XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.21.2

Investments | 9 Months Ended
--- | ---
Sep. 30, 2021
Investments [Abstract] |
Investments | Investments The aggregate carrying and approximate fair values of investment securities follow (in thousands). Fair values are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable financial instruments.
| September 30, 2021 | December 31, 2020
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value
Securities available-for-sale: |  |  |  |  |  |  |  |
Obligations of states and |  |  |  |  |  |  |  |
political subdivisions | $ | 267,923 |  | $ | 7,750 |  | $ | 589 |  | $ | 275,084 |  | $ | 266,483 |  | $ | 11,467 |  | $ | 139 |  | $ | 277,811 |
Mortgage-backed securities: |  |  |  |  |  |  |  |
U.S. government agencies | 1,038,806 |  | 20,906 |  | 5,289 |  | 1,054,423 |  | 815,682 |  | 34,807 |  | 105 |  | 850,384 |
Private label | 8,864 |  | 701 |  | — |  | 9,565 |  | 9,976 |  | 916 |  | — |  | 10,892 |
Trust preferred securities | 4,567 |  | — |  | 118 |  | 4,449 |  | 4,557 |  | — |  | 457 |  | 4,100 |
Corporate securities | 27,337 |  | 1,221 |  | 2 |  | 28,556 |  | 31,465 |  | 2,146 |  | 1 |  | 33,610 |
Total Securities Available-for-Sale | $ | 1,347,497 |  | $ | 30,578 |  | $ | 5,998 |  | $ | 1,372,077 |  | $ | 1,128,163 |  | $ | 49,336 |  | $ | 702 |  | $ | 1,176,797 |
The Company's other investment securities include marketable, non-marketable equity securities and certificates of deposits held for investment. At September 30, 2021 and December 31, 2020, the Company held $9.2 million and $11.8 million in marketable equity securities, respectively. Marketable equity securities mainly consist of investments made by the Company in equity positions of various community banks. Included within this po rtfolio are ownership positions in community bank holding companies including Eagle Financial Services, Inc. (EFSI) (1.5%). Changes in the fair value of the marketable equity securities are recorded in "unrealized gains (losses) recognized on equity securities still held" in the consolidated statements of income. The Co mpany's non-marketable securities consist of securities with limited marketability, such as stock in the Federal Reserve Bank ("FRB") or the Federal Home Loan Bank ("FHLB"). At September 30, 2021 and December 31, 2020, the Company held $15.3 million and $15.5 million, respectively, in non-marketable equity securities. These securities are carried at cost due to the restrictions placed on their transferability. At September 30, 2021 and December 31, 2020, the Company held $1.0 million and $2.0 million, respectively, in certificates of deposits held for investment. The Company's mortgage-backed U.S. government agency securities consist of both residential and commercial securities, all of which are guaranteed by Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), or Ginnie Mae ("GNMA"). At September 30, 2021 and December 31, 2020 there were no securities of any non-governmental issuer whose aggregate carrying value or estimated fair value exceeded 10% of shareholders' equity. Certain investment securities owned by the Company were in an unrealized loss position (i.e., amortized cost basis exceeded the estimated fair value of the securities) as of September 30, 2021 and December 31, 2020. The following table shows the gross unrealized losses and fair value of the Company’s investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):
| September 30, 2021
Less Than Twelve Months | Twelve Months or Greater | Total
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss
Securities available-for-sale: |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 58,991 |  | $ | 516 |  | $ | 2,410 |  | $ | 73 |  | $ | 61,401 |  | $ | 589 |
Mortgage-backed securities: |  |  |  |  |  |
U.S. Government agencies | 515,972 |  | 5,281 |  | 23,296 |  | 8 |  | 539,268 |  | 5,289 |
Trust preferred securities | — |  | — |  | 4,449 |  | 118 |  | 4,449 |  | 118 |
Corporate securities | 998 |  | 2 |  | — |  | — |  | 998 |  | 2 |
Total available-for-sale | $ | 575,961 |  | $ | 5,799 |  | $ | 30,155 |  | $ | 199 |  | $ | 606,116 |  | $ | 5,998 |
| December 31, 2020
Less Than Twelve Months | Twelve Months or Greater | Total
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss
Securities available-for-sale: |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 10,578 |  | $ | 139 |  | $ | — |  | $ | — |  | $ | 10,578 |  | $ | 139 |
Mortgage-backed securities: |  |  |  |  |  |
U.S. Government agencies | 62,412 |  | 105 |  | 35 |  | — |  | 62,447 |  | 105 |
Trust preferred securities | — |  | — |  | 4,100 |  | 457 |  | 4,100 |  | 457 |
Corporate securities | 488 |  | 1 |  | — |  | — |  | 488 |  | 1 |
Total available-for-sale | $ | 73,478 |  | $ | 245 |  | $ | 4,135 |  | $ | 457 |  | $ | 77,613 |  | $ | 702 |
The Company incurred no credit-related investment impairment losses in either the nine months ended September 30, 2021 or September 30, 2020. As of September 30, 2021, management does not intend to sell any impaired security and it is not more than likely that it will be required to sell any impaired security before the recovery of its amortized cost basis. The unrealized losses on debt securities are primarily the result of interest rate changes, credit spread fluctuations on agency-issued mortgage-related securities, general financial market uncertainty and unprecedented market volatility. These conditions should not prohibit the Company from receiving its contractual principal and interest payments on its debt securities. The fair value is expected to recover as the securities a pproach their maturity date or repricing date. As of September 30, 2021, management believes the unrealized losses detailed in the table above are temporary and therefore no allowance for credit losses has been recognized on the Company’s securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss will be recognized in net income in the period the other-than-temporary impairment is identified, while any noncredit loss will be recognized in other comprehensive income. During the nine months ended September 30, 2021 and 2020, the Company had no credit-related net investment impairment losses. The amortized cost and estimated fair value of debt securities at September 30, 2021, by contractual maturity, is shown in the following table (in thousands). Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Mortgage-backed securities have been allocated to their respective maturity groupings based on their contractual maturity.
| Amortized Cost | Estimated Fair Value
Available-for-Sale Debt Securities |  |
Due in one year or less | $ | 3,829 |  | $ | 3,888 |
Due after one year through five years | 42,608 |  | 44,755 |
Due after five years through ten years | 248,098 |  | 259,506 |
Due after ten years | 1,052,962 |  | 1,063,928 |
Total | $ | 1,347,497 |  | $ | 1,372,077 |
Gross gains and gross losses recognized by the Company from investment security transactions are summarized in the table below (in thousands):
| Three months ended September 30, | Nine months ended September 30,
| 2021 | 2020 | 2021 | 2020
Gross realized gains on securities sold | $ | — |  | $ | — |  | $ | 312 |  | $ | 133 |
Gross realized losses on securities sold | — |  | — |  | — |  | (77) |
Net investment security gains (losses) | $ | — |  | $ | — |  | $ | 312 |  | $ | 56 |
Gross unrealized gains recognized on equity securities still held | $ | 100 |  | $ | 461 |  | $ | 481 |  | $ | 170 |
Gross unrealized losses recognized on equity securities still held | (7) |  | — |  | (29) |  | (1,868) |
Net unrealized gains (losses) recognized on equity securities still held | $ | 93 |  | $ | 461 |  | $ | 452 |  | $ | (1,698) |
During January 2020, the Company sold the entirety of its Visa Inc. Class B common shares (86,605) in a cash transaction which resulted in a pre-tax gain of $17.8 million. The carrying value of the Visa Class B shares on the Company's balance sheet was $0, as the Company had no historical cost basis in the shares. The carrying value of securities pledged to secure public deposits and for other purposes as required or permitted by law approximated $691 million and $644 million at September 30, 2021 and December 31, 2020, respectively.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAbstract
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