XML 22 R12.htm IDEA: XBRL DOCUMENT v3.22.1
Investment Securities
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

5. INVESTMENT SECURITIES

 

The amortized cost and estimated fair value of investment securities are summarized below. The majority of securities held are available-for-sale securities with fair value based on quoted prices for similar assets in active markets or quoted prices for identical assets in markets that are not active. Estimated fair values were obtained from an independent pricing service based upon market quotes.

 

 

March 31, 2022

 

 

Amortized Cost

 

 

Gross Unrealized Holding Gain

 

 

Gross Unrealized Holding Loss

 

 

Fair Value

 

 

Total Percent

 

 

(Dollars in thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

3,243,037

 

 

$

3,973

 

 

$

(166,018

)

 

$

3,080,992

 

 

 

84.47

%

CMO/REMIC

 

578,213

 

 

 

65

 

 

 

(41,281

)

 

 

536,997

 

 

 

14.72

%

Municipal bonds

 

28,364

 

 

 

218

 

 

 

(351

)

 

 

28,231

 

 

 

0.77

%

Other securities

 

1,110

 

 

 

-

 

 

 

-

 

 

 

1,110

 

 

 

0.04

%

Total available-for-sale securities

$

3,850,724

 

 

$

4,256

 

 

$

(207,650

)

 

$

3,647,330

 

 

 

100.00

%

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

$

570,332

 

 

$

722

 

 

$

(52,738

)

 

$

518,316

 

 

 

24.14

%

Mortgage-backed securities

 

632,012

 

 

 

227

 

 

 

(43,928

)

 

 

588,311

 

 

 

26.75

%

CMO/REMIC

 

818,279

 

 

 

-

 

 

 

(44,778

)

 

 

773,501

 

 

 

34.63

%

Municipal bonds

 

342,118

 

 

 

758

 

 

 

(19,860

)

 

 

323,016

 

 

 

14.48

%

Total held-to-maturity securities

$

2,362,741

 

 

$

1,707

 

 

$

(161,304

)

 

$

2,203,144

 

 

 

100.00

%

 

 

 

December 31, 2021

 

 

Amortized Cost

 

 

Gross Unrealized Holding Gain

 

 

Gross Unrealized Holding Loss

 

 

Fair Value

 

 

Total Percent

 

 

(Dollars in thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

2,553,246

 

 

$

25,873

 

 

$

(15,905

)

 

$

2,563,214

 

 

 

80.50

%

CMO/REMIC

 

602,555

 

 

 

1,586

 

 

 

(13,983

)

 

 

590,158

 

 

 

18.53

%

Municipal bonds

 

28,365

 

 

 

1,103

 

 

 

-

 

 

 

29,468

 

 

 

0.93

%

Other securities

 

1,083

 

 

 

-

 

 

 

-

 

 

 

1,083

 

 

 

0.04

%

Total available-for-sale securities

$

3,185,249

 

 

$

28,562

 

 

$

(29,888

)

 

$

3,183,923

 

 

 

100.00

%

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

$

576,899

 

 

$

5,907

 

 

$

(7,312

)

 

$

575,494

 

 

 

29.95

%

Mortgage-backed securities

 

647,390

 

 

 

4,109

 

 

 

(6,106

)

 

 

645,393

 

 

 

33.61

%

CMO/REMIC

 

490,670

 

 

 

596

 

 

 

(5,030

)

 

 

486,236

 

 

 

25.48

%

Municipal bonds

 

211,011

 

 

 

4,714

 

 

 

(1,155

)

 

 

214,570

 

 

 

10.96

%

Total held-to-maturity securities

$

1,925,970

 

 

$

15,326

 

 

$

(19,603

)

 

$

1,921,693

 

 

 

100.00

%

 

 

The following table provides information about the amount of interest income earned on investment securities which is fully taxable and which is exempt from regular federal income tax.

 

 

Three Months Ended

 

 

March 31,

 

 

2022

 

 

2021

 

 

(Dollars in thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

Taxable

$

12,649

 

 

$

8,968

 

Tax-advantaged

 

183

 

 

 

191

 

Total interest income from available-for-sale securities

 

12,832

 

 

 

9,159

 

Investment securities held-to-maturity:

 

 

 

 

 

Taxable

 

9,105

 

 

 

2,811

 

Tax-advantaged

 

1,558

 

 

 

1,129

 

Total interest income from held-to-maturity securities

 

10,663

 

 

 

3,940

 

Total interest income from investment securities

$

23,495

 

 

$

13,099

 

 

The adoption of CECL did not and continues to not have a material impact on the Company's accounting for investment securities, as approximately 94% of the total investment securities portfolio at March 31, 2022 represents securities issued by the U.S. government or U.S. government-sponsored enterprises, with the implied guarantee of payment of principal and interest. The remaining securities are predominately AA- or better general-obligation municipal bonds. The allowance for credit losses for held-to-maturity investment securities under the new CECL model was zero at March 31, 2022 and December 31, 2021.

 

We adopted ASU 2016-13 on January 1, 2020, on a prospective basis. Under this ASU, once it is determined that a credit loss has occurred, an allowance for credit losses is established on our AFS and HTM securities. Management determined that there were no credit losses for securities in an unrealized loss position as of March 31, 2022 and December 31, 2021.

 

 

The following table presents the Company’s available-for-sale investment securities, by investment category, in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2022 and December 31, 2021.

 

 

March 31, 2022

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

Fair Value

 

 

Gross Unrealized Holding Losses

 

 

Fair Value

 

 

Gross Unrealized Holding Losses

 

 

Fair Value

 

 

Gross Unrealized Holding Losses

 

 

(Dollars in thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

1,551,620

 

 

$

(92,654

)

 

$

851,349

 

 

$

(73,364

)

 

$

2,402,969

 

 

$

(166,018

)

CMO/REMIC

 

192,973

 

 

 

(10,983

)

 

 

331,988

 

 

 

(30,298

)

 

 

524,961

 

 

 

(41,281

)

Municipal bonds

 

14,990

 

 

 

(351

)

 

 

-

 

 

 

-

 

 

 

14,990

 

 

 

(351

)

Total available-for-sale securities

$

1,759,583

 

 

$

(103,988

)

 

$

1,183,337

 

 

$

(103,662

)

 

$

2,942,920

 

 

$

(207,650

)

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

$

242,300

 

 

$

(21,492

)

 

$

242,589

 

 

$

(31,246

)

 

$

484,889

 

 

$

(52,738

)

Mortgage-backed securities

 

560,752

 

 

 

(43,438

)

 

 

4,518

 

 

 

(490

)

 

 

565,270

 

 

 

(43,928

)

CMO/REMIC

 

773,501

 

 

 

(44,778

)

 

 

-

 

 

 

-

 

 

 

773,501

 

 

 

(44,778

)

Municipal bonds

 

178,881

 

 

 

(12,670

)

 

 

58,587

 

 

 

(7,190

)

 

 

237,468

 

 

 

(19,860

)

Total held-to-maturity securities

$

1,755,434

 

 

$

(122,378

)

 

$

305,694

 

 

$

(38,926

)

 

$

2,061,128

 

 

$

(161,304

)

 

 

December 31, 2021

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

Fair Value

 

 

Gross Unrealized Holding Losses

 

 

Fair Value

 

 

Gross Unrealized Holding Losses

 

 

Fair Value

 

 

Gross Unrealized Holding Losses

 

 

(Dollars in thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities

$

1,465,647

 

 

$

(15,099

)

 

$

44,244

 

 

$

(806

)

 

$

1,509,891

 

 

$

(15,905

)

CMO/REMIC

 

450,393

 

 

 

(11,515

)

 

 

53,745

 

 

 

(2,468

)

 

 

504,138

 

 

 

(13,983

)

Municipal bonds

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Total available-for-sale securities

$

1,916,040

 

 

$

(26,614

)

 

$

97,989

 

 

$

(3,274

)

 

$

2,014,029

 

 

$

(29,888

)

 

At March 31, 2022 and December 31, 2021, investment securities having a carrying value of approximately $2.53 billion and $2.18 billion, respectively, were pledged to secure public deposits, short and long-term borrowings, and for other purposes as required or permitted by law.

 

The amortized cost and fair value of debt securities at March 31, 2022, by contractual maturity, are shown in the table below. Although mortgage-backed and CMO/REMIC securities have weighted average remaining contractual maturities of approximately 23 years, expected maturities will differ from contractual maturities because borrowers may have the right to prepay such obligations without penalty. Mortgage-backed and CMO/REMIC securities are included in maturity categories based upon estimated average lives which incorporate estimated prepayment speeds.

 

 

March 31, 2022

 

 

Available-for-sale

 

 

Held-to-maturity

 

 

Amortized Cost

 

 

Fair Value

 

 

Amortized Cost

 

 

Fair Value

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

Due in one year or less

$

14,945

 

 

$

14,963

 

 

$

9,188

 

 

$

9,044

 

Due after one year through five years

 

1,270,685

 

 

 

1,220,048

 

 

 

628,543

 

 

 

601,064

 

Due after five years through ten years

 

1,904,250

 

 

 

1,782,675

 

 

 

537,429

 

 

 

503,542

 

Due after ten years

 

660,844

 

 

 

629,644

 

 

 

1,187,581

 

 

 

1,089,494

 

Total investment securities

$

3,850,724

 

 

$

3,647,330

 

 

$

2,362,741

 

 

$

2,203,144

 

 

The investment in FHLB stock is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through March 31, 2022.