XML 23 R11.htm IDEA: XBRL DOCUMENT
v3.22.2

Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost and estimated fair value of the Company's available-for-sale and held-to-maturity securities are summarized as follows:
|  |  |  | Gross |  | Gross |  | Allowance |  | Estimated
|  | Amortized |  | Unrealized |  | Unrealized |  | for Credit |  | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Losses |  | Value
June 30, 2022 |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | $ | 49,742 |  |  | $ | — |  |  | $ | (2,661) |  |  | $ | — |  |  | $ | 47,081 |
U.S. agency securities |  | 750,903 |  |  | 4 |  |  | (52,850) |  |  | — |  |  | 698,057 |
Residential mortgage-backed securities |  | 968,589 |  |  | 41 |  |  | (82,941) |  |  | — |  |  | 885,689 |
Commercial mortgage-backed securities |  | 113,243 |  |  | 26 |  |  | (3,720) |  |  | — |  |  | 109,549 |
Municipal bonds |  | 13,508 |  |  | 63 |  |  | (638) |  |  | (1) |  |  | 12,932 |
Corporate bonds |  | 2,000 |  |  | — |  |  | (37) |  |  | (17) |  |  | 1,946 |
Total |  | $ | 1,897,985 |  |  | $ | 134 |  |  | $ | (142,847) |  |  | $ | (18) |  |  | $ | 1,755,254 |
|  |  |  | Gross |  | Gross |  | Estimated |  | Allowance
|  | Amortized |  | Unrecognized |  | Unrecognized |  | Fair |  | for Credit
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Value |  | Losses
June 30, 2022 |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 785,857 |  |  | $ | 9 |  |  | $ | (40,413) |  |  | $ | 745,453 |  |  | $ | — |
Commercial mortgage-backed securities |  | 94,841 |  |  | — |  |  | (6,569) |  |  | 88,272 |  |  | — |
Municipal bonds |  | 128,509 |  |  | — |  |  | (8,233) |  |  | 120,276 |  |  | (16) |
Corporate bonds |  | 135,251 |  |  | — |  |  | (4,546) |  |  | 130,705 |  |  | (810) |
Total |  | $ | 1,144,458 |  |  | $ | 9 |  |  | $ | (59,761) |  |  | $ | 1,084,706 |  |  | $ | (826) |
|  |  |  | Gross |  | Gross |  | Allowance |  | Estimated
|  | Amortized |  | Unrealized |  | Unrealized |  | for Credit |  | Fair
(dollars in thousands) |  | Cost |  | Gains |  | Losses |  | Losses |  | Value
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |
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 |
Total |  | $ | 2,642,667 |  |  | $ | 10,968 |  |  | $ | (29,607) |  |  | $ | (620) |  |  | $ | 2,623,408 |
In addition, at June 30, 2022 and December 31, 2021 the Company held $34.0 million and $34.2 million, respectively, in equity securities in a combination of FRB and FHLB stocks, which were required to be held for regulatory purposes and which were not marketable, and therefore are carried at cost. The Company reassessed classification of certain investments in the first quarter of 2022 and, effective March 31, 2022, it transferred a total of $1.1 billion of mortgage-backed securities, municipal bonds and corporate bonds from available-for-sale to held-to-maturity securities, including $237.0 million of securities acquired in the first quarter of 2022 for which its intention to hold to maturity was finalized. At the time of transfer, the Company reversed the allowance for credit losses associated with the available-for-sale securities through the provision for credit losses. The securities were transferred at their amortized cost basis, net of any remaining unrealized gain or loss reported in accumulated other comprehensive income. The related unrealized loss of $66.2 million was included in other comprehensive loss at the time of transfer and, as of June 30, 2022, $63.5 million remains in accumulated other comprehensive loss, to be amortized out through interest income as a yield adjustment over the remaining term of the securities. No gain or loss was recorded at the time of transfer. Subsequent to transfer, the allowance for credit losses on these securities was evaluated under the accounting policy for held-to-maturity securities. Accrued interest receivable on available-for-sale securities totaled $4.4 million and $6.0 million at June 30, 2022 and December 31, 2021, respectively, and accrued interest receivable on held-to-maturity securities totaled $3.7 million at June 30, 2022. The accrued interest on investment securities is excluded from the amortized cost of the securities and is reported in other assets in the Consolidated Balance Sheets. The following table summarizes available for sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded, by length of time:
|  |  |  | Less Than |  | 12 Months |  |  |  |
|  |  |  | 12 Months |  | or Greater |  | Total
|  |  |  | Estimated |  |  |  | Estimated |  |  |  | Estimated |  |
|  | Number of |  | Fair |  | Unrealized |  | Fair |  | Unrealized |  | Fair |  | Unrealized
(dollars in thousands) |  | Securities |  | Value |  | Losses |  | Value |  | Losses |  | Value |  | Losses
June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | 2 |  |  | $ | 47,081 |  |  | $ | 2,661 |  |  | $ | — |  |  | $ | — |  |  | $ | 47,081 |  |  | $ | 2,661 |
U. S. agency securities |  | 83 |  |  | 501,147 |  |  | 32,941 |  |  | 191,362 |  |  | 19,909 |  |  | 692,509 |  |  | 52,850 |
Residential mortgage-backed securities |  | 148 |  |  | 713,803 |  |  | 62,471 |  |  | 143,708 |  |  | 20,470 |  |  | 857,511 |  |  | 82,941 |
Commercial mortgage-backed securities |  | 13 |  |  | 104,688 |  |  | 3,720 |  |  | — |  |  | — |  |  | 104,688 |  |  | 3,720 |
Municipal bonds |  | 1 |  |  | 8,404 |  |  | 638 |  |  | — |  |  | — |  |  | 8,404 |  |  | 638 |
Corporate bonds |  | 1 |  |  | 1,963 |  |  | 37 |  |  | — |  |  | — |  |  | 1,963 |  |  | 37 |
|  | 248 |  |  | $ | 1,377,086 |  |  | $ | 102,468 |  |  | $ | 335,070 |  |  | $ | 40,379 |  |  | $ | 1,712,156 |  |  | $ | 142,847 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
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 |
Unrealized losses at June 30, 2022 were generally attributable to changes in market interest rates and interest spread relationships since the investment securities were originally purchased, and not due to the credit quality concerns on the investment securities. However, as of June 30, 2022, the Company determined that certain of the unrealized loss positions in available-for-sale and held-to-maturity corporate and municipal bonds were evidence of expected credit losses, and therefore, an allowance for credit losses of $18 thousand was recorded for AFS securities and $826 thousand for HTM securities. The weighted average duration of debt securities, which comprise 100% of total investment securitie s, is 5.13 years. 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. The amortized cost and estimated fair value of available-for-sale and held-to-maturity securities at June 30, 2022 and December 31, 2021 by contractual maturity are shown in the table below. Contractual maturities for mortgage-backed securities ("MBS") are excluded as they may differ significantly from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | June 30, 2022 |  | December 31, 2021
|  | Amortized |  | Estimated |  | Amortized |  | Estimated
(dollars in thousands) |  | Cost (1) |  | Fair Value |  | Cost |  | Fair Value
Investment securities available-for-sale |  |  |  |  |  |  |  |
U.S. treasury bonds (maturing after one year through five years) |  | $ | 49,742 |  |  | $ | 47,081 |  |  | $ | 49,693 |  |  | $ | 49,458 |
U. S. agency securities maturing: |  |  |  |  |  |  |  |
One year or less |  | 530,539 |  |  | 492,427 |  |  | 425,597 |  |  | 421,347 |
After one year through five years |  | 165,716 |  |  | 156,493 |  |  | 141,584 |  |  | 140,785 |
After five years through ten years |  | 54,648 |  |  | 49,137 |  |  | 62,092 |  |  | 60,255 |
Residential mortgage-backed securities |  | 968,589 |  |  | 885,689 |  |  | 1,692,773 |  |  | 1,677,673 |
Commercial mortgage-backed securities |  | 113,243 |  |  | 109,549 |  |  | — |  |  | — |
Municipal bonds maturing: |  |  |  |  |  |  |  |
One year or less |  | 3,050 |  |  | 3,053 |  |  | 4,806 |  |  | 4,861 |
After one year through five years |  | 1,416 |  |  | 1,476 |  |  | 25,457 |  |  | 26,816 |
After five years through ten years |  | 9,042 |  |  | 8,404 |  |  | 97,945 |  |  | 99,960 |
After ten years |  | — |  |  | — |  |  | 13,708 |  |  | 13,797 |
Corporate bonds maturing: |  |  |  |  |  |  |  |
One year or less |  | — |  |  | — |  |  | 18,924 |  |  | 18,991 |
After one year through five years |  | 2,000 |  |  | 1,963 |  |  | 54,630 |  |  | 54,833 |
After five years through ten years |  | — |  |  | — |  |  | 55,458 |  |  | 55,252 |
Allowance for credit losses |  | — |  |  | (18) |  |  | — |  |  | (620) |
|  | 1,897,985 |  |  | 1,755,254 |  |  | 2,642,667 |  |  | 2,623,408 |
Investment securities held-to-maturity |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | 785,857 |  |  | 745,453 |  |  | — |  |  | — |
Commercial mortgage-backed securities |  | 94,841 |  |  | 88,272 |  |  | — |  |  | — |
Municipal bonds maturing: |  |  |  |  |  |  |  |
One year or less |  | 666 |  |  | 663 |  |  | — |  |  | — |
After one year through five years |  | 38,194 |  |  | 36,531 |  |  | — |  |  | — |
After five years through ten years |  | 72,954 |  |  | 67,639 |  |  | — |  |  | — |
After ten years |  | 16,695 |  |  | 15,443 |  |  | — |  |  | — |
Corporate bonds maturing: |  |  |  |  |  |  |  |
One year or less |  | 25,042 |  |  | 24,936 |  |  | — |  |  | — |
After one year through five years |  | 74,903 |  |  | 72,526 |  |  | — |  |  | — |
After five years through ten years |  | 35,306 |  |  | 33,243 |  |  | — |  |  | — |
Allowance for credit losses |  | (826) |  |  | — |  |  | — |  |  | — |
|  | 1,143,632 |  |  | 1,084,706 |  |  | — |  |  | — |
|  | $ | 3,041,617 |  |  | $ | 2,839,960 |  |  | $ | 2,642,667 |  |  | $ | 2,623,408 |
(1)Amortized cost for investment securities held-to-maturity is presented net of the allowance for credit losses on the Consolidated Balance Sheet. For the three and six months ended June 30, 2022, net realized losses on sales of investments securities were $151 thousand and $176 thousand, respectively, on sales of investment securities. For the three and six months ended June 30, 2021, net realized gains on sales of investments securities were $318 thousand and $539 thousand, respectively. The Company received proceeds of $6.2 million and $52.0 million for the six months ended June 30, 2022 and 2021, respectively, on sales and calls of securities. The book 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 June 30, 2022 and December 31, 2021 was $244.7 million and $261.0 million, respectively, which were well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of June 30, 2022 and December 31, 2021, 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.

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 https://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 https://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 https://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 https://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
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration