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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 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.
 
September 30, 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
 
  $
1,127,395
 
 
  $
20,105
 
 
  $
(1,341
)
 
  $
1,146,159
 
 
 
72.99
%
CMO/REMIC - residential
 
 
381,615
 
 
 
1,649
 
 
 
(336
)
 
 
382,928
 
 
 
24.38
%
Municipal bonds
 
 
39,564
 
 
 
924
 
 
 
(1
)
 
 
40,487
 
 
 
2.58
%
Other securities
 
 
832
 
 
 
-
 
 
 
-
 
  
 
832
 
 
 
0.05
%
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total
available-for-sale
securities
 
  $
1,549,406
 
 
  $
22,678
 
 
  $
(1,678
)
 
 
 
 
  $
1,570,406
 
 
 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Investment securities
held-to-maturity:
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Government agency/GSE
 
  $
123,917
 
 
  $
3,238
 
 
  $
(170
)
 
  $
126,985
 
 
 
17.60
%
Residential mortgage-backed securities
 
 
172,919
 
 
 
2,624
 
 
 
(3
)
 
 
175,540
 
 
 
24.56
%
CMO
 
 
204,263
 
 
 
76
 
 
 
(1,467
)
 
 
202,872
 
 
 
29.02
%
Municipal bonds
 
 
202,854
 
 
 
4,198
 
 
 
(558
)
 
 
206,494
 
 
 
28.82
%
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total
held-to-maturity
securities
 
  $
703,953
 
 
  $
10,136
 
 
  $
(2,198
)
 
  $
711,891
 
 
 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
   Amortized   
Cost
 
Gross
   Unrealized   
Holding
Gain
 
 
Gross
   Unrealized   
Holding
Loss
 
   Fair Value   
 
T
otal 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    
September 30,
 
    For the Nine Months Ended    
September 30,
 
         2019         
 
         2018         
 
         2019         
 
         2018         
 
 
 
(Dollars in thousands)
Investment securities
available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
  $
8,949
 
 
  $
 11,126
 
 
  $
 29,079
 
 
  $
 33,861
 
Tax-advantaged
 
 
273
 
 
 
395
 
 
 
906
 
 
 
1,225
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest income from
available-for-sale
securities
 
 
9,222
 
 
 
11,521
 
 
 
29,985
 
 
 
35,086
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
 
2,883
 
 
 
2,961
 
 
 
8,725
 
 
 
8,887
 
Tax-advantaged
 
 
1,415
 
 
 
1,705
 
 
 
4,524
 
 
 
5,351
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest income from
held-to-maturity
securities
 
 
4,298
 
 
 
4,666
 
 
 
13,249
 
 
 
14,238
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total interest income from investment securities
 
  $
 13,520
 
 
  $
 16,187
 
 
  $
 43,234
 
 
  $
 49,324
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Approximately
89
% of the total investment securities portfolio at September 30, 2019 represents securities issued by the U.S. government or U.S. government-sponsored enterprises, with the implied guarantee of payment of principal and interest.
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 September 30, 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
interest 
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-
i
mpaired (“OTTI”). 
  
September 30, 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
    $
  2
      $
  -
      $
  127,904
      $
 
 
  (1,341
)     $
  127,906
      $
  (1,341
)
CMO/REMIC - residential
   
122,595
     
(156
)    
39,498
     
(180
)    
162,093
     
(336
)
Municipal bonds
   
-
     
-
     
564
     
(1
)    
564
     
(1
)
                                                 
Total
available-for-sale
securities
     $
122,597
      $
(156
)     $
167,966
      $
(1,522
)     $
290,563
      $
(1,678
)
Investment securities
held-to-maturity:
   
     
     
     
     
     
 
Government agency/GSE
    $
-
      $
-
      $
19,923
      $
(170
)     $
19,923
      $
(170
)
Residential mortgage-backed securities
   
5,021
     
(3
)    
-
     
-
     
5,021
     
(3
)
CMO
   
-
     
-
     
178,297
     
(1,467
)    
178,297
     
(1,467
)
Municipal bonds
   
3,037
     
(5
)    
32,217
     
(553
)    
35,254
     
(558
)
                                                 
Total
held-to-maturity
securities
     $
8,058
      $
(8
)     $
230,437
      $
(2,190
)     $
     
238,495
       $
     
(2,198
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                               
 
 
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.
                                 
 
September 30, 2019
 
Available-for-sale
 
Held-to-maturity
 
Amortized
Cost
 
Fair Value
  
 
 
 
Amortized
 
 

Cost
 
 
 
Fair Value
 
 
  
 
(Dollars in thousands)
Due in one year or less
    $
 
12,278
      $
 
12,426
      $
 
500
      $
500
 
Due after one year through five years
   
1,345,036
     
1,364,026
     
327,802
     
328,561
 
Due after five years through ten years
   
171,657
     
173,033
     
161,463
     
163,676
 
Due after ten years
   
20,435
     
20,921
     
214,188
     
219,154
 
                                 
Total investment securities
    $
 
1,549,406
      $
 
1,570,406
      $
 
  703,953
      $
  711,891