| Securities |
Securities (In Thousands, Except Number of Securities)
The amortized cost and fair value of securities available for sale were as follows as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | | December 31, 2021 | | | | | | | | | U.S. Treasury securities | $ | 3,007 | | | $ | 3 | | | $ | — | | | $ | 3,010 | | | | | | | | | | | Obligations of states and political subdivisions | 153,847 | | | 5,532 | | | (269) | | | 159,110 | | | Residential mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 967,497 | | | 7,854 | | | (6,816) | | | 968,535 | | | Government agency collateralized mortgage obligations | 1,008,514 | | | 457 | | | (20,371) | | | 988,600 | | | Commercial mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 14,717 | | | 365 | | | (1) | | | 15,081 | | | Government agency collateralized mortgage obligations | 216,859 | | | 812 | | | (3,419) | | | 214,252 | | | | | | | | | | | Other debt securities | 36,515 | | | 1,097 | | | (148) | | | 37,464 | | | $ | 2,400,956 | | | $ | 16,120 | | | $ | (31,024) | | | $ | 2,386,052 | |
| | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | | December 31, 2020 | | | | | | | | | U.S. Treasury securities | $ | 7,047 | | | $ | 32 | | | $ | — | | | $ | 7,079 | | | Obligations of other U.S. Government agencies and corporations | 1,003 | | | 6 | | | — | | | 1,009 | | | Obligations of states and political subdivisions | 291,231 | | | 14,015 | | | (45) | | | 305,201 | | | Residential mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 581,105 | | | 21,564 | | | (23) | | | 602,646 | | | Government agency collateralized mortgage obligations | 218,373 | | | 1,946 | | | (51) | | | 220,268 | | | Commercial mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 29,053 | | | 1,235 | | | (1) | | | 30,287 | | | Government agency collateralized mortgage obligations | 99,377 | | | 2,992 | | | (21) | | | 102,348 | | | Trust preferred securities | 12,013 | | | — | | | (3,001) | | | 9,012 | | | Other debt securities | 62,771 | | | 2,909 | | | (73) | | | 65,607 | | | | | | | | | | | $ | 1,301,973 | | | $ | 44,699 | | | $ | (3,215) | | | $ | 1,343,457 | |
The amortized cost and fair value of securities held to maturity were as follows as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | Amortized
Cost | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | | December 31, 2021 | | | | | | | | | Obligations of states and political subdivisions | $ | 267,641 | | | $ | 333 | | | $ | (685) | | | $ | 267,289 | | | Residential mortgage backed securities | | | | | | | | | Government agency mortgage backed securities | 60,507 | | | 1 | | | (198) | | | 60,310 | | | Government agency collateralized mortgage obligations | 24,832 | | | — | | | (92) | | | 24,740 | | | Commercial mortgage backed securities | | | | | | | | | Government agency mortgage backed securities | 1,855 | | | — | | | — | | | 1,855 | | | Government agency collateralized mortgage obligations | 39,505 | | | — | | | (117) | | | 39,388 | | | Other debt securities | 22,049 | | | — | | | (79) | | | 21,970 | | | $ | 416,389 | | | $ | 334 | | | $ | (1,171) | | | $ | 415,552 | | | Allowance for credit losses - held to maturity securities | (32) | | | | | | | | | Held-to-maturity securities, net of allowance for credit losses | $ | 416,357 | | | | | | | |
During the year ended December 31, 2021, the Company transferred, at fair value, $366,886 of securities from the available for sale portfolio to the held to maturity portfolio. The related net unrealized gain of $2,748 (after tax gains of $2,048) remained in accumulated other comprehensive income (loss) and will be amortized over the remaining life of the securities, offsetting the related amortization of discount on the transferred securities. No gains or losses were recognized at the time of transfer. There were no held to maturity securities at December 31, 2020. Available for sale securities sold were as follows for the periods presented: | | | | | | | | | | | | | | | | | | | Carrying Value | | Net Proceeds | | Gain/(Loss) | | Twelve months ended December 31, 2021 | | | | | | | | | | | | | Obligations of states and political subdivisions | $ | 47 | | | $ | 49 | | | $ | 2 | | | Residential mortgage backed securities: | | | | | | | Government agency mortgage backed securities | 145,572 | | | 149,473 | | | 3,901 | | | Government agency collateralized mortgage obligations | 12,362 | | | 12,562 | | | 200 | | | | | | | | | | | | | | | | | | | | | Trust preferred securities | 12,021 | | | 9,961 | | | (2,060) | | | Other debt securities | 4,283 | | | 4,410 | | | 127 | | | | | | | | | $ | 174,285 | | | $ | 176,455 | | | $ | 2,170 | |
| | | | | | | | | | | | | | | | | | | Carrying Value | | Net Proceeds | | Gain/(Loss) | | Twelve months ended December 31, 2020 | | | | | | | | | | | | | Obligations of states and political subdivisions | $ | 2,696 | | | $ | 2,561 | | | $ | (135) | | | Residential mortgage backed securities: | | | | | | | Government agency mortgage backed securities | 16,093 | | | 16,294 | | | 201 | | | Government agency collateralized mortgage obligations | 26,071 | | | 26,051 | | | (20) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 44,860 | | | $ | 44,906 | | | $ | 46 | |
| | | | | | | | | | | | | | | | | | | Carrying Value | | Net Proceeds | | Gain/(Loss) | | Twelve months ended December 31, 2019 | | | | | | | | | | | | | Obligations of states and political subdivisions | $ | 11,799 | | | $ | 11,813 | | | $ | 14 | | | Residential mortgage backed securities: | | | | | | | Government agency mortgage backed securities | 72,556 | | | 71,944 | | | (612) | | | Government agency collateralized mortgage obligations | 122,692 | | | 120,892 | | | (1,800) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | Government agency collateralized mortgage obligations | 4,838 | | | 4,720 | | | (118) | | | | | | | | | Other debt securities | 252 | | | 257 | | | 5 | | | Other equity securities | — | | | 2,859 | | | 2,859 | | | $ | 212,137 | | | $ | 212,485 | | | $ | 348 | |
The sales of other equity securities included in the table above for the twelve months ended December 31, 2019 represent the Company’s sale of its shares of Visa Class B common stock during the third quarter of 2019. Gross realized gains and gross realized losses on sales of securities available for sale were as follows for the periods presented: | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | 2021 | | 2020 | | 2019 | | Gross gains on sales of securities available for sale | $ | 4,322 | | | $ | 230 | | | $ | 2,979 | | | Gross losses on sales of securities available for sale | (2,152) | | | (184) | | | (2,631) | | | Gains on sales of securities available for sale, net | $ | 2,170 | | | $ | 46 | | | $ | 348 | |
At December 31, 2021 and 2020, securities with a carrying value of approximately $607,681 and $582,338, respectively, were pledged to secure government, public, trust, and other deposits. Securities with a carrying value of $21,493 and $32,272 were pledged as collateral for short-term borrowings and derivative instruments at December 31, 2021 and 2020, respectively. The amortized cost and fair value of securities at December 31, 2021 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | | | | | | | | | | | | | | | | | Held to Maturity | | Available for Sale | | | Amortized
Cost | | Fair
Value | | Amortized
Cost | | Fair
Value | | Due within one year | $ | 530 | | | $ | 529 | | | $ | 8,523 | | | $ | 8,579 | | | Due after one year through five years | 2,064 | | | 2,064 | | | 41,782 | | | 43,383 | | | Due after five years through ten years | 18,368 | | | 18,403 | | | 53,269 | | | 56,068 | | | Due after ten years | 246,679 | | | 246,291 | | | 77,798 | | | 79,610 | | | Residential mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 60,507 | | | 60,310 | | | 967,497 | | | 968,535 | | | Government agency collateralized mortgage obligations | 24,832 | | | 24,740 | | | 1,008,514 | | | 988,600 | | | Commercial mortgage backed securities: | | | | | | | | | Government agency mortgage backed securities | 1,855 | | | 1,855 | | | 14,717 | | | 15,081 | | | Government agency collateralized mortgage obligations | 39,505 | | | 39,388 | | | 216,859 | | | 214,252 | | | Other debt securities | 22,049 | | | 21,972 | | | 11,997 | | | 11,944 | | | | | | | | | | | $ | 416,389 | | | $ | 415,552 | | | $ | 2,400,956 | | | $ | 2,386,052 | |
The following tables present the gross unrealized losses and fair value of investment securities, aggregated by investment category and the length of time the investments have been in a continuous unrealized loss position, as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | # | | Fair
Value | | Unrealized
Losses | | # | | Fair
Value | | Unrealized
Losses | | # | | Fair
Value | | Unrealized
Losses | | Available for Sale: | | | | | | | | | | | | | | | | | | | December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Obligations of states and political subdivisions | 8 | | $ | 34,303 | | | $ | (216) | | | 3 | | $ | 3,892 | | | $ | (53) | | | 11 | | $ | 38,195 | | | $ | (269) | | | Residential mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 41 | | 727,546 | | | (6,312) | | | 1 | | 12,305 | | | (504) | | | 42 | | 739,851 | | | (6,816) | | | Government agency collateralized mortgage obligations | 49 | | 966,126 | | | (20,371) | | | — | | — | | | — | | | 49 | | 966,126 | | | (20,371) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 1 | | 1,791 | | | (1) | | | 1 | | 432 | | | — | | | 2 | | 2,223 | | | (1) | | | Government agency collateralized mortgage obligations | 21 | | 160,919 | | | (3,072) | | | 2 | | 9,005 | | | (347) | | | 23 | | 169,924 | | | (3,419) | | | | | | | | | | | | | | | | | | | | | Other debt securities | 1 | | 8,699 | | | (148) | | | — | | — | | | — | | | 1 | | 8,699 | | | (148) | | | | | | | | | | | | | | | | | | | | | Total | 121 | | $ | 1,899,384 | | | $ | (30,120) | | | 7 | | $ | 25,634 | | | $ | (904) | | | 128 | | $ | 1,925,018 | | | $ | (31,024) | | | December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Obligations of states and political subdivisions | 6 | | 9,403 | | | (45) | | | — | | — | | | — | | | 6 | | 9,403 | | | (45) | | | Residential mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 2 | | 19,755 | | | (23) | | | — | | — | | | — | | | 2 | | 19,755 | | | (23) | | | Government agency collateralized mortgage obligations | 5 | | 27,143 | | | (51) | | | — | | — | | | — | | | 5 | | 27,143 | | | (51) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | 1 | | 1,538 | | | (1) | | | 1 | | 459 | | | — | | | 2 | | 1,997 | | | (1) | | | Government agency collateralized mortgage obligations | 3 | | 14,190 | | | (21) | | | — | | — | | | — | | | 3 | | 14,190 | | | (21) | | | Trust preferred securities | — | | — | | | — | | | 2 | | 9,012 | | | (3,001) | | | 2 | | 9,012 | | | (3,001) | | | Other debt securities | 4 | | 3,330 | | | (70) | | | 1 | | 566 | | | (3) | | | 5 | | 3,896 | | | (73) | | | | | | | | | | | | | | | | | | | | | Total | 21 | | $ | 75,359 | | | $ | (211) | | | 4 | | $ | 10,037 | | | $ | (3,004) | | | 25 | | $ | 85,396 | | | $ | (3,215) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or more | | Total | | Held to Maturity: | | # | | Fair Value | | Unrealized Losses | | # | | Fair Value | | Unrealized Losses | | # | | Fair Value | | Unrealized Losses | | December 31, 2021 | | | | | | | | | | | | | | | | | | | | Obligations of states and political subdivisions | | 24 | | $ | 62,131 | | | $ | (685) | | | — | | $ | — | | | $ | — | | | 24 | | $ | 62,131 | | | $ | (685) | | | Residential mortgage backed securities: | | | | | | | | | | | | | | | | | | | | Government agency mortgage backed securities | | 50 | | 53,560 | | | (181) | | | 1 | | 5,354 | | | (17) | | | 51 | | 58,914 | | | (198) | | | Government agency collateralized mortgage obligations | | 1 | | 24,740 | | | (92) | | | — | | — | | | — | | | 1 | | 24,740 | | | (92) | | | Commercial mortgage backed securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Government agency collateralized mortgage obligations | | 7 | | 39,388 | | | (117) | | | — | | — | | | — | | | 7 | | 39,388 | | | (117) | | | Other debt securities | | 8 | | 21,972 | | | (79) | | | — | | — | | | — | | | 8 | | 21,972 | | | (79) | | | Total | | 90 | | $ | 201,791 | | | $ | (1,154) | | | 1 | | $ | 5,354 | | | $ | (17) | | | 91 | | $ | 207,145 | | | $ | (1,171) | |
The Company does not intend to sell any of the securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period greater than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. Based upon its review of securities with unrealized losses as of December 31, 2021, the Company determined that all such losses resulted from factors not deemed credit related. As such, the Company did not record any impairment for the years ended December 31, 2021 and 2020. At December 31, 2021, the allowance for credit losses on held to maturity securities was $32. There was no allowance for credit losses for debt securities at December 31, 2020. The Company monitors the credit quality of debt securities held to maturity using bond investment grades assigned by third party ratings agencies. Updated investment grades are obtained as they become available from the agencies. On December 31, 2021, 99.9% of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.
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