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Securities | 12 Months Ended
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Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Securities | Securities The fair value of securities is as follows:
| December 31, 2021
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 118,595 |  |  | 82 |  |  | $ | (1,698) |  |  | $ | 116,979 |
State and municipal | 632,652 |  |  | 12,802 |  |  | (5,708) |  |  | 639,746 |
Federal agency collateralized mortgage obligations | 60,600 |  |  | 989 |  |  | (12) |  |  | 61,577 |
Federal agency mortgage–backed pools | 225,329 |  |  | 1,777 |  |  | (1,032) |  |  | 226,074 |
Private labeled mortgage–backed pools | 31,856 |  |  | 137 |  |  | (376) |  |  | 31,617 |
Corporate notes | 84,579 |  |  | 1,013 |  |  | (773) |  |  | 84,819 |
Total available for sale investment securities | $ | 1,153,611 |  |  | $ | 16,800 |  |  | $ | (9,599) |  |  | $ | 1,160,812 |
Held to maturity |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 195,429 |  |  | $ | 12 |  |  | $ | (1,215) |  |  | $ | 194,226 |
State and municipal | 862,461 |  |  | 20,719 |  |  | (4,263) |  |  | 878,917 |
Federal agency collateralized mortgage obligations | 48,482 |  |  | 3 |  |  | (1,020) |  |  | 47,465 |
Federal agency mortgage–backed pools | 188,426 |  |  | 151 |  |  | (2,612) |  |  | 185,965 |
Private labeled mortgage–backed pools | 99,958 |  |  | 58 |  |  | (1,840) |  |  | 98,176 |
Corporate notes | 157,687 |  |  | 11 |  |  | (2,456) |  |  | 155,242 |
Total held to maturity investment securities | $ | 1,552,443 |  |  | $ | 20,954 |  |  | $ | (13,406) |  |  | $ | 1,559,991 |
| December 31, 2020
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 19,750 |  |  | $ | — |  |  | $ | (35) |  |  | $ | 19,715 |
State and municipal | 803,100 |  |  | 35,014 |  |  | (271) |  |  | 837,843 |
Federal agency collateralized mortgage obligations | 144,022 |  |  | 3,448 |  |  | (17) |  |  | 147,453 |
Federal agency mortgage–backed pools | 114,484 |  |  | 4,315 |  |  | — |  |  | 118,799 |
Corporate notes | 9,007 |  |  | 1,208 |  |  | — |  |  | 10,215 |
Total available for sale investment securities | $ | 1,090,363 |  |  | $ | 43,985 |  |  | $ | (323) |  |  | $ | 1,134,025 |
Held to maturity |  |  |  |  |  |  |
State and municipal | $ | 157,421 |  |  | $ | 11,035 |  |  | $ | — |  |  | $ | 168,456 |
Federal agency collateralized mortgage obligations | 2,661 |  |  | 36 |  |  | — |  |  | 2,697 |
Federal agency mortgage–backed pools | 8,594 |  |  | 243 |  |  | — |  |  | 8,837 |
Total held to maturity investment securities | $ | 168,676 |  |  | $ | 11,314 |  |  | $ | — |  |  | $ | 179,990 |
The Company elected to transfer 475 AFS securities with an aggregate fair value of $490.2 million to a classification of HTM on December 31, 2021. IN accordance with FASB ASC 320–10–55–24, the transfer from AFS to HTM must be recorded at the fair value of the AFS securities at the time of transfer. The net unrealized holding gain of $6.0 million, net of tax, at the date of transfer was retained in accumulated other comprehensive income (loss), with the associated pre–tax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities. The fair value of the transferred AFS securities became the book value of the HTM securities at December 31, 2021, with no securities, would likely record an unrealized gain or loss for disclosure purposes. The Company elected to transfer 319 available for sale (“AFS”) securities with an aggregate fair value of $167.1 million to a classification of held to maturity (“HTM”) on April 1, 2014. In accordance with FASB ASC 320–10–55–24, the transfer from AFS to HTM must be recorded at the fair value of the AFS securities at the time of transfer. The net unrealized holding gain of $1.3 million, net of tax, at the date of transfer was retained in accumulated other comprehensive income (loss), with the associated pre–tax amount retained in the carrying value of the HTM securities. Such amounts will be amortized to comprehensive income over the remaining life of the securities. The fair value of the transferred AFS securities became the book value of the HTM securities at April 1, 2014, with no unrealized gain or loss at this date. Future reporting periods, with potential changes in market value for these securities, would likely record an unrealized gain or loss for disclosure purposes. The amortized cost and fair value of securities available for sale and held to maturity at December 31, 2021 and December 31, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
| December 31, 2021 |  | December 31, 2020
| Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Available for sale |  |  |  |  |  |  |
Within one year | $ | 22,980 |  |  | $ | 22,984 |  |  | $ | 44,206 |  |  | $ | 44,192 |
One to five years | 156,677 |  |  | 156,397 |  |  | 61,594 |  |  | 63,006 |
Five to ten years | 315,630 |  |  | 316,125 |  |  | 136,857 |  |  | 145,102 |
After ten years | 340,539 |  |  | 346,038 |  |  | 589,200 |  |  | 615,473 |
| 835,826 |  |  | 841,544 |  |  | 831,857 |  |  | 867,773 |
Federal agency collateralized mortgage obligations | 60,600 |  |  | 61,577 |  |  | 144,022 |  |  | 147,453 |
Federal agency mortgage–backed pools | 225,329 |  |  | 226,074 |  |  | 114,484 |  |  | 118,799 |
Private labeled mortgage–backed pools | 31,856 |  |  | 31,617 |  |  | — |  |  | — |
Total available for sale investment securities | $ | 1,153,611 |  |  | $ | 1,160,812 |  |  | $ | 1,090,363 |  |  | $ | 1,134,025 |
Held to maturity |  |  |  |  |  |  |
Within one year | $ | 5,222 |  |  | $ | 5,265 |  |  | $ | 7,302 |  |  | $ | 7,327 |
One to five years | 65,739 |  |  | 66,982 |  |  | 42,742 |  |  | 44,358 |
Five to ten years | 273,720 |  |  | 275,308 |  |  | 82,087 |  |  | 88,300 |
After ten years | 870,896 |  |  | 880,830 |  |  | 25,290 |  |  | 28,471 |
| 1,215,577 |  |  | 1,228,385 |  |  | 157,421 |  |  | 168,456 |
Federal agency collateralized mortgage obligations | 48,482 |  |  | 47,465 |  |  | 2,661 |  |  | 2,697 |
Federal agency mortgage–backed pools | 188,426 |  |  | 185,965 |  |  | 8,594 |  |  | 8,837 |
Private labeled mortgage–backed pools | 99,958 |  |  | 98,176 |  |  | — |  |  | — |
Total held to maturity investment securities | $ | 1,552,443 |  |  | $ | 1,559,991 |  |  | $ | 168,676 |  |  | $ | 179,990 |
The following table shows the gross unrealized losses and the 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.
| December 31, 2021
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Investment Securities |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 268,732 |  |  | $ | (2,483) |  |  | $ | 15,820 |  |  | $ | (430) |  |  | $ | 284,552 |  |  | $ | (2,913) |
State and municipal | 539,882 |  |  | (9,389) |  |  | 19,461 |  |  | (582) |  |  | 559,343 |  |  | (9,971) |
Federal agency collateralized mortgage obligations | 56,027 |  |  | (1,032) |  |  | — |  |  | — |  |  | 56,027 |  |  | (1,032) |
Federal agency mortgage–backed pools | 333,489 |  |  | (3,644) |  |  | — |  |  | — |  |  | 333,489 |  |  | (3,644) |
Private labeled mortgage–backed pools | 113,057 |  |  | (2,216) |  |  | — |  |  | — |  |  | 113,057 |  |  | (2,216) |
Corporate notes | 189,500 |  |  | (3,229) |  |  | — |  |  | — |  |  | 189,500 |  |  | (3,229) |
Total securities | $ | 1,500,687 |  |  | $ | (21,993) |  |  | $ | 35,281 |  |  | $ | (1,012) |  |  | $ | 1,535,968 |  |  | $ | (23,005) |
| December 31, 2020
| Less than 12 Months |  | 12 Months or More |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Investment Securities |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and federal agencies | $ | 17,215 |  |  | $ | (35) |  |  | $ | — |  |  | $ | — |  |  | $ | 17,215 |  |  | $ | (35) |
State and municipal | 56,287 |  |  | (242) |  |  | 1,245 |  |  | (29) |  |  | 57,532 |  |  | (271) |
Federal agency collateralized mortgage obligations | 6,358 |  |  | (17) |  |  | — |  |  | — |  |  | 6,358 |  |  | (17) |
Total securities | $ | 79,860 |  |  | $ | (294) |  |  | $ | 1,245 |  |  | $ | (29) |  |  | $ | 81,105 |  |  | $ | (323) |
No allowance for credit losses for available for sale debt securities or held to maturity securities was needed at December 31, 2021 and December 31, 2020. Accrued interest receivable on available for sale debt securities and held to maturity securities totaled $14.6 million and $8.1 million at December 31, 2021 and December 31, 2020, respectively, and is excluded from the estimate of credit losses. The U.S. government sponsored entities and agencies and mortgage–backed securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. Therefore, for those securities, we do not record expected credit losses. Information regarding security proceeds, gross gains and gross losses are presented below.
| Year Ended December 31
| 2021 |  | 2020 |  | 2019
Sales of securities available for sale |  |  |  |  |
Proceeds | $ | 27,514 |  |  | $ | 77,213 |  |  | $ | 98,425 |
Gross gains | 914 |  |  | 4,372 |  |  | 168 |
Gross losses | — |  |  | (75) |  |  | (243) |
The tax effect of the proceeds from the sale of securities available for sale was $192,000, $902,000 and $(16,000) for the years ended December 31, 2021, 2020 and 2019, respectively. The Company pledges securities to secure retail and corporate repurchase agreements to the Federal Reserve for borrowing availability and as settlements for the fair value of swap agreements. At December 31, 2021, the Company had pledged $146.5 million of fair value or $145.0 million of amortized cost, in securities as collateral for $130.8 million in repurchase agreements, $479.5 million of fair value or $453.6 million of amortized cost, in securities as collateral for borrowing availability at the Federal Reserve with no current outstanding borrowings and $37.2 million of fair value or $36.6 million of amortized cost, in securities as collateral for $7.2 million in settlements on the fair value of swap agreements. Other than Temporary Impairment (“OTTI”) (Prior to January 1, 2020) Prior to the adoption of ASC 326 as of January 1, 2020, the Company used OTTI guidance in ASC 320 for impairment analysis and recognition. Under the OTTI model, impairment losses were recognized as a reduction of the cost basis of the investment with recovery of impairment losses recognized prospectively over time as interest income.

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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 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
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