XML 34 R13.htm IDEA: XBRL DOCUMENT
v3.22.4

Securities | 12 Months Ended
--- | ---
Dec. 31, 2022
Debt Securities, Available-for-Sale [Abstract] |
Securities [Text Block] | SecuritiesAt December 31, 2022, the Company’s securities portfolio primarily consisted of securities issued by the U.S. government, U.S. government agencies, U.S. government-sponsored enterprises and states and municipalities. Nearly all of the Company’s mortgage-backed securities and collateralized mortgage obligations are issued by U.S. government agencies and U.S. government-sponsored enterprises and are implicitly guaranteed by the U.S. government. The remainder of the Company’s available for sale mortgage-backed securities are non-agency collateralized mortgage obligations which currently carry ratings no lower than A. The Company had no other issuances in its portfolio which exceeded ten percent of shareholders’ equity. The following table summarizes the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities:
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2022 |  | (in thousands)
Available for sale |  |  |  |  |  |  |  |
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations |  | $ | 3,188,381 |  |  | $ | 382 |  |  | $ | (429,053) |  |  | $ | 2,759,710 |
Other asset-backed securities |  | 376,336 |  |  | — |  |  | (48,983) |  |  | 327,353 |
State and municipal securities |  | 959,469 |  |  | 199 |  |  | (125,595) |  |  | 834,073 |
U.S. government agency and government-sponsored enterprise securities |  | 222,829 |  |  | 2 |  |  | (14,062) |  |  | 208,769 |
U.S. government securities |  | 183,049 |  |  | — |  |  | (15,153) |  |  | 167,896 |
Non-agency collateralized mortgage obligations |  | 352,782 |  |  | — |  |  | (61,484) |  |  | 291,298 |
Total available for sale |  | $ | 5,282,846 |  |  | $ | 583 |  |  | $ | (694,330) |  |  | $ | 4,589,099 |
Held to maturity |  |  |  |  |  |  |  |
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations |  | $ | 2,034,792 |  |  | $ | — |  |  | $ | (312,014) |  |  | $ | 1,722,778 |
Total held to maturity |  | $ | 2,034,792 |  |  | $ | — |  |  | $ | (312,014) |  |  | $ | 1,722,778 |
December 31, 2021 |  |  |  |  |  |  |  |
Available for sale |  |  |  |  |  |  |  |
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations |  | $ | 3,738,616 |  |  | $ | 45,077 |  |  | $ | (38,092) |  |  | $ | 3,745,601 |
Other asset-backed securities |  | 469,052 |  |  | 3,802 |  |  | (9,791) |  |  | 463,063 |
State and municipal securities |  | 983,704 |  |  | 18,525 |  |  | (4,938) |  |  | 997,291 |
U.S. government agency and government-sponsored enterprise securities |  | 252,755 |  |  | 3,095 |  |  | (3,274) |  |  | 252,576 |
U.S. government securities |  | 158,367 |  |  | — |  |  | (831) |  |  | 157,536 |
Non-agency collateralized mortgage obligations |  | 295,547 |  |  | 340 |  |  | (955) |  |  | 294,932 |
Total available for sale |  | $ | 5,898,041 |  |  | $ | 70,839 |  |  | $ | (57,881) |  |  | $ | 5,910,999 |
Held to maturity |  |  |  |  |  |  |  |
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations |  | $ | 2,148,327 |  |  | $ | 50 |  |  | $ | (25,771) |  |  | $ | 2,122,606 |
Total held to maturity |  | $ | 2,148,327 |  |  | $ | 50 |  |  | $ | (25,771) |  |  | $ | 2,122,606 |
There was no allowance for credit losses on both available for sale securities and held to maturity securities as of December 31, 2022 and December 31, 2021. All of the Company’s debt securities held to maturity were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss. A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. There were no amounts of accrued interest reversed against interest income for the twelve months ended December 31, 2022 and 2021. Accrued interest receivable for debt securities is included in “Interest receivable” on the Company’s Consolidated Balance Sheet and is not reflected in the balances in the table above. At December 31, 2022 and 2021, accrued interest receivable for securities available for sale was $17.3 million and $19.2 million, respectively. Accrued interest for securities held to maturity was $4.2 million at December 31, 2022 and $4.4 million at December 31, 2021. The Company does not measure an allowance for credit losses for accrued interest receivable. The following table provides the proceeds and both gross realized gains and losses on the sales and calls of debt securities available for sale as well as other securities gains and losses for the periods indicated:
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
|  | (in thousands)
Proceeds from sales and calls of debt securities available for sale |  | $ | 741 |  |  | $ | 89,219 |  |  | $ | 194,697 |
Gross realized gains from sales of debt securities available for sale |  | $ | — |  |  | $ | 751 |  |  | $ | 471 |
Gross realized losses from sales of debt securities available for sale |  | (9) |  |  | (437) |  |  | (186) |
Other securities gains, net (1) |  | — |  |  | — |  |  | 16,425 |
Investment securities gains (losses), net |  | $ | (9) |  |  | $ | 314 |  |  | $ | 16,710 |
__________ (1) Other securities gains includes gain from sale of Visa Class B restricted stock and subsequent write up to fair value of remaining Visa Class B shares. The following table provides the unrealized gains and losses on equity securities at the reporting date:
|  | Years Ended December 31,
|  | 2022 |  | 2021 |  | 2020
|  | (in thousands)
Gains recognized during the period on equity securities |  | $ | — |  |  | $ | — |  |  | $ | 16,425 |
Less: Losses recognized during the period on equity securities sold during the period. |  | — |  |  | — |  |  | (3,000) |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date (1). |  | $ | — |  |  | $ | — |  |  | $ | 13,425 |
__________ (1) Visa Class B restricted stock owned by the Company was previously carried at a zero-cost basis due to existing transfer restrictions and uncertainty of covered litigation. The sale of shares by the Company of Visa Class B restricted shares during the year ended December 31, 2020 resulted in an observable market price. As a result, the Company adjusted the carrying value of its remaining shares of Visa Class B restricted shares upward to this observable market price. The scheduled contractual maturities of debt securities at December 31, 2022 are presented as follows:
|  | December 31, 2022
|  | Available for sale |  | Held to maturity
|  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
|  | (in thousands)
Due within one year |  | $ | 85,094 |  |  | $ | 84,216 |  |  | $ | — |  |  | $ | — |
Due after one year through five years |  | 1,132,895 |  |  | 1,055,150 |  |  | 301,515 |  |  | 265,831 |
Due after five years through ten years |  | 1,106,689 |  |  | 973,108 |  |  | 916,571 |  |  | 775,931 |
Due after ten years |  | 2,958,168 |  |  | 2,476,625 |  |  | 816,706 |  |  | 681,016 |
Total debt securities |  | $ | 5,282,846 |  |  | $ | 4,589,099 |  |  | $ | 2,034,792 |  |  | $ | 1,722,778 |
The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:
|  | December 31,
|  | 2022 |  | 2021
|  | (in thousands)
To secure public funds |  | $ | 564,150 |  |  | $ | 596,779 |
To secure borrowings |  | — |  |  | 98,796 |
Other securities pledged |  | 266,752 |  |  | 267,213 |
Total securities pledged as collateral |  | $ | 830,902 |  |  | $ | 962,788 |
The following tables show the gross unrealized losses and fair value of the Company’s debt securities available for sale for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021:
|  | Less than 12 Months |  | 12 Months or More |  | Total
|  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
December 31, 2022 |  | (in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations |  | $ | 735,898 |  |  | $ | (50,201) |  |  | $ | 2,005,957 |  |  | $ | (378,852) |  |  | $ | 2,741,855 |  |  | $ | (429,053) |
Other asset-backed securities |  | 76,877 |  |  | (7,579) |  |  | 250,475 |  |  | (41,404) |  |  | 327,352 |  |  | (48,983) |
State and municipal securities |  | 309,675 |  |  | (23,690) |  |  | 485,620 |  |  | (101,905) |  |  | 795,295 |  |  | (125,595) |
U.S. government agency and government-sponsored enterprise securities |  | 68,656 |  |  | (1,375) |  |  | 139,364 |  |  | (12,687) |  |  | 208,020 |  |  | (14,062) |
U.S. government securities |  | — |  |  | — |  |  | 167,896 |  |  | (15,153) |  |  | 167,896 |  |  | (15,153) |
Non-agency collateralized mortgage obligations |  | 11,669 |  |  | (2,736) |  |  | 279,629 |  |  | (58,748) |  |  | 291,298 |  |  | (61,484) |
Total |  | $ | 1,202,775 |  |  | $ | (85,581) |  |  | $ | 3,328,941 |  |  | $ | (608,749) |  |  | $ | 4,531,716 |  |  | $ | (694,330) |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations |  | $ | 2,292,062 |  |  | $ | (30,777) |  |  | $ | 176,946 |  |  | $ | (7,315) |  |  | $ | 2,469,008 |  |  | $ | (38,092) |
Other asset-backed securities |  | 195,708 |  |  | (4,823) |  |  | 117,751 |  |  | (4,968) |  |  | 313,459 |  |  | (9,791) |
State and municipal securities |  | 237,354 |  |  | (3,862) |  |  | 40,343 |  |  | (1,076) |  |  | 277,697 |  |  | (4,938) |
U.S. government agency and government-sponsored enterprise securities |  | 100,813 |  |  | (1,988) |  |  | 48,714 |  |  | (1,286) |  |  | 149,527 |  |  | (3,274) |
U.S. government securities |  | 157,536 |  |  | (831) |  |  | — |  |  | — |  |  | 157,536 |  |  | (831) |
Non-agency collateralized mortgage obligations |  | 212,259 |  |  | (955) |  |  | — |  |  | — |  |  | 212,259 |  |  | (955) |
Total |  | $ | 3,195,732 |  |  | $ | (43,236) |  |  | $ | 383,754 |  |  | $ | (14,645) |  |  | $ | 3,579,486 |  |  | $ | (57,881) |
Debt securities available for sale At December 31, 2022, there were 645 U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligation securities in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not currently intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at December 31, 2022. At December 31, 2022, there were 83 other asset-backed securities in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not currently intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at December 31, 2022. At December 31, 2022, there were 563 state and municipal government securities in an unrealized loss position. The unrealized losses on state and municipal securities were caused by interest rate changes or widening of market spreads subsequent to the purchase of the individual securities. Management monitors published credit ratings of these securities for adverse changes. As of December 31, 2022, none of the rated obligations of state and local government entities held by the Company had a below investment grade credit rating. Because the credit quality of these securities is investment grade and the Company does not currently intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at December 31, 2022. At December 31, 2022, there were 21 U.S. government agency and government-sponsored enterprise securities in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at December 31, 2022. At December 31, 2022, there were 10 U.S. government securities in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at December 31, 2022. At December 31, 2022, there were 56 non-agency collateralized mortgage obligations in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at December 31, 2022. Equity Securities without Readily Determinable Fair Values In 2008, the Company received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into publicly traded Visa Class A common shares. This conversion will not occur until the settlement of certain litigation which is indemnified by Visa members, including the Company. Visa funded an escrow account from its initial public offering to settle these litigation claims. Should this escrow account not be sufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing each member banks’ Visa Class B conversion ratio to unrestricted Visa Class A shares. During the year ended December 31, 2020, the Company sold 17,360 shares of Visa Class B restricted stock, which resulted in an observable market price. As a result, the Company adjusted the carrying value of its remaining Visa Class B restricted shares upward to this observable market price. At December 31, 2022, the Company owned 77,683 Visa Class B shares, which had a carrying value of $13.4 million.

X
- References No definition available. + Details
Name: | us-gaap_AvailableForSaleSecuritiesAbstract
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 https://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 https://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 https://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 https://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