XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Investments | 3 Months Ended
--- | ---
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Investments | INVESTMENTS The following tables present the amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of securities available for sale and held to maturity:
| March 31, 2023
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  |  |  | Fair Value
Available-for-sale securities: |  |  |  |  |  |  |  |  |
Obligations of U.S. Government-sponsored enterprises | $ | 289,560 |  |  | $ | 95 |  |  | $ | (23,950) |  |  |  |  | $ | 265,705 |
Obligations of states and political subdivisions | 503,883 |  |  | 53 |  |  | (73,243) |  |  |  |  | 430,693 |
Agency mortgage-backed securities | 710,642 |  |  | 557 |  |  | (60,748) |  |  |  |  | 650,451 |
U.S. Treasury bills | 203,596 |  |  | 22 |  |  | (3,515) |  |  |  |  | 200,103 |
Corporate debt securities | 9,000 |  |  | — |  |  | (843) |  |  |  |  | 8,157 |
Total securities available for sale | $ | 1,716,681 |  |  | $ | 727 |  |  | $ | (162,299) |  |  |  |  | $ | 1,555,109 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 541,345 |  |  | $ | 5,133 |  |  | $ | (54,232) |  |  |  |  | $ | 492,246 |
Agency mortgage-backed securities | 55,897 |  |  | — |  |  | (5,566) |  |  |  |  | 50,331 |
Corporate debt securities | 124,324 |  |  | 176 |  |  | (10,524) |  |  |  |  | 113,976 |
Total securities held-to-maturity | $ | 721,566 |  |  | $ | 5,309 |  |  | $ | (70,322) |  |  |  |  | $ | 656,553 |
Allowance for credit losses | (872) |  |  |  |  |  |  |  |  |
Total securities held-to-maturity, net | $ | 720,694 |  |  |  |  |  |  |  |  |
| December 31, 2022
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available-for-sale securities: |  |  |  |  |  |  |
Obligations of U.S. Government-sponsored enterprises | $ | 266,090 |  |  | $ | — |  |  | $ | (28,305) |  |  | $ | 237,785 |
Obligations of states and political subdivisions | 507,842 |  |  | 27 |  |  | (90,425) |  |  | 417,444 |
Agency mortgage-backed securities | 727,931 |  |  | 453 |  |  | (68,980) |  |  | 659,404 |
U.S. Treasury Bills | 213,441 |  |  | 1 |  |  | (4,908) |  |  | 208,534 |
Corporate debt securities | 13,750 |  |  | — |  |  | (1,110) |  |  | 12,640 |
Total securities available for sale | $ | 1,729,054 |  |  | $ | 481 |  |  | $ | (193,728) |  |  | $ | 1,535,807 |
Held-to-maturity securities: |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 529,012 |  |  | $ | 2,321 |  |  | $ | (65,347) |  |  | $ | 465,986 |
Agency mortgage-backed securities | 57,018 |  |  | — |  |  | (6,416) |  |  | 50,602 |
Corporate debt securities | 124,620 |  |  | 163 |  |  | (12,854) |  |  | 111,929 |
Total securities held to maturity | $ | 710,650 |  |  | $ | 2,484 |  |  | $ | (84,617) |  |  | $ | 628,517 |
Allowance for credit losses | (735) |  |  |  |  |  |  |
Total securities held-to-maturity, net | $ | 709,915 |  |  |  |  |  |  |
The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized unrealized gain of $16.8 million and $17.6 million at March 31, 2023 and December 31, 2022, respectively. Such amounts are amortized over the remaining life of the securities. At March 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government agencies and sponsored enterprises. Securities having a fair value of $1.8 billion and $734.5 million at March 31, 2023 and December 31, 2022, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions, in addition to collateral securing borrowing bases with the FHLB and the Federal Reserve. The amortized cost and estimated fair value of debt securities at March 31, 2023, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately 6 years.
| Available for sale |  | Held to maturity
(in thousands) | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due in one year or less | $ | 97,485 |  |  | $ | 97,369 |  |  | $ | 720 |  |  | $ | 720 |
Due after one year through five years | 370,543 |  |  | 347,074 |  |  | 50,396 |  |  | 47,082 |
Due after five years through ten years | 70,480 |  |  | 64,238 |  |  | 187,914 |  |  | 177,985 |
Due after ten years | 467,531 |  |  | 395,977 |  |  | 426,639 |  |  | 380,435 |
Agency mortgage-backed securities | 710,642 |  |  | 650,451 |  |  | 55,897 |  |  | 50,331 |
| $ | 1,716,681 |  |  | $ | 1,555,109 |  |  | $ | 721,566 |  |  | $ | 656,553 |
The following tables presents a summary of available-for-sale investment securities in an unrealized loss position:
| March 31, 2023
Less than 12 months |  | 12 months or more |  | Total
(in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government-sponsored enterprises | $ | 31,351 |  |  | $ | 671 |  |  | $ | 224,294 |  |  | $ | 23,279 |  |  | $ | 255,645 |  |  | $ | 23,950 |
Obligations of states and political subdivisions | 1,954 |  |  | 165 |  |  | 424,582 |  |  | 73,078 |  |  | 426,536 |  |  | 73,243 |
Agency mortgage-backed securities | 198,052 |  |  | 6,861 |  |  | 407,782 |  |  | 53,887 |  |  | 605,834 |  |  | 60,748 |
U.S. Treasury bills | 150,570 |  |  | 2,153 |  |  | 23,795 |  |  | 1,362 |  |  | 174,365 |  |  | 3,515 |
Corporate debt securities | 3,664 |  |  | 336 |  |  | 4,243 |  |  | 507 |  |  | 7,907 |  |  | 843 |
| $ | 385,591 |  |  | $ | 10,186 |  |  | $ | 1,084,696 |  |  | $ | 152,113 |  |  | $ | 1,470,287 |  |  | $ | 162,299 |
| December 31, 2022
Less than 12 months |  | 12 months or more |  | Total
(in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Obligations of U.S. Government-sponsored enterprises | $ | 73,738 |  |  | $ | 6,249 |  |  | $ | 163,047 |  |  | $ | 22,056 |  |  | $ | 236,785 |  |  | $ | 28,305 |
Obligations of states and political subdivisions | 103,179 |  |  | 13,501 |  |  | 311,634 |  |  | 76,924 |  |  | 414,813 |  |  | 90,425 |
Agency mortgage-backed securities | 334,431 |  |  | 20,038 |  |  | 281,321 |  |  | 48,942 |  |  | 615,752 |  |  | 68,980 |
U.S. Treasury bills | 198,688 |  |  | 4,908 |  |  | — |  |  | — |  |  | 198,688 |  |  | 4,908 |
Corporate debt securities | 12,640 |  |  | 1,110 |  |  | — |  |  | — |  |  | 12,640 |  |  | 1,110 |
| $ | 722,676 |  |  | $ | 45,806 |  |  | $ | 756,002 |  |  | $ | 147,922 |  |  | $ | 1,478,678 |  |  | $ | 193,728 |
The unrealized losses at both March 31, 2023 and December 31, 2022 were attributable primarily to changes in market interest rates after the securities were purchased. In March 2023, the Company established an allowance for credit losses on available-for-sale investment securities through a provision for credit losses of $4.8 million and subsequently charged-off $4.8 million. The charge-off related to the impairment of a debt security from a bank that failed in 2023. At each of March 31, 2023 and December 31, 2022, the Company had no allowance recorded on available-for-sale securities. Accrued interest receivable on held-to-maturity debt securities totaled $6.6 million and $5.8 million at March 31, 2023 and December 31, 2022, respectively, and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. The ACL on held-to-maturity securities was $0.9 million at March 31, 2023 and $0.7 million at December 31, 2022. The Company sold $28.4 million of available-for-sale securities in January 2023 for a gain of $0.4 million. There were no sales of available-for-sale investment securities during the three months ended March 31, 2022. Other Investments At March 31, 2023 and December 31, 2022, other investments totaled $62.9 million and $63.8 million, respectively. As a member of the FHLB system administered by the Federal Housing Finance Agency, the Bank is required to maintain a minimum investment in capital stock with the FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $14.0 million at both March 31, 2023 and December 31, 2022 is recorded at cost, which represents redemption value, and is included in other investments in the consolidated balance sheets. The remaining amounts in other investments primarily include investments in SBICs, CDFIs, private equity investments, and the Company’s investment in unconsolidated trusts used to issue trust preferred securities to third parties.

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