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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2021
Investments Debt And Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of September 30, 2021, and December 31, 2020, were as follows:

 

(dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

143,409

 

 

$

1,561

 

 

$

(106

)

 

$

144,864

 

Debt Securities Issued by States and Political Subdivisions

 

 

20,231

 

 

 

839

 

 

 

(2

)

 

 

21,068

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

1,509

 

 

 

47

 

 

 

(1

)

 

 

1,555

 

Debt Securities Issued by Corporations

 

 

385,787

 

 

 

3,630

 

 

 

(1,543

)

 

 

387,874

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,410,231

 

 

 

15,435

 

 

 

(8,483

)

 

 

1,417,183

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,223,697

 

 

 

8,395

 

 

 

(32,040

)

 

 

2,200,052

 

Commercial - Government Agencies

 

 

177,721

 

 

 

3,877

 

 

 

(674

)

 

 

180,924

 

Total Mortgage-Backed Securities

 

 

3,811,649

 

 

 

27,707

 

 

 

(41,197

)

 

 

3,798,159

 

Total

 

$

4,362,585

 

 

$

33,784

 

 

$

(42,849

)

 

$

4,353,520

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

131,465

 

 

$

277

 

 

$

(184

)

 

$

131,558

 

Debt Securities Issued by States and Political Subdivisions

 

 

33,254

 

 

 

125

 

 

 

—

 

 

 

33,379

 

Debt Securities Issued by Corporations

 

 

21,133

 

 

 

140

 

 

 

(271

)

 

 

21,002

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,877,804

 

 

 

18,683

 

 

 

(14,525

)

 

 

1,881,962

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,371,155

 

 

 

22,683

 

 

 

(24,397

)

 

 

2,369,441

 

Commercial - Government Agencies

 

 

465,069

 

 

 

900

 

 

 

(7,548

)

 

 

458,421

 

Total Mortgage-Backed Securities

 

 

4,714,028

 

 

 

42,266

 

 

 

(46,470

)

 

 

4,709,824

 

Total

 

$

4,899,880

 

 

$

42,808

 

 

$

(46,925

)

 

$

4,895,763

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

174,409

 

 

$

427

 

 

$

(591

)

 

$

174,245

 

Debt Securities Issued by States and Political Subdivisions

 

 

23,540

 

 

 

1,301

 

 

 

(1

)

 

 

24,840

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

985

 

 

 

77

 

 

 

—

 

 

 

1,062

 

Debt Securities Issued by Corporations

 

 

220,717

 

 

 

4,844

 

 

 

(956

)

 

 

224,605

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,561,603

 

 

 

33,657

 

 

 

(445

)

 

 

1,594,815

 

Residential - U.S. Government-Sponsored Enterprises

 

 

1,497,353

 

 

 

21,254

 

 

 

(324

)

 

 

1,518,283

 

Commercial - Government Agencies

 

 

243,029

 

 

 

10,868

 

 

 

(58

)

 

 

253,839

 

Total Mortgage-Backed Securities

 

 

3,301,985

 

 

 

65,779

 

 

 

(827

)

 

 

3,366,937

 

Total

 

$

3,721,636

 

 

$

72,428

 

 

$

(2,375

)

 

$

3,791,689

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

7,500

 

 

$

8

 

 

$

(8

)

 

$

7,500

 

Debt Securities Issued by States and Political Subdivisions

 

 

33,763

 

 

 

741

 

 

 

—

 

 

 

34,504

 

Debt Securities Issued by Corporations

 

 

12,031

 

 

 

251

 

 

 

—

 

 

 

12,282

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

917,459

 

 

 

30,580

 

 

 

(29

)

 

 

948,010

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,099,053

 

 

 

51,735

 

 

 

(291

)

 

 

2,150,497

 

Commercial - Government Agencies

 

 

192,921

 

 

 

3,179

 

 

 

(200

)

 

 

195,900

 

Total Mortgage-Backed Securities

 

 

3,209,433

 

 

 

85,494

 

 

 

(520

)

 

 

3,294,407

 

Total

 

$

3,262,727

 

 

$

86,494

 

 

$

(528

)

 

$

3,348,693

 

 
Analysis of the Contractual Maturities of Investment Securities

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of September 30, 2021.  Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

 

(dollars in thousands)

 

Amortized

Cost

 

 

Fair Value

 

Available-for-Sale:

 

 

 

 

 

 

 

 

Due in One Year or Less

 

$

26,227

 

 

$

26,290

 

Due After One Year Through Five Years

 

 

111,281

 

 

 

113,889

 

Due After Five Years Through Ten Years

 

 

270,764

 

 

 

271,069

 

 

 

 

408,272

 

 

 

411,248

 

Debt Securities Issued by Government Agencies

 

 

142,664

 

 

 

144,113

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,410,231

 

 

 

1,417,183

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,223,697

 

 

 

2,200,052

 

Commercial - Government Agencies

 

 

177,721

 

 

 

180,924

 

Total Mortgage-Backed Securities

 

 

3,811,649

 

 

 

3,798,159

 

Total

 

$

4,362,585

 

 

$

4,353,520

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

Due in One Year or Less

 

 

33,254

 

 

 

33,379

 

Due After One Year Through Five Years

 

 

17,290

 

 

 

17,285

 

Due After Five Year Through Ten Years

 

 

123,966

 

 

 

124,204

 

Due After Ten Years

 

 

11,342

 

 

 

11,071

 

 

 

 

185,852

 

 

 

185,939

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,877,804

 

 

 

1,881,962

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,371,155

 

 

 

2,369,441

 

Commercial - Government Agencies

 

 

465,069

 

 

 

458,421

 

Total Mortgage-Backed Securities

 

 

4,714,028

 

 

 

4,709,824

 

Total

 

$

4,899,880

 

 

$

4,895,763

 

 
Schedule of Gains (Losses) on Sales of Investment Securities

The table below presents the gains and losses from the sales of investment securities for the three and nine months ended September 30, 2021, and September 30, 2020:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Gross Gains on Sales of Investment Securities

 

$

110

 

 

$

—

 

 

$

3,785

 

 

$

14,257

 

Gross Losses on Sales of Investment Securities

 

 

(1,369

)

 

 

(1,121

)

 

 

(3,824

)

 

 

(3,132

)

Net Gains (Losses) on Sales of Investment Securities

 

$

(1,259

)

 

$

(1,121

)

 

$

(39

)

 

$

11,125

 

 
Schedule of AFS Debt Securities in an Unrealized Loss Position

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

(dollars in thousands)

 

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

 

Gross

Unrealized

Losses

 

September 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury

   and Government Agencies

 

$

1,772

 

 

$

(4

)

 

$

10,458

 

 

$

(102

)

 

$

12,230

 

 

$

(106

)

Debt Securities Issued by States

   and Political Subdivisions

 

 

413

 

 

 

(2

)

 

 

—

 

 

 

—

 

 

 

413

 

 

 

(2

)

Debt Securities Issued by U.S. Government-

   Sponsored Enterprises

 

 

99

 

 

 

(1

)

 

 

—

 

 

 

—

 

 

 

99

 

 

 

(1

)

Debt Securities Issued by Corporations

 

 

123,230

 

 

 

(734

)

 

 

64,190

 

 

 

(809

)

 

 

187,420

 

 

 

(1,543

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

804,605

 

 

 

(8,313

)

 

 

7,954

 

 

 

(170

)

 

 

812,559

 

 

 

(8,483

)

Residential - U.S. Government-Sponsored

   Enterprises

 

 

1,756,938

 

 

 

(30,015

)

 

 

43,773

 

 

 

(2,025

)

 

 

1,800,711

 

 

 

(32,040

)

Commercial-Government Agencies

 

 

—

 

 

 

—

 

 

 

23,688

 

 

 

(674

)

 

 

23,688

 

 

 

(674

)

Total Mortgage-Backed Securities

 

 

2,561,543

 

 

 

(38,328

)

 

 

75,415

 

 

 

(2,869

)

 

 

2,636,958

 

 

 

(41,197

)

Total

 

$

2,687,057

 

 

$

(39,069

)

 

$

150,063

 

 

$

(3,780

)

 

$

2,837,120

 

 

$

(42,849

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale: 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury

   and Government Agencies

 

$

21,338

 

 

$

(42

)

 

$

87,070

 

 

$

(549

)

 

$

108,408

 

 

$

(591

)

Debt Securities Issued by States

   and Political Subdivisions

 

 

—

 

 

 

—

 

 

 

26

 

 

 

(1

)

 

 

26

 

 

 

(1

)

Debt Securities Issued by Corporations

 

 

65,000

 

 

 

(853

)

 

 

50,000

 

 

 

(103

)

 

 

115,000

 

 

 

(956

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

113,538

 

 

 

(222

)

 

 

28,063

 

 

 

(223

)

 

 

141,601

 

 

 

(445

)

Residential - U.S. Government-Sponsored Enterprises

 

 

94,002

 

 

 

(324

)

 

 

—

 

 

 

—

 

 

 

94,002

 

 

 

(324

)

Commercial - Government Agencies

 

 

25,075

 

 

 

(58

)

 

 

—

 

 

 

—

 

 

 

25,075

 

 

 

(58

)

Total Mortgage-Backed Securities

 

 

232,615

 

 

 

(604

)

 

 

28,063

 

 

 

(223

)

 

 

260,678

 

 

 

(827

)

Total

 

$

318,953

 

 

$

(1,499

)

 

$

165,159

 

 

$

(876

)

 

$

484,112

 

 

$

(2,375

)

1  The fair value and gross unrealized losses as of December 31, 2020, have been updated to properly reflect the length of time they were in a continuous unrealized loss position.

 
Schedule of Interest Income from Taxable and Non-taxable Investment Securities

Interest income from taxable and non-taxable investment securities for the three and nine months ended September 30, 2021, and September 30, 2020, were as follows:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Taxable

 

$

32,889

 

 

$

30,027

 

 

$

91,510

 

 

$

96,150

 

Non-Taxable

 

 

261

 

 

 

498

 

 

 

820

 

 

 

1,637

 

Total Interest Income from Investment Securities

 

$

33,150

 

 

$

30,525

 

 

$

92,330

 

 

$

97,787

 

 
Schedule of Carrying Value of Federal Home Loan Bank of Des Moines Stock and Federal Reserve Bank Stock

As of September 30, 2021, and December 31, 2020, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

 

(dollars in thousands)

 

September 30,

2021

 

 

December 31,

2020

 

Federal Home Loan Bank of Des Moines Stock

 

$

10,000

 

 

$

12,000

 

Federal Reserve Bank Stock

 

 

21,574

 

 

 

21,340

 

Total

 

$

31,574

 

 

$

33,340