XML 38 R28.htm IDEA: XBRL DOCUMENT v3.22.2.2
Investments (Tables)
9 Months Ended
Sep. 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)

September 30, 2022

    

Amortized
Cost

    

Gross
Unrealized
Gains

    

Gross
Unrealized
Losses

Allowance for Credit Losses

    

Estimated Fair
Value

Available-for-sale

U.S. government agencies

$

4,000

$

$

(45)

$

$

3,955

Mortgage-backed securities

202,882

(11,860)

191,022

State and political subdivisions

363,790

53

(43,114)

320,729

Corporate bonds

59,768

(5,432)

54,336

Collateralized loan obligations

514,701

119

(15,428)

499,392

Total available-for-sale securities

$

1,145,141

$

172

$

(75,879)

$

$

1,069,434

Amortized
Cost

    

Gross
Unrecognized
Gains

    

Gross
Unrecognized
Losses

Estimated Fair
Value

    

Allowance for Credit Losses

Held-to-maturity

U.S. government agencies

$

6,113

$

$

(669)

$

5,444

$

Mortgage-backed securities

100,792

(9,941)

90,851

State and political subdivisions

49,324

11

(6,946)

42,389

(18)

Total held-to-maturity securities

$

156,229

$

11

$

(17,556)

$

138,684

$

(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

The following table summarizes available-for-sale debt securities that were in an unrealized loss position for which an ACL has not been recorded, based on the length of time the individual securities have been in an unrealized loss position, including the number of available-for-sale debt securities in an unrealized loss position, as of the dates indicated below.

Investment Portfolio - Unrealized Losses

(dollars in thousands, unaudited)

September 30, 2022

Less than twelve months

Twelve months or more

Total

Number of Securities

    

Gross
Unrealized
Losses

    

Fair Value

    

Gross
Unrealized
Losses

    

Fair Value

    

Gross
Unrealized
Losses

    

Fair Value

Available-for-sale

U.S. government agencies

2

$

(45)

$

3,955

$

$

$

(45)

$

3,955

Mortgage-backed securities

371

(11,696)

189,031

(164)

1,924

(11,860)

190,955

State and political subdivisions

399

(38,127)

286,459

(4,987)

13,878

(43,114)

300,337

Corporate bonds

51

(5,432)

54,336

(5,432)

54,336

Collateralized loan obligations

58

(15,200)

447,465

(228)

8,071

(15,428)

455,536

Total available-for-sale

881

$

(70,500)

$

981,246

$

(5,379)

$

23,873

$

(75,879)

$

1,005,119

December 31, 2021

Less than twelve months

Twelve months or more

Total

Number of Securities

    

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

46

(1,797)

107,026

(160)

2,808

(1,957)

109,834

State and political subdivisions

29

(268)

30,170

(268)

30,170

Corporate bonds

1

(1)

499

(1)

499

Collateralized loan obligations

22

(688)

175,581

(688)

175,581

Total available-for-sale

98

$

(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 September 30,

Nine months ended September 30,

    

2022

    

2021

2022

2021

Proceeds from sales, calls and maturities of securities available for sale

$

3,540

$

1,948

$

34,071

$

5,948

Gross gains on sales, calls and maturities of securities available for sale

11

1,032

11

Gross losses on sales, calls and maturities of securities available for sale

Net gains on sale of securities available for sale

$

$

11

$

1,032

$

11

Investments Classified by Contractual Maturity Date

Estimated Fair Value of Contractual Maturities

(dollars in thousands, unaudited)

September 30, 2022

Available-for-Sale

Held-to-Maturity

    

Amortized Cost

    

Fair Value

    

Amortized Cost

    

Fair Value

Maturing within one year

$

908

$

908

$

675

$

667

Maturing after one year through five years

14,313

14,132

2,133

2,091

Maturing after five years through ten years

81,497

75,441

18,729

16,869

Maturing after ten years

330,840

288,539

33,900

28,207

Securities not due at a single maturity date:

Mortgage-backed securities

202,882

191,022

100,792

90,850

Collateralized loan obligations

514,701

499,392

$

1,145,141

$

1,069,434

$

156,229

$

138,684

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)

September 30, 2022

December 31, 2021

Amortized

Fair Market

Amortized

Fair Market

General obligation bonds

    

Cost

    

Value

    

Cost

    

Value

State of issuance

Texas

$

159,391

$

139,498

$

85,045

$

89,225

California

67,310

58,161

64,092

67,066

Washington

22,417

20,670

23,858

24,812

Other (29 & 26 states, respectively)

107,784

95,355

75,037

78,579

Total general obligation bonds

356,902

313,684

248,032

259,682

Revenue bonds

State of issuance

Texas

9,496

8,460

7,038

7,377

California

3,994

3,613

1,349

1,392

Washington

4,093

3,387

4,334

4,602

Other (20 & 15 states, respectively)

38,629

33,974

29,976

31,215

Total revenue bonds

56,212

49,434

42,697

44,586

Total obligations of states and political subdivisions

$

413,114

$

363,118

$

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)

September 30, 2022

December 31, 2021

Amortized

Fair Market

Amortized

Fair Market

Revenue bonds

    

Cost

    

Value

    

Cost

    

Value

Revenue source:

Water

$

22,741

$

20,064

$

15,534

$

16,220

Lease

7,511

6,907

6,556

6,718

Sewer

7,091

6,144

3,932

4,165

Sales tax revenue

4,329

3,803

Intergovernmental agreement

2,836

2,600

Other (10 and 9 sources, respectively)

11,704

9,916

16,675

17,483

Total revenue bonds

$

56,212

$

49,434

$

42,697

$

44,586