Quarterly report pursuant to Section 13 or 15(d)

SECURITIES (Tables)

v3.22.2.2
SECURITIES (Tables)
9 Months Ended
Sep. 30, 2022
Amortized Cost of HTM Securities by Security Type and Credit Rating

The following table presents the amortized cost of HTM securities as of September 30, 2022 and December 31, 2021 by security type and credit rating (dollars in thousands):

    

U.S. Government and Agency

    

Obligations of states and political

    

Mortgage-backed

    

Total HTM

securities

subdivisions

securities

securities

September 30, 2022

Credit Rating:

 

 

AAA/AA/A

$

$

700,138

$

2,764

$

702,902

BBB/BB/B

1,192

1,192

Not Rated - Agency(1)

690

72,176

72,866

Not Rated - Non-Agency(2)

 

23,000

41,389

64,389

Total

$

690

$

724,330

$

116,329

$

841,349

December 31, 2021

Credit Rating:

 

 

AAA/AA/A

$

$

620,873

$

$

620,873

Not Rated - Agency(1)

2,604

4,523

7,127

Total

$

2,604

$

620,873

$

4,523

$

628,000

(1) Generally considered not to have credit risk given the government guarantees associated with these agencies

(2) Non-agency mortgage-backed and asset-backed securities have limited credit risk, supported by most receiving a 20% SSFA rating

Gross Realized Gain and Losses on the Sale of Securities

The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the three and nine months ended September 30, 2022 and 2021 (dollars in thousands):

    

Three Months Ended

    

Nine Months Ended

September 30, 2022

September 30, 2022

Realized gains (losses)(1):

 

  

 

  

Gross realized gains

$

$

Gross realized losses

 

 

(2)

Net realized gains

$

$

(2)

Proceeds from sales of securities

$

17,250

$

29,719

    

Three Months Ended

    

Nine Months Ended

September 30, 2021

September 30, 2021

Realized gains (losses)(1):

 

  

 

  

Gross realized gains

$

9

$

147

Gross realized losses

 

 

(60)

Net realized gains

$

9

$

87

Proceeds from sales of securities

$

$

45,436

(1) Includes gains (losses) on sales and calls of securities

Available-for-sale Securities  
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of September 30, 2022 are summarized as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

    

Cost

    

Gains

    

(Losses)

    

Fair Value

September 30, 2022

 

  

 

  

 

  

  

U.S. government and agency securities

$

70,399

$

$

(8,763)

$

61,636

Obligations of states and political subdivisions

 

961,722

 

7

 

(197,186)

 

764,543

Corporate and other bonds (1)

 

246,411

 

 

(15,323)

 

231,088

Commercial MBS

 

 

Agency

247,854

 

84

 

(36,739)

211,199

Non-agency

101,460

 

 

(4,085)

97,375

Total commercial MBS

349,314

 

84

 

(40,824)

308,574

Residential MBS

Agency

1,520,401

 

68

 

(238,966)

1,281,503

Non-agency

75,130

 

 

(6,805)

68,325

Total residential MBS

1,595,531

 

68

 

(245,771)

1,349,828

Other securities

 

1,654

 

 

 

1,654

Total AFS securities

$

3,225,031

$

159

$

(507,867)

$

2,717,323

(1) Other bonds include asset-backed securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of December 31, 2021 are summarized as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

    

Cost

    

Gains

    

(Losses)

    

Fair Value

December 31, 2021

U.S. government and agency securities

$

73,830

$

179

$

(160)

$

73,849

Obligations of states and political subdivisions

971,126

39,343

(2,073)

1,008,396

Corporate and other bonds (1)

 

150,201

 

3,353

 

(178)

 

153,376

Commercial MBS

 

 

Agency

361,806

6,761

(4,215)

364,352

Non-agency

107,087

139

(421)

106,805

Total commercial MBS

468,893

6,900

(4,636)

471,157

Residential MBS

Agency

1,691,651

15,180

(24,337)

1,682,494

Non-agency

91,443

243

(948)

90,738

Total residential MBS

1,783,094

15,423

(25,285)

1,773,232

Other securities

 

1,640

 

 

 

1,640

Total AFS securities

$

3,448,784

$

65,198

$

(32,332)

$

3,481,650

(1) Other bonds include asset-backed securities

Schedule of Gross Unrealized Losses and Fair Value of Investments

The following table shows the gross unrealized losses and fair value of the Company’s AFS securities with unrealized losses for which an ACL has not been recorded at September 30, 2022 and December 31, 2021 and that are not deemed to be impaired as of those dates. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position (dollars in thousands).

Less than 12 months

More than 12 months

Total

  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

Value

Losses

Value(2)

Losses

Value

Losses

September 30, 2022

 

 

 

 

 

 

U.S. government and agency securities

$

58,670

$

(8,726)

$

2,896

$

(37)

$

61,566

$

(8,763)

Obligations of states and political subdivisions

601,039

(120,853)

159,773

(76,333)

760,812

(197,186)

Corporate and other bonds(1)

 

219,904

 

(14,111)

 

8,788

 

(1,212)

 

228,692

 

(15,323)

Commercial MBS

 

Agency

113,687

(15,734)

92,435

(21,005)

206,122

(36,739)

Non-agency

76,779

(2,877)

20,596

(1,208)

97,375

(4,085)

Total commercial MBS

190,466

(18,611)

113,031

(22,213)

303,497

(40,824)

Residential MBS

Agency

606,805

(88,065)

668,275

(150,901)

1,275,080

(238,966)

Non-agency

56,490

(5,356)

11,724

(1,449)

68,214

(6,805)

Total residential MBS

663,295

(93,421)

679,999

(152,350)

1,343,294

(245,771)

Total AFS securities

$

1,733,374

$

(255,722)

$

964,487

$

(252,145)

$

2,697,861

$

(507,867)

December 31, 2021

 

  

 

  

 

  

 

  

 

  

 

  

U.S. government and agency securities

$

64,474

$

(115)

$

3,900

$

(45)

$

68,374

$

(160)

Obligations of states and political subdivisions

249,701

(2,020)

2,123

(53)

251,824

(2,073)

Corporate and other bonds(1)

 

21,134

 

(177)

 

703

 

(1)

 

21,837

 

(178)

Commercial MBS

 

 

 

 

 

 

Agency

175,588

(4,053)

3,172

(162)

178,760

(4,215)

Non-agency

33,759

(313)

11,029

(108)

44,788

(421)

Total commercial MBS

209,347

(4,366)

14,201

(270)

223,548

(4,636)

Residential MBS

Agency

1,140,701

(21,147)

106,104

(3,190)

1,246,805

(24,337)

Non-agency

48,392

(584)

12,716

(364)

61,108

(948)

Total residential MBS

1,189,093

(21,731)

118,820

(3,554)

1,307,913

(25,285)

Total AFS securities

$

1,733,749

$

(28,409)

$

139,747

$

(3,923)

$

1,873,496

$

(32,332)

(1) Other bonds include asset-backed securities

(2) Comprised of 302 and 33 individual securities as of September 30, 2022 and December 31, 2021, respectively

Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of AFS securities as of September 30, 2022 and December 31, 2021, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2022

December 31, 2021

    

Amortized

    

Estimated

    

Amortized

    

Estimated

Cost

Fair Value

Cost

Fair Value

Due in one year or less

$

31,089

$

30,799

$

18,247

$

18,317

Due after one year through five years

 

165,998

 

160,945

 

180,080

 

183,981

Due after five years through ten years

 

338,619

 

308,149

 

324,615

 

331,215

Due after ten years

 

2,689,325

 

2,217,430

 

2,925,842

 

2,948,137

Total AFS securities

$

3,225,031

$

2,717,323

$

3,448,784

$

3,481,650

Held-to-maturity Securities  
Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of HTM securities as of September 30, 2022 and December 31, 2021, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2022

December 31, 2021

    

Carrying

    

Estimated

    

Carrying

    

Estimated

Value

Fair Value

Value

Fair Value

Due in one year or less

$

25,025

$

25,016

$

3,034

$

3,027

Due after one year through five years

 

35,709

 

35,656

 

5,852

 

6,065

Due after five years through ten years

 

15,798

 

15,587

 

14,019

 

15,984

Due after ten years

 

764,817

 

689,221

 

605,095

 

668,698

Total HTM securities

$

841,349

$

765,480

$

628,000

$

693,774

Schedule of Carrying Values, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of September 30, 2022 are summarized as follows (dollars in thousands):

Carrying

Gross Unrealized

Estimated

    

Value

    

Gains

    

(Losses)

Fair Value

September 30, 2022

 

  

 

  

 

  

  

U.S. government and agency securities

$

690

$

$

(39)

$

651

Obligations of states and political subdivisions

724,330

176

(64,366)

660,140

Commercial Agency MBS

29,096

(4,360)

24,736

Residential MBS

Agency

43,080

(6,732)

36,348

Non-agency

44,153

(548)

43,605

Total residential MBS

87,233

(7,280)

79,953

Total HTM securities

$

841,349

$

176

$

(76,045)

$

765,480

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of December 31, 2021 are summarized as follows (dollars in thousands):

Carrying

Gross Unrealized

Estimated

    

Value

    

Gains

    

(Losses)

    

Fair Value

December 31, 2021

 

  

 

  

 

  

 

  

U.S. government and agency securities

$

2,604

$

$

(29)

$

2,575

Obligations of states and political subdivisions

620,873

65,982

(121)

686,734

Commercial Agency MBS

4,523

(58)

4,465

Total HTM securities

$

628,000

$

65,982

$

(208)

$

693,774