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Securities
 9 Months Ended
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Securities

(3) SECURITIES

The following table summarizes the amortized cost and estimated fair values of debt securities held for investment:

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair
Value

 

September 30, 2023

 

(Dollars in thousands)

 

Mortgage backed securities (1)

 

$

7

 

 

$

—

 

 

$

—

 

 

$

7

 

States and political subdivisions

 

 

685

 

 

 

—

 

 

 

—

 

 

 

685

 

Other securities

 

 

500

 

 

 

—

 

 

 

—

 

 

 

500

 

Total

 

$

1,192

 

 

$

—

 

 

$

—

 

 

$

1,192

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage backed securities (1)

 

$

13

 

 

$

—

 

 

$

—

 

 

$

13

 

States and political subdivisions

 

 

1,870

 

 

 

—

 

 

 

—

 

 

 

1,870

 

Other securities

 

 

500

 

 

 

—

 

 

 

—

 

 

 

500

 

Total

 

$

2,383

 

 

$

—

 

 

$

—

 

 

$

2,383

 

 

The following table summarizes the amortized cost and estimated fair values of debt securities available for sale:

 

 

 

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair
Value

 

September 30, 2023

 

(Dollars in thousands)

 

U.S. treasuries

 

$

1,564,934

 

 

$

—

 

 

$

(96,730

)

 

$

1,468,204

 

U.S. federal agencies

 

 

12,427

 

 

 

156

 

 

 

(3

)

 

 

12,580

 

Mortgage backed securities (1)

 

 

16,877

 

 

 

7

 

 

 

(2,472

)

 

 

14,412

 

States and political subdivisions

 

 

10,115

 

 

 

5

 

 

 

(189

)

 

 

9,931

 

Asset backed securities

 

 

12,789

 

 

 

—

 

 

 

(378

)

 

 

12,411

 

Other securities

 

 

8,163

 

 

 

—

 

 

 

(1,445

)

 

 

6,718

 

Total

 

$

1,625,305

 

 

$

168

 

 

$

(101,217

)

 

$

1,524,256

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

$

1,568,563

 

 

$

—

 

 

$

(90,699

)

 

$

1,477,864

 

U.S. federal agencies

 

 

15,025

 

 

 

198

 

 

 

(1

)

 

 

15,222

 

Mortgage backed securities (1)

 

 

18,449

 

 

 

21

 

 

 

(1,884

)

 

 

16,586

 

States and political subdivisions

 

 

8,320

 

 

 

35

 

 

 

(221

)

 

 

8,134

 

Asset backed securities

 

 

13,371

 

 

 

—

 

 

 

(361

)

 

 

13,010

 

Other securities

 

 

8,163

 

 

 

—

 

 

 

(758

)

 

 

7,405

 

Total

 

$

1,631,891

 

 

$

254

 

 

$

(93,924

)

 

$

1,538,221

 

 

(1) Primarily consists of FHLMC, FNMA, GNMA and mortgage backed securities through U.S. agencies.

 

The maturities of debt securities held for investment and available for sale are summarized in the following table using contractual maturities. Actual maturities may differ from contractual maturities due to obligations that are called or prepaid. For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been presented at their contractual maturity.

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

Amortized
Cost

 

 

Estimated
Fair
Value

 

 

Amortized
Cost

 

 

Estimated
Fair
Value

 

 

 

(Dollars in thousands)

 

Held for Investment

 

 

 

 

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

350

 

 

$

350

 

 

$

1,186

 

 

$

1,186

 

After one year but within five years

 

 

841

 

 

 

841

 

 

 

1,195

 

 

 

1,195

 

After five years but within ten years

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

After ten years

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,192

 

 

$

1,192

 

 

$

2,383

 

 

$

2,383

 

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

Contractual maturity of debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

Within one year

 

$

208,397

 

 

$

203,774

 

 

$

101,607

 

 

$

100,655

 

After one year but within five years

 

 

1,317,661

 

 

 

1,228,720

 

 

 

1,316,874

 

 

 

1,233,725

 

After five years but within ten years

 

 

60,974

 

 

 

56,159

 

 

 

170,513

 

 

 

163,101

 

After ten years

 

 

38,273

 

 

 

35,603

 

 

 

42,897

 

 

 

40,740

 

Total debt securities

 

$

1,625,305

 

 

$

1,524,256

 

 

$

1,631,891

 

 

$

1,538,221

 

The following table is a summary of the Company’s book value of securities that were pledged as collateral for public funds on deposit, repurchase agreements and for other purposes as required or permitted by law:

 

 

September 30, 2023

 

 

December 31, 2022

 

 

 

(Dollars in thousands)

 

Book value of pledged securities

 

$

542,516

 

 

$

573,952

 

 

 

The following is a detail of proceeds from sales and the realized losses on available for sale debt securities:

 

 

 

For the Nine Months
Ended September 30,

 

 

 

2023

 

 

2022

 

 

 

(Dollars in thousands)

 

Proceeds

 

$

—

 

 

$

222,474

 

Gross losses realized

 

 

—

 

 

 

3,990

 

There were no sales of debt securities and therefore no proceeds from sales or realized securities gains or losses on available for sale debt securities for the nine months ended September 30, 2023. During the nine months ended September 30, 2022, the Company sold $226 million of debt securities with an average yield of 0.16%, the proceeds of which were subsequently reinvested in $220 million of debt securities with an average yield of 1.86%. The Company used specific identification to reclassify the unrealized loss in other comprehensive income to a realized loss, as shown in the consolidated statements of comprehensive income.

Realized gains/losses on debt and equity securities are reported as securities transactions within the noninterest income section of the consolidated statements of comprehensive income.

 

The following table summarizes debt securities with unrealized losses, segregated by the duration of the unrealized loss, at September 30, 2023 and December 31, 2022 respectively:

 

 

 

 

 

Less than 12 Months

 

 

More than 12 Months

 

 

Total

 

 

Number of investments

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

Estimated
Fair Value

 

 

Unrealized
Losses

 

 

 

 

 

(Dollars in thousands)

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

71

 

 

$

93,372

 

 

$

2,708

 

 

$

1,374,832

 

 

$

94,022

 

 

$

1,468,204

 

 

$

96,730

 

U.S. federal agencies

 

3

 

 

 

1,260

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

1,260

 

 

 

3

 

Mortgage backed securities

 

83

 

 

 

1,242

 

 

 

38

 

 

 

12,887

 

 

 

2,434

 

 

 

14,129

 

 

 

2,472

 

States and political subdivisions

 

9

 

 

 

1,657

 

 

 

21

 

 

 

1,292

 

 

 

168

 

 

 

2,949

 

 

 

189

 

Asset backed securities

 

1

 

 

 

—

 

 

 

—

 

 

 

12,411

 

 

 

378

 

 

 

12,411

 

 

 

378

 

Other securities

 

3

 

 

 

—

 

 

 

—

 

 

 

6,718

 

 

 

1,445

 

 

 

6,718

 

 

 

1,445

 

Total

 

170

 

 

$

97,531

 

 

$

2,770

 

 

$

1,408,140

 

 

$

98,447

 

 

$

1,505,671

 

 

$

101,217

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for Sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. treasuries

 

74

 

 

$

787,925

 

 

$

27,078

 

 

$

689,939

 

 

$

63,621

 

 

$

1,477,864

 

 

$

90,699

 

U.S. federal agencies

 

1

 

 

 

—

 

 

 

—

 

 

 

349

 

 

 

1

 

 

 

349

 

 

 

1

 

Mortgage backed securities

 

92

 

 

 

10,001

 

 

 

1,239

 

 

 

5,055

 

 

 

645

 

 

 

15,056

 

 

 

1,884

 

States and political subdivisions

 

8

 

 

 

2,308

 

 

 

184

 

 

 

464

 

 

 

37

 

 

 

2,772

 

 

 

221

 

Asset backed securities

 

1

 

 

 

13,010

 

 

 

361

 

 

 

—

 

 

 

—

 

 

 

13,010

 

 

 

361

 

Other securities

 

3

 

 

 

4,871

 

 

 

291

 

 

 

2,534

 

 

 

467

 

 

 

7,405

 

 

 

758

 

Total

 

179

 

 

$

818,115

 

 

$

29,153

 

 

$

698,341

 

 

$

64,771

 

 

$

1,516,456

 

 

$

93,924

 

 

The Company has the ability and intent to hold the debt securities classified as held for investment until they mature, at which time the Company will receive full value for the debt securities. Furthermore, as of September 30, 2023 and December 31, 2022, the Company also had the ability and intent to hold the debt securities classified as available for sale for a period of time sufficient for a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying debt securities were purchased. The fair value of those debt securities having unrealized losses is expected to recover as the securities approach their maturity date or repricing date, or if market yields for such investments decline. The Company has no intent or requirement to sell before the recovery of the unrealized loss; therefore, no impairment loss was realized in the Company’s consolidated statement of comprehensive income.