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v3.22.2.2

Securities | 9 Months Ended
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Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
Securities | 2. Securities The following tables set forth the amortized cost, gross unrealized gains and losses, and estimated fair value of debt securities classified as available for sale and held to maturity at September 30, 2022 and December 31, 2021. Amortized cost of securities does not include accrued interest which is reflected in the accrued interest line item on the consolidated balance sheets totaling $27.9 million at September 30, 2022 and $25.5 million at December 31, 2021. During the nine months ended September 30, 2022, the Company transferred securities with an aggregate fair value of $561.8 million, inclusive of an unrealized loss of $15.4 million, from the available for sale portfolio to the held to maturity portfolio; as such, the securities were recorded with an amortized cost of $561.8 million within the held to maturity portfolio. The unrealized loss is reflected in accumulated other comprehensive income and is being amortized to interest income over the remaining lives of the securities.
| September 30, 2022 |  | December 31, 2021 |
|  |  | Gross |  | Gross |  |  |  |  |  | Gross |  | Gross |  |  |
Securities Available for Sale | Amortized |  | Unrealized |  | Unrealized |  | Fair |  | Amortized |  | Unrealized |  | Unrealized |  | Fair |
(in thousands) | Cost |  | Gains |  | Losses |  | Value |  | Cost |  | Gains |  | Losses |  | Value |
U.S. Treasury and government agency securities | $ | 44,481 |  | $ | — |  | $ | 2,194 |  | $ | 42,287 |  | $ | 420,857 |  | $ | 3,781 |  | $ | 5,340 |  | $ | 419,298 |
Municipal obligations |  | 207,941 |  |  | 71 |  |  | 10,147 |  |  | 197,865 |  |  | 304,536 |  |  | 13,184 |  |  | 3,562 |  |  | 314,158 |
Residential mortgage-backed securities |  | 2,737,579 |  |  | 266 |  |  | 431,480 |  |  | 2,306,365 |  |  | 3,056,763 |  |  | 29,158 |  |  | 50,123 |  |  | 3,035,798 |
Commercial mortgage-backed securities |  | 3,247,495 |  |  | — |  |  | 423,575 |  |  | 2,823,920 |  |  | 3,064,828 |  |  | 61,645 |  |  | 48,614 |  |  | 3,077,859 |
Collateralized mortgage obligations |  | 81,383 |  |  | — |  |  | 6,294 |  |  | 75,089 |  |  | 119,046 |  |  | 1,837 |  |  | — |  |  | 120,883 |
Corporate debt securities |  | 23,500 |  |  | — |  |  | 2,183 |  |  | 21,317 |  |  | 18,500 |  |  | 210 |  |  | 8 |  |  | 18,702 |
﻿ | $ | 6,342,379 |  | $ | 337 |  | $ | 875,873 |  | $ | 5,466,843 |  | $ | 6,984,530 |  | $ | 109,815 |  | $ | 107,647 |  | $ | 6,986,698 |
| September 30, 2022 |  | December 31, 2021 |
|  |  | Gross |  | Gross |  |  |  |  |  | Gross |  | Gross |  |  |
Securities Held to Maturity | Amortized |  | Unrealized |  | Unrealized |  | Fair |  | Amortized |  | Unrealized |  | Unrealized |  | Fair |
(in thousands) | Cost |  | Gains |  | Losses |  | Value |  | Cost |  | Gains |  | Losses |  | Value |
U.S. Treasury and government agency securities | $ | 407,097 |  | $ | — |  | $ | 48,703 |  | $ | 358,394 |  | $ | 14,857 |  | $ | — |  | $ | 20 |  | $ | 14,837 |
Municipal obligations |  | 701,353 |  |  | 23 |  |  | 37,888 |  |  | 663,488 |  |  | 621,405 |  |  | 37,941 |  |  | 205 |  |  | 659,141 |
Residential mortgage-backed securities |  | 755,206 |  |  | — |  |  | 81,840 |  |  | 673,366 |  |  | 268,907 |  |  | 682 |  |  | 1,499 |  |  | 268,090 |
Commercial mortgage-backed securities |  | 954,498 |  |  | — |  |  | 89,285 |  |  | 865,213 |  |  | 603,156 |  |  | 28,679 |  |  | 669 |  |  | 631,166 |
Collateralized mortgage obligations |  | 48,194 |  |  | — |  |  | 2,575 |  |  | 45,619 |  |  | 57,426 |  |  | 822 |  |  | — |  |  | 58,248 |
﻿ | $ | 2,866,348 |  | $ | 23 |  | $ | 260,291 |  | $ | 2,606,080 |  | $ | 1,565,751 |  | $ | 68,124 |  | $ | 2,393 |  | $ | 1,631,482 |
The following tables present the amortized cost and fair value of debt securities available for sale and held to maturity at September 30, 2022 by contractual maturity. Actual maturities will differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateralized mortgage obligations.
Debt Securities Available for Sale |  | Amortized |  |  | Fair |
(in thousands) |  | Cost |  |  | Value |
Due in one year or less |  | $ | 101 |  |  | $ | 101 |
Due after one year through five years |  |  | 848,598 |  |  |  | 797,561 |
Due after five years through ten years |  |  | 2,973,944 |  |  |  | 2,578,481 |
Due after ten years |  |  | 2,519,736 |  |  |  | 2,090,700 |
Total available for sale debt securities |  | $ | 6,342,379 |  |  | $ | 5,466,843 |
Debt Securities Held to Maturity |  | Amortized |  |  | Fair |
(in thousands) |  | Cost |  |  | Value |
Due in one year or less |  | $ | 10,000 |  |  | $ | 9,890 |
Due after one year through five years |  |  | 542,464 |  |  |  | 516,989 |
Due after five years through ten years |  |  | 865,852 |  |  |  | 782,394 |
Due after ten years |  |  | 1,448,032 |  |  |  | 1,296,807 |
Total held to maturity securities |  | $ | 2,866,348 |  |  | $ | 2,606,080 |
The Company held no securities classified as trading at September 30, 2022 and December 31, 2021. The following table presents the proceeds from, gross gains on, and gross losses on sales of securities during the nine months ended September 30, 2022 and 2021. Net gains or losses are reflected in the "Securities transactions, net" line item on the Consolidated Statements of Income.
|  | Nine Months Ended September 30, |
(in thousands) |  | 2022 |  |  | 2021 |
Proceeds |  | $ | 73,219 |  |  | $ | 198,681 |
Gross gains |  |  | — |  |  |  | 1,649 |
Gross losses |  |  | 87 |  |  |  | 1,316 |
Net gain (loss) |  | $ | (87 | ) |  | $ | 333 |
Securities with carrying values totalin g $4.2 bi ll ion and $4.0 billion were pledged as collateral at September 30, 2022 and December 31, 2021, respectively, primarily to secure public deposits or securities sold under agreements to repurchase. Credit Quality The Company’s policy is to invest only in securities of investment grade quality. These investments are largely limited to U.S. agency securities and municipal securities. Management has concluded, based on the long history of no credit losses, that the expectation of nonpayment of the held to maturity securities carried at amortized cost is zero for securities that are backed by the full faith and credit of and/or guaranteed by the U.S. government. As such, no allowance for credit losses has been recorded for these securities. The municipal portfolio is analyzed separately for allowance for credit loss in accordance with the applicable guidance for each portfolio as noted below. The Company evaluates credit impairment for individual securities available for sale whose fair value was below amortized cost with a more than inconsequential risk of default and where the Company had assessed whether the decline in fair value was significant enough to suggest a credit event occurred. There were no securities that met the criteria of a credit loss event and, therefore, no allowance for credit loss was recorded in any period presented. The fair value and gross unrealized losses for securities classified as available for sale with unrealized losses for the periods indicated follow.
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2022 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
(in thousands) |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |  |  | Fair Value |  |  | Gross Unrealized Losses |
U.S. Treasury and government agency securities |  | $ | 42,288 |  |  | $ | 2,194 |  |  | $ | — |  |  | $ | — |  |  | $ | 42,288 |  |  | $ | 2,194 |
Municipal obligations |  |  | 196,102 |  |  |  | 10,147 |  |  |  | — |  |  |  | — |  |  |  | 196,102 |  |  |  | 10,147 |
Residential mortgage-backed securities |  |  | 763,658 |  |  |  | 76,195 |  |  |  | 1,535,412 |  |  |  | 355,285 |  |  |  | 2,299,070 |  |  |  | 431,480 |
Commercial mortgage-backed securities |  |  | 1,803,019 |  |  |  | 204,268 |  |  |  | 1,020,901 |  |  |  | 219,307 |  |  |  | 2,823,920 |  |  |  | 423,575 |
Collateralized mortgage obligations |  |  | 75,089 |  |  |  | 6,294 |  |  |  | — |  |  |  | — |  |  |  | 75,089 |  |  |  | 6,294 |
Corporate debt securities |  |  | 19,376 |  |  |  | 2,124 |  |  |  | 1,441 |  |  |  | 59 |  |  |  | 20,817 |  |  |  | 2,183 |
﻿ |  | $ | 2,899,532 |  |  | $ | 301,222 |  |  | $ | 2,557,754 |  |  | $ | 574,651 |  |  | $ | 5,457,286 |  |  | $ | 875,873 |
Available for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2021 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
|  |  |  | Gross |  |  |  |  | Gross |  |  |  |  | Gross |
|  | Fair |  | Unrealized |  |  | Fair |  | Unrealized |  |  | Fair |  | Unrealized |
(in thousands) |  | Value |  | Losses |  |  | Value |  | Losses |  |  | Value |  | Losses |
U.S. Treasury and government agency securities |  | $ | 198,318 |  |  | 2,305 |  |  | $ | 63,534 |  | $ | 3,035 |  |  | $ | 261,852 |  | $ | 5,340 |
Municipal obligations |  |  | 43,021 |  |  | 2,372 |  |  |  | 25,126 |  |  | 1,190 |  |  |  | 68,147 |  |  | 3,562 |
Residential mortgage-backed securities |  |  | 1,293,179 |  |  | 20,581 |  |  |  | 819,596 |  |  | 29,541 |  |  |  | 2,112,775 |  |  | 50,122 |
Commercial mortgage-backed securities |  |  | 786,206 |  |  | 14,819 |  |  |  | 665,687 |  |  | 33,796 |  |  |  | 1,451,893 |  |  | 48,615 |
Collateralized mortgage obligations |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |
Corporate debt securities |  |  | 6,992 |  |  | 8 |  |  |  | — |  |  | — |  |  |  | 6,992 |  |  | 8 |
﻿ |  | $ | 2,327,716 |  | $ | 40,085 |  |  | $ | 1,573,943 |  | $ | 67,562 |  |  | $ | 3,901,659 |  | $ | 107,647 |
At each reporting period, the Company evaluates its held to maturity municipal obligation portfolio for credit loss using probability of default and loss given default models. The models were run using a long-term average probability of default migration and with a probability weighting of Moody’s economic forecasts. The resulting credit losses, if any, were negligible and no allowance for credit loss was recorded. The fair value and gross unrealized losses for securities classified as held to maturity with unrealized losses for the periods indicated follow.
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
September 30, 2022 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
﻿ |  |  |  | Gross |  |  |  |  | Gross |  |  |  |  | Gross |
﻿ |  | Fair |  | Unrealized |  |  | Fair |  | Unrealized |  |  | Fair |  | Unrealized |
(in thousands) |  | Value |  | Losses |  |  | Value |  | Losses |  |  | Value |  | Losses |
U.S. Treasury and government agency securities |  | $ | 168,514 |  | $ | 19,895 |  |  | $ | 189,879 |  | $ | 28,808 |  |  | $ | 358,393 |  | $ | 48,703 |
Municipal obligations |  |  | 601,010 |  |  | 21,670 |  |  |  | 58,691 |  |  | 16,218 |  |  |  | 659,701 |  |  | 37,888 |
Residential mortgage-backed securities |  |  | 574,671 |  |  | 65,187 |  |  |  | 98,695 |  |  | 16,653 |  |  |  | 673,366 |  |  | 81,840 |
Commercial mortgage-backed securities |  |  | 810,889 |  |  | 79,651 |  |  |  | 54,324 |  |  | 9,634 |  |  |  | 865,213 |  |  | 89,285 |
Collateralized mortgage obligations |  |  | 45,619 |  |  | 2,575 |  |  |  | — |  |  | — |  |  |  | 45,619 |  |  | 2,575 |
﻿ |  | $ | 2,200,703 |  | $ | 188,978 |  |  | $ | 401,589 |  | $ | 71,313 |  |  | $ | 2,602,292 |  | $ | 260,291 |
Held to maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2021 |  | Losses < 12 months |  |  | Losses 12 months or > |  |  | Total |
﻿ |  |  |  | Gross |  |  |  |  | Gross |  |  |  |  | Gross |
﻿ |  | Fair |  | Unrealized |  |  | Fair |  | Unrealized |  |  | Fair |  | Unrealized |
(in thousands) |  | Value |  | Losses |  |  | Value |  | Losses |  |  | Value |  | Losses |
U.S. Treasury and government agency securities |  | $ | 14,837 |  | $ | 20 |  |  | $ | — |  | $ | — |  |  | $ | 14,837 |  | $ | 20 |
Municipal obligations |  |  | 7,795 |  |  | 205 |  |  |  | — |  |  | — |  |  |  | 7,795 |  |  | 205 |
Residential mortgage-backed securities |  |  | 253,661 |  |  | 1,499 |  |  |  | — |  |  | — |  |  |  | 253,661 |  |  | 1,499 |
Commercial mortgage-backed securities |  |  | 56,366 |  |  | 205 |  |  |  | 11,837 |  |  | 464 |  |  |  | 68,203 |  |  | 669 |
Collateralized mortgage obligations |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  |  | — |  |  | — |
﻿ |  | $ | 332,659 |  | $ | 1,929 |  |  | $ | 11,837 |  | $ | 464 |  |  | $ | 344,496 |  | $ | 2,393 |
As of September 30, 2022 and December 31, 2021, the Company had 768 and 142 securities, respectively, with market values below their cost basis. None of the unrealized losses relate to the marketability of the securities or the issuer’s ability to meet contractual obligations. In all cases, the indicated impairment on these debt securities would be recovered no later than the security’s maturity date or possibly earlier if the market price for the security increases with a reduction in the yield required by the market. The unrealized losses were deemed to be non-credit related at September 30, 2022 and December 31, 2021. The Company has adequate liquidity and, therefore does not plan to, and more likely than not, will not be required to liquidate these securities before recovery of the indicated impairment.

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- 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
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