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Securities Available for Sale | 12 Months Ended
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Dec. 31, 2018
Available-for-sale Securities [Abstract] |
Securities Available for Sale | SECURITIES AVAILABLE FOR SALE The following is a summary of securities available for sale at December 31, 2018 and 2017:
| December 31, 2018
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (Dollars in thousands)
Debt securities: |  |  |  |  |  |  |  |
U.S. Government agency and U.S. Government sponsored enterprises: |  |  |  |  |  |  |
Collateralized mortgage obligations | $ | 914,710 |  |  | $ | 1,541 |  |  | $ | (21,129 | ) |  | $ | 895,122 |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 415,659 |  |  | 47 |  |  | (13,101 | ) |  | 402,605 |
Commercial | 481,081 |  |  | 1,024 |  |  | (12,979 | ) |  | 469,126 |
Corporate securities | 5,000 |  |  | — |  |  | (1,174 | ) |  | 3,826 |
Municipal securities | 77,168 |  |  | 398 |  |  | (1,980 | ) |  | 75,586 |
Total investment securities available for sale | $ | 1,893,618 |  |  | $ | 3,010 |  |  | $ | (50,363 | ) |  | $ | 1,846,265 |
| December 31, 2017
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (Dollars in thousands)
Debt securities: |  |  |  |  |  |  |
U.S. Government agency and U.S. Government sponsored enterprises: |  |  |  |  |  |  |
Collateralized mortgage obligations | $ | 856,193 |  |  | $ | 58 |  |  | (17,542 | ) |  | $ | 838,709 |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 477,676 |  |  | 521 |  |  | (6,983 | ) |  | 471,214 |
Commercial | 308,046 |  |  | — |  |  | (6,681 | ) |  | 301,365 |
Corporate securities | 4,997 |  |  | — |  |  | (522 | ) |  | 4,475 |
Municipal securities | 82,542 |  |  | 870 |  |  | (875 | ) |  | 82,537 |
Total debt securities | 1,729,454 |  |  | 1,449 |  |  | (32,603 | ) |  | 1,698,300 |
Mutual funds | 22,425 |  |  | 17 |  |  | (485 | ) |  | 21,957 |
Total investment securities available for sale | $ | 1,751,879 |  |  | $ | 1,466 |  |  | $ | (33,088 | ) |  | $ | 1,720,257 |
As of December 31, 2018 and December 31, 2017, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. At December 31, 2018 and December 31, 2017, $32.7 million and $21.8 million, respectively, in unrealized losses on securities available for sale net of taxes were included in accumulated other comprehensive loss. There were no reclassifications out of accumulated other comprehensive loss into earnings during the twelve months ended December 31, 2018. During the twelve months ended December 31, 2017, $301 thousand in unrealized gains on investment securities were reclassified out of accumulated other comprehensive loss into earnings as a net gain on sale of securities. On January 1, 2018, the Company adopted ASU 2016-01 “Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. As a result of the adoption of ASU 2016-01, the Company no longer accounts for mutual funds as available for sale securities and accounts for these investments as equity investments with readily determinable fair value with changes in fair value recorded through earnings. In accordance with ASU 2016-01, the Company reclassified $469 thousand in net unrealized losses included in other comprehensive income and deferred tax assets to retained earnings on January 1, 2018. As of result of the adoption of ASU 2016-01, mutual funds were reclassified from investment securities available for sale to equity investments on January 1, 2018. The subsequent changes to fair value for mutual funds were recorded as other noninterest income for the twelve months ended December 31, 2018. The proceeds from sales of securities and total gains and losses are listed below:
| Year ended December 31,
| 2018 |  | 2017 |  | 2016
| (Dollars in thousands)
Proceeds from investments sold | $ | — |  |  | $ | 128,791 |  |  | $ | 217,079 |
Gains from sales of securities | — |  |  | 402 |  |  | 1,032 |
Losses from sales of securities | — |  |  | (101 | ) |  | (84 | )
Gains from called securities | — |  |  | — |  |  | 2 |
Net gain on sales or called securities | $ | — |  |  | $ | 301 |  |  | $ | 950 |
The amortized cost and estimated fair value of securities at December 31, 2018, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
| December 31, 2018
| Amortized Cost |  | Estimated Fair Value
| (Dollars in thousands)
Available for sale: |  |  |
Due within one year | $ | 751 |  |  | $ | 761 |
Due after one year through five years | 17,565 |  |  | 17,669 |
Due after five years through ten years | 27,873 |  |  | 27,901 |
Due after ten years | 35,979 |  |  | 33,081 |
U.S. Government agency and U.S. Government sponsored enterprises |  |  |
Collateralized mortgage obligations | 914,710 |  |  | 895,122 |
Mortgage-backed securities: |  |  |
Residential | 415,659 |  |  | 402,605 |
Commercial | 481,081 |  |  | 469,126 |
Total | $ | 1,893,618 |  |  | $ | 1,846,265 |
Securities with carrying values of approximately $354.6 million and $359.2 million at December 31, 2018 and December 31, 2017, respectively, were pledged to secure public deposits, various borrowings, and for other purposes as required or permitted by law. The following tables show the Company’s investments’ gross unrealized losses and estimated fair values, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated.
| December 31, 2018
| Less than 12 months |  | 12 months or longer |  | Total
Description of Securities | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses
| (Dollars in thousands)
Collateralized mortgage obligations* | 1 |  |  | $ | 8,041 |  |  | $ | (28 | ) |  | 93 |  |  | $ | 700,095 |  |  | $ | (21,101 | ) |  | 94 |  |  | $ | 708,136 |  |  | $ | (21,129 | )
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential* | 4 |  |  | 19,973 |  |  | (37 | ) |  | 45 |  |  | 363,334 |  |  | (13,064 | ) |  | 49 |  |  | 383,307 |  |  | (13,101 | )
Commercial* | 3 |  |  | 38,494 |  |  | (218 | ) |  | 27 |  |  | 312,428 |  |  | (12,761 | ) |  | 30 |  |  | 350,922 |  |  | (12,979 | )
Corporate securities | — |  |  | — |  |  | — |  |  | 1 |  |  | 3,826 |  |  | (1,174 | ) |  | 1 |  |  | 3,826 |  |  | (1,174 | )
Municipal securities | 13 |  |  | 5,528 |  |  | (83 | ) |  | 32 |  |  | 42,444 |  |  | (1,897 | ) |  | 45 |  |  | 47,972 |  |  | (1,980 | )
Total | 21 |  |  | $ | 72,036 |  |  | $ | (366 | ) |  | 198 |  |  | $ | 1,422,127 |  |  | $ | (49,997 | ) |  | 219 |  |  | $ | 1,494,163 |  |  | $ | (50,363 | )
| December 31, 2017
| Less than 12 months |  | 12 months or longer |  | Total
Description of Securities | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Fair Value |  | Gross Unrealized Losses
| (Dollars in thousands)
Collateralized mortgage obligations* | 38 |  |  | $ | 425,198 |  |  | $ | (5,954 | ) |  | 53 |  |  | $ | 408,526 |  |  | $ | (11,588 | ) |  | 91 |  |  | $ | 833,724 |  |  | $ | (17,542 | )
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential* | 20 |  |  | 195,086 |  |  | (1,282 | ) |  | 23 |  |  | 230,616 |  |  | (5,701 | ) |  | 43 |  |  | 425,702 |  |  | (6,983 | )
Commercial* | 16 |  |  | 186,357 |  |  | (1,614 | ) |  | 8 |  |  | 115,008 |  |  | (5,067 | ) |  | 24 |  |  | 301,365 |  |  | (6,681 | )
Corporate securities | 1 |  |  | 4,475 |  |  | (522 | ) |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 4,475 |  |  | (522 | )
Municipal securities | 18 |  |  | 9,295 |  |  | (69 | ) |  | 3 |  |  | 22,144 |  |  | (806 | ) |  | 21 |  |  | 31,439 |  |  | (875 | )
Mutual funds | 1 |  |  | 8,899 |  |  | (101 | ) |  | 3 |  |  | 11,579 |  |  | (384 | ) |  | 4 |  |  | 20,478 |  |  | (485 | )
Total | 94 |  |  | $ | 829,310 |  |  | $ | (9,542 | ) |  | 90 |  |  | $ | 787,873 |  |  | $ | (23,546 | ) |  | 184 |  |  | $ | 1,617,183 |  |  | $ | (33,088 | )
_________________________________ * Investments in U.S. Government agency and U.S. Government sponsored enterprises The Company evaluates securities for other-than-temporary-impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the financial condition and near-term prospects of the issuer, the length of time and the extent to which the fair values of the securities have been less than the cost of the securities, the Company’s intention to sell, and/or whether it is more likely than not that the Company will be required to sell the security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, the Company considers, among other considerations, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. The Company has certain collateralized mortgage obligations, mortgage-backed securities, corporate securities, and municipal securities that were in a continuous loss position for twelve months or longer at December 31, 2018. Corporate securities in a continuous loss position for twelve months or longer had unrealized losses of $1.2 million at December 31, 2018. Municipal securities in a continuous loss position for twelve months or longer had an unrealized losses of $1.9 million at December 31, 2018 with the last of the securities scheduled to mature in November 2046. These securities were rated investment grade and there were no credit quality concerns with the issuer. Collateralized mortgage obligations, residential and commercial mortgage-backed securities in a continuous loss position for twelve months or longer had unrealized losses of $21.1 million, $13.1 million, and $12.8 million, respectively, at December 31, 2018. These securities were investments in U.S. Government agency and U.S. Government sponsored enterprises and have high credit ratings (“AA” grade or better). The interest on the securities that were in an unrealized loss position have been paid as agreed, and management believes this will continue in the future and that the securities will be paid in full as scheduled. The market value declines are deemed to be due to the current market volatility and are not reflective of management’s expectations of the Company’s ability to fully recover the investments, which may be at maturity. For these reasons, no OTTI was recognized on the securities that were in a continuous loss position for twelve months or longer at December 31, 2018. The Company considers the losses on its investments in unrealized loss positions at December 31, 2018 to be temporary based on: 1) the likelihood of recovery; 2) the information relative to the extent and duration of the decline in market value; and 3) the Company’s intention not to sell, and management’s determination that it is more likely than not that the Company will not be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. The increase in the net unrealized loss position can be attributed to an increase in long term Treasury yields as a result of the increase in interest rates at December 31, 2018, compared to rates at December 31, 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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