XML 32 R13.htm IDEA: XBRL DOCUMENT
v3.22.4

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost and estimated fair values of investment securities classified as available for sale and held to maturity are summarized in the following tables:
| December 31, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
|  |  | (in thousands) |  |
Debt Securities Available for Sale |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 1,568,408 |  |  | $ | 3 |  |  | $ | (195,642) |  |  | $ | 1,372,769 |
Obligations of states and political subdivisions | 332,625 |  |  | 401 |  |  | (39,821) |  |  | 293,205 |
Corporate bonds | 6,164 |  |  | — |  |  | (413) |  |  | 5,751 |
Asset backed securities | 454,943 |  |  | 17 |  |  | (15,193) |  |  | 439,767 |
Non-agency collateralized mortgage obligations | 380,847 |  |  | — |  |  | (39,901) |  |  | 340,946 |
Total debt securities available for sale | $ | 2,742,987 |  |  | $ | 421 |  |  | $ | (290,970) |  |  | $ | 2,452,438 |
Debt Securities Held to Maturity |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 154,830 |  |  | $ | 2 |  |  | $ | (11,013) |  |  | $ | 143,819 |
Obligations of states and political subdivisions | 6,153 |  |  | 13 |  |  | (47) |  |  | 6,119 |
Total debt securities held to maturity | $ | 160,983 |  |  | $ | 15 |  |  | $ | (11,060) |  |  | $ | 149,938 |
There was no allowance for credit losses recorded for the held to maturity debt portfolio as of or for the years ended December 31, 2022 and 2021.
| December 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
|  |  | (in thousands) |  |
Debt Securities Available for Sale |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 1,260,226 |  |  | $ | 8,193 |  |  | $ | (11,030) |  |  | $ | 1,257,389 |
Obligations of states and political subdivisions | 187,197 |  |  | 5,832 |  |  | (785) |  |  | 192,244 |
Corporate bonds | 6,722 |  |  | 34 |  |  | — |  |  | 6,756 |
Asset backed securities | 408,329 |  |  | 2,354 |  |  | (1,131) |  |  | 409,552 |
Non-agency collateralized mortgage obligations | 345,856 |  |  | — |  |  | (3,859) |  |  | 341,997 |
Total debt securities available for sale | $ | 2,208,330 |  |  | $ | 16,413 |  |  | $ | (16,805) |  |  | $ | 2,207,938 |
Debt Securities Held to Maturity |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 192,068 |  |  | $ | 8,131 |  |  | $ | — |  |  | $ | 200,199 |
Obligations of states and political subdivisions | 7,691 |  |  | 250 |  |  | — |  |  | 7,941 |
Total debt securities held to maturity | $ | 199,759 |  |  | $ | 8,381 |  |  | $ | — |  |  | $ | 208,140 |
There were no sales of debt securities during the years ended December 31, 2022 and 2021, respectively. During 2020, proceeds from sales of debt securities totaled $229,000, resulting in gross gains of $7,000. Investment securities with an aggregate carrying value of $595,779,000 and $423,892,000 at December 31, 2022 and 2021, respectively, were pledged as collateral for specific borrowings, lines of credit and local agency deposits. The amortized cost and estimated fair value of debt securities at December 31, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2022, obligations of U.S. government and agencies with an amortized cost basis totaling $1,533,255,000 consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date. At December 31, 2022, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 6.4 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half.
Debt Securities | Available for Sale |  | Held to Maturity
(In thousands) | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due in one year | $ | 57,685 |  |  | $ | 56,111 |  |  | $ | — |  |  | $ | — |
Due after one year through five years | 125,533 |  |  | 120,116 |  |  | 3,730 |  |  | 3,616 |
Due after five years through ten years | 418,008 |  |  | 395,462 |  |  | 14,721 |  |  | 13,998 |
Due after ten years | 2,141,761 |  |  | 1,880,749 |  |  | 142,532 |  |  | 132,324 |
Totals | $ | 2,742,987 |  |  | $ | 2,452,438 |  |  | $ | 160,983 |  |  | $ | 149,938 |
Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
December 31, 2022 | (in thousands)
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 766,612 |  |  | $ | (134,234) |  |  | $ | 605,615 |  |  | $ | (61,408) |  |  | $ | 1,372,227 |  |  | $ | (195,642) |
Obligations of states and political subdivisions | 43,282 |  |  | (12,917) |  |  | 219,532 |  |  | (26,904) |  |  | 262,814 |  |  | (39,821) |
Corporate bonds | — |  |  | — |  |  | 5,751 |  |  | (413) |  |  | 5,751 |  |  | (413) |
Asset backed securities | 205,329 |  |  | (10,238) |  |  | 231,703 |  |  | (4,955) |  |  | 437,032 |  |  | (15,193) |
Non-agency collateralized mortgage obligations | 203,620 |  |  | (36,480) |  |  | 123,075 |  |  | (3,421) |  |  | 326,695 |  |  | (39,901) |
Total debt securities available for sale | $ | 1,218,843 |  |  | $ | (193,869) |  |  | $ | 1,185,676 |  |  | $ | (97,101) |  |  | $ | 2,404,519 |  |  | $ | (290,970) |
Debt Securities Held to Maturity |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | — |  |  | $ | — |  |  | $ | 143,577 |  |  | $ | (11,013) |  |  | $ | 143,577 |  |  | $ | (11,013) |
Obligations of states and political subdivisions | — |  |  | — |  |  | 4,530 |  |  | (47) |  |  | 4,530 |  |  | (47) |
Total debt securities held to maturity | $ | — |  |  | $ | — |  |  | $ | 148,107 |  |  | $ | (11,060) |  |  | $ | 148,107 |  |  | $ | (11,060) |
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
December 31, 2021 | (in thousands)
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 947,108 |  |  | $ | (9,737) |  |  | $ | 44,086 |  |  | $ | (1,293) |  |  | $ | 991,194 |  |  | $ | (11,030) |
Obligations of states and political subdivisions | 56,153 |  |  | (785) |  |  | — |  |  | — |  |  | 56,153 |  |  | (785) |
Asset backed securities | 62,792 |  |  | (259) |  |  | 109,748 |  |  | (872) |  |  | 172,540 |  |  | (1,131) |
Non-agency collateralized mortgage obligations | 327,045 |  |  | (3,859) |  |  | — |  |  | — |  |  | 327,045 |  |  | (3,859) |
Total securities available for sale | $ | 1,393,098 |  |  | $ | (14,640) |  |  | $ | 153,834 |  |  | $ | (2,165) |  |  | $ | 1,546,932 |  |  | $ | (16,805) |
Obligations of U.S. government agencies: Unrealized losses on investments in obligations of U.S. government corporations and agencies are caused by interest rate increases. The contractual cash flows of these securities are guaranteed by U.S. Government Sponsored Entities (principally Fannie Mae and Freddie Mac). It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At December 31, 2022, 172 debt securities representing obligations of U.S. government corporations and agencies had unrealized losses with aggregate depreciation of 12.48% from the Company’s amortized cost basis. Obligations of states and political subdivisions: The unrealized losses on investments in obligations of states and political subdivisions were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At December 31, 2022, 202 debt security representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 13.16% from the Company’s amortized cost basis. Corporate bonds: The unrealized losses on investments in corporate bonds were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses as of and for the year ended December 31, 2022. At December 31, 2022, 6 asset backed securities had unrealized losses with aggregate depreciation of 6.70% from the Company’s amortized cost basis. Asset backed securities: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors in these types of securities. At the time of purchase, each of these securities were rated AA or AAA and through December 31, 2022 have not experienced any deterioration in credit rating. The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At December 31, 2022, 48 asset backed securities had unrealized losses with aggregate depreciation of 3.36% from the Company’s amortized cost basis. Non-agency collateralized mortgage obligations: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses as of and for the year ended December 31, 2022. At December 31, 2022, 22 asset backed securities had unrealized losses with aggregate depreciation of 10.88% from the Company’s amortized cost basis. Marketable equity securities: As there were no sales of marketable equity securities, all unrealized gains or losses recognized during the reporting period were for equity securities still held as of the end of the reporting period. The Company monitors credit quality of debt securities held-to-maturity through the use of credit rating. The Company monitors the credit rating on a monthly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:
| December 31, 2022 |  | December 31, 2021
| AAA/AA/A |  | BBB/BB/B |  | AAA/AA/A |  | BBB/BB/B
| (In thousands) |  | (In thousands)
Debt Securities Held to Maturity |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 154,830 |  |  | $ | — |  |  | $ | 192,068 |  |  | $ | — |
Obligations of states and political subdivisions | 6,153 |  |  | — |  |  | 7,691 |  |  | — |
Total debt securities held to maturity | $ | 160,983 |  |  | $ | — |  |  | $ | 199,759 |  |  | $ | — |

X
- Definition The entire disclosure for investment holdings. This includes the information required in the supplementary schedule applicable to management investment companies listing holdings of unaffiliated investments. + References Reference 1: 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 + Details
Name: | us-gaap_InvestmentHoldingsScheduleOfInvestmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration