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Investment Securities
12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The amortized cost and estimated fair values of investment securities classified as available for sale and held to maturity are summarized in the following tables:
December 31, 2022
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in thousands)
Debt Securities Available for Sale
Obligations of U.S. government agencies$1,568,408 $$(195,642)$1,372,769 
Obligations of states and political subdivisions332,625 401 (39,821)293,205 
Corporate bonds6,164 — (413)5,751 
Asset backed securities454,943 17 (15,193)439,767 
Non-agency collateralized mortgage obligations380,847 — (39,901)340,946 
Total debt securities available for sale$2,742,987 $421 $(290,970)$2,452,438 
Debt Securities Held to Maturity
Obligations of U.S. government agencies$154,830 $$(11,013)$143,819 
Obligations of states and political subdivisions6,153 13 (47)6,119 
Total debt securities held to maturity$160,983 $15 $(11,060)$149,938 

There was no allowance for credit losses recorded for the held to maturity debt portfolio as of or for the years ended December 31, 2022 and 2021.
December 31, 2021
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in thousands)
Debt Securities Available for Sale
Obligations of U.S. government agencies$1,260,226 $8,193 $(11,030)$1,257,389 
Obligations of states and political subdivisions187,197 5,832 (785)192,244 
Corporate bonds6,722 34 — 6,756 
Asset backed securities408,329 2,354 (1,131)409,552 
Non-agency collateralized mortgage obligations345,856 — (3,859)341,997 
Total debt securities available for sale$2,208,330 $16,413 $(16,805)$2,207,938 
Debt Securities Held to Maturity
Obligations of U.S. government agencies$192,068 $8,131 $— $200,199 
Obligations of states and political subdivisions7,691 250 — 7,941 
Total debt securities held to maturity$199,759 $8,381 $— $208,140 
There were no sales of debt securities during the years ended December 31, 2022 and 2021, respectively. During 2020, proceeds from sales of debt securities totaled $229,000, resulting in gross gains of $7,000. Investment securities with an aggregate carrying value of $595,779,000 and $423,892,000 at December 31, 2022 and 2021, respectively, were pledged as collateral for specific borrowings, lines of credit and local agency deposits.
The amortized cost and estimated fair value of debt securities at December 31, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At December 31, 2022, obligations of U.S. government and agencies with an amortized cost basis totaling $1,533,255,000 consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by U.S. government corporations and agencies is categorized based on final maturity date. At December 31, 2022, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 6.4 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half.
Debt SecuritiesAvailable for SaleHeld to Maturity
(In thousands)Amortized
Cost
Estimated
Fair Value
Amortized
Cost
Estimated
Fair Value
Due in one year$57,685 $56,111 $— $— 
Due after one year through five years125,533 120,116 3,730 3,616 
Due after five years through ten years418,008 395,462 14,721 13,998 
Due after ten years2,141,761 1,880,749 142,532 132,324 
Totals$2,742,987 $2,452,438 $160,983 $149,938 
Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
Less than 12 months12 months or moreTotal
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
December 31, 2022(in thousands)
Debt Securities Available for Sale
Obligations of U.S. government agencies$766,612 $(134,234)$605,615 $(61,408)$1,372,227 $(195,642)
Obligations of states and political subdivisions43,282 (12,917)219,532 (26,904)262,814 (39,821)
Corporate bonds— — 5,751 (413)5,751 (413)
Asset backed securities205,329 (10,238)231,703 (4,955)437,032 (15,193)
Non-agency collateralized mortgage obligations203,620 (36,480)123,075 (3,421)326,695 (39,901)
Total debt securities available for sale$1,218,843 $(193,869)$1,185,676 $(97,101)$2,404,519 $(290,970)
Debt Securities Held to Maturity
Obligations of U.S. government agencies$— $— $143,577 $(11,013)$143,577 $(11,013)
Obligations of states and political subdivisions— — 4,530 (47)4,530 (47)
Total debt securities held to maturity$— $— $148,107 $(11,060)$148,107 $(11,060)
Less than 12 months12 months or moreTotal
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
Fair
Value
Unrealized
Loss
December 31, 2021(in thousands)
Debt Securities Available for Sale
Obligations of U.S. government agencies$947,108 $(9,737)$44,086 $(1,293)$991,194 $(11,030)
Obligations of states and political subdivisions56,153 (785)— — 56,153 (785)
Asset backed securities62,792 (259)109,748 (872)172,540 (1,131)
Non-agency collateralized mortgage obligations327,045 (3,859)— — 327,045 (3,859)
Total securities available for sale$1,393,098 $(14,640)$153,834 $(2,165)$1,546,932 $(16,805)
Obligations of U.S. government agencies: Unrealized losses on investments in obligations of U.S. government corporations and agencies are caused by interest rate increases. The contractual cash flows of these securities are guaranteed by U.S. Government Sponsored Entities (principally Fannie Mae and Freddie Mac). It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At December 31, 2022, 172 debt securities representing obligations of U.S. government corporations and agencies had unrealized losses with aggregate depreciation of 12.48% from the Company’s amortized cost basis.
Obligations of states and political subdivisions: The unrealized losses on investments in obligations of states and political subdivisions were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At December 31, 2022, 202 debt security representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 13.16% from the Company’s amortized cost basis.
Corporate bonds: The unrealized losses on investments in corporate bonds were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment.
Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses as of and for the year ended December 31, 2022. At December 31, 2022, 6 asset backed securities had unrealized losses with aggregate depreciation of 6.70% from the Company’s amortized cost basis.
Asset backed securities: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors in these types of securities. At the time of purchase, each of these securities were rated AA or AAA and through December 31, 2022 have not experienced any deterioration in credit rating. The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, these investments are not considered other-than-temporarily impaired. At December 31, 2022, 48 asset backed securities had unrealized losses with aggregate depreciation of 3.36% from the Company’s amortized cost basis.
Non-agency collateralized mortgage obligations: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no allowance for credit losses as of and for the year ended December 31, 2022. At December 31, 2022, 22 asset backed securities had unrealized losses with aggregate depreciation of 10.88% from the Company’s amortized cost basis.
Marketable equity securities: As there were no sales of marketable equity securities, all unrealized gains or losses recognized during the reporting period were for equity securities still held as of the end of the reporting period.
The Company monitors credit quality of debt securities held-to-maturity through the use of credit rating. The Company monitors the credit rating on a monthly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:
December 31, 2022December 31, 2021
AAA/AA/ABBB/BB/BAAA/AA/ABBB/BB/B
(In thousands)(In thousands)
Debt Securities Held to Maturity
Obligations of U.S. government agencies$154,830 $— $192,068 $— 
Obligations of states and political subdivisions6,153 — 7,691 — 
Total debt securities held to maturity$160,983 $— $199,759 $—