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INVESTMENT SECURITIES | 12 Months Ended
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Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | 3. INVESTMENT SECURITIES A summary of our available-for-sale investment securities as of December 31, 2021 and 2020 are as follows:
(Dollars in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  |
December 31, 2021 |  |  |  |  |  |  |  |  |
Available-for-Sale: |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |
States and political subdivisions | $ | 235,521 |  |  | $ | 3,156 |  |  | $ | (1,849) |  |  | $ | 236,828 |  |  |
Corporate securities | 41,687 |  |  | 24 |  |  | (1,065) |  |  | 40,646 |  |  |
U.S. Treasury obligations and direct obligations of U.S Government agencies | 35,833 |  |  | 69 |  |  | (568) |  |  | 35,334 |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Residential - U.S. Government-sponsored entities ("GSEs") | 1,213,910 |  |  | 4,899 |  |  | (19,993) |  |  | 1,198,816 |  |  |
Residential - Non-government sponsored entities ("Non-GSEs") | 11,942 |  |  | 335 |  |  | (64) |  |  | 12,213 |  |  |
Commercial - U.S. GSEs and agencies | 66,287 |  |  | 756 |  |  | (1,194) |  |  | 65,849 |  |  |
Commercial - Non-GSEs | 41,328 |  |  | 685 |  |  | — |  |  | 42,013 |  |  |
Total available-for-sale investment securities | $ | 1,646,508 |  |  | $ | 9,924 |  |  | $ | (24,733) |  |  | $ | 1,631,699 |  |  |
Equity securities | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
(Dollars in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
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. GSEs | 762,309 |  |  | 16,816 |  |  | (299) |  |  | 778,826 |
Residential - Non-GSEs | 22,671 |  |  | 786 |  |  | (34) |  |  | 23,423 |
Commercial - U.S. GSEs and agencies | 85,405 |  |  | 2,564 |  |  | (500) |  |  | 87,469 |
Commercial - Non-GSEs | 41,309 |  |  | 1,663 |  |  | — |  |  | 42,972 |
Total available-for-sale investment securities | $ | 1,156,031 |  |  | $ | 28,005 |  |  | $ | (1,427) |  |  | $ | 1,182,609 |
Equity securities | $ | 1,068 |  |  | $ | 283 |  |  | $ | — |  |  | $ | 1,351 |
The amortized cost and fair value of our equity investment securities is as follows:
(Dollars in thousands) | Amortized Cost |  | Fair Value
December 31, 2021 |  |  |
Equity securities | $ | — |  |  | $ | — |
December 31, 2020 |  |  |
Equity securities | 1,068 |  |  | 1,351 |
The amortized cost and estimated fair value of our investment securities at December 31, 2021 by contractual maturity are shown below. Actual maturities may differ from contractual maturities as issuers 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.
| December 31, 2021
(Dollars in thousands) | Amortized Cost |  | Fair Value
Available-for-Sale: |  |  |
Due in one year or less | $ | 18,958 |  |  | $ | 19,002 |
Due after one year through five years | 21,579 |  |  | 22,190 |
Due after five years through ten years | 84,715 |  |  | 84,411 |
Due after ten years | 187,789 |  |  | 187,205 |
Mortgage-backed securities |  |  |
Residential - U.S. GSEs | 1,213,910 |  |  | 1,198,816 |
Residential - Non-GSEs | 11,942 |  |  | 12,213 |
Commercial - U.S. GSEs and agencies | 66,287 |  |  | 65,849 |
Commercial - Non-GSEs | 41,328 |  |  | 42,013 |
Total available-for-sale investment securities | $ | 1,646,508 |  |  | $ | 1,631,699 |
Equity securities | $ | — |  |  | $ | — |
In 2021, proceeds from the sale of available-for-sale investment securities were $279.5 million and resulted in a net realized gain of $0.2 million. Gross realized gains and losses on the sale of available-for-sale investment securities totaled $3.4 million and $3.2 million, respectively. In 2021, proceeds from the sale of equity investment securities were $1.7 million. In 2020, proceeds from the sale of available-for-sale investment securities were $180.1 million and resulted in a net realized loss of $0.2 million. Gross realized losses and gains on the sale of available-for-sale investment securities totaled $0.9 million and $0.7 million, respectively. In 2019, proceeds from the sale of available-for-sale investment securities were $53.9 million and resulted in a net realized gain of $36 thousand. Gross realized gains and losses on the sale of available-for-sale investment securities totaled $83 thousand and $47 thousand, respectively. Investment securities of $455.8 million and $483.6 million at December 31, 2021 and 2020, respectively, were pledged to secure public funds on deposit and other long-term and short-term borrowings. At December 31, 2021 and 2020, there were no holdings of 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 153 and 37 securities in an unrealized or unrecognized loss position at December 31, 2021 and 2020, respectively. The following table summarizes securities which were in an unrealized or unrecognized loss position at December 31, 2021 and 2020, aggregated by major security type and length of time in a continuous unrealized or unrecognized loss position:
| Less Than 12 Months |  | 12 Months or Longer |  | Total
Description of Securities | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| (Dollars in thousands)
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions | $ | 79,360 |  |  | $ | (1,252) |  |  | $ | 10,864 |  |  | $ | (597) |  |  | $ | 90,224 |  |  | $ | (1,849) |
Corporate securities | 8,633 |  |  | (235) |  |  | 21,960 |  |  | (830) |  |  | 30,593 |  |  | (1,065) |
U.S. Treasury obligations and direct obligations of U.S Government agencies | 16,103 |  |  | (415) |  |  | 10,891 |  |  | (153) |  |  | 26,994 |  |  | (568) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. GSEs | 926,570 |  |  | (15,883) |  |  | 114,747 |  |  | (4,110) |  |  | 1,041,317 |  |  | (19,993) |
Residential - Non-GSEs | — |  |  | — |  |  | 938 |  |  | (64) |  |  | 938 |  |  | (64) |
Commercial - U.S. GSEs and agencies | 6,313 |  |  | (205) |  |  | 16,281 |  |  | (989) |  |  | 22,594 |  |  | (1,194) |
Total temporarily impaired securities | $ | 1,036,979 |  |  | $ | (17,990) |  |  | $ | 175,681 |  |  | $ | (6,743) |  |  | $ | 1,212,660 |  |  | $ | (24,733) |
| Less Than 12 Months |  | 12 Months or Longer |  | Total
Description of Securities | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
| (Dollars in thousands)
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions | $ | 21,313 |  |  | $ | (177) |  |  | $ | — |  |  | $ | — |  |  | $ | 21,313 |  |  | $ | (177) |
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. GSEs | 76,402 |  |  | (299) |  |  | — |  |  | — |  |  | 76,402 |  |  | (299) |
Residential - Non-GSEs | 989 |  |  | (34) |  |  | — |  |  | — |  |  | 989 |  |  | (34) |
Commercial - U.S. GSEs and agencies | 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 and MasterCard Class B Common Stock As of December 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. During the first quarter of 2019, the Company converted the 11,170 shares of Class B common stock of MasterCard, Inc. ("MasterCard") it received during their initial public offering to an equal number of Class A common stock and sold the shares for $2.6 million. The shares were carried on the Company's consolidated balance sheets at zero cost basis and the proceeds received were recorded as a gain in other operating income - other in the Company's consolidated statements of income. The Company no longer owns any shares of MasterCard Class B common stock.

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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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