Annual report pursuant to Section 13 and 15(d)

SECURITIES (Tables)

v3.22.4
SECURITIES (Tables)
12 Months Ended
Dec. 31, 2022
Amortized Cost of HTM Securities by Security Type and Credit Rating

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

    

U.S. Government and Agency

    

Obligations of states and political

    

Corporate and other

    

Mortgage-backed

    

Total HTM

securities

subdivisions

bonds

securities

securities

December 31, 2022

Credit Rating:

 

 

 

AAA/AA/A

$

$

704,803

$

$

2,702

$

707,505

BBB/BB/B

1,187

1,187

Not Rated - Agency(1)

687

71,725

72,412

Not Rated - Non-Agency(2)

 

 

5,159

61,469

66,628

Total

$

687

$

705,990

$

5,159

$

135,896

$

847,732

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% simplified supervisory formula approach 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 years ended December 31, 2022, 2021, and 2020 (dollars in thousands):

    

2022

    

2021

    

2020

Realized (losses) gains(1):

Gross realized gains

 

$

 

$

147

 

$

12,522

Gross realized losses

 

(3)

 

(60)

 

(228)

Net realized (losses) gains

 

$

(3)

 

$

87

 

$

12,294

Proceeds from sales of securities

 

$

40,686

 

$

45,436

 

$

257,945

(1) Includes (losses) gains 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 December 31, 2022 are summarized as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

    

Cost

    

Gains

    

(Losses)

    

Fair Value

December 31, 2022

 

  

 

  

 

  

  

U.S. government and agency securities

$

70,196

$

$

(8,253)

$

61,943

Obligations of states and political subdivisions

 

959,999

 

137

 

(152,701)

 

807,435

Corporate and other bonds (1)

 

243,979

 

 

(17,599)

 

226,380

Commercial MBS

 

 

Agency

250,186

 

75

 

(39,268)

210,993

Non-agency

99,412

 

 

(4,244)

95,168

Total commercial MBS

349,598

 

75

 

(43,512)

306,161

Residential MBS

Agency

1,510,110

 

81

 

(233,961)

1,276,230

Non-agency

68,815

 

 

(6,812)

62,003

Total residential MBS

1,578,925

 

81

 

(240,773)

1,338,233

Other securities

 

1,664

 

 

 

1,664

Total AFS securities

$

3,204,361

$

293

$

(462,838)

$

2,741,816

(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 had not been recorded at December 31, 2022 and 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

December 31, 2022

 

 

 

 

 

 

U.S. government and agency securities

$

2,594

$

(166)

$

59,269

$

(8,087)

$

61,863

$

(8,253)

Obligations of states and political subdivisions

588,668

(86,895)

187,375

(65,806)

776,043

(152,701)

Corporate and other bonds(1)

 

206,861

 

(15,019)

 

17,121

 

(2,580)

 

223,982

 

(17,599)

Commercial MBS

 

Agency

73,362

(7,024)

127,193

(32,244)

200,555

(39,268)

Non-agency

66,618

(2,231)

28,550

(2,013)

95,168

(4,244)

Total commercial MBS

139,980

(9,255)

155,743

(34,257)

295,723

(43,512)

Residential MBS

Agency

328,590

(27,769)

929,581

(206,192)

1,258,171

(233,961)

Non-agency

18,939

(1,288)

43,064

(5,524)

62,003

(6,812)

Total residential MBS

347,529

(29,057)

972,645

(211,716)

1,320,174

(240,773)

Total AFS securities

$

1,285,632

$

(140,392)

$

1,392,153

$

(322,446)

$

2,677,785

$

(462,838)

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 363 and 33 individual securities as of December 31, 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 December 31, 2022 and 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.

December 31, 2022

December 31, 2021

    

Amortized

    

Estimated

    

Amortized

    

Estimated

Cost

Fair Value

Cost

Fair Value

Due in one year or less

$

42,447

$

41,735

$

18,247

$

18,317

Due after one year through five years

 

158,063

 

152,523

 

180,080

 

183,981

Due after five years through ten years

 

343,303

 

312,935

 

324,615

 

331,215

Due after ten years

 

2,660,548

 

2,234,623

 

2,925,842

 

2,948,137

Total AFS securities

$

3,204,361

$

2,741,816

$

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 December 31, 2022 and 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.

December 31, 2022

December 31, 2021

    

Carrying

    

Estimated

    

Carrying

    

Estimated

Value

Fair Value

Value

Fair Value

Due in one year or less

$

2,010

$

2,006

$

3,034

$

3,027

Due after one year through five years

 

35,044

 

35,014

 

5,852

 

6,065

Due after five years through ten years

 

19,941

 

20,239

 

14,019

 

15,984

Due after ten years

 

790,737

 

744,628

 

605,095

 

668,698

Total HTM securities

$

847,732

$

801,887

$

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 December 31, 2022 are summarized as follows (dollars in thousands):

Carrying

Gross Unrealized

Estimated

    

Value

    

Gains

    

(Losses)

Fair Value

December 31, 2022

 

  

 

  

 

  

  

U.S. government and agency securities

$

687

$

$

(56)

$

631

Obligations of states and political subdivisions

705,990

2,218

(35,957)

672,251

Corporate and other bonds(1)

5,159

(10)

5,149

Commercial MBS

 

Agency

29,025

(4,873)

24,152

Non-agency

13,736

(126)

13,610

Total commercial MBS

42,761

(4,999)

37,762

Residential MBS

Agency

42,699

(6,427)

36,272

Non-agency

50,436

(614)

49,822

Total residential MBS

93,135

(7,041)

86,094

Total HTM securities

$

847,732

$

2,218

$

(48,063)

$

801,887

(1) Other bonds include asset-backed securities.

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