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Securities
 12 Months Ended
Dec. 31, 2022
Cash and Cash Equivalents [Abstract]  
Securities

2. SECURITIES:

Debt securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, allowance for credit losses and the fair value of available-for-sale securities are as follows (dollars in thousands):

 

 

 

December 31, 2022

 

 

 

Amortized
Cost Basis

 

 

Gross
Unrealized
Holding Gains

 

 

Gross
Unrealized
Holding Losses

 

 

Estimated
Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

508,275

 

 

$

11

 

 

$

(25,737

)

 

$

482,549

 

Obligations of state and political subdivisions

 

 

2,104,193

 

 

 

1,217

 

 

 

(206,799

)

 

 

1,898,611

 

Residential mortgage-backed securities

 

 

3,034,120

 

 

 

8

 

 

 

(417,562

)

 

 

2,616,566

 

Commercial mortgage-backed securities

 

 

392,914

 

 

 

1

 

 

 

(18,046

)

 

 

374,869

 

Corporate bonds and other

 

 

112,846

 

 

 

—

 

 

 

(11,082

)

 

 

101,764

 

Total securities available-for-sale

 

$

6,152,348

 

 

$

1,237

 

 

$

(679,226

)

 

$

5,474,359

 

 

 

 

December 31, 2021

 

 

 

Amortized
Cost Basis

 

 

Gross
Unrealized
Holding Gains

 

 

Gross
Unrealized
Holding Losses

 

 

Estimated
Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

126,716

 

 

$

125

 

 

$

—

 

 

$

126,841

 

Obligations of state and political subdivisions

 

 

2,638,369

 

 

 

116,319

 

 

 

(1,217

)

 

 

2,753,471

 

Residential mortgage-backed securities

 

 

3,256,746

 

 

 

23,990

 

 

 

(21,287

)

 

 

3,259,449

 

Commercial mortgage-backed securities

 

 

356,207

 

 

 

8,914

 

 

 

(1

)

 

 

365,120

 

Corporate bonds and other

 

 

69,472

 

 

 

32

 

 

 

(1,206

)

 

 

68,298

 

Total securities available-for-sale

 

$

6,447,510

 

 

$

149,380

 

 

$

(23,711

)

 

$

6,573,179

 

 

The Company did not hold any securities classified as held-to-maturity for the years ended December 31, 2022 and 2021.

The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at December 31, 2022, were computed by using scheduled amortization of balances and historical prepayment rates.

The amortized cost and estimated fair value of available-for-sale securities at December 31, 2022, by contractual maturity, are shown below (in thousands):

 

 

 

Amortized
Cost Basis

 

 

Estimated
Fair Value

 

Due within one year

 

$

210,053

 

 

$

207,169

 

Due after one year through five years

 

 

1,741,024

 

 

 

1,632,058

 

Due after five years through ten years

 

 

2,715,108

 

 

 

2,376,526

 

Due after ten years

 

 

1,486,163

 

 

 

1,258,606

 

Total

 

$

6,152,348

 

 

$

5,474,359

 

 

The following tables disclose, as of December 31, 2022 and 2021, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands):

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2022

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

U.S. Treasury Securities

 

$

307,012

 

 

$

11,650

 

 

$

173,105

 

 

$

14,087

 

 

$

480,117

 

 

$

25,737

 

Obligations of state and political
   subdivisions

 

 

770,469

 

 

 

55,943

 

 

 

946,571

 

 

 

150,856

 

 

 

1,717,040

 

 

 

206,799

 

Residential mortgage-backed securities

 

 

470,970

 

 

 

37,065

 

 

 

2,143,869

 

 

 

380,497

 

 

 

2,614,839

 

 

 

417,562

 

Commercial mortgage-backed securities

 

 

319,303

 

 

 

11,677

 

 

 

54,862

 

 

 

6,369

 

 

 

374,165

 

 

 

18,046

 

Corporate bonds and other

 

 

41,920

 

 

 

1,698

 

 

 

59,844

 

 

 

9,384

 

 

 

101,764

 

 

 

11,082

 

Total

 

$

1,909,674

 

 

$

118,033

 

 

$

3,378,251

 

 

$

561,193

 

 

$

5,287,925

 

 

$

679,226

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2021

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

Obligations of state and political
   subdivisions

 

$

163,698

 

 

$

1,096

 

 

$

18,943

 

 

$

122

 

 

$

182,641

 

 

$

1,218

 

Residential mortgage-backed securities

 

 

2,263,010

 

 

 

19,742

 

 

 

54,392

 

 

 

1,544

 

 

 

2,317,402

 

 

 

21,286

 

Commercial mortgage-backed securities

 

 

820

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

820

 

 

 

1

 

Corporate bonds and other

 

 

47,436

 

 

 

635

 

 

 

16,432

 

 

 

571

 

 

 

63,868

 

 

 

1,206

 

Total

 

$

2,474,964

 

 

$

21,474

 

 

$

89,767

 

 

$

2,237

 

 

$

2,564,731

 

 

$

23,711

 

 

The number of investments in an unrealized loss position totaled 1,004 at December 31, 2022. Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed investment securities at December 31, 2022 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at December 31, 2022. Unrealized losses on investment securities are expected to recover over time as these securities approach maturity. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies. At December 31, 2022 and 2021, 71.86% and 72.72%, respectively, of our available-for-sale securities that are obligations of states and political subdivisions were issued within the State of Texas, of which 54.77% and 53.94%, respectively, were guaranteed by the Texas Permanent School Fund.

Securities, carried at approximately $4,070,454,000 and $3,644,626,000 on December 31, 2022 and 2021, respectively, were pledged as collateral for public or trust fund deposits, repurchase agreements and for other purposes required or permitted by law.

During 2022, 2021 and 2020, sales of investment securities that were classified as available-for-sale totaled $479,273,000, $10,631,000 and $263,042,000. Gross realized gains from 2022, 2021 and 2020 securities sales and calls were $6,618,000, $815,000 and $3,637,000, respectively. Gross realized losses from 2022 and 2020 securities sales and calls were $4,474,000 and $4,000, respectively. There were no gross realized losses from security sales and calls during 2021.

The specific identification method was used to determine cost in order to compute the realized gains and losses