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Investment Securities | 9 Months Ended
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Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities At September 30, 2017, the Company had $1.03 billion and $481.8 million in available for sale and held to maturity investment securities, respectively. Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, regulatory actions, changes in the business environment or any changes in the competitive marketplace could have an adverse effect on the Company’s investment portfolio which could result in other-than-temporary impairment ("OTTI") in future periods. The total number of held to maturity and available for sale securities in an unrealized loss position as of September 30, 2017 totaled 253, compared with 419 at December 31, 2016. All securities with unrealized losses at September 30, 2017 were analyzed for other-than-temporary impairment. Based upon this analysis, the Company believes that as of September 30, 2017, such securities with unrealized losses do not represent impairments that are other-than-temporary. Securities Available for Sale The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for securities available for sale at September 30, 2017 and December 31, 2016 (in thousands):
|  | September 30, 2017
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
U.S. Treasury obligations |  | $ | 5,995 |  |  | — |  |  | (1 | ) |  | 5,994 |
Agency obligations |  | 28,031 |  |  | 15 |  |  | (11 | ) |  | 28,035 |
Mortgage-backed securities |  | 965,863 |  |  | 7,477 |  |  | (4,928 | ) |  | 968,412 |
State and municipal obligations |  | 3,695 |  |  | 112 |  |  | — |  |  | 3,807 |
Corporate obligations |  | 21,049 |  |  | 420 |  |  | (10 | ) |  | 21,459 |
Equity securities |  | 397 |  |  | 201 |  |  | — |  |  | 598 |
|  | $ | 1,025,030 |  |  | 8,225 |  |  | (4,950 | ) |  | 1,028,305 |
|  | December 31, 2016
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
U.S. Treasury obligations |  | $ | 7,995 |  |  | 13 |  |  | — |  |  | 8,008 |
Agency obligations |  | 57,123 |  |  | 90 |  |  | (25 | ) |  | 57,188 |
Mortgage-backed securities |  | 952,992 |  |  | 7,249 |  |  | (8,380 | ) |  | 951,861 |
State and municipal obligations |  | 3,727 |  |  | 19 |  |  | (3 | ) |  | 3,743 |
Corporate obligations |  | 19,013 |  |  | 35 |  |  | (11 | ) |  | 19,037 |
Equity securities |  | 397 |  |  | 152 |  |  | — |  |  | 549 |
|  | $ | 1,041,247 |  |  | 7,558 |  |  | (8,419 | ) |  | 1,040,386 |
The amortized cost and fair value of securities available for sale at September 30, 2017, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
|  | September 30, 2017
|  | Amortized cost |  | Fair value
Due in one year or less |  | $ | 35,452 |  |  | 35,445 |
Due after one year through five years |  | 2,423 |  |  | 2,471 |
Due after five years through ten years |  | 20,895 |  |  | 21,379 |
Due after ten years |  | — |  |  | — |
|  | $ | 58,770 |  |  | 59,295 |
Mortgage-backed securities totaling $965.9 million at amortized cost and $968.4 million at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments. Also excluded from the table above are equity securities of $397,000 at amortized cost and $598,000 at fair value. For the three and nine months ended September 30, 2017, no securities were sold or called from the securities available for sale portfolio. For the three months ended September 30, 2016, proceeds from sales on securities available for sale totaled $1.2 million resulting in no gross gains and $45,000 of gross losses. Proceeds from the sale of securities available for sale, for the nine months ended September 30, 2016, totaled $3.4 million, resulting in gross gains of $95,000 and gross losses of $45,000. There were no calls of available for sale securities for the three and nine months ended September 30, 2016. The Company did not incur an OTTI charge on securities in the available for sale portfolio for the three and nine months ended September 30, 2017 and 2016. The following tables present the fair value and gross unrealized losses for securities available for sale with temporary impairment at September 30, 2017 and December 31, 2016 (in thousands):
|  | September 30, 2017 Unrealized Losses
|  | Less than 12 months |  | 12 months or longer |  | Total
|  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses
U.S. Treasury obligations |  | $ | 5,994 |  |  | (1 | ) |  | — |  |  | — |  |  | 5,994 |  |  | (1 | )
Agency obligations |  | 16,008 |  |  | (11 | ) |  | — |  |  | — |  |  | 16,008 |  |  | (11 | )
Mortgage-backed securities |  | 424,627 |  |  | (3,956 | ) |  | 50,881 |  |  | (972 | ) |  | 475,508 |  |  | (4,928 | )
Corporate obligations |  | — |  |  | — |  |  | 991 |  |  | (10 | ) |  | 991 |  |  | (10 | )
|  | $ | 446,629 |  |  | (3,968 | ) |  | 51,872 |  |  | (982 | ) |  | 498,501 |  |  | (4,950 | )
|  | December 31, 2016 Unrealized Losses
|  | Less than 12 months |  | 12 months or longer |  | Total
|  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses
Agency obligations |  | $ | 14,000 |  |  | (25 | ) |  | — |  |  | — |  |  | 14,000 |  |  | (25 | )
Mortgage-backed securities |  | 553,629 |  |  | (8,377 | ) |  | 65 |  |  | (3 | ) |  | 553,694 |  |  | (8,380 | )
State and municipal obligations |  | 661 |  |  | (3 | ) |  | — |  |  | — |  |  | 661 |  |  | (3 | )
Corporate obligations |  | — |  |  | — |  |  | 990 |  |  | (11 | ) |  | 990 |  |  | (11 | )
|  | $ | 568,290 |  |  | (8,405 | ) |  | 1,055 |  |  | (14 | ) |  | 569,345 |  |  | (8,419 | )
The temporary loss position associated with securities available for sale was the result of changes in market interest rates relative to the coupon of the individual security and changes in credit spreads. The Company does not have the intent to sell securities in a temporary loss position at September 30, 2017, nor is it more likely than not that the Company will be required to sell the securities before their prices recover. The number of available for sale securities in an unrealized loss position at September 30, 2017 totaled 82, compared with 87 at December 31, 2016. At September 30, 2017, there were two private label mortgage-backed securities in an unrealized loss position, with an amortized cost of $50,000 and an unrealized loss of $2,000. Neither of these private label mortgage-backed securities were below investment grade at September 30, 2017. The Company estimates the loss projections for each security by stressing the individual loans collateralizing the security and applying a range of expected default rates, loss severities, and prepayment speeds in conjunction with the underlying credit enhancement for each security. Based on specific assumptions about collateral and vintage, a range of possible cash flows was identified to determine whether OTTI existed during the nine months ended September 30, 2017. The Company believes that no OTTI of the securities available for sale portfolio existed for the three and nine months ended September 30, 2017. Investment Securities Held to Maturity The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for investment securities held to maturity at September 30, 2017 and December 31, 2016 (in thousands):
|  | September 30, 2017
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
Agency obligations |  | $ | 4,307 |  |  | — |  |  | (55 | ) |  | 4,252 |
Mortgage-backed securities |  | 475 |  |  | 17 |  |  | — |  |  | 492 |
State and municipal obligations |  | 467,113 |  |  | 10,407 |  |  | (1,761 | ) |  | 475,759 |
Corporate obligations |  | 9,950 |  |  | 6 |  |  | (34 | ) |  | 9,922 |
|  | $ | 481,845 |  |  | 10,430 |  |  | (1,850 | ) |  | 490,425 |
|  | December 31, 2016
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
Agency obligations |  | $ | 4,306 |  |  | 2 |  |  | (83 | ) |  | 4,225 |
Mortgage-backed securities |  | 893 |  |  | 31 |  |  | — |  |  | 924 |
State and municipal obligations |  | 473,653 |  |  | 6,635 |  |  | (5,436 | ) |  | 474,852 |
Corporate obligations |  | 9,331 |  |  | 7 |  |  | (52 | ) |  | 9,286 |
|  | $ | 488,183 |  |  | 6,675 |  |  | (5,571 | ) |  | 489,287 |
The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair values may fluctuate during the investment period. There were no sales of securities from the held to maturity portfolio for the three and nine months ended September 30, 2017 and 2016. For the three and nine months ended September 30, 2017, proceeds from calls on securities in the held to maturity portfolio totaled $8.1 million and $28.7 million, respectively, with gross gains totaling $39,000 and $50,000, respectively and gross losses of $3,000 in both the three and nine month periods. For the three and nine months ended September 30, 2016, proceeds from calls of securities in the held to maturity portfolio totaled $20.3 million and $35.2 million, respectively, with gross gains totaling $2,000 and $4,000, respectively and no gross losses recognized in either period. The amortized cost and fair value of investment securities in the held to maturity portfolio at September 30, 2017 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
|  | September 30, 2017
|  | Amortized cost |  | Fair value
Due in one year or less |  | $ | 14,723 |  |  | 14,755 |
Due after one year through five years |  | 65,170 |  |  | 66,276 |
Due after five years through ten years |  | 254,191 |  |  | 259,908 |
Due after ten years |  | 147,286 |  |  | 148,994 |
|  | $ | 481,370 |  |  | 489,933 |
Mortgage-backed securities totaling $475,000 at amortized cost and $492,000 at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments. The following tables present the fair value and gross unrealized losses for investment securities held to maturity with temporary impairment at September 30, 2017 and December 31, 2016 (in thousands):
|  | September 30, 2017 Unrealized Losses
|  | Less than 12 months |  | 12 months or longer |  | Total
|  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses
Agency obligations |  | $ | 3,853 |  |  | (55 | ) |  | — |  |  | — |  |  | 3,853 |  |  | (55 | )
State and municipal obligations |  | 62,881 |  |  | (938 | ) |  | 22,251 |  |  | (823 | ) |  | 85,132 |  |  | (1,761 | )
Corporate obligations |  | 6,646 |  |  | (34 | ) |  | — |  |  | — |  |  | 6,646 |  |  | (34 | )
|  | $ | 73,380 |  |  | (1,027 | ) |  | 22,251 |  |  | (823 | ) |  | 95,631 |  |  | (1,850 | )
|  | December 31, 2016 Unrealized Losses
|  | Less than 12 months |  | 12 months or longer |  | Total
|  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses |  | Fair value |  | Gross unrealized losses
Agency obligations |  | $ | 3,525 |  |  | (83 | ) |  | — |  |  | — |  |  | 3,525 |  |  | (83 | )
State and municipal obligations |  | 172,152 |  |  | (5,132 | ) |  | 6,617 |  |  | (304 | ) |  | 178,769 |  |  | (5,436 | )
Corporate obligations |  | 4,697 |  |  | (52 | ) |  | — |  |  | — |  |  | 4,697 |  |  | (52 | )
|  | $ | 180,374 |  |  | (5,267 | ) |  | 6,617 |  |  | (304 | ) |  | 186,991 |  |  | (5,571 | )
Based upon the review of the held to maturity securities portfolio, the Company believes that as of September 30, 2017, securities with unrealized loss positions shown above do not represent impairments that are other-than-temporary. The review of the portfolio for OTTI considers the percentage and length of time the fair value of an investment is below book value, as well as general market conditions, changes in interest rates, credit risks, whether the Company has the intent to sell the securities and whether it is more likely than not that the Company would be required to sell the securities before their prices recover. The number of held to maturity securities in an unrealized loss position at September 30, 2017 totaled 171, compared with 332 at December 31, 2016. The decrease in the number of securities in an unrealized loss position at September 30, 2017, was due to a slight decrease in market interest rates from December 31, 2016 and a tightening of spreads in the municipal bond sector. All temporarily impaired investment securities were investment grade at September 30, 2017.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
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