Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Amortized Cost And Estimated Fair Value

The amortized cost, estimated fair value, and allowance for credit losses of available-for-sale and held-to-maturity investment securities are as follows:

Amortized Cost And Estimated Fair Value

(dollars in thousands, unaudited)

	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Available-for-sale
U.S. government agencies	$	1,000	$	—	$	(19)	$	—	$	981
Mortgage-backed securities		190,417		18		(8,989)		—		181,446
State and political subdivisions		286,650		198		(31,960)		—		254,888
Corporate bonds		49,708		10		(3,179)		—		46,539
Collateralized loan obligations		396,763		—		(16,439)		—		380,324
Total available-for-sale securities	$	924,538	$	226	$	(60,586)	$	—	$	864,178
	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Estimated Fair Value		Allowance for Credit Losses
Held-to-maturity
U.S. government agencies	$	6,762	$	—	$	(346)	$	6,416	$	—
Mortgage-backed securities		103,888		—		(8,006)		95,882		—
State and political subdivisions		50,767		25		(5,943)		44,849		(18)
Total held-to-maturity securities	$	161,417	$	25	$	(14,295)	$	147,147	$	(18)

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
Available-for-sale
U.S. government agencies	$	1,546	$	28	$	—	$	—	$	1,574
Mortgage-backed securities		303,912		4,772		(1,957)		—		306,727
State and political subdivisions		290,729		13,807		(268)		—		304,268
Corporate bonds		28,436		94		(1)		—		28,529
Collateralized loan obligations		332,836		68		(688)		—		332,216
Total securities	$	957,459	$	18,769	$	(2,914)	$	—	$	973,314

Information Pertaining to Investment Securities Aggregated by Investment Category and Length of Time that Individual Securities in a Continuous Loss Position

Investment Portfolio - Unrealized Losses

(dollars in thousands, unaudited)

	June 30, 2022
	Less than twelve months				Twelve months or more				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Available-for-sale
U.S. government agencies	$	(19)	$	981	$	—	$	—	$	(19)	$	981
Mortgage-backed securities		(8,941)		176,718		(48)		853		(8,989)		177,571
State and political subdivisions		(31,960)		221,848		—		—		(31,960)		221,848
Corporate bonds		(3,179)		43,562		—		—		(3,179)		43,562
Collateralized loan obligations		(16,439)		380,324		—		—		(16,439)		380,324
Total available-for-sale	$	(60,538)	$	823,433	$	(48)	$	853	$	(60,586)	$	824,286
	June 30, 2022
	Less than twelve months				Twelve months or more				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Held-to-maturity
U.S. government agencies	$	(346)	$	6,416	$	—	$	—	$	(346)	$	6,416
Mortgage-backed securities		(8,006)		95,882		—		—		(8,006)		95,882
State and political subdivisions		(5,943)		41,148		—		—		(5,943)		41,148
Total held-to-maturity	$	(14,295)	$	143,446	$	—	$	—	$	(14,295)	$	143,446

	December 31, 2021
	Less than twelve months				Twelve months or more				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
Available-for-sale
U.S. government agencies	$	—	$	—	$	—	$	—	$	—	$	—
Mortgage-backed securities		(1,797)		107,026		(160)		2,808		(1,957)		109,834
State and political subdivisions		(268)		30,170		—		—		(268)		30,170
Corporate bonds		(1)		499		—		—		(1)		499
Collateralized loan obligations		(688)		175,581		—		—		(688)		175,581
Total available-for-sale	$	(2,754)	$	313,276	$	(160)	$	2,808	$	(2,914)	$	316,084

Realized Gain (Loss) on Investments

The table below summarizes the Company’s gross realized gains and losses as well as gross proceeds from the sales of securities, for the periods indicated:

Investment Portfolio - Realized Gains/(Losses)

(dollars in thousands, unaudited)

	Three months ended June 30,					Six months ended June 30,
	2022		2021		2022		2021
Proceeds from sales, calls and maturities of securities available for sale	$	1,750	$	2,295	$	30,531	$	4,000
Gross gains on sales, calls and maturities of securities available for sale		—		—		1,032		—
Gross losses on sales, calls and maturities of securities available for sale		—		—		—		—
Net gains on sale of securities available for sale	$	—	$	—	$	1,032	$	—

Investments Classified by Contractual Maturity Date

Estimated Fair Value of Contractual Maturities

(dollars in thousands, unaudited)

	June 30, 2022
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within one year	$	3,008	$	3,014	$	1,225	$	1,227
Maturing after one year through five years		8,376		8,267		1,880		1,850
Maturing after five years through ten years		71,878		68,281		17,096		15,925
Maturing after ten years		251,829		220,579		37,327		32,263
Securities not due at a single maturity date:
Mortgage-backed securities		192,684		183,713		103,889		95,882
Collateralized loan obligations		396,763		380,324		—		—
	$	924,538	$	864,178	$	161,417	$	147,147

	December 31, 2021
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturing within one year	$	3,513	$	3,547	$	—	$	—
Maturing after one year through five years		26,422		26,718		—		—
Maturing after five years through ten years		36,840		38,314		—		—
Maturing after ten years		253,936		265,792		—		—
Securities not due at a single maturity date:						—		—
Mortgage-backed securities		303,912		306,727		—		—
Collateralized loan obligations		332,836		332,216		—		—
	$	957,459	$	973,314	$	—	$	—

Summary of Amortized Cost and Fair Values of General Obligation and Revenue Bonds

The following table summarizes the amortized cost and fair values of general obligation and revenue bonds in the Company’s investment securities portfolio at the indicated dates, identifying the state in which the issuing municipality or agency operates for our largest geographic concentrations:

Revenue and General Obligation Bonds by Location

(dollars in thousands, unaudited)

	June 30, 2022				December 31, 2021
	Amortized		Fair Market		Amortized		Fair Market
General obligation bonds	Cost		Value		Cost		Value
State of issuance
Texas	$	114,615	$	100,728	$	85,045	$	89,225
California		64,337		56,481		64,092		67,066
Washington		20,724		19,476		23,858		24,812
Other (27 & 26 states, respectively)		91,855		82,271		75,037		78,579
Total general obligation bonds		291,531		258,956		248,032		259,682
Revenue bonds
State of issuance
Texas		5,739		5,118		7,038		7,377
California		3,997		3,616		4,334		4,602
Washington		4,103		3,502		1,349		1,392
Other (17 & 15 states, respectively)		32,047		28,545		29,976		31,215
Total revenue bonds		45,886		40,781		42,697		44,586
Total obligations of states and political subdivisions	$	337,417	$	299,737	$	290,729	$	304,268

The revenue bonds in the Company’s investment securities portfolios were issued by government municipalities and agencies to fund public services such as utilities (water, sewer, and power), educational facilities, and general public and

economic improvements. The primary sources of revenue for these bonds are delineated in the table below, which shows the amortized cost and fair market values for the largest revenue concentrations as of the indicated dates.

Revenue Bonds by Type

(dollars in thousands, unaudited)

	June 30, 2022				December 31, 2021
	Amortized		Fair Market		Amortized		Fair Market
Revenue bonds	Cost		Value		Cost		Value
Revenue source:
Water	$	17,120	$	15,112	$	15,534	$	16,220
Sewer		6,107		5,356		3,932		4,165
Lease		4,665		4,341		6,556		6,718
Sales tax revenue		3,559		3,067		—		—
Intergovernmental agreement		2,838		2,680		—		—
Other (9 and 9 sources, respectively)		11,597		10,225		16,675		17,483
Total revenue bonds	$	45,886	$	40,781	$	42,697	$	44,586