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Securities
 12 Months Ended
Dec. 31, 2022
Debt Securities, Available-for-Sale [Abstract]  
Securities [Text Block] SecuritiesAt December 31, 2022, the Company’s securities portfolio primarily consisted of securities issued by the U.S. government, U.S. government agencies, U.S. government-sponsored enterprises and states and municipalities. Nearly all of the Company’s mortgage-backed securities and collateralized mortgage obligations are issued by U.S. government agencies and U.S. government-sponsored enterprises and are implicitly guaranteed by the U.S. government. The remainder of the Company’s available for sale mortgage-backed securities are non-agency collateralized mortgage obligations which currently carry ratings no lower than A. The Company had no other issuances in its portfolio which exceeded ten percent of shareholders’ equity.
The following table summarizes the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
December 31, 2022(in thousands)
Available for sale
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations$3,188,381 $382 $(429,053)$2,759,710 
Other asset-backed securities376,336 — (48,983)327,353 
State and municipal securities959,469 199 (125,595)834,073 
U.S. government agency and government-sponsored enterprise securities222,829 2 (14,062)208,769 
U.S. government securities183,049 — (15,153)167,896 
Non-agency collateralized mortgage obligations352,782 — (61,484)291,298 
Total available for sale$5,282,846 $583 $(694,330)$4,589,099 
Held to maturity
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations$2,034,792 $— $(312,014)$1,722,778 
Total held to maturity$2,034,792 $— $(312,014)$1,722,778 
December 31, 2021
Available for sale
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations$3,738,616 $45,077 $(38,092)$3,745,601 
Other asset-backed securities469,052 3,802 (9,791)463,063 
State and municipal securities983,704 18,525 (4,938)997,291 
U.S. government agency and government-sponsored enterprise securities252,755 3,095 (3,274)252,576 
U.S. government securities158,367 — (831)157,536 
Non-agency collateralized mortgage obligations295,547 340 (955)294,932 
Total available for sale$5,898,041 $70,839 $(57,881)$5,910,999 
Held to maturity
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations$2,148,327 $50 $(25,771)$2,122,606 
Total held to maturity$2,148,327 $50 $(25,771)$2,122,606 
There was no allowance for credit losses on both available for sale securities and held to maturity securities as of December 31, 2022 and December 31, 2021. 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 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 twelve months ended December 31, 2022 and 2021.
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 December 31, 2022 and 2021, accrued interest receivable for securities available for sale was $17.3 million and $19.2 million, respectively. Accrued interest for securities held to maturity was $4.2 million at December 31, 2022 and $4.4 million at December 31, 2021. 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 the sales and calls of debt securities available for sale as well as other securities gains and losses for the periods indicated:
Years Ended December 31,
202220212020
(in thousands)
Proceeds from sales and calls of debt securities available for sale$741 $89,219 $194,697 
Gross realized gains from sales of debt securities available for sale$— $751 $471 
Gross realized losses from sales of debt securities available for sale(9)(437)(186)
Other securities gains, net (1)— — 16,425 
Investment securities gains (losses), net$(9)$314 $16,710 
__________
(1) Other securities gains includes gain from sale of Visa Class B restricted stock and subsequent write up to fair value of remaining Visa Class B shares.

The following table provides the unrealized gains and losses on equity securities at the reporting date:
Years Ended December 31,
202220212020
(in thousands)
Gains recognized during the period on equity securities $— $— $16,425 
Less: Losses recognized during the period on equity securities sold during the period.— — (3,000)
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date (1).$— $— $13,425 
__________
(1) Visa Class B restricted stock owned by the Company was previously carried at a zero-cost basis due to existing transfer restrictions and uncertainty of covered litigation. The sale of shares by the Company of Visa Class B restricted shares during the year ended December 31, 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.
The scheduled contractual maturities of debt securities at December 31, 2022 are presented as follows:
December 31, 2022
Available for saleHeld to maturity
Amortized CostFair ValueAmortized CostFair Value
(in thousands)
Due within one year$85,094 $84,216 $— $— 
Due after one year through five years1,132,895 1,055,150 301,515 265,831 
Due after five years through ten years1,106,689 973,108 916,571 775,931 
Due after ten years2,958,168 2,476,625 816,706 681,016 
Total debt securities$5,282,846 $4,589,099 $2,034,792 $1,722,778 
The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:
December 31,
20222021
(in thousands)
To secure public funds$564,150 $596,779 
To secure borrowings— 98,796 
Other securities pledged266,752 267,213 
Total securities pledged as collateral$830,902 $962,788 
The following tables show 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 at December 31, 2022 and 2021:
Less than 12 Months12 Months or MoreTotal
Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
December 31, 2022(in thousands)
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations$735,898 $(50,201)$2,005,957 $(378,852)$2,741,855 $(429,053)
Other asset-backed securities76,877 (7,579)250,475 (41,404)327,352 (48,983)
State and municipal securities309,675 (23,690)485,620 (101,905)795,295 (125,595)
U.S. government agency and government-sponsored enterprise securities68,656 (1,375)139,364 (12,687)208,020 (14,062)
U.S. government securities— — 167,896 (15,153)167,896 (15,153)
Non-agency collateralized mortgage obligations11,669 (2,736)279,629 (58,748)291,298 (61,484)
Total$1,202,775 $(85,581)$3,328,941 $(608,749)$4,531,716 $(694,330)
December 31, 2021
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations$2,292,062 $(30,777)$176,946 $(7,315)$2,469,008 $(38,092)
Other asset-backed securities195,708 (4,823)117,751 (4,968)313,459 (9,791)
State and municipal securities237,354 (3,862)40,343 (1,076)277,697 (4,938)
U.S. government agency and government-sponsored enterprise securities100,813 (1,988)48,714 (1,286)149,527 (3,274)
U.S. government securities157,536 (831)— — 157,536 (831)
Non-agency collateralized mortgage obligations212,259 (955)— — 212,259 (955)
Total$3,195,732 $(43,236)$383,754 $(14,645)$3,579,486 $(57,881)

Debt securities available for sale

At December 31, 2022, there were 645 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 currently 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 December 31, 2022.
At December 31, 2022, there were 83 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 currently 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 December 31, 2022.
At December 31, 2022, there were 563 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 December 31, 2022, 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 is investment grade and the Company does not currently 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 December 31, 2022.
At December 31, 2022, there were 21 U.S. government agency and government-sponsored enterprise 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 December 31, 2022.
At December 31, 2022, there were 10 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 December 31, 2022.
At December 31, 2022, there were 56 non-agency collateralized mortgage obligations 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 December 31, 2022.
Equity Securities without Readily Determinable Fair Values
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 banks’ Visa Class B conversion ratio to unrestricted Visa Class A shares.
During the year ended December 31, 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 December 31, 2022, the Company owned 77,683 Visa Class B shares, which had a carrying value of $13.4 million.