Investment Securities (Tables)

6 Months Ended

Jun. 30, 2021

Investments Debt And Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2021, and December 31, 2020, were as follows:

(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2021
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	203,342	$	1,996	$	(141	)	$	205,197
Debt Securities Issued by States and Political Subdivisions		23,557		943		(1	)		24,499
Debt Securities Issued by U.S. Government-Sponsored Enterprises		950		52		(1	)		1,001
Debt Securities Issued by Corporations		387,413		5,405		(1,355	)		391,463
Mortgage-Backed Securities:
Residential - Government Agencies		1,538,897		19,600		(13,824	)		1,544,673
Residential - U.S. Government-Sponsored Enterprises		2,170,640		10,660		(26,765	)		2,154,535
Commercial - Government Agencies		196,861		5,262		(550	)		201,573
Total Mortgage-Backed Securities		3,906,398		35,522		(41,139	)		3,900,781
Total	$	4,521,660	$	43,918	$	(42,637	)	$	4,522,941
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	131,435	$	914	$	(134	)	$	132,215
Debt Securities Issued by States and Political Subdivisions		33,424		344		—			33,768
Debt Securities Issued by Corporations		10,541		200		—			10,741
Mortgage-Backed Securities:
Residential - Government Agencies		1,536,020		21,817		(15,860	)		1,541,977
Residential - U.S. Government-Sponsored Enterprises		1,929,372		24,963		(12,448	)		1,941,887
Commercial - Government Agencies		306,821		1,236		(3,528	)		304,529
Total Mortgage-Backed Securities		3,772,213		48,016		(31,836	)		3,788,393
Total	$	3,947,613	$	49,474	$	(31,970	)	$	3,965,117
December 31, 2020
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	174,409	$	427	$	(591	)	$	174,245
Debt Securities Issued by States and Political Subdivisions		23,540		1,301		(1	)		24,840
Debt Securities Issued by U.S. Government-Sponsored Enterprises		985		77		—			1,062
Debt Securities Issued by Corporations		220,717		4,844		(956	)		224,605
Mortgage-Backed Securities:
Residential - Government Agencies		1,561,603		33,657		(445	)		1,594,815
Residential - U.S. Government-Sponsored Enterprises		1,497,353		21,254		(324	)		1,518,283
Commercial - Government Agencies		243,029		10,868		(58	)		253,839
Total Mortgage-Backed Securities		3,301,985		65,779		(827	)		3,366,937
Total	$	3,721,636	$	72,428	$	(2,375	)	$	3,791,689
Held-to-Maturity:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	7,500	$	8	$	(8	)	$	7,500
Debt Securities Issued by States and Political Subdivisions		33,763		741		—			34,504
Debt Securities Issued by Corporations		12,031		251		—			12,282
Mortgage-Backed Securities:
Residential - Government Agencies		917,459		30,580		(29	)		948,010
Residential - U.S. Government-Sponsored Enterprises		2,099,053		51,735		(291	)		2,150,497
Commercial - Government Agencies		192,921		3,179		(200	)		195,900
Total Mortgage-Backed Securities		3,209,433		85,494		(520	)		3,294,407
Total	$	3,262,727	$	86,494	$	(528	)	$	3,348,693

Analysis of the Contractual Maturities of Investment Securities

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2021. Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

(dollars in thousands)	Amortized Cost		Fair Value
Available-for-Sale:
Due in One Year or Less	$	51,611	$	51,642
Due After One Year Through Five Years		111,529		114,504
Due After Five Years Through Ten Years		298,653		301,024
		461,793		467,170
Debt Securities Issued by Government Agencies		153,469		154,990
Mortgage-Backed Securities:
Residential - Government Agencies		1,538,897		1,544,673
Residential - U.S. Government-Sponsored Enterprises		2,170,640		2,154,535
Commercial - Government Agencies		196,861		201,573
Total Mortgage-Backed Securities		3,906,398		3,900,781
Total	$	4,521,660	$	4,522,941
Held-to-Maturity:
Due in One Year or Less		33,425		33,769
Due After One Year Through Five Years		18,040		18,105
Due After Five Year Through Ten Years		123,935		124,850
		175,400		176,724
Mortgage-Backed Securities:
Residential - Government Agencies		1,536,020		1,541,977
Residential - U.S. Government-Sponsored Enterprises		1,929,372		1,941,887
Commercial - Government Agencies		306,821		304,529
Total Mortgage-Backed Securities		3,772,213		3,788,393
Total	$	3,947,613	$	3,965,117

Schedule of Gains (Losses) on Sales of Investment Securities

The table below presents the gains and losses from the sales of investment securities for the three and six months ended June 30, 2021, and June 30, 2020:

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2021			2020			2021			2020
Gross Gains on Sales of Investment Securities	$	3,675		$	14,180		$	3,675		$	14,257
Gross Losses on Sales of Investment Securities		(1,252	)		(964	)		(2,455	)		(2,011	)
Net Gains on Sales of Investment Securities	$	2,423		$	13,216		$	1,220		$	12,246

Schedule of AFS Debt Securities in an Unrealized Loss Position

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months					12 Months or Longer					Total
(dollars in thousands)	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
June 30, 2021
Available-for-Sale:
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	888	$	(5	)	$	17,724	$	(136	)	$	18,612	$	(141	)
Debt Securities Issued by States and Political Subdivisions		314		(1	)		—		—			314		(1	)
Debt Securities Issued by U.S. Government- Sponsored Enterprises		64		(1	)		—		—			64		(1	)
Debt Securities Issued by Corporations		49,813		(187	)		88,832		(1,168	)		138,645		(1,355	)
Mortgage-Backed Securities:
Residential - Government Agencies		678,445		(13,648	)		7,980		(176	)		686,425		(13,824	)
Residential - U.S. Government-Sponsored Enterprises		1,628,682		(26,765	)		—		—			1,628,682		(26,765	)
Commercial-Government Agencies		24,130		(550	)		—		—			24,130		(550	)
Total Mortgage-Backed Securities		2,331,257		(40,963	)		7,980		(176	)		2,339,237		(41,139	)
Total	$	2,382,336	$	(41,157	)	$	114,536	$	(1,480	)	$	2,496,872	$	(42,637	)

December 31, 2020
Available-for-Sale: ¹
Debt Securities Issued by the U.S. Treasury and Government Agencies	$	21,338	$	(42	)	$	87,070	$	(549	)	$	108,408	$	(591	)
Debt Securities Issued by States and Political Subdivisions		—		—			26		(1	)		26		(1	)
Debt Securities Issued by Corporations		65,000		(853	)		50,000		(103	)		115,000		(956	)
Mortgage-Backed Securities:
Residential - Government Agencies		113,538		(222	)		28,063		(223	)		141,601		(445	)
Residential - U.S. Government-Sponsored Enterprises		94,002		(324	)		—		—			94,002		(324	)
Commercial - Government Agencies		25,075		(58	)		—		—			25,075		(58	)
Total Mortgage-Backed Securities		232,615		(604	)		28,063		(223	)		260,678		(827	)
Total	$	318,953	$	(1,499	)	$	165,159	$	(876	)	$	484,112	$	(2,375	)

¹ The fair value and gross unrealized losses as of December 31, 2020, have been updated to properly reflect the length of time they were in a continuous unrealized loss position.

Schedule of Interest Income from Taxable and Non-taxable Investment Securities

Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2021, and June 30, 2020, were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Taxable	$	29,765	$	30,729	$	58,621	$	66,122
Non-Taxable		278		570		559		1,140
Total Interest Income from Investment Securities	$	30,043	$	31,299	$	59,180	$	67,262

Schedule of Carrying Value of Federal Home Loan Bank of Des Moines Stock and Federal Reserve Bank Stock

As of June 30, 2021, and December 31, 2020, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

(dollars in thousands)	June 30, 2021		December 31, 2020
Federal Home Loan Bank Stock	$	10,000	$	12,000
Federal Reserve Bank Stock		21,479		21,340
Total	$	31,479	$	33,340