 
 
205,125
 
 
 
12.26
%
Municipal bonds
 
 
45,052
 
 
 
421
 
 
 
(388
)
 
 
45,085
 
 
 
2.69
%
Other securities
 
 
787
 
 
 
-
 
 
 
-
 
 
 
787
 
 
 
0.05
%
Total available-for-sale securities
 
$
1,677,732
 
 
$
6,998
 
 
$
(11,229
)
 
$
1,673,501
 
 
 
100.00
%
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency/GSE
 
$
133,557
 
 
$
564
 
 
$
(2,077
)
 
$
132,044
 
 
 
18.21
%
Residential mortgage-backed securities
 
 
169,367
 
 
 
737
 
 
 
(999
)
 
 
169,105
 
 
 
23.09
%
CMO
 
 
213,145
 
 
 
-
 
 
 
(9,998
)
 
 
203,147
 
 
 
29.06
%
Municipal bonds
 
 
217,395
 
 
 
1,819
 
 
 
(2,859
)
 
 
216,355
 
 
 
29.64
%
Total held-to-maturity securities
 
$
733,464
 
 
$
3,120
 
 
$
(15,933
)
 
$
720,651
 
 
 
100.00
%
 
 
 
December 31, 2018
 
 
 
Amortized

Cost
 
 
Gross

Unrealized

Holding
Gain
 
 
Gross

Unrealized

Holding
Loss
 
 
Fair Value
 
 
Total 
Percent
 
 
 
(Dollars in thousands)
 
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities
 
$
1,494,106
 
 
$
1,348
 
 
$
(20,946
)
 
$
1,474,508
 
 
 
85.03
%
CMO/REMIC - residential
 
 
217,223
 
 
 
353
 
 
 
(3,525
)
 
 
214,051
 
 
 
12.34
%
Municipal bonds
 
 
45,621
 
 
 
332
 
 
 
(1,143
)
 
 
44,810
 
 
 
2.59
%
Other securities
 
 
716
 
 
 
-
 
 
 
-
 
 
 
716
 
 
 
0.04
%
Total available-for-sale securities
 
$
1,757,666
 
 
$
2,033
 
 
$
(25,614
)
 
$
1,734,085
 
 
 
100.00
%
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency/GSE
 
$
138,274
 
 
$
572
 
 
$
(2,622
)
 
$
136,224
 
 
 
18.57
%
Residential mortgage-backed securities
 
 
153,874
 
 
 
-
 
 
 
(3,140
)
 
 
150,734
 
 
 
20.67
%
CMO
 
 
215,336
 
 
 
-
 
 
 
(12,081
)
 
 
203,255
 
 
 
28.93
%
Municipal bonds
 
 
236,956
 
 
 
556
 
 
 
(6,188
)
 
 
231,324
 
 
 
31.83
%
Total held-to-maturity securities
 
$
744,440
 
 
$
1,128
 
 
$
(24,031
)
 
$
721,537
 
 
 
100.00
%
Summary of Interest Income Earned on Investment Securities
The following table provides information about the amount of interest income earned on investment securities which is fully taxable and which is exempt from regular federal income tax.
 
 
 
For the Three Months Ended
 
 
 
March 31,
 
 
 
2019
 
 
2018
 
 
 
(Dollars in thousands)
 
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
Taxable
 
$
10,309
 
 
$
11,445
 
Tax-advantaged
 
 
336
 
 
 
423
 
Total interest income from available-for-sale securities
 
 
10,645
 
 
 
11,868
 
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
Taxable
 
 
2,910
 
 
 
2,878
 
Tax-advantaged
 
 
1,615
 
 
 
1,887
 
Total interest income from held-to-maturity securities
 
 
4,525
 
 
 
4,765
 
Total interest income from investment securities
 
$
15,170
 
 
$
16,633
 
Summary of Continuous Unrealized Loss Position of Securities The tables below show the Company’s investment securities’ gross unrealized losses and fair value by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018. Management has reviewed individual securities to determine whether a decline in fair value below the amortized cost basis is other-than-temporary. The unrealized losses on these securities were primarily attributed to changes in interest rates. The issuers of these securities have not, to our knowledge, evidenced any cause for default on these securities. These securities have fluctuated in value since their purchase dates as market rates have fluctuated. However, we have the ability and the intention to hold these securities until their fair values recover to cost or maturity. As such, management does not deem these securities to be other-than-temporarily-Impaired (“OTTI”).
 
 
March 31, 2019
 
 
 
Less Than 12 Months
 
 
12 Months or Longer
 
 
Total
 
 
 
Fair Value
 
 
Gross

Unrealized

Holding

Losses
 
 
Fair Value
 
 
Gross

Unrealized

Holding

Losses
 
 
Fair Value
 
 
Gross

Unrealized

Holding

Losses
 
 
 
(Dollars in thousands)
 
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities
 
$
-
 
 
$
-
 
 
$
703,134
 
 
$
(8,540
)
 
$
703,134
 
 
$
(8,540
)
CMO/REMIC - residential
 
 
66
 
 
 
-
 
 
 
160,926
 
 
 
(2,301
)
 
 
160,992
 
 
 
(2,301
)
Municipal bonds
 
 
-
 
 
 
-
 
 
 
16,689
 
 
 
(388
)
 
 
16,689
 
 
 
(388
)
Total available-for-sale securities
 
$
66
 
 
$
-
 
 
$
880,749
 
 
$
(11,229
)
 
$
880,815
 
 
$
(11,229
)
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency/GSE
 
$
26,291
 
 
$
(122
)
 
$
60,153
 
 
$
(1,955
)
 
$
86,444
 
 
$
(2,077
)
Residential mortgage-backed securities
 
 
-
 
 
 
-
 
 
 
86,568
 
 
 
(999
)
 
 
86,568
 
 
 
(999
)
CMO
 
 
-
 
 
 
-
 
 
 
203,148
 
 
 
(9,998
)
 
 
203,148
 
 
 
(9,998
)
Municipal bonds
 
 
-
 
 
 
-
 
 
 
64,790
 
 
 
(2,859
)
 
 
64,790
 
 
 
(2,859
)
Total held-to-maturity securities
 
$
26,291
 
 
$
(122
)
 
$
414,659
 
 
$
(15,811
)
 
$
440,950
 
 
$
(15,933
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
Less Than 12 Months
 
 
12 Months or Longer
 
 
Total
 
 
 
Fair Value
 
 
Gross

Unrealized

Holding

Losses
 
 
Fair Value
 
 
Gross

Unrealized

Holding

Losses
 
 
Fair Value
 
 
Gross

Unrealized

Holding

Losses
 
 
 
(Dollars in thousands)
 
Investment securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities
 
$
692,311
 
 
$
(4,864
)
 
$
593,367
 
 
$
(16,082
)
 
$
1,285,678
 
 
$
(20,946
)
CMO/REMIC - residential
 
 
36,582
 
 
 
(365
)
 
 
135,062
 
 
 
(3,160
)
 
 
171,644
 
 
 
(3,525
)
Municipal bonds
 
 
9,568
 
 
 
(188
)
 
 
14,181
 
 
 
(955
)
 
 
23,749
 
 
 
(1,143
)
Total available-for-sale securities
 
$
738,461
 
 
$
(5,417
)
 
$
742,610
 
 
$
(20,197
)
 
$
1,481,071
 
 
$
(25,614
)
Investment securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government agency/GSE
 
$
7,479
 
 
$
(15
)
 
$
54,944
 
 
$
(2,607
)
 
$
62,423
 
 
$
(2,622
)
Residential mortgage-backed securities
 
 
59,871
 
 
 
(484
)
 
 
90,863
 
 
 
(2,656
)
 
 
150,734
 
 
 
(3,140
)
CMO
 
 
-
 
 
 
-
 
 
 
203,254
 
 
 
(12,081
)
 
 
203,254
 
 
 
(12,081
)
Municipal bonds
 
 
70,989
 
 
 
(778
)
 
 
77,723
 
 
 
(5,410
)
 
 
148,712
 
 
 
(6,188
)
Total held-to-maturity securities
 
$
138,339
 
 
$
(1,277
)
 
$
426,784
 
 
$
(22,754
)
 
$
565,123
 
 
$
(24,031
)
Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity Mortgage-backed and CMO/REMIC securities are included in maturity categories based upon estimated average lives which incorporate estimated prepayment speeds.
 
 
 
March 31, 2019
 
 
 
Available-for-sale
 
 
Held-to-maturity
 
 
 
Amortized

Cost
 
 
Fair Value
 
 
Amortized

Cost
 
 
Fair Value
 
 
 
(Dollars in thousands)
 
Due in one year or less
 
$
11,947
 
 
$
12,113
 
 
$
500
 
 
$
506
 
Due after one year through five years
 
 
1,481,462
 
 
 
1,479,161
 
 
 
264,136
 
 
 
254,886
 
Due after five years through ten years
 
 
157,640
 
 
 
155,816
 
 
 
232,213
 
 
 
231,964
 
Due after ten years
 
 
26,683
 
 
 
26,411
 
 
 
236,615
 
 
 
233,295
 
Total investment securities
 
$
1,677,732
 
 
$
1,673,501
 
 
$
733,464
 
 
$
720,651