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SECURITIES (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

The amortized cost, gross unrealized gains and losses and estimated fair value of securities at September 30, 2021 and December 31, 2020 are summarized as follows (in thousands):


	September 30, 2021
	Amortized Cost		Fair Value
Trading:


Corporate bonds	$	27,203	$	26,875


	$	27,203	$	26,875


	September 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-Sale:
U.S. Government and agency obligations	$	180,585	$	1,067	$	(600)	$	—	$	181,052
Municipal bonds	296,784		14,395		(788)		—		310,391
Corporate bonds	160,404		3,903		(63)		—		164,244
Mortgage-backed or related securities	2,599,229		25,918		(40,883)		—		2,584,264
Asset-backed securities	206,514		110		—		—		206,624

	$	3,443,516	$	45,393	$	(42,334)	$	—	$	3,446,575


	September 30, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-Maturity:
U.S. Government and agency obligations	$	317	$	6	$	—	$	323	$	—
Municipal bonds	391,583		18,716		(2,188)		408,111		(63)
Corporate bonds	3,124		—		(2)		3,122		(41)
Mortgage-backed or related securities	52,788		1,668		(10)		54,446		—
	$	447,812	$	20,390	$	(2,200)	$	466,002	$	(104)


	December 31, 2020
	Amortized Cost		Fair Value
Trading:


Corporate bonds	$	27,203	$	24,980


	$	27,203	$	24,980


	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Available-for-Sale:
U.S. Government and agency obligations	$	141,668	$	1,002	$	(935)	$	—	$	141,735
Municipal bonds	283,997		19,523		(2)		—		303,518
Corporate bonds	219,086		2,762		(79)		—		221,769
Mortgage-backed or related securities	1,602,033		45,179		(1,060)		—		1,646,152
Asset-backed securities	9,405		77		(63)		—		9,419

	$	2,256,189	$	68,543	$	(2,139)	$	—	$	2,322,593


	December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses
Held-to-Maturity:
U.S. Government and agency obligations	$	340	$	7	$	—	$	347	$	—
Municipal bonds	370,998		24,130		(94)		395,034		(59)
Corporate bonds	3,222		—		(12)		3,210		(35)
Mortgage-backed or related securities	47,247		2,843		—		50,090		—
	$	421,807	$	26,980	$	(106)	$	448,681	$	(94)

Schedule of Securities with Continuous Loss Position

At September 30, 2021 and December 31, 2020, the gross unrealized losses and the fair value for securities available-for-sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position were as follows (in thousands):


	September 30, 2021
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-Sale:
U.S. Government and agency obligations	$	40,115	$	(39)	$	33,447	$	(561)	$	73,562	$	(600)



Municipal bonds	60,522		(788)		—		—		60,522		(788)
Corporate bonds	7,937		(63)		—		—		7,937		(63)





Mortgage-backed or related securities	1,503,114		(39,701)		54,570		(1,182)		1,557,684		(40,883)





	$	1,611,688	$	(40,591)	$	88,017	$	(1,743)	$	1,699,705	$	(42,334)


	December 31, 2020
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Available-for-Sale:
U.S. Government and agency obligations	$	3,126	$	(8)	$	50,603	$	(927)	$	53,729	$	(935)



Municipal bonds	495		(2)		—		—		495		(2)
Corporate bonds	3,586		(79)		—		—		3,586		(79)




Mortgage-backed or related securities	181,871		(1,046)		2,337		(14)		184,208		(1,060)



Asset-backed securities	—		—		5,676		(63)		5,676		(63)

	$	189,078	$	(1,135)	$	58,616	$	(1,004)	$	247,694	$	(2,139)

Schedule of Realized Gain (Loss)

The following table presents gross gains and losses on sales of securities available-for-sale (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Available-for-Sale:
Gross Gains	$	140	$	557	$	766	$	729
Gross Losses	(22)		(432)		(132)		(433)
Balance, end of the period	$	118	$	125	$	634	$	296

Schedule of Securities by Contractual Maturity Date

The amortized cost and estimated fair value of securities at September 30, 2021, by contractual maturity, are shown below (in thousands). Expected maturities will differ from contractual maturities because some securities may be called or prepaid with or without call or prepayment penalties.


	September 30, 2021
	Trading				Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing in one year or less	$	—	$	—	$	59,150	$	59,360	$	5,444	$	5,471
Maturing after one year through five years	—		—		173,666		181,152		59,705		62,039
Maturing after five years through ten years	—		—		845,638		847,708		21,961		23,312
Maturing after ten years through twenty years	27,203		26,875		502,832		514,271		164,303		168,315
Maturing after twenty years	—		—		1,862,230		1,844,084		196,399		206,865


	$	27,203	$	26,875	$	3,443,516	$	3,446,575	$	447,812	$	466,002

Schedule of Pledged Securities

The following table presents, as of September 30, 2021, investment securities which were pledged to secure borrowings, public deposits or other obligations as permitted or required by law (in thousands):


	September 30, 2021
	Carrying Value		Amortized Cost		Fair Value
Purpose or beneficiary:
State and local governments public deposits	$	202,085	$	201,456	$	213,687
Interest rate swap counterparties	27,275		26,642		27,402
Repurchase agreements	278,087		285,068		278,087
Other	2,549		2,549		2,597
Total pledged securities	$	509,996	$	515,715	$	521,773

Debt Instrument, Credit Rating

The Company monitors the credit quality of held-to-maturity debt securities through the use of credit rating. Credit ratings are reviewed and updated quarterly. The Company’s non-rated held-to-maturity debt securities are primarily United States government sponsored enterprise debentures carrying minimal to no credit risk. The balance is local municipal debt from within the Company’s geographic footprint and is monitored through quarterly or annual financial review. This municipal debt is predominately essential service or unlimited general obligation backed debt. The following table summarizes the amortized cost of held-to-maturity debt securities by credit rating at September 30, 2021 and December 31, 2020 (in thousands):


	September 30, 2021
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
AAA/AA/A	$	—	$	375,865	$	500	$	—	$	376,365

Not Rated	317		15,718		2,624		52,788		71,447


	$	317	$	391,583	$	3,124	$	52,788	$	447,812


	December 31, 2020
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
AAA/AA/A	$	—	$	349,123	$	500	$	—	$	349,623

Not Rated	340		21,875		2,722		47,247		72,184
	$	340	$	370,998	$	3,222	$	47,247	$	421,807

Debt Securities, Held-to-maturity, Allowance for Credit Loss

The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities by major type for the three and nine months ended September 30, 2021 and September 30, 2020 (in thousands):


	For the Three Months Ended September 30, 2021
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
Allowance for credit losses – securities
Beginning Balance	$	—	$	64	$	46	$	—	$	110

Recapture of provision for credit losses	—		(1)		(5)		—		(6)



Ending Balance	$	—	$	63	$	41	$	—	$	104

	For the Nine Months Ended September 30, 2021
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
Allowance for credit losses – securities
Beginning Balance	$	—	$	59	$	35	$	—	$	94

Provision for credit losses	—		4		6		—		10



Ending Balance	$	—	$	63	$	41	$	—	$	104


	For the Three Months Ended September 30, 2020
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
Allowance for credit losses – securities
Beginning Balance	$	—	$	61	$	41	$	—	$	102
Impact of adopting ASC 326	—		—		—		—		—
(Recapture)/provision for credit losses	—		(1)		1		—		—



Ending Balance	$	—	$	60	$	42	$	—	$	102

	For the Nine Months Ended September 30, 2020
	U.S. Government and agency obligations		Municipal bonds		Corporate bonds		Mortgage-backed or related securities		Total
Allowance for credit losses – securities
Beginning Balance	$	—	$	—	$	—	$	—	$	—
Impact of adopting ASC 326	—		28		35		—		63
Provision for credit losses	—		32		7		—		39



Ending Balance	$	—	$	60	$	42	$	—	$	102