XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Securities | 12 Months Ended
--- | ---
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities The book values and approximate fair values of investment securities at December 31, 2021 and 2020 are summarized as follows:
| 2021 |  | 2020
| Amortized Cost |  | Fair Value |  | Unrealized |  | Amortized Cost |  | Fair Value |  | Unrealized
($ in thousands) |  |  | Gains |  | (Losses) |  |  |  | Gains |  | (Losses)
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government-sponsored enterprise securities | $ | 71,951 |  |  | 69,179 |  |  | — |  |  | (2,772) |  |  | 70,016 |  |  | 70,206 |  |  | 371 |  |  | (181) |
Mortgage-backed securities | 2,545,150 |  |  | 2,514,805 |  |  | 9,489 |  |  | (39,834) |  |  | 1,318,998 |  |  | 1,337,706 |  |  | 20,832 |  |  | (2,124) |
Corporate bonds | 45,380 |  |  | 46,430 |  |  | 1,106 |  |  | (56) |  |  | 43,670 |  |  | 45,220 |  |  | 1,760 |  |  | (210) |
Total available for sale | 2,662,481 |  |  | 2,630,414 |  |  | 10,595 |  |  | (42,662) |  |  | 1,432,684 |  |  | 1,453,132 |  |  | 22,963 |  |  | (2,515) |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | 20,260 |  |  | 20,845 |  |  | 585 |  |  | — |  |  | 29,959 |  |  | 30,900 |  |  | 941 |  |  | — |
State and local governments | 493,565 |  |  | 490,854 |  |  | 2,955 |  |  | (5,666) |  |  | 137,592 |  |  | 139,834 |  |  | 2,407 |  |  | (165) |
Total held to maturity | $ | 513,825 |  |  | 511,699 |  |  | 3,540 |  |  | (5,666) |  |  | 167,551 |  |  | 170,734 |  |  | 3,348 |  |  | (165) |
All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises, except for private mortgage-backed securities with a fair value of $0.9 million and $1.0 million as of December 31, 2021 and 2020, respectively. The following table presents information regarding securities with unrealized losses at December 31, 2021:
| Securities in an Unrealized Loss Position for Less than 12 Months |  | Securities in an Unrealized Loss Position for More than 12 Months |  | Total
($ in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Government-sponsored enterprise securities | $ | 21,436 |  |  | 522 |  |  | 47,743 |  |  | 2,250 |  |  | 69,179 |  |  | 2,772 |
Mortgage-backed securities | 1,773,022 |  |  | 25,977 |  |  | 404,484 |  |  | 13,857 |  |  | 2,177,506 |  |  | 39,834 |
Corporate bonds | 999 |  |  | 1 |  |  | 945 |  |  | 55 |  |  | 1,944 |  |  | 56 |
State and local governments | 228,279 |  |  | 3,797 |  |  | 34,398 |  |  | 1,869 |  |  | 262,677 |  |  | 5,666 |
Total temporarily impaired securities | $ | 2,023,736 |  |  | 30,297 |  |  | 487,570 |  |  | 18,031 |  |  | 2,511,306 |  |  | 48,328 |
The following table presents information regarding securities with unrealized losses at December 31, 2020:
| Securities in an Unrealized Loss Position for Less than 12 Months |  | Securities in an Unrealized Loss Position for More than 12 Months |  | Total
($ in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Government-sponsored enterprise securities | $ | 29,812 |  |  | 181 |  |  | — |  |  | — |  |  | 29,812 |  |  | 181 |
Mortgage-backed securities | 497,992 |  |  | 1,957 |  |  | 6,168 |  |  | 167 |  |  | 504,160 |  |  | 2,124 |
Corporate bonds | 3,956 |  |  | 45 |  |  | 835 |  |  | 165 |  |  | 4,791 |  |  | 210 |
State and local governments | 23,310 |  |  | 165 |  |  | — |  |  | — |  |  | 23,310 |  |  | 165 |
Total temporarily impaired securities | $ | 555,070 |  |  | 2,348 |  |  | 7,003 |  |  | 332 |  |  | 562,073 |  |  | 2,680 |
As of December 31, 2021 and December 31, 2020, the Company's security portfolio held 371 and 69 securities that were in an unrealized loss position, respectively. In the above tables, all of the securities that were in an unrealized loss position at December 31, 2021 and 2020 are bonds that the Company has determined are in a loss position due primarily to interest rate factors and not credit quality concerns. In arriving at this conclusion, the Company reviewed third-party credit ratings and considered the amount of the impairment. In the tables above, substantially all of the mortgage-backed securities in unrealized loss positions at each period end were issued by government-sponsored agencies, including Freddie Mac, Fannie Mae, and Ginnie Mae, which the Company considered in concluding that the unrealized loss position of each security was due to interest rate factors and not credit quality concerns. The Company does not intend to sell these securities, and it is more likely than not that the Company will not be required to sell these securities before recovery of the amortized cost. No impairment charges were recognized for any securities during the year ended December 31, 2020. At adoption of CECL on January 1, 2021 and at December 31, 2021, the Company determined that expected credit losses associated with HTM debt securities were insignificant. See Note 1 for additional details on the adoption of CECL as it relates to the securities portfolio. The book values and approximate fair values of investment securities at December 31, 2021, by contractual maturity, are summarized in the table below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| Securities Available for Sale |  | Securities Held to Maturity
($ in thousands) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Debt securities |  |  |  |  |  |  |
Due within one year | $ | 1,001 |  |  | 1,020 |  |  | 1,246 |  |  | 1,258 |
Due after one year but within five years | 27,629 |  |  | 28,454 |  |  | — |  |  | — |
Due after five years but within ten years | 87,701 |  |  | 85,191 |  |  | 16,058 |  |  | 16,112 |
Due after ten years | 1,000 |  |  | 944 |  |  | 476,261 |  |  | 473,484 |
Mortgage-backed securities | 2,545,150 |  |  | 2,514,805 |  |  | 20,260 |  |  | 20,845 |
Total securities | $ | 2,662,481 |  |  | 2,630,414 |  |  | 513,825 |  |  | 511,699 |
At December 31, 2021 and 2020, investment securities with carrying values of $951.4 million and $630.3 million, respectively, were pledged as collateral for public deposits. At December 31, 2021 and 2020, there were no holdings of securities of any one issuer, other than the US Government and its agencies or government sponsored agencies, in an amount greater than 10% of shareholders' equity. In 2021, the Company received proceeds from sales of securities of $106.5 million and recorded $1.2 million in gross losses from the sales. In 2020, the Company received proceeds from sales of securities of $219.7 million and recorded $8.0 million in gross gains from the sales. In 2019, the Company received proceeds from sales of securities of $39.8 million and recorded $0.1 million in gross gains from the sales. Included in “Other Assets” in the Consolidated Balance Sheets are investments in FHLB and Federal Reserve stock totaling $22.3 million and $23.5 million at December 31, 2021 and 2020, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $4.6 million and $5.9 million at December 31, 2021 and 2020, respectively, and serves as part of the collateral for the Company’s line of credit with the FHLB and is also a requirement for membership in the FHLB system. The Federal Reserve stock had a cost and fair value of $17.8 million and $17.7 million at December 31, 2021 and 2020, respectively, and is a requirement for Federal Reserve member bank qualification. Periodically, both the FHLB and Federal Reserve recalculate the Company’s required level of holdings, and the Company either buys more stock or redeems a portion of the stock at cost. The Company determined that neither stock was impaired at either period end. The Company owns 12,356 Class B shares of Visa, Inc. (“Visa”) stock that were received upon Visa’s initial public offering. These shares are expected to convert into Class A Visa shares subsequent to the settlement of certain litigation against Visa, to which the Company is not a party. The Class B shares have transfer restrictions, and the conversion rate into Class A shares is periodically adjusted as Visa settles litigation. The conversion rate at December 31, 2021 was approximately 1.62, which means the Company would receive approximately 19,993 Class A shares if the stock had converted on that date. This Class B stock does not have a readily determinable fair value and is carried at zero. If a readily determinable fair value becomes available for the Class B shares, or upon the conversion to Class A shares, the Company will adjust the carrying value of the stock to its market value with a credit to earnings.

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