XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.24.3

INVESTMENT SECURITIES | 3 Months Ended
--- | ---
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
INVESTMENT SECURITIES | 2. INVESTMENT SECURITIES The amortized cost, gross unrecognized/unrealized gains and losses, fair value and related ACL on available-for-sale ("AFS") and held-to-maturity ("HTM") debt securities at September 30, 2024 and December 31, 2023 are as follows:
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
September 30, 2024 |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 147,833 |  |  | $ | 18 |  |  | $ | (24,670) |  |  | $ | 123,181 |  |  | $ | — |
Corporate securities |  | 35,373 |  |  | — |  |  | (2,819) |  |  | 32,554 |  |  | — |
U.S. Treasury and other government-sponsored entities and agencies |  | 59,632 |  |  | 1,323 |  |  | (1,725) |  |  | 59,230 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 433,493 |  |  | 857 |  |  | (48,054) |  |  | 386,296 |  |  | — |
Residential - Non-government agencies |  | 18,085 |  |  | 471 |  |  | (722) |  |  | 17,834 |  |  | — |
Commercial - U.S. government-sponsored entities and agencies |  | 101,018 |  |  | 425 |  |  | (12,414) |  |  | 89,029 |  |  | — |
Commercial - Non-government agencies |  | 15,331 |  |  | 5 |  |  | (7) |  |  | 15,329 |  |  | — |
Total available-for-sale investment securities |  | $ | 810,765 |  |  | $ | 3,099 |  |  | $ | (90,411) |  |  | $ | 723,453 |  |  | $ | — |
|  | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
September 30, 2024 |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 42,013 |  |  | $ | — |  |  | $ | (7,283) |  |  | $ | 34,730 |  |  | $ | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 564,104 |  |  | 63 |  |  | (51,907) |  |  | 512,260 |  |  | — |
Total held-to-maturity investment securities |  | $ | 606,117 |  |  | $ | 63 |  |  | $ | (59,190) |  |  | $ | 546,990 |  |  | $ | — |
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
December 31, 2023 |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 156,432 |  |  | $ | 13 |  |  | $ | (29,810) |  |  | $ | 126,635 |  |  | $ | — |
Corporate securities |  | 35,731 |  |  | — |  |  | (4,317) |  |  | 31,414 |  |  | — |
U.S. Treasury and other government-sponsored entities and agencies |  | 28,105 |  |  | 33 |  |  | (1,941) |  |  | 26,197 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 441,898 |  |  | 95 |  |  | (63,607) |  |  | 378,386 |  |  | — |
Residential - Non-government agencies |  | 19,322 |  |  | 366 |  |  | (980) |  |  | 18,708 |  |  | — |
Commercial - U.S. government-sponsored entities and agencies |  | 58,318 |  |  | — |  |  | (7,404) |  |  | 50,914 |  |  | — |
Commercial - Non-government agencies |  | 15,144 |  |  | — |  |  | (188) |  |  | 14,956 |  |  | — |
Total available-for-sale investment securities |  | $ | 754,950 |  |  | $ | 507 |  |  | $ | (108,247) |  |  | $ | 647,210 |  |  | $ | — |
|  | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Fair Value |  | ACL
(dollars in thousands) |  |  |  |  |
December 31, 2023 |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 41,959 |  |  | $ | — |  |  | $ | (6,706) |  |  | $ | 35,253 |  |  | $ | — |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 590,379 |  |  | 61 |  |  | (60,515) |  |  | 529,925 |  |  | — |
Total held-to-maturity investment securities |  | $ | 632,338 |  |  | $ | 61 |  |  | $ | (67,221) |  |  | $ | 565,178 |  |  | $ | — |
During the first quarter of 2022, the Company entered into a forward starting interest rate swap, with a notional amount of $115.5 million, that was designated as a fair value hedge of certain municipal debt securities. The Company pays the counterparty a fixed rate of 2.095% and receives a floating rate based on the Federal Funds effective rate. The fair value hedge became effective on March 31, 2024 and has a maturity date of March 31, 2029. During the three and nine months ended September 30, 2024, the Company recorded income from the interest rate swap of $1.1 million and $1.9 million, respectively, in interest income on taxable investment securities on the Company's consolidated statements of income. During the three and nine months ended September 30, 2024, the Company recorded a total of $1.9 million and $5.4 million, respectively, in amortization of unrecognized losses on investment securities transferred from AFS to HTM. During the three and nine months ended September 30, 2023, the Company recorded a total of $2.0 million and $5.7 million, respectively, in amortization of unrecognized losses on investment securities transferred from AFS to HTM. The Company elected to not measure an estimate of credit losses on accrued interest receivable as the Company writes off any uncollectible accrued interest receivable in a timely manner. Accrued interest receivable on investment securities is reported together with accrued interest receivable on loans and other assets in the consolidated balance sheets. Accrued interest receivable on investment securities totaled $4.2 million and $4.0 million as of September 30, 2024 and December 31, 2023, respectively. The amortized cost, estimated fair value and weighted average yield of our AFS and HTM debt securities at September 30, 2024, by contractual maturity, are shown below. 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.
(dollars in thousands) |  | Amortized Cost |  | Fair Value |  | Weighted Average Yield (1)
Available-for-sale: |  |  |  |  |  |
Debt securities: |  |  |  |  |  |
Due in one year or less |  | $ | 4,287 |  |  | $ | 4,300 |  |  | 5.88 | %
Due after one year through five years |  | 58,844 |  |  | 56,071 |  |  | 2.78 |
Due after five years through ten years |  | 58,523 |  |  | 57,627 |  |  | 3.92 |
Due after ten years |  | 121,184 |  |  | 96,967 |  |  | 2.43 |
Mortgage-backed securities: |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 433,493 |  |  | 386,296 |  |  | 2.27 |
Residential - Non-government agencies |  | 18,085 |  |  | 17,834 |  |  | 5.59 |
Commercial - U.S. government-sponsored entities and agencies |  | 101,018 |  |  | 89,029 |  |  | 2.73 |
Commercial - Non-government agencies |  | 15,331 |  |  | 15,329 |  |  | 4.55 |
Total available-for-sale securities |  | $ | 810,765 |  |  | $ | 723,453 |  |  | 2.67 | %
(dollars in thousands) |  | Amortized Cost |  | Fair Value |  | Weighted Average Yield (1)
Held-to-maturity: |  |  |  |  |  |
Debt securities: |  |  |  |  |  |
Due after ten years |  | $ | 42,013 |  |  | $ | 34,730 |  |  | 2.26 | %
Mortgage-backed securities: |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 564,104 |  |  | 512,260 |  |  | 1.90 |
Total held-to-maturity securities |  | $ | 606,117 |  |  | $ | 546,990 |  |  | 1.92 | %
(1)Weighted-average yields are computed on an annual basis, and yields on tax-exempt obligations are computed on a taxable-equivalent basis using a federal statutory tax rate of 21% The Company did not sell any investment securities during the three and nine months ended September 30, 2024. During the three and nine months ended September 30, 2023, the Company sold two AFS commercial mortgage-backed securities issued by non-government agencies. The investment securities had a cost basis of $1.5 million and were sold at a loss of $0.1 million. Investment securities with carrying values totaling $796.8 million and $990.4 million at September 30, 2024 and December 31, 2023, respectively, were pledged to secure public funds on deposit, Federal Reserve Bank borrowings and other financial transactions. 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 at September 30, 2024 and December 31, 2023. Th e following tables summarize AFS and HTM investment securities, which were in a loss position as of the dates presented, aggregated by major security type and length of time in a continuous loss position. There were a total of 212 and 208 AFS investment securities which were in an unrealized loss position, without an ACL, at September 30, 2024 and December 31, 2023, respectively. There were a total of 82 HTM investment securities which were in an unrecognized loss position, without an ACL, at September 30, 2024 and December 31, 2023.
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
September 30, 2024 |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 4,600 |  |  | $ | (33) |  |  | $ | 111,552 |  |  | $ | (24,637) |  |  | $ | 116,152 |  |  | $ | (24,670) |
Corporate securities |  | — |  |  | — |  |  | 32,554 |  |  | (2,819) |  |  | 32,554 |  |  | (2,819) |
U.S. Treasury and other government-sponsored entities and agencies |  | 1,308 |  |  | (26) |  |  | 14,498 |  |  | (1,699) |  |  | 15,806 |  |  | (1,725) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 23,295 |  |  | (183) |  |  | 329,454 |  |  | (47,871) |  |  | 352,749 |  |  | (48,054) |
Residential - Non-government agencies |  | — |  |  | — |  |  | 7,992 |  |  | (722) |  |  | 7,992 |  |  | (722) |
Commercial - U.S. government-sponsored entities and agencies |  | 1,275 |  |  | (107) |  |  | 68,444 |  |  | (12,307) |  |  | 69,719 |  |  | (12,414) |
Commercial - Non-government agencies |  | — |  |  | — |  |  | 5,425 |  |  | (7) |  |  | 5,425 |  |  | (7) |
Total |  | $ | 30,478 |  |  | $ | (349) |  |  | $ | 569,919 |  |  | $ | (90,062) |  |  | $ | 600,397 |  |  | $ | (90,411) |
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses
September 30, 2024 |  |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | — |  |  | $ | — |  |  | $ | 34,730 |  |  | $ | (7,283) |  |  | $ | 34,730 |  |  | $ | (7,283) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | — |  |  | — |  |  | 504,405 |  |  | (51,907) |  |  | 504,405 |  |  | (51,907) |
Total |  | $ | — |  |  | $ | — |  |  | $ | 539,135 |  |  | $ | (59,190) |  |  | $ | 539,135 |  |  | $ | (59,190) |
|  | 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, 2023 |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 534 |  |  | $ | (1) |  |  | $ | 114,601 |  |  | $ | (29,809) |  |  | $ | 115,135 |  |  | $ | (29,810) |
Corporate securities |  | — |  |  | — |  |  | 31,414 |  |  | (4,317) |  |  | 31,414 |  |  | (4,317) |
U.S. Treasury and other government-sponsored entities and agencies |  | 2,893 |  |  | (87) |  |  | 16,286 |  |  | (1,854) |  |  | 19,179 |  |  | (1,941) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | — |  |  | — |  |  | 367,887 |  |  | (63,607) |  |  | 367,887 |  |  | (63,607) |
Residential - Non-government agencies |  | — |  |  | — |  |  | 8,169 |  |  | (980) |  |  | 8,169 |  |  | (980) |
Commercial - U.S. government-sponsored entities and agencies |  | 6,467 |  |  | (1) |  |  | 44,447 |  |  | (7,403) |  |  | 50,914 |  |  | (7,404) |
Commercial - Non-government agencies |  | 9,663 |  |  | (130) |  |  | 5,293 |  |  | (58) |  |  | 14,956 |  |  | (188) |
Total |  | $ | 19,557 |  |  | $ | (219) |  |  | $ | 588,097 |  |  | $ | (108,028) |  |  | $ | 607,654 |  |  | $ | (108,247) |
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(dollars in thousands) |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses
December 31, 2023 |  |  |  |  |  |
Held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | — |  |  | $ | — |  |  | $ | 35,253 |  |  | $ | (6,706) |  |  | $ | 35,253 |  |  | $ | (6,706) |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential - U.S. government-sponsored entities and agencies |  | 8,853 |  |  | (33) |  |  | 512,378 |  |  | (60,482) |  |  | 521,231 |  |  | (60,515) |
Total |  | $ | 8,853 |  |  | $ | (33) |  |  | $ | 547,631 |  |  | $ | (67,188) |  |  | $ | 556,484 |  |  | $ | (67,221) |
Investment securities in an unrecognized or unrealized loss position are evaluated at least on 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. The Company has evaluated its AFS and HTM investment securities that are in an unrecognized or unrealized loss position and has determined that the unrecognized or unrealized losses on the Company's investment securities are unrelated to credit quality and primarily attributable to changes in interest rates and volatility in the financial markets since purchase. All of the investment securities in an unrecognized or unrealized loss position continue to be rated investment grade by one or more major rating agencies. The Company does not intend to sell the AFS and HTM securities that were in an unrecognized or unrealized loss position as of September 30, 2024 and December 31, 2023, and it is unlikely that the Company will be required to sell these securities before recovery of its amortized cost basis that may be at maturity. Therefore, the Company has not recorded an ACL on these securities and the unrecognized or unrealized losses on these securities have not been recognized into income.

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://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration