XML 31 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Investments | 12 Months Ended
--- | ---
Dec. 31, 2021
Investments [Abstract] |
Investments | INVESTMENTS The amortized cost and fair value of investment and marketable equity securities at December 31, 2021 and 2020, were as follows:
| December 31, 2021
(Dollars in thousands) | Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 2,006,788 |  |  | $ | 106 |  |  | $ | 1,924 |  |  | $ | 2,004,970 |
Government agency | 797,725 |  |  | 4,659 |  |  | 3,624 |  |  | 798,760 |
Residential mortgage-backed securities | 4,756,977 |  |  | 8,229 |  |  | 36,793 |  |  | 4,728,413 |
Commercial mortgage-backed securities | 1,071,309 |  |  | 5,364 |  |  | 13,924 |  |  | 1,062,749 |
Corporate bonds | 582,420 |  |  | 26,648 |  |  | 533 |  |  | 608,535 |
Total investment securities available for sale | 9,215,219 |  |  | 45,006 |  |  | 56,798 |  |  | 9,203,427 |
Investment in marketable equity securities | 72,894 |  |  | 24,879 |  |  | 245 |  |  | 97,528 |
Investment securities held to maturity |  |  |  |  |  |  |
Residential mortgage-backed securities | 2,322,529 |  |  | 5,690 |  |  | 21,957 |  |  | 2,306,262 |
Commercial mortgage-backed securities | 1,484,916 |  |  | 32 |  |  | 33,568 |  |  | 1,451,380 |
Other | 2,008 |  |  | — |  |  | — |  |  | 2,008 |
Total investment securities held to maturity | 3,809,453 |  |  | 5,722 |  |  | 55,525 |  |  | 3,759,650 |
Total investment securities | $ | 13,097,566 |  |  | $ | 75,607 |  |  | $ | 112,568 |  |  | $ | 13,060,605 |
| December 31, 2020
| Cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 499,832 |  |  | $ | 101 |  |  | $ | — |  |  | $ | 499,933 |
Government agency | 706,241 |  |  | 723 |  |  | 5,573 |  |  | 701,391 |
Residential mortgage-backed securities | 4,369,130 |  |  | 70,283 |  |  | 1,310 |  |  | 4,438,103 |
Commercial mortgage-backed securities | 745,892 |  |  | 25,645 |  |  | — |  |  | 771,537 |
Corporate bonds | 590,870 |  |  | 14,437 |  |  | 2,028 |  |  | 603,279 |
Total investment securities available for sale | 6,911,965 |  |  | 111,189 |  |  | 8,911 |  |  | 7,014,243 |
Investment in marketable equity securities | 84,837 |  |  | 8,654 |  |  | 1,811 |  |  | 91,680 |
Investment securities held to maturity |  |  |  |  |  |  |
Residential mortgage-backed securities | 1,877,692 |  |  | 17,689 |  |  | — |  |  | 1,895,381 |
Commercial mortgage-backed securities | 937,034 |  |  | 3,884 |  |  | 56 |  |  | 940,862 |
Other | 2,256 |  |  | — |  |  | — |  |  | 2,256 |
Total investment securities held to maturity | 2,816,982 |  |  | 21,573 |  |  | 56 |  |  | 2,838,499 |
Total investment securities | $ | 9,813,784 |  |  | $ | 141,416 |  |  | $ | 10,778 |  |  | $ | 9,944,422 |
On October 1, 2021, mortgage-backed securities with an amortized cost of $451.7 million were transferred from investment securities available for sale to the held to maturity portfolio. At the time of transfer, the mortgage-backed securities had a fair value of $439.0 million and a weighted average remaining contractual maturity of approximately 28 years. The unrealized loss on these securities at the date of transfer was $12.7 million, or $9.7 million net of tax, and was reported as a component of AOCI. This unrealized loss is amortized over the remaining expected life of the securities as an adjustment of yield. On November 1, 2020, mortgage-backed securities with an amortized cost of $1.46 billion were transferred from investment securities available for sale to the held to maturity portfolio. At the time of transfer, the mortgage-backed securities had a fair value of $1.47 billion and a weighted average remaining contractual maturity of approximately 18 years. The unrealized gain on these securities at the date of transfer was $5.9 million, or $4.5 million net of tax, and was reported as a component of AOCI. This unrealized gain is accreted over the remaining expected life of the securities as an adjustment of yield. Investments in mortgage-backed securities represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in government agency securities represent securities issued by the SBA. Investments in corporate bonds represent positions in debt securities of other financial institutions. Investments in marketable equity securities represent positions in common stock of publicly traded financial institutions. Other held to maturity investments include certificates of deposit with other financial institutions. BancShares also holds approximately 354,000 shares of Class B common stock of Visa, Inc. (“Visa”). Until the resolution of certain litigation, at which time the Visa Class B common stock will convert to publicly traded Visa Class A common stock, these shares are only transferable to other shareholders of Visa Class B common stock. As a result, there is limited transfer activity in private transactions between buyers and sellers. Given this limited trading activity and the continuing uncertainty regarding the likelihood, ultimate timing and eventual exchange rate for shares of Visa Class B common stock into shares of Visa Class A common stock, these shares are not considered to have a readily determinable fair value and have no carrying value. BancShares continues to monitor the trading activity in Visa Class B common stock and the status of the resolution of certain litigation matters at Visa that would trigger the conversion of the Visa Class B common stock into Visa Class A common stock. BancShares held FHLB stock of $40.5 million and $45.4 million and other non-marketable equity securities of $9.6 million and $11.6 million at December 31, 2021 and December 31, 2020, respectively. These securities are recorded at cost within other assets. As of December 31, 2021 and December 31, 2020, no ACL was required for available for sale and held to maturity debt securities. At December 31, 2021, accrued interest receivable for available for sale and held to maturity debt securities were $22.3 million and $6.6 million, respectively, and were excluded from the estimate of credit losses. At December 31, 2020, accrued interest receivable for available for sale and held to maturity debt securities were $17.6 million and $5.4 million, respectively, and were excluded from the estimate of credit losses. During the years ended December 31, 2021 and December 31, 2020, no accrued interest was deemed uncollectible and written off against interest income. The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Residential and commercial mortgage-backed and government agency securities are stated separately as they are not due at a single maturity date.
| December 31, 2021 |  | December 31, 2020
(Dollars in thousands) | Amortized cost |  | Fair value |  | Amortized cost |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
Non-amortizing securities maturing in: |  |  |  |  |  |  |
One year or less | $ | 200 |  |  | $ | 202 |  |  | $ | 500,846 |  |  | $ | 500,954 |
One through five years | 2,049,068 |  |  | 2,048,259 |  |  | 72,565 |  |  | 73,881 |
Five through 10 years | 523,290 |  |  | 547,912 |  |  | 508,320 |  |  | 519,570 |
Over 10 years | 16,650 |  |  | 17,132 |  |  | 8,971 |  |  | 8,807 |
Government agency | 797,725 |  |  | 798,760 |  |  | 706,241 |  |  | 701,391 |
Residential mortgage-backed securities | 4,756,977 |  |  | 4,728,413 |  |  | 4,369,130 |  |  | 4,438,103 |
Commercial mortgage-backed securities | 1,071,309 |  |  | 1,062,749 |  |  | 745,892 |  |  | 771,537 |
Total investment securities available for sale | $ | 9,215,219 |  |  | $ | 9,203,427 |  |  | $ | 6,911,965 |  |  | $ | 7,014,243 |
Investment securities held to maturity |  |  |  |  |  |  |
Non-amortizing securities maturing in: |  |  |  |  |  |  |
One year or less | $ | 2,008 |  |  | $ | 2,008 |  |  | $ | 1,507 |  |  | $ | 1,507 |
One through five years | — |  |  | — |  |  | 749 |  |  | 749 |
Residential mortgage-backed securities | 2,322,529 |  |  | 2,306,262 |  |  | 1,877,692 |  |  | 1,895,381 |
Commercial mortgage-backed securities | 1,484,916 |  |  | 1,451,380 |  |  | 937,034 |  |  | 940,862 |
Total investment securities held to maturity | $ | 3,809,453 |  |  | $ | 3,759,650 |  |  | $ | 2,816,982 |  |  | $ | 2,838,499 |
For each year presented, realized gains on investment securities available for sale included the following:
| Year ended December 31
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Gross gains on retirement/sales of investment securities available for sale | $ | 33,133 |  |  | $ | 60,932 |  |  | $ | 8,993 |
Gross losses on sales of investment securities available for sale | (14) |  |  | (679) |  |  | (1,878) |
Realized gains on investment securities available for sale, net | $ | 33,119 |  |  | $ | 60,253 |  |  | $ | 7,115 |
For each year presented, realized and unrealized gains or losses on marketable equity securities included the following:
| Year ended December 31
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Marketable equity securities gains (losses), net | $ | 34,081 |  |  | $ | 29,395 |  |  | $ | 20,625 |
Less net gains recognized on marketable equity securities sold | 16,261 |  |  | 44,550 |  |  | 16,344 |
Unrealized gains (losses) recognized on marketable equity securities held | $ | 17,820 |  |  | $ | (15,155) |  |  | $ | 4,281 |
The following table provides information regarding investment securities with unrealized losses as of December 31, 2021 and 2020:
| December 31, 2021
| Less than 12 months |  | 12 months or more |  | Total
(Dollars in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Investment securities available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 1,810,924 |  |  | $ | 1,924 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,810,924 |  |  | $ | 1,924 |
Government agency | 222,401 |  |  | 1,516 |  |  | 189,935 |  |  | 2,108 |  |  | 412,336 |  |  | 3,624 |
Residential mortgage-backed securities | 3,992,305 |  |  | 36,769 |  |  | 1,351 |  |  | 24 |  |  | 3,993,656 |  |  | 36,793 |
Commercial mortgage-backed securities | 647,101 |  |  | 13,924 |  |  | — |  |  | — |  |  | 647,101 |  |  | 13,924 |
Corporate bonds | 52,331 |  |  | 533 |  |  | — |  |  | — |  |  | 52,331 |  |  | 533 |
Total | $ | 6,725,062 |  |  | $ | 54,666 |  |  | $ | 191,286 |  |  | $ | 2,132 |  |  | $ | 6,916,348 |  |  | $ | 56,798 |
| December 31, 2020
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Investment securities available for sale |  |  |  |  |  |  |  |  |  |  |
Government agency | $ | 268,622 |  |  | $ | 3,197 |  |  | $ | 328,777 |  |  | $ | 2,376 |  |  | $ | 597,399 |  |  | $ | 5,573 |
Residential mortgage-backed securities | 433,816 |  |  | 1,241 |  |  | 23,064 |  |  | 69 |  |  | 456,880 |  |  | 1,310 |
Corporate bonds | 57,715 |  |  | 2,028 |  |  | — |  |  | — |  |  | 57,715 |  |  | 2,028 |
Total | $ | 760,153 |  |  | $ | 6,466 |  |  | $ | 351,841 |  |  | $ | 2,445 |  |  | $ | 1,111,994 |  |  | $ | 8,911 |
There were 37 and 39 investment securities available for sale with continuous losses for more than 12 months as of December 31, 2021 and December 31, 2020, respectively, all of which are government sponsored, enterprise-issued mortgage-backed securities or government agency securities. None of the unrealized losses identified as of December 31, 2021 or December 31, 2020 relate to the issuer’s ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the investment securities were purchased, and do not indicate credit-related impairment. BancShares considered other factors including changes in credit ratings, delinquencies, and other macroeconomic factors in this determination. As a result, none of the securities were deemed to require an allowance for credit losses. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Investment securities having an aggregate carrying value of $5.74 billion at December 31, 2021 and $4.64 billion at December 31, 2020, were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law. BancShares’ portfolio of held to maturity debt securities consists of mortgage-backed securities issued by government agencies and government sponsored entities. Given the consistently strong credit rating of the U.S. Treasury and the long history of no credit losses on debt securities issued by government agencies and government sponsored entities, no allowance for credit losses has been recorded on these securities. In the event there are downgrades to the credit rating of the U.S. Treasury or losses reported on securities issued by government agencies and government sponsored entities, BancShares will reevaluate its determination of zero expected credit losses on held to maturity debt securities. There were no debt securities held to maturity on non-accrual status as of December 31, 2021 or December 31, 2020. A security is considered past due once it is 30 days contractually past due under the terms of the agreement. There were no securities past due as of December 31, 2021 or December 31, 2020.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration