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Securities
 3 Months Ended
Mar. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Securities

Note 3—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale and securities held-to-maturity as of the dates shown and the corresponding amounts of gross unrealized gains and losses:

 

March 31, 2022

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

24,875

 

 

$

4

 

 

$

(654

)

 

$

24,225

 

U.S. Government agencies

 

 

149,164

 

 

 

328

 

 

 

(9,252

)

 

 

140,240

 

Obligations of states, municipalities, and
   political subdivisions

 

 

83,786

 

 

 

512

 

 

 

(2,170

)

 

 

82,128

 

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

758,179

 

 

 

21

 

 

 

(57,343

)

 

 

700,857

 

Non-agency

 

 

140,350

 

 

 

—

 

 

 

(9,926

)

 

 

130,424

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

206,203

 

 

 

25

 

 

 

(16,535

)

 

 

189,693

 

Corporate securities

 

 

65,798

 

 

 

488

 

 

 

(1,144

)

 

 

65,142

 

Asset-backed securities

 

 

36,796

 

 

 

10

 

 

 

(147

)

 

 

36,659

 

Total

 

$

1,465,151

 

 

$

1,388

 

 

$

(97,171

)

 

$

1,369,368

 

 

March 31, 2022

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities, and
   political subdivisions

 

$

3,882

 

 

$

24

 

 

$

—

 

 

$

3,906

 

Total

 

$

3,882

 

 

$

24

 

 

$

—

 

 

$

3,906

 

 

December 31, 2021

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

18,447

 

 

$

37

 

 

$

(8

)

 

$

18,476

 

U.S. Government agencies

 

 

141,096

 

 

 

661

 

 

 

(2,367

)

 

 

139,390

 

Obligations of states, municipalities, and
   political subdivisions

 

 

86,454

 

 

 

3,238

 

 

 

(56

)

 

 

89,636

 

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

756,549

 

 

 

2,122

 

 

 

(15,015

)

 

 

743,656

 

Non-agency

 

 

146,499

 

 

 

4

 

 

 

(1,267

)

 

 

145,236

 

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

214,417

 

 

 

2,795

 

 

 

(3,661

)

 

 

213,551

 

Corporate securities

 

 

65,814

 

 

 

1,586

 

 

 

(54

)

 

 

67,346

 

Asset-backed securities

 

 

37,206

 

 

 

49

 

 

 

(4

)

 

 

37,251

 

Total

 

$

1,466,482

 

 

$

10,492

 

 

$

(22,432

)

 

$

1,454,542

 

 

December 31, 2021

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair
Value

 

Held-to-maturity

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states, municipalities, and political
   subdivisions

 

$

3,885

 

 

$

107

 

 

$

—

 

 

$

3,992

 

Total

 

$

3,885

 

 

$

107

 

 

$

—

 

 

$

3,992

 

 

The Company did not classify securities as trading during the three months ended March 31, 2022 or during 2021.

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2022 and December 31, 2021, are summarized as follows:

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

March 31, 2022

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

 

4

 

 

$

22,223

 

 

$

(654

)

 

$

—

 

 

$

—

 

 

$

22,223

 

 

$

(654

)

U.S. Government agencies

 

 

15

 

 

 

43,883

 

 

 

(1,915

)

 

 

74,242

 

 

 

(7,337

)

 

 

118,125

 

 

 

(9,252

)

Obligations of states,
   municipalities and political
   subdivisions

 

 

25

 

 

 

42,934

 

 

 

(2,170

)

 

 

—

 

 

 

—

 

 

 

42,934

 

 

 

(2,170

)

Residential mortgage-backed
   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

93

 

 

 

229,246

 

 

 

(11,442

)

 

 

469,295

 

 

 

(45,901

)

 

 

698,541

 

 

 

(57,343

)

Non-agency

 

 

19

 

 

 

110,832

 

 

 

(7,854

)

 

 

19,592

 

 

 

(2,072

)

 

 

130,424

 

 

 

(9,926

)

Commercial mortgage-backed
   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

45

 

 

 

111,241

 

 

 

(6,766

)

 

 

69,134

 

 

 

(9,769

)

 

 

180,375

 

 

 

(16,535

)

Corporate securities

 

 

16

 

 

 

28,709

 

 

 

(1,144

)

 

 

—

 

 

 

—

 

 

 

28,709

 

 

 

(1,144

)

Asset-backed securities

 

 

6

 

 

 

31,961

 

 

 

(147

)

 

 

—

 

 

 

—

 

 

 

31,961

 

 

 

(147

)

Total

 

 

223

 

 

$

621,029

 

 

$

(32,092

)

 

$

632,263

 

 

$

(65,079

)

 

$

1,253,292

 

 

$

(97,171

)

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2021

 

# of
Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

Available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

 

1

 

 

$

9,946

 

 

$

(8

)

 

$

—

 

 

$

—

 

 

$

9,946

 

 

$

(8

)

U.S. Government agencies

 

 

10

 

 

 

64,585

 

 

 

(1,590

)

 

 

19,223

 

 

 

(777

)

 

 

83,808

 

 

 

(2,367

)

Obligations of states, municipalities and
   political subdivisions

 

 

3

 

 

 

9,507

 

 

 

(56

)

 

 

—

 

 

 

—

 

 

 

9,507

 

 

 

(56

)

Residential mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

51

 

 

 

612,280

 

 

 

(13,894

)

 

 

25,412

 

 

 

(1,121

)

 

 

637,692

 

 

 

(15,015

)

Non-agency

 

 

14

 

 

 

96,372

 

 

 

(1,257

)

 

 

761

 

 

 

(10

)

 

 

97,133

 

 

 

(1,267

)

Commercial mortgage-backed securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

19

 

 

 

64,473

 

 

 

(1,994

)

 

 

37,063

 

 

 

(1,667

)

 

 

101,536

 

 

 

(3,661

)

Corporate securities

 

 

3

 

 

 

7,502

 

 

 

(54

)

 

 

—

 

 

 

—

 

 

 

7,502

 

 

 

(54

)

Asset-backed securities

 

 

3

 

 

 

15,978

 

 

 

(4

)

 

 

—

 

 

 

—

 

 

 

15,978

 

 

 

(4

)

Total

 

 

104

 

 

$

880,643

 

 

$

(18,857

)

 

$

82,459

 

 

$

(3,575

)

 

$

963,102

 

 

$

(22,432

)

 

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities that had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 223 securities available-for-sale with unrealized losses at March 31, 2022. There were no securities held-to-maturity with unrealized losses at March 31, 2022. The Company anticipates full recovery of amortized cost with respect to these securities by maturity. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The proceeds from all sales of securities available-for-sale, and the associated gains and losses on sales and calls of securities, for the three months ended March 31, 2022 and 2021 are listed below:

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

2022

 

 

2021

 

Proceeds

 

$

—

 

 

$

89,301

 

Gross gains

 

 

—

 

 

 

1,626

 

Gross losses

 

 

—

 

 

 

164

 

 

There were no sales of securities during the three months ended March 31, 2022. There were $1.5 million in net gains reclassified from accumulated other comprehensive income into earnings for the three months ended March 31, 2021.

Securities posted and pledged as collateral were $463.6 million and $332.3 million at March 31, 2022 and December 31, 2021. At March 31, 2022 and December 31, 2021, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $402.0 million and $277.1 million, respectively, and for customer repurchase agreements of $39.0 million and $38.8 million, respectively. At March 31, 2022 and December 31, 2021, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At March 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

At March 31, 2022, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers 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.

 

 

 

Amortized
Cost

 

 

Fair
Value

 

Available-for-sale

 

 

 

 

 

 

Due in one year or less

 

$

12,011

 

 

$

12,051

 

Due from one to five years

 

 

71,166

 

 

 

69,792

 

Due from five to ten years

 

 

202,902

 

 

 

196,070

 

Due after ten years

 

 

74,340

 

 

 

70,481

 

Mortgage-backed securities

 

 

1,104,732

 

 

 

1,020,974

 

Total

 

$

1,465,151

 

 

$

1,369,368

 

Held-to-maturity

 

 

 

 

 

 

Due in one year or less

 

$

1,174

 

 

$

1,182

 

Due from one to five years

 

 

2,708

 

 

 

2,724

 

Total

 

$

3,882

 

 

$

3,906