XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.21.1

INVESTMENT SECURITIES | 3 Months Ended
--- | ---
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses, fair value and related ACL on AFS debt securities are as follows:
(dollars in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | ACL
March 31, 2021 |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |
States and political subdivisions | $ | 165,180 |  |  | $ | 3,355 |  |  | $ | (2,190) |  |  | $ | 166,345 |  |  | $ | — |
Corporate securities | 47,175 |  |  | 189 |  |  | (1,197) |  |  | 46,167 |  |  | — |
U.S. Treasury obligations and direct obligations of U.S Government agencies | 41,565 |  |  | 90 |  |  | (478) |  |  | 41,177 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Residential - U.S. Government-sponsored entities | 814,051 |  |  | 13,300 |  |  | (12,085) |  |  | 815,266 |  |  | — |
Commercial - U.S. Government agencies and sponsored entities | 85,778 |  |  | 1,710 |  |  | (1,609) |  |  | 85,879 |  |  | — |
Residential - Non-government agencies | 18,318 |  |  | 594 |  |  | (112) |  |  | 18,800 |  |  | — |
Commercial - Non-government agencies | 41,315 |  |  | 1,392 |  |  | — |  |  | 42,707 |  |  | — |
Total available-for-sale securities | $ | 1,213,382 |  |  | $ | 20,630 |  |  | $ | (17,671) |  |  | $ | 1,216,341 |  |  | $ | — |
(dollars in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | ACL
December 31, 2020 |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |
States and political subdivisions | $ | 163,573 |  |  | $ | 5,370 |  |  | $ | (177) |  |  | $ | 168,766 |  |  | $ | — |
Corporate securities | 47,351 |  |  | 788 |  |  | (131) |  |  | 48,008 |  |  | — |
U.S. Treasury obligations and direct obligations of U.S Government agencies | 33,413 |  |  | 18 |  |  | (286) |  |  | 33,145 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Residential - U.S. Government-sponsored entities | 762,309 |  |  | 16,816 |  |  | (299) |  |  | 778,826 |  |  | — |
Commercial - U.S. Government agencies and sponsored entities | 85,405 |  |  | 2,564 |  |  | (500) |  |  | 87,469 |  |  | — |
Residential - Non-government agencies | 22,671 |  |  | 786 |  |  | (34) |  |  | 23,423 |  |  | — |
Commercial - Non-government agencies | 41,309 |  |  | 1,663 |  |  | — |  |  | 42,972 |  |  | — |
Total available-for-sale securities | $ | 1,156,031 |  |  | $ | 28,005 |  |  | $ | (1,427) |  |  | $ | 1,182,609 |  |  | $ | — |
The amortized cost and fair value of our equity investment securities is as follows:
(dollars in thousands) | Amortized Cost |  | Fair Value
March 31, 2021 |  |  |
Equity securities | $ | 1,096 |  |  | $ | 1,435 |
December 31, 2020 |  |  |
Equity securities | 1,068 |  |  | 1,351 |
The amortized cost and estimated fair value of our AFS debt securities at March 31, 2021 are shown below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
| March 31, 2021
(dollars in thousands) | Amortized Cost |  | Fair Value
Available-for-sale: |  |  |
Due in one year or less | $ | 21,146 |  |  | $ | 21,381 |
Due after one year through five years | 28,707 |  |  | 29,691 |
Due after five years through ten years | 93,484 |  |  | 93,093 |
Due after ten years | 110,583 |  |  | 109,524 |
Mortgage-backed securities: |  |  |
Residential - U.S. Government-sponsored entities | 814,051 |  |  | 815,266 |
Commercial - U.S. Government agencies and sponsored entities | 85,778 |  |  | 85,879 |
Residential - Non-government agencies | 18,318 |  |  | 18,800 |
Commercial - Non-government agencies | 41,315 |  |  | 42,707 |
Total available-for-sale securities | $ | 1,213,382 |  |  | $ | 1,216,341 |
We did not sell any available-for-sale securities during the three months ended March 31, 2021 and March 31, 2020 Investment securities with fair value of $494.1 million and $483.6 million at March 31, 2021 and December 31, 2020, respectively, were pledged to secure public funds on deposit and other short-term borrowings. At March 31, 2021 and December 31, 2020, there were no holdings of investment securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity. There were a total of 95 and 37 AFS debt securities which were in an unrealized loss position, without an ACL, at March 31, 2021 and December 31, 2020, respectively. The following tables summarize AFS debt securities which were in an unrealized loss position at March 31, 2021 and December 31, 2020, aggregated by major security type and length of time in a continuous unrealized loss position.
| Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
March 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions | $ | 59,427 |  |  | $ | (2,190) |  |  | $ | — |  |  | $ | — |  |  | $ | 59,427 |  |  | $ | (2,190) |
Corporate securities | 30,810 |  |  | (1,197) |  |  | — |  |  | — |  |  | 30,810 |  |  | (1,197) |
U.S. Treasury obligations and direct obligations of U.S Government agencies | 14,001 |  |  | (329) |  |  | 16,389 |  |  | (149) |  |  | 30,390 |  |  | (478) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. Government-sponsored entities | 409,049 |  |  | (12,085) |  |  | — |  |  | — |  |  | 409,049 |  |  | (12,085) |
Residential - Non-government agencies | 905 |  |  | (112) |  |  | — |  |  | — |  |  | 905 |  |  | (112) |
Commercial - U.S. Government agencies and sponsored entities | 22,398 |  |  | (1,609) |  |  | — |  |  | — |  |  | 22,398 |  |  | (1,609) |
Total temporarily impaired securities | $ | 536,590 |  |  | $ | (17,522) |  |  | $ | 16,389 |  |  | $ | (149) |  |  | $ | 552,979 |  |  | $ | (17,671) |
| Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions | $ | 21,313 |  |  | $ | (177) |  |  | $ | — |  |  | $ | — |  |  | $ | 21,313 |  |  | $ | (177) |
Corporate securities | 4,869 |  |  | (131) |  |  | — |  |  | — |  |  | 4,869 |  |  | (131) |
U.S. Treasury obligations and direct obligations of U.S Government agencies | 5,980 |  |  | (24) |  |  | 20,925 |  |  | (262) |  |  | 26,905 |  |  | (286) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. Government-sponsored entities | 76,402 |  |  | (299) |  |  | — |  |  | — |  |  | 76,402 |  |  | (299) |
Residential - Non-government agencies | 989 |  |  | (34) |  |  | — |  |  | — |  |  | 989 |  |  | (34) |
Commercial - U.S. Government-sponsored entities | 16,977 |  |  | (500) |  |  | — |  |  | — |  |  | 16,977 |  |  | (500) |
Total temporarily impaired securities | $ | 126,530 |  |  | $ | (1,165) |  |  | $ | 20,925 |  |  | $ | (262) |  |  | $ | 147,455 |  |  | $ | (1,427) |
The Company has evaluated its AFS investment securities that are in an unrealized loss position and has determined that the unrealized losses on the Company's investment securities are unrelated to credit quality and are primarily attributable to changes in interest rates and volatility in the financial markets since purchase. Investment securities in an unrealized loss position are evaluated on at least a quarterly basis, and include evaluating the changes in the investment securities' ratings issued by rating agencies and changes in the financial condition of the issuer. For mortgage-related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company's particular position within the repayment structure, and remaining credit enhancement as compared to projected credit losses of the security are also evaluated. All of the investment securities in an unrealized loss position continue to be rated investment grade by one or more major rating agencies. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, the Company has not recorded an ACL and unrealized losses on these securities and have not been recognized into income. Visa Class B Common Stock As of March 31, 2021, the Company owns 34,631 shares of Class B common stock of Visa, Inc. ("Visa"). These shares were received in 2008 as part of Visa's initial public offering ("IPO"). These shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded Class A common stock. This conversion will not occur until the resolution of certain litigation, which is indemnified by Visa members. Since its IPO, Visa has funded a litigation reserve to settle these litigation claims. At its discretion, Visa may continue to increase the litigation reserve based upon a change in the conversion ratio of each member bank’s restricted Class B common stock to unrestricted Class A common stock. Due to the existing transfer restriction and the uncertainty of the outcome of the Visa litigation, the Company has determined that the Visa Class B common stock does not have a readily determinable fair value and chooses to carry the shares on the Company's consolidated balance sheets at zero cost basis.

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 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration