Securities

3 Months Ended

Mar. 31, 2021

Debt Securities, Available-for-sale [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Securities

The following table summarizes the amortized cost, gross unrealized gains and losses, the allowance for credit losses and the resulting fair value of debt securities available for sale:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
March 31, 2021	(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	4,040,359	$	109,063	$	(45,203)	$	—	$	4,104,219
Other asset-backed securities	359,259		5,216		(5,656)		—		358,819
State and municipal securities	739,570		18,080		(6,365)		—		751,285
U.S. government agency and government-sponsored enterprise securities	278,185		5,349		(1,567)		—		281,967
Total	$	5,417,373	$	137,708	$	(58,791)	$	—	$	5,496,290
December 31, 2020
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	3,640,351	$	178,579	$	(4,543)	$	—	$	3,814,387
Other asset-backed securities	349,904		9,651		(2,076)		—		357,479
State and municipal securities	729,066		25,098		(592)		—		753,572
U.S. government agency and government-sponsored enterprise securities	278,208		6,545		(57)		—		284,696
Total	$	4,997,529	$	219,873	$	(7,268)	$	—	$	5,210,134

A debt security is placed on nonaccrual status at the time any principal or interest payments become 90 days delinquent. Interest accrued but not received for a security placed on nonaccrual is reversed against interest income. There were no amounts of accrued interest reversed against interest income for the three months ended March 31, 2021 and 2020.

Accrued interest receivable for securities available for sale is included in “Interest receivable” on the Company’s Consolidated Balance Sheet and is not reflected in the balances in the table above. At March 31, 2021 and December 31, 2020, accrued interest receivable for securities was $17.4 million and $17.1 million, respectively. The Company does not measure an allowance for credit losses for accrued interest receivable.

The following table provides the proceeds and both gross realized gains and losses on sales and calls of debt securities available for sale as well as other securities gains and losses for the periods indicated:

	Three Months Ended March 31,
	2021		2020
	(in thousands)
Proceeds from sales of debt securities available for sale	$	—	$	194,105
Gross realized gains from sales of debt securities available for sale	$	—	$	435
Gross realized losses from sales of debt securities available for sale	—		(186)
Other securities gains	—		—
Investment securities gains, net	$	—	$	249

There were no gains or losses recognized on equity securities during the three month periods ended March 31, 2021 and 2020.

The scheduled contractual maturities of debt securities available for sale at the period presented below are as follows:

	March 31, 2021
	Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	81,385	$	81,986
Due after one year through five years	737,066		765,090
Due after five years through ten years	2,457,820		2,507,546
Due after ten years	2,141,102		2,141,668
Total debt securities available for sale	$	5,417,373	$	5,496,290

The following table summarizes the carrying value of securities pledged as collateral to secure public funds, borrowings and other purposes as permitted or required by law:

	March 31, 2021
	(in thousands)
To secure public funds	$	477,970
To secure borrowings	109,650
Other securities pledged	217,055
Total securities pledged as collateral	$	804,675

The following table shows the gross unrealized losses and fair value of the Company’s debt securities available for sale for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities 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
March 31, 2021	(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	1,661,107	$	(44,484)	$	16,463	$	(719)	$	1,677,570	$	(45,203)
Other asset-backed securities	183,636		(5,656)		69		—		183,705		(5,656)
State and municipal securities	311,953		(6,365)		—		—		311,953		(6,365)
U.S. government agency and government-sponsored enterprise securities	149,483		(1,567)		—		—		149,483		(1,567)
Total	$	2,306,179	$	(58,072)	$	16,532	$	(719)	$	2,322,711	$	(58,791)
December 31, 2020
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	575,329	$	(3,728)	$	18,527	$	(815)	$	593,856	$	(4,543)
Other asset-backed securities	143,764		(2,076)		70		—		143,834		(2,076)
State and municipal securities	86,471		(592)		—		—		86,471		(592)
U.S. government agency and government-sponsored enterprise securities	74,943		(57)		—		—		74,943		(57)
Total	$	880,507	$	(6,453)	$	18,597	$	(815)	$	899,104	$	(7,268)

At March 31, 2021, there were 144 U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligation securities in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at March 31, 2021.

At March 31, 2021, there were 16 other asset-backed securities in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at March 31, 2021.

At March 31, 2021, there were 89 state and municipal government securities in an unrealized loss position. The unrealized losses on state and municipal securities were caused by interest rate changes or widening of market spreads subsequent to the purchase of the individual securities. Management monitors published credit ratings of these securities for adverse changes. As of March 31, 2021, none of the rated obligations of state and local government entities held by the Company had a below investment grade credit rating. Because the credit quality of these securities are investment grade and the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at March 31, 2021.

At March 31, 2021, there were eight U.S. government securities in an unrealized loss position. The decline in fair value is attributable to changes in interest rates relative to where these investments fall within the yield curve and their individual characteristics. Because the Company does not intend to sell these securities nor does the Company consider it more likely than not that it will be required to sell these securities before the recovery of amortized cost basis, which may be upon maturity, the Company concluded an allowance for credit losses is unnecessary at March 31, 2021.

Equity Securities without Readily Determinable Fair Values

Visa Class B Restricted Shares

In 2008, the Company received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into publicly traded Visa Class A common shares. This conversion will not occur until the settlement of certain litigation which is indemnified by Visa members, including the Company. Visa funded an escrow account from its initial public offering to settle these litigation claims. Should this escrow account not be sufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing each member bank’s Visa Class B conversion ratio to unrestricted Visa Class A shares.

During the second quarter of 2020, the Company sold 17,360 shares of Visa Class B restricted stock, which resulted in an observable market price. As a result, the Company adjusted the carrying value of its remaining Visa Class B restricted shares upward to this observable market price. At March 31, 2021, the Company owned 77,683 Visa Class B shares, which had a carrying value of $13.4 million.