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Securities | 9 Months Ended
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Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities The book values and approximate fair values of investment securities at September 30, 2022 and December 31, 2021 are summarized as follows:
($ in thousands) | September 30, 2022 |  | December 31, 2021
Amortized Cost |  | Fair Value |  | Unrealized |  | Amortized Cost |  | Fair Value |  | Unrealized
|  | Gains |  | (Losses) |  |  |  | Gains |  | (Losses)
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasuries | $ | 174,328 |  |  | 168,723 |  |  | — |  |  | (5,605) |  |  | — |  |  | — |  |  | — |  |  | — |
Government-sponsored enterprise securities | 71,956 |  |  | 57,429 |  |  | — |  |  | (14,527) |  |  | 71,951 |  |  | 69,179 |  |  | — |  |  | (2,772) |
Mortgage-backed securities | 2,512,221 |  |  | 2,068,769 |  |  | 7 |  |  | (443,459) |  |  | 2,545,150 |  |  | 2,514,805 |  |  | 9,489 |  |  | (39,834) |
Corporate bonds | 44,350 |  |  | 43,294 |  |  | — |  |  | (1,056) |  |  | 45,380 |  |  | 46,430 |  |  | 1,106 |  |  | (56) |
Total available for sale | $ | 2,802,855 |  |  | 2,338,215 |  |  | 7 |  |  | (464,647) |  |  | 2,662,481 |  |  | 2,630,414 |  |  | 10,595 |  |  | (42,662) |
Securities held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | 16,092 |  |  | 14,891 |  |  | — |  |  | (1,201) |  |  | 20,260 |  |  | 20,845 |  |  | 585 |  |  | — |
State and local governments | 528,101 |  |  | 403,708 |  |  | — |  |  | (124,393) |  |  | 493,565 |  |  | 490,854 |  |  | 2,955 |  |  | (5,666) |
Total held to maturity | $ | 544,193 |  |  | 418,599 |  |  | — |  |  | (125,594) |  |  | 513,825 |  |  | 511,699 |  |  | 3,540 |  |  | (5,666) |
All of the Company’s mortgage-backed securities were issued by government-sponsored enterprises ("GSE"), except for private mortgage-backed securities with a fair value of $0.8 million and $0.9 million as of September 30, 2022 and December 31, 2021, respectively. The following table presents information regarding all securities with unrealized losses at September 30, 2022:
| Securities in an Unrealized Loss Position for Less than 12 Months |  | Securities in an Unrealized Loss Position for More than 12 Months |  | Total
($ in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. Treasuries | $ | 168,723 |  |  | 5,605 |  |  | — |  |  | — |  |  | 168,723 |  |  | 5,605 |
Government-sponsored enterprise securities | 1,519 |  |  | 424 |  |  | 55,910 |  |  | 14,103 |  |  | 57,429 |  |  | 14,527 |
Mortgage-backed securities | 770,879 |  |  | 145,469 |  |  | 1,308,825 |  |  | 299,191 |  |  | 2,079,704 |  |  | 444,660 |
Corporate bonds | 40,633 |  |  | 966 |  |  | 910 |  |  | 90 |  |  | 41,543 |  |  | 1,056 |
State and local governments | 252,833 |  |  | 70,679 |  |  | 149,289 |  |  | 53,714 |  |  | 402,122 |  |  | 124,393 |
Total unrealized loss position | $ | 1,234,587 |  |  | 223,143 |  |  | 1,514,934 |  |  | 367,098 |  |  | 2,749,521 |  |  | 590,241 |
The following table presents information regarding all 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 unrealized loss position | $ | 2,023,736 |  |  | 30,297 |  |  | 487,570 |  |  | 18,031 |  |  | 2,511,306 |  |  | 48,328 |
As of September 30, 2022, the Company's securities portfolio held 669 securities of which 641 securities were in an unrealized loss position. As of December 31, 2021, the Company's securities portfolio held 648 securities of which 371 securities were in an unrealized loss position. In the above tables, all of the securities that were in an unrealized loss position at September 30, 2022 and December 31, 2021 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 severity of the impairment. The state and local government investments are comprised almost entirely of highly-rated municipal bonds issued by state and local governments throughout the nation. The Company has no significant concentrations of bond holdings from one state or local government entity. Nearly all of our mortgage-backed securities were issued by FHLMC, FNMA, GNMA, or the SBA, each of which is a government agency or GSE and guarantees the repayment of the securities. 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. At September 30, 2022 and December 31, 2021, the Company determined that expected credit losses associated with held to maturity debt securities were insignificant. The book values and approximate fair values of investment securities at September 30, 2022, 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
Due within one year | $ | 25,086 |  |  | 25,002 |  |  | 435 |  |  | 435 |
Due after one year but within five years | 176,842 |  |  | 171,210 |  |  | 997 |  |  | 869 |
Due after five years but within ten years | 87,706 |  |  | 72,324 |  |  | 58,625 |  |  | 47,494 |
Due after ten years | 1,000 |  |  | 910 |  |  | 468,044 |  |  | 354,910 |
Mortgage-backed securities | 2,512,221 |  |  | 2,068,769 |  |  | 16,092 |  |  | 14,891 |
Total securities | $ | 2,802,855 |  |  | 2,338,215 |  |  | 544,193 |  |  | 418,599 |
At September 30, 2022 and December 31, 2021, investment securities with carrying values of $731.7 million and $951.4 million, respectively, were pledged as collateral for public deposits. At September 30, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies or GSEs, in an amount greater than 10% of shareholders' equity. Included in “Other assets” in the Consolidated Balance Sheets are investments in Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank of Richmond (“Federal Reserve”) stock totaling $36.2 million and $22.3 million at September 30, 2022 and December 31, 2021, respectively. These investments do not have readily determinable fair values. The FHLB stock had a cost and fair value of $11.3 million and $4.6 million at September 30, 2022 and December 31, 2021, 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 $24.9 million and $17.8 million at September 30, 2022 and December 31, 2021, 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 September 30, 2022 was approximately 1.61, which means the Company would have received approximately 19,843 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 their conversion to Class A shares, the Company will adjust the carrying value of the stock to its market value with a credit to earnings.

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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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