During the second quarter of 2021, the Company transferred, at fair value, $2.01 billion of U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations from the available for sale classification to the held to maturity classification. The net unrealized after tax gain of $15.5 million remained in accumulated other comprehensive income and will be amortized over the remaining life of the securities, offsetting the related amortization of discount or premium on the transferred securities. No gains or losses were recognized at the time of the transfer.


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2021	(in thousands)
Available for sale
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	2,671,827	$	74,715	$	(9,342)	$	2,737,200
Other asset-backed securities	429,983		6,307		(3,976)		432,314
State and municipal securities	748,224		18,294		(2,458)		764,060
U.S. government agency and government-sponsored enterprise securities	253,162		4,663		(1,333)		256,492

Total available for sale	$	4,103,196	$	103,979	$	(17,109)	$	4,190,066
Held to maturity
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	2,024,715	$	9,586	$	(1,321)	$	2,032,980




Total held to maturity	$	2,024,715	$	9,586	$	(1,321)	$	2,032,980

December 31, 2020
Available for sale
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 available for sale	$	4,997,529	$	219,873	$	(7,268)	$	5,210,134

There was no allowance for credit losses on both available for sale securities and held to maturity securities as of June 30, 2021 and December 31, 2020. All of the Company’s debt securities held to maturity were issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government, are widely recognized as “risk free,” and have a long history of zero credit loss.

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 and six months ended June 30, 2021 and 2020.

Accrued interest receivable for debt securities is included in “Interest receivable” on the Company’s Consolidated Balance Sheet and is not reflected in the balances in the table above. At June 30, 2021 and December 31, 2020, accrued interest receivable for securities available for sale was $15.1 million and $17.1 million, respectively. Accrued interest for securities held to maturity was $4.2 million at June 30, 2021. There was no accrued interest receivable related to securities held to maturity at December 31, 2020, as the Company did not have held to maturity securities at that date. The Company does not measure an allowance for credit losses for accrued interest receivable.


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Proceeds from sales of debt securities available for sale	$	26,914	$	—	$	26,914	$	194,105

Gross realized gains from sales of debt securities available for sale	$	751	$	—	$	751	$	435
Gross realized losses from sales of debt securities available for sale	(437)		—		(437)		(186)
Other securities gains (1)	—		16,425		—		16,425
Investment securities gains, net	$	314	$	16,425	$	314	$	16,674

__________


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands)
Gains recognized during the period on equity securities (1)	$	—	$	16,425	$	—	$	16,425
Less: Gains recognized during the period on equity securities sold during the period (1)	—		(3,000)		—		(3,000)
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date (1)	$	—	$	13,425	$	—	$	13,425

(1) Visa Class B restricted stock owned by the Company was carried at a zero-cost basis prior to June 2020 due to existing transfer restrictions and uncertainty regarding the outcome of Visa’s litigation that must be settled before the Visa Class B restricted shares may be converted into publicly traded Visa Class A common shares. The sale of shares by the Company of Visa Class B restricted shares during the three months ended June 30, 2020 resulted in an observable market price. As a result, the Company adjusted the carrying value of its remaining shares of Visa Class B restricted shares upward to this observable market price.


	June 30, 2021
	Available for sale				Held to maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in thousands)
Due within one year	$	57,266	$	57,900	$	—	$	—
Due after one year through five years	751,065		779,527		26,224		26,163
Due after five years through ten years	1,531,719		1,578,489		1,241,524		1,248,569
Due after ten years	1,763,146		1,774,150		756,967		758,248
Total debt securities	$	4,103,196	$	4,190,066	$	2,024,715	$	2,032,980

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
June 30, 2021	(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations	$	807,523	$	(8,956)	$	23,308	$	(386)	$	830,831	$	(9,342)
Other asset-backed securities	232,155		(3,976)		55		—		232,210		(3,976)
State and municipal securities	223,105		(2,443)		1,647		(15)		224,752		(2,458)
U.S. government agency and government-sponsored enterprise securities	150,218		(1,332)		—		(1)		150,218		(1,333)

Total	$	1,413,001	$	(16,707)	$	25,010	$	(402)	$	1,438,011	$	(17,109)
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 June 30, 2021, there were 77 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 June 30, 2021.

At June 30, 2021, there were 18 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 June 30, 2021.

At June 30, 2021, there were 66 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 June 30, 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 June 30, 2021.

At June 30, 2021, there were nine 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 June 30, 2021.

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 June 30, 2021, the Company owned 77,683 Visa Class B shares, which had a carrying value of $13.4 million.