XML 33 R14.htm IDEA: XBRL DOCUMENT
v3.22.1

Securities | 3 Months Ended
--- | ---
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | SECURITIES Trading Securities The Company had trading securities of $4.0 million and $3.7 million as of March 31, 2022 and December 31, 2021, respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company’s non-qualified 401(k) Restoration Plan and Non-qualified Deferred Compensation Plan. Equity Securities The Company had equity securities of $22.6 million and $23.2 million as of March 31, 2022 and December 31, 2021, respectively. These securities consist primarily of mutual funds held in a rabbi trust and will be used for future payments associated with the Company’s supplemental executive retirement plans. The following table represents a summary of the gains and losses recognized within non-interest income and non-interest expense within the consolidated statements of income that relate to equity securities for the periods indicated:
| Three Months Ended |  |
| March 31 |  |
| 2022 |  | 2021 |  |  |  |
| Dollars in thousands
Net gains (losses) recognized during the period on equity securities | $ | (627) |  |  | $ | 316 |  |  |  |  |
Less: net gains recognized during the period on equity securities sold during the period | 4 |  |  | 29 |  |  |  |  |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | $ | (631) |  |  | $ | 287 |  |  |  |  |
Available for Sale Securities The following table summarizes the amortized cost, allowance for credit losses, and fair value of available for sale securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:
| March 31, 2022 |  | December 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for credit losses |  | Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for credit losses |  | Fair Value
| (Dollars in thousands)
Available for sale securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency securities | $ | 231,485 |  |  | $ | 44 |  |  | $ | (15,594) |  |  | $ | — |  |  | $ | 215,935 |  |  | $ | 217,393 |  |  | $ | 990 |  |  | $ | (2,901) |  |  | $ | — |  |  | $ | 215,482 |
U.S. treasury securities | 873,608 |  |  | — |  |  | (51,275) |  |  | — |  |  | 822,333 |  |  | 873,467 |  |  | 172 |  |  | (12,191) |  |  | — |  |  | 861,448 |
Agency mortgage-backed securities | 421,751 |  |  | 670 |  |  | (24,436) |  |  | — |  |  | 397,985 |  |  | 364,955 |  |  | 4,512 |  |  | (5,534) |  |  | — |  |  | 363,933 |
Agency collateralized mortgage obligations | 49,759 |  |  | 39 |  |  | (796) |  |  | — |  |  | 49,002 |  |  | 78,966 |  |  | 1,282 |  |  | (571) |  |  | — |  |  | 79,677 |
State, county, and municipal securities | 192 |  |  | 8 |  |  | — |  |  | — |  |  | 200 |  |  | 192 |  |  | 11 |  |  | — |  |  | — |  |  | 203 |
Single issuer trust preferred securities issued by banks | 489 |  |  | — |  |  | — |  |  | — |  |  | 489 |  |  | 489 |  |  | 2 |  |  | — |  |  | — |  |  | 491 |
Pooled trust preferred securities issued by banks and insurers | 1,199 |  |  | — |  |  | (200) |  |  | — |  |  | 999 |  |  | 1,199 |  |  | — |  |  | (199) |  |  | — |  |  | 1,000 |
Small business administration pooled securities | 68,455 |  |  | 48 |  |  | (2,715) |  |  | — |  |  | 65,788 |  |  | 47,075 |  |  | 1,839 |  |  | — |  |  | — |  |  | 48,914 |
Total available for sale securities | $ | 1,646,938 |  |  | $ | 809 |  |  | $ | (95,016) |  |  | $ | — |  |  | $ | 1,552,731 |  |  | $ | 1,583,736 |  |  | $ | 8,808 |  |  | $ | (21,396) |  |  | $ | — |  |  | $ | 1,571,148 |
Excluded from the table above is accrued interest on available for sale securities of $3.4 million and $3.0 million as of March 31, 2022 and December 31, 2021, respectively, which is included within other assets on the consolidated balance sheets. Additionally, the Company did not record any write-offs of accrued interest income on available for sale securities during the three months ended March 31, 2022 and 2021. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status as of March 31, 2022 and December 31, 2021. When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of securities available for sale during the three months ended March 31, 2022 and 2021, and therefore no gains or losses were realized during the periods presented. The following tables show the gross unrealized losses and fair value of the Company’s available for sale securities in an unrealized loss position, and for which the Company has not recorded a provision for credit losses, as of the dated indicated. These available for sale securities are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position:
| March 31, 2022
|  |  | Less than 12 months |  | 12 months or longer |  | Total
| # of holdings |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| (Dollars in thousands)
U.S. government agency securities | 8 |  |  | $ | 180,613 |  |  | $ | (13,459) |  |  | $ | 22,798 |  |  | $ | (2,135) |  |  | $ | 203,411 |  |  | $ | (15,594) |
U.S. treasury securities | 18 |  |  | 822,333 |  |  | (51,275) |  |  | — |  |  | — |  |  | 822,333 |  |  | (51,275) |
Agency mortgage-backed securities | 73 |  |  | 242,172 |  |  | (13,870) |  |  | 88,670 |  |  | (10,566) |  |  | 330,842 |  |  | (24,436) |
Agency collateralized mortgage obligations | 10 |  |  | 45,455 |  |  | (796) |  |  | — |  |  | — |  |  | 45,455 |  |  | (796) |
Pooled trust preferred securities issued by banks and insurers | 1 |  |  | — |  |  | — |  |  | 999 |  |  | (200) |  |  | 999 |  |  | (200) |
Small business administration pooled securities | 7 |  |  | 60,416 |  |  | (2,715) |  |  | — |  |  | — |  |  | 60,416 |  |  | (2,715) |
Total impaired available for sale securities | 117 |  |  | $ | 1,350,989 |  |  | $ | (82,115) |  |  | $ | 112,467 |  |  | $ | (12,901) |  |  | $ | 1,463,456 |  |  | $ | (95,016) |
| December 31, 2021
|  |  | Less than 12 months |  | 12 months or longer |  | Total
| # of holdings |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| (Dollars in thousands)
U.S. government agency securities | 6 |  |  | $ | 160,913 |  |  | $ | (2,901) |  |  | $ | — |  |  | $ | — |  |  | $ | 160,913 |  |  | $ | (2,901) |
U.S. treasury securities | 17 |  |  | 811,993 |  |  | (12,191) |  |  | — |  |  | — |  |  | 811,993 |  |  | (12,191) |
Agency mortgage-backed securities | 12 |  |  | 214,678 |  |  | (5,534) |  |  | — |  |  | — |  |  | 214,678 |  |  | (5,534) |
Agency collateralized mortgage obligations | 1 |  |  | 22,960 |  |  | (571) |  |  | — |  |  | — |  |  | 22,960 |  |  | (571) |
Pooled trust preferred securities issued by banks and insurers | 1 |  |  | — |  |  | — |  |  | 1,000 |  |  | (199) |  |  | 1,000 |  |  | (199) |
Total impaired available for sale securities | 37 |  |  | $ | 1,210,544 |  |  | $ | (21,197) |  |  | $ | 1,000 |  |  | $ | (199) |  |  | $ | 1,211,544 |  |  | $ | (21,396) |
The Company does not intend to sell these investments and has determined, based upon available evidence, that it is more likely than not that the Company will not be required to sell each security before the recovery of its amortized cost basis. In addition, management does not believe that any of the securities are impaired due to reasons of credit quality. As a result, the Company did not recognize a provision for credit losses on these investments during the three months ended March 31, 2022 and 2021. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations. As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category were as follows at March 31, 2022: •U.S. Government Agency Securities, U.S. Treasury Securities, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies. •Pooled Trust Preferred Securities: This portfolio consists of one below investment grade security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments. Held to Maturity Securities The following table summarizes the amortized cost, fair value and allowance for credit losses of held to maturity securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:
| March 31, 2022 |  | December 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for credit losses |  | Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for credit losses |  | Fair Value
| (Dollars in thousands)
U.S. government agency securities | $ | 32,555 |  |  | $ | — |  |  | $ | (1,574) |  |  | $ | — |  |  | $ | 30,981 |  |  | $ | 32,987 |  |  | $ | — |  |  | $ | (441) |  |  | $ | — |  |  | $ | 32,546 |
U.S. treasury securities | 100,576 |  |  | — |  |  | (5,980) |  |  | — |  |  | 94,596 |  |  | 102,560 |  |  | 6 |  |  | (324) |  |  | — |  |  | 102,242 |
Agency mortgage-backed securities | 550,333 |  |  | 843 |  |  | (29,993) |  |  | — |  |  | 521,183 |  |  | 493,012 |  |  | 8,495 |  |  | (4,271) |  |  | — |  |  | 497,236 |
Agency collateralized mortgage obligations | 576,964 |  |  | 189 |  |  | (34,587) |  |  | — |  |  | 542,566 |  |  | 415,736 |  |  | 3,232 |  |  | (10,123) |  |  | — |  |  | 408,845 |
Single issuer trust preferred securities issued by banks | 1,500 |  |  | 8 |  |  | — |  |  | — |  |  | 1,508 |  |  | 1,500 |  |  | 8 |  |  | — |  |  | — |  |  | 1,508 |
Small business administration pooled securities | 20,513 |  |  | — |  |  | (409) |  |  | — |  |  | 20,104 |  |  | 21,023 |  |  | 733 |  |  | — |  |  | — |  |  | 21,756 |
Total held to maturity securities | $ | 1,282,441 |  |  | $ | 1,040 |  |  | $ | (72,543) |  |  | $ | — |  |  | $ | 1,210,938 |  |  | $ | 1,066,818 |  |  | $ | 12,474 |  |  | $ | (15,159) |  |  | $ | — |  |  | $ | 1,064,133 |
Substantially all held to maturity securities held by the Company are guaranteed by the U.S. federal government or other government sponsored agencies and have a long history of no credit losses. As a result, management has determined these securities to have a zero loss expectation and therefore the Company did not record a provision for estimated credit losses on any held to maturity securities during the three months ended March 31, 2022 and 2021. Excluded from the table above is accrued interest on held to maturity securities of $2.6 million and $2.0 million as of March 31, 2022 and December 31, 2021, respectively, which is included within other assets on the consolidated balance sheets. Additionally, the Company did not record any write-offs of accrued interest income on held to maturity securities during the three months ended March 31, 2022 and 2021. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status as of March 31, 2022 and December 31, 2021. When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of held to maturity securities during the three months ended March 31, 2022 and 2021, and therefore no gains or losses were realized during the periods presented. The Company monitors the credit quality of held to maturity securities through the use of credit ratings. Credit ratings are monitored by the Company on at least a quarterly basis. As of March 31, 2022, all held to maturity securities held by the Company were rated investment grade or higher. The actual maturities of certain available for sale or held to maturity securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of available for sale and held to maturity securities as of March 31, 2022 is presented below:
| Due in one year or less |  | Due after one year to five years |  | Due after five to ten years |  | Due after ten years |  | Total
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
| (Dollars in thousands)
Available for sale securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency securities | $ | — |  |  | $ | — |  |  | $ | 68,071 |  |  | $ | 64,776 |  |  | $ | 163,414 |  |  | $ | 151,159 |  |  | $ | — |  |  | $ | — |  |  | $ | 231,485 |  |  | $ | 215,935 |
U.S. treasury securities | — |  |  | — |  |  | 643,018 |  |  | 607,500 |  |  | 230,590 |  |  | 214,833 |  |  | — |  |  | — |  |  | 873,608 |  |  | 822,333 |
Agency mortgage-backed securities | 19,824 |  |  | 19,844 |  |  | 80,449 |  |  | 78,736 |  |  | 158,349 |  |  | 144,812 |  |  | 163,129 |  |  | 154,593 |  |  | 421,751 |  |  | 397,985 |
Agency collateralized mortgage obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 49,759 |  |  | 49,002 |  |  | 49,759 |  |  | 49,002 |
State, county, and municipal securities | — |  |  | — |  |  | 192 |  |  | 200 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 192 |  |  | 200 |
Single issuer trust preferred securities issued by banks | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 489 |  |  | 489 |  |  | 489 |  |  | 489 |
Pooled trust preferred securities issued by banks and insurers | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,199 |  |  | 999 |  |  | 1,199 |  |  | 999 |
Small business administration pooled securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 68,455 |  |  | 65,788 |  |  | 68,455 |  |  | 65,788 |
Total available for sale securities | $ | 19,824 |  |  | $ | 19,844 |  |  | $ | 791,730 |  |  | $ | 751,212 |  |  | $ | 552,353 |  |  | $ | 510,804 |  |  | $ | 283,031 |  |  | $ | 270,871 |  |  | $ | 1,646,938 |  |  | $ | 1,552,731 |
Held to maturity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency securities | $ | — |  |  | $ | — |  |  | $ | 32,555 |  |  | $ | 30,981 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 32,555 |  |  | $ | 30,981 |
U.S. treasury securities | — |  |  | — |  |  | 49,740 |  |  | 46,985 |  |  | 50,836 |  |  | 47,611 |  |  | — |  |  | — |  |  | 100,576 |  |  | 94,596 |
Agency mortgage-backed securities | — |  |  | — |  |  | 32,356 |  |  | 32,265 |  |  | 349,842 |  |  | 325,374 |  |  | 168,135 |  |  | 163,544 |  |  | 550,333 |  |  | 521,183 |
Agency collateralized mortgage obligations | — |  |  | — |  |  | — |  |  | — |  |  | 34,215 |  |  | 32,252 |  |  | 542,749 |  |  | 510,314 |  |  | 576,964 |  |  | 542,566 |
Single issuer trust preferred securities issued by banks | — |  |  | — |  |  | — |  |  | — |  |  | 1,500 |  |  | 1,508 |  |  | — |  |  | — |  |  | 1,500 |  |  | 1,508 |
Small business administration pooled securities | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,513 |  |  | 20,104 |  |  | 20,513 |  |  | 20,104 |
Total held to maturity securities | $ | — |  |  | $ | — |  |  | $ | 114,651 |  |  | $ | 110,231 |  |  | $ | 436,393 |  |  | $ | 406,745 |  |  | $ | 731,397 |  |  | $ | 693,962 |  |  | $ | 1,282,441 |  |  | $ | 1,210,938 |
Total | $ | 19,824 |  |  | $ | 19,844 |  |  | $ | 906,381 |  |  | $ | 861,443 |  |  | $ | 988,746 |  |  | $ | 917,549 |  |  | $ | 1,014,428 |  |  | $ | 964,833 |  |  | $ | 2,929,379 |  |  | $ | 2,763,669 |
Included in the table above are $26.2 million of callable securities at March 31, 2022. The carrying value of securities pledged to secure public funds, trust deposits, and for other purposes, as required or permitted by law, was $778.7 million and $740.6 million at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022 and December 31, 2021, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of consolidated stockholders’ equity.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
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