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Investment Securities Available-for-Sale | 12 Months Ended
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Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Investment Securities Available-for-Sale | Investment Securities Available-for-Sale Amortized cost and estimated fair value of securities available-for-sale are summarized as follows:
December 31, 2021 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for |  | Estimated Fair Value
(dollars in thousands) |  |  |  |  | Credit Losses |
U.S. treasury bonds |  | $ | 49,693 |  |  | $ | 22 |  |  | $ | (257) |  |  | $ | — |  |  | $ | 49,458 |
U.S. agency securities |  | 629,273 |  |  | 736 |  |  | (7,622) |  |  | — |  |  | 622,387 |
Residential mortgage backed securities |  | 1,692,773 |  |  | 5,697 |  |  | (20,797) |  |  | — |  |  | 1,677,673 |
Municipal bonds |  | 141,916 |  |  | 3,865 |  |  | (347) |  |  | (3) |  |  | 145,431 |
Corporate bonds |  | 129,012 |  |  | 648 |  |  | (584) |  |  | (617) |  |  | 128,459 |
|  | $ | 2,642,667 |  |  | $ | 10,968 |  |  | $ | (29,607) |  |  | $ | (620) |  |  | $ | 2,623,408 |
December 31, 2020 |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for |  | Estimated Fair Value
(dollars in thousands) |  |  |  |  | Credit Losses |
U. S. agency securities |  | $ | 181,087 |  |  | $ | 1,461 |  |  | ( 627 ) |  | $ | — |  |  | $ | 181,921 |
Residential mortgage backed securities |  | 811,328 |  |  | 14,506 |  |  | ( 833 ) |  |  |  | 825,001
Municipal bonds |  | 102,259 |  |  | 5,872 |  |  | — |  |  | (18) |  |  | 108,113
Corporate bonds |  | 34,383 |  |  | 1,624 |  |  | ( 8 ) |  | ( 149 ) |  | 35,850
|  | $ | 1,129,057 |  |  | $ | 23,463 |  |  | ( 1,468 ) |  | ( 167 ) |  | $ | 1,150,885 |
In addition, at December 31, 2021 and December 31, 2020, the Company held $34.2 million and $40.1 million in equity securities, respectively, in a combination of FRB and FHLB stocks, which are required to be held for regulatory purposes and which are not marketable, and therefore are carried at cost. The unrealized losses that exist at December 31, 2021 are generally the result of changes in market interest rates and interest spread relationships since original purchases. However, as of December 31, 2021, the Company determined that part of the unrealized loss positions in AFS corporate and municipal securities could be due to credit-related events, and therefore, provisions for credit losses of $453 thousand and $167 thousand were recorded as of December 31, 2021 and 2020, respectively. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. The Company does not intend to sell the investments and it is more likely than not that the Company will not have to sell the securities before recovery of its amortized cost basis, which may be at maturity. Gross unrealized losses and fair value by length of time that the individual available-for-sale securities have been in a continuous unrealized loss position as of December 31, 2021 and 2020 are as follows:
|  |  |  | Less than 12 Months |  | 12 Months or Greater |  | Total
December 31, 2021 |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
(dollars in thousands) |  |  |  |  |  |  |
U.S. Treasury Bond |  | 1 |  |  | $ | 24,593 |  |  | $ | 257 |  |  | $ | — |  |  | $ | — |  |  | $ | 24,593 |  |  | $ | 257 |
U. S. agency securities |  | 64 |  |  | 452,966 |  |  | 6,256 |  |  | 68,977 |  |  | 1,366 |  |  | 521,943 |  |  | 7,622 |
Residential mortgage backed securities |  | 153 |  |  | 1,327,519 |  |  | 16,841 |  |  | 108,061 |  |  | 3,956 |  |  | 1,435,580 |  |  | 20,797 |
Municipal Bonds |  | 8 |  |  | 20,181 |  |  | 347 |  |  | — |  |  | — |  |  | 20,181 |  |  | 347 |
Corporate bonds |  | 13 |  |  | 66,051 |  |  | 584 |  |  | — |  |  | — |  |  | 66,051 |  |  | 584 |
|  | 239 |  | $ | 1,891,310 |  |  | $ | 24,285 |  |  | $ | 177,038 |  |  | $ | 5,322 |  |  | $ | 2,068,348 |  |  | $ | 29,607 |
|  |  |  | Less than 12 Months |  | 12 Months or Greater |  | Total
December 31, 2020 |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
(dollars in thousands) |  |  |  |  |  |  |
U. S. agency securities |  | 28 |  |  | $ | 46,412 |  |  | $ | 67 |  |  | $ | 41,320 |  |  | $ | 560 |  |  | $ | 87,732 |  |  | $ | 627 |
Residential mortgage backed securities |  | 35 |  |  | 170,178 |  |  | 782 |  |  | 6,419 |  |  | 51 |  |  | 176,597 |  |  | 833 |
Municipal bonds |  | 3 |  |  | 5,764 |  |  | 8 |  |  | — |  |  | — |  |  | 5,764 |  |  | 8 |
|  | 66 |  |  | $ | 222,354 |  |  | $ | 857 |  |  | $ | 47,739 |  |  | $ | 611 |  |  | $ | 270,093 |  |  | $ | 1,468 |
The amortized cost and estimated fair value of investments available-for-sale at December 31, 2021 and 2020 by contractual maturity are shown in the table below. Expected maturities for residential mortgage backed securities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | December 31, 2021 |  | December 31, 2020
(dollars in thousands) |  | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
U. S. agency securities maturing: |  |  |  |  |  |  |  |
One year or less |  | $ | 425,597 |  |  | $ | 421,347 |  |  | $ | 53,916 |  |  | $ | 53,906 |
After one year through five years |  | 141,537 |  |  | 140,785 |  |  | 110,083 |  |  | 110,777 |
Five years through ten years |  | 62,092 |  |  | 60,255 |  |  | 17,087 |  |  | 17,240 |
Residential mortgage backed securities |  | 1,692,820 |  |  | 1,677,673 |  |  | 811,328 |  |  | 825,001 |
Municipal bonds maturing: |  |  |  |  |  |  |  |
One year or less |  | 4,806 |  |  | 4,861 |  |  | 4,329 |  |  | 4,348 |
After one year through five years |  | 25,457 |  |  | 26,816 |  |  | 26,622 |  |  | 28,272 |
Five years through ten years |  | 97,945 |  |  | 99,960 |  |  | 69,309 |  |  | 73,389 |
After ten years |  | 13,708 |  |  | 13,797 |  |  | 2,000 |  |  | 2,121 |
Corporate bonds maturing: |  |  |  |  |  |  |  |
One year or less |  | 18,924 |  |  | 18,991 |  |  | 5,218 |  |  | 5,220 |
After one year through five years |  | 54,630 |  |  | 54,833 |  |  | 22,189 |  |  | 23,267 |
Five years through ten years |  | 55,458 |  |  | 55,252 |  |  | 6,976 |  |  | 7,511 |
After ten years |  | — |  |  | — |  |  | — |  |  | — |
U.S. treasury |  | 49,693 |  |  | 49,458 |  |  | — |  |  | — |
Allowance for credit losses |  |  |  | (620) |  |  | — |  |  | (167) |
|  | $ | 2,642,667 |  |  | $ | 2,623,408 |  |  | $ | 1,129,057 |  |  | $ | 1,150,885 |
In 2021, gross realized gains on sales of investment securities were $3.2 million and gross realized losses on sales of investment securities were $187 thousand. In 2020, gross realized gains on sales of investment securities were $1.9 million and gross realized losses on sales of investment securities were $46 thousand. In 2019, gross realized gains on sales of investment securities were $1.7 million and gross realized losses on sales of investment securities were $153 thousand. Proceeds from sales and calls of investment securities for 2021, 2020, and 2019 were $201.0 million, $124.1 million, and $104.8 million, respectively. The carrying value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase, and certain lines of credit with correspondent banks at December 31, 2021 was $261.0 million and $268.4 million at December 31, 2020, which is well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of December 31, 2021 and December 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. agency securities, which exceeded ten percent of shareholders’ equity.

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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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