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Securities

9 Months Ended

Sep. 30, 2021

Securities

Securities

Note 3: Securities

The table below provides the amortized cost, unrealized gains and losses, and fair values of debt securities summarized by major category (dollars in thousands):


		As of September 30, 2021
					Gross			Gross
		Amortized			Unrealized			Unrealized						Fair
		Cost			Gains			Losses				ACL		Value
Debt securities available for sale
U.S. Treasury securities		$	185,636		$	72		$	(255)		$	—		$	185,453
Obligations of U.S. government corporations and agencies			37,784			1,213			—			—			38,997
Obligations of states and political subdivisions			288,023			8,743			(754)			—			296,012
Commercial mortgage-backed securities			607,097			5,278			(9,078)			—			603,297
Residential mortgage-backed securities			2,108,388			13,973			(19,753)			—			2,102,608
Asset-backed securities			468,618			323			(134)			—			468,807
Corporate debt securities			301,878			1,374			(1,182)			—			302,070
Total debt securities available for sale		$	3,997,424		$	30,976		$	(31,156)		$	—		$	3,997,244


		As of December 31, 2020
					Gross			Gross
		Amortized			Unrealized			Unrealized						Fair
		Cost			Gains			Losses				ACL		Value
Debt securities available for sale
U.S. Treasury securities		$	27,481		$	356		$	—		$	—		$	27,837
Obligations of U.S. government corporations and agencies			67,406			2,162			(49)			—			69,519
Obligations of states and political subdivisions			292,940			11,779			(8)			—			304,711
Commercial mortgage-backed securities			408,716			10,212			(312)			—			418,616
Residential mortgage-backed securities			1,344,047			24,571			(303)			—			1,368,315
Corporate debt securities			70,953			1,237			(1)			—			72,189
Total debt securities available for sale		$	2,211,543		$	50,317		$	(673)			—		$	2,261,187

Amortized cost and fair value of debt securities by contractual maturity or pre-refunded date are shown below. Mortgages underlying mortgage-backed securities and asset-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands):


		As of September 30, 2021
		Amortized			Fair
		Cost			Value
Debt securities available for sale
Due in one year or less		$	103,158		$	103,787
Due after one year through five years			603,868			608,074
Due after five years through ten years			385,479			393,540
Due after ten years			2,904,919			2,891,843
Total debt securities available for sale		$	3,997,424		$	3,997,244

Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands):


		Three Months Ended September 30,						Nine Months Ended September 30,
		2021			2020			2021			2020
Realized gains and losses on sales of debt securities
Gross security gains		$	—		$	11		$	524		$	1,718
Gross security (losses)			(5)			—			(410)			(8)
Net gains (losses) on sales of debt securities		$	(5)		$	11		$	114		$	1,710

Debt securities with carrying amounts of $729.2 million on September 30, 2021, and $628.0 million December 31, 2020, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required.

The following information pertains to debt securities with gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands):


		As of September 30, 2021
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		Value			Losses			Value			Losses			Value			Losses
Debt securities available for sale
U.S. Treasury securities		$	180,317		$	(255)		$	—		$	—		$	180,317		$	(255)
Obligations of states and political subdivisions			55,434			(754)			—			—			55,434			(754)
Commercial mortgage-backed securities			434,220			(9,036)			3,063			(42)			437,283			(9,078)
Residential mortgage-backed securities			1,392,160			(19,707)			5,568			(46)			1,397,728			(19,753)
Asset-backed securities			51,183			(134)			—			—			51,183			(134)
Corporate debt securities			210,951			(1,182)			—			—			210,951			(1,182)
Total temporarily impaired securities		$	2,324,265		$	(31,068)		$	8,631		$	(88)		$	2,332,896		$	(31,156)


		As of December 31, 2020
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		Value			Losses			Value			Losses			Value			Losses
Debt securities available for sale
Obligations of U.S. government corporations and agencies		$	—		$	—		$	4,957		$	(49)		$	4,957		$	(49)
Obligations of states and political subdivisions			762			(8)			—			—			762			(8)
Commercial mortgage-backed securities			129,655			(312)			—			—			129,655			(312)
Residential mortgage-backed securities			89,997			(300)			139			(3)			90,136			(303)
Corporate debt securities			1,499			(1)			—			—			1,499			(1)
Total temporarily impaired securities		$	221,913		$	(621)		$	5,096		$	(52)		$	227,009		$	(673)

Debt securities available for sale are not within the scope of CECL, however, the accounting for credit losses on these securities is affected by ASC 326-30. The Company’s debt security portfolio consisted of 1,274 securities as of September 30, 2021, compared to 1,114 securities as of December 31, 2020. The number of debt securities in the investment portfolio in an unrealized loss position was 294, representing an unrealized loss of 1.3% of the aggregate fair value, as of September 30, 2021, compared to 23 securities representing an unrealized loss of 0.3% of the aggregate fair value as of December 31, 2020. Unrealized losses related to changes in market interest rates and market conditions that do not represent credit-related impairments. Furthermore, the Company does not intend to sell such securities and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, the

impairment related to noncredit factors is recognized in accumulated other comprehensive income (loss), net of applicable taxes. As of September 30, 2021, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity.