XML 28 R11.htm IDEA: XBRL DOCUMENT v3.23.2
Investment Securities
 6 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment securities:
The following tables summarize the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss at June 30, 2023 and December 31, 2022:  
June 30, 2023
 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value
Investment Securities    
Available-for-sale debt securities  
U.S. government agency securities$45,185 $— $(4,656)$— $40,529 
Mortgage-backed securities - residential1,165,901 — (186,501)— 979,400 
Mortgage-backed securities - commercial 18,747 — (1,493)— 17,254 
Municipal securities294,032 387 (27,322)— 267,097 
U.S. Treasury securities113,508 — (5,287)— 108,221 
Corporate securities8,000 — (1,141)— 6,859 
Total$1,645,373 $387 $(226,400)$— $1,419,360 
December 31, 2022
 Amortized costGross unrealized gains Gross unrealized losses Allowance for credit losses for investmentsFair Value
Investment Securities    
Available-for-sale debt securities    
U.S. government agency securities$45,167 $— $(5,105)$— $40,062 
Mortgage-backed securities - residential1,224,522 — (190,329)— 1,034,193 
Mortgage-backed securities - commercial19,209 — (1,565)— 17,644 
Municipal securities295,375 458 (31,413)— 264,420 
U.S. Treasury securities113,301 — (5,621)— 107,680 
Corporate securities8,000 — (813)— 7,187 
Total$1,705,574 $458 $(234,846)$— $1,471,186 
The components of amortized cost for debt securities on the consolidated balance sheets excludes accrued interest receivable since the Company elected to present accrued interest receivable separately on the consolidated balance sheets. As of June 30, 2023 and December 31, 2022, total accrued interest receivable on debt securities was $5,358 and $5,470, respectively.
Securities pledged at June 30, 2023 and December 31, 2022 had carrying amounts of $1,138,262 and $1,191,021, respectively, and were pledged to secure a Federal Reserve Bank line of credit, public deposits and repurchase agreements.
There were no holdings of debt securities of any one issuer, other than U.S. Government sponsored enterprises, in an amount greater than 10% of shareholders' equity during any period presented.
Investment securities transactions are recorded as of the trade date. At June 30, 2023 and December 31, 2022, there were no trade date receivables or payables that related to sales or purchases settled after period end.

 
The amortized cost and fair value of debt securities by contractual maturity as of June 30, 2023 and December 31, 2022 are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgage underlying the security may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following summary.
June 30,December 31,
 2023 2022 
 Available-for-saleAvailable-for-sale
 Amortized costFair valueAmortized costFair value
Due in one year or less$66,285 $64,880 $4,277 $4,225 
Due in one to five years106,548 98,449 161,556 152,181 
Due in five to ten years60,725 57,675 61,290 57,859 
Due in over ten years227,167 201,702 234,720 205,084 
460,725 422,706 461,843 419,349 
Mortgage-backed securities - residential1,165,901 979,400 1,224,522 1,034,193 
Mortgage-backed securities - commercial18,747 17,254 19,209 17,644 
Total debt securities$1,645,373 $1,419,360 $1,705,574 $1,471,186 
Sales and other dispositions of available-for-sale securities were as follows:
 Three Months Ended June 30,Six Months Ended June 30,
 2023 2022 2023 2022 
Proceeds from sales$— $1,218 $— $1,218 
Proceeds from maturities, prepayments and calls31,588 68,906 58,415 126,349 
Gross realized gains— 1 — 3 
Gross realized losses— — — — 
The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
June 30, 2023
 Less than 12 months12 months or moreTotal
 Fair ValueUnrealized Loss Fair ValueUnrealized Loss Fair ValueUnrealized Loss
U.S. government agency securities$956 $(11)$39,573 $(4,645)$40,529 $(4,656)
Mortgage-backed securities - residential43,118 (2,190)936,282 (184,311)979,400 (186,501)
Mortgage-backed securities - commercial— — 17,254 (1,493)17,254 (1,493)
Municipal securities53,700 (767)179,210 (26,555)232,910 (27,322)
U.S. Treasury securities249 (1)107,972 (5,286)108,221 (5,287)
Corporate securities— — 6,859 (1,141)6,859 (1,141)
Total$98,023 $(2,969)$1,287,150 $(223,431)$1,385,173 $(226,400)
 December 31, 2022
 Less than 12 months12 months or moreTotal
 Fair ValueUnrealized Loss Fair ValueUnrealized Loss Fair ValueUnrealized loss
U.S. government agency securities$23,791 $(2,802)$16,271 $(2,303)$40,062 $(5,105)
Mortgage-backed securities - residential316,656 (32,470)717,537 (157,859)1,034,193 (190,329)
Mortgage-backed securities - commercial11,104 (968)6,540 (597)17,644 (1,565)
Municipal securities196,419 (26,811)36,726 (4,602)233,145 (31,413)
U.S. Treasury securities94,248 (4,122)13,432 (1,499)107,680 (5,621)
Corporate securities4,008 (492)3,179 (321)7,187 (813)
Total$646,226 $(67,665)$793,685 $(167,181)$1,439,911 $(234,846)
As of June 30, 2023 and December 31, 2022, the Company’s debt securities portfolio consisted of 505 and 503 securities, 452 and 454 of which were in an unrealized loss position, respectively.
During the three months ended June 30, 2023, the Company's available-for-sale debt securities portfolio net unrealized value decreased $18,748 to a net unrealized loss position of $226,013 from a net unrealized loss position of $207,265 as of March 31, 2023. During the six months ended June 30, 2023, the Company's available-for-sale debt securities portfolio net unrealized value increased $8,375 from a net unrealized loss position of $234,388 as of December 31, 2022.
During the three months ended June 30, 2022, the Company's available-for-sale debt securities portfolio net unrealized value declined $66,577 to a net unrealized loss position of $167,510 as of June 30, 2022 from a net unrealized loss position of $100,933 as of March 31, 2022. During the six months ended June 30, 2022, the Company's available-for-sale debt securities portfolio net unrealized value declined $172,237 from a net unrealized gain position of $4,727 as of December 31, 2021.
The majority of the investment portfolio was either government guaranteed, an issuance of a government sponsored entity or highly rated by major credit rating agencies and the Company has historically not recorded any losses associated with these investments. Municipal securities with market values below amortized cost at June 30, 2023 were reviewed for material credit events and/or rating downgrades with individual credit reviews performed. The issuers of these debt securities continue to make timely principal and interest payments under the contractual terms of the securities and the issuers will continue to be observed as a part of the Company’s ongoing credit monitoring. As such, as of June 30, 2023 and December 31, 2022, it was determined that all available-for-sale debt securities that experienced a decline in fair value below amortized cost basis were due to noncredit-related factors. Further, it is not likely that the Company will be required to sell the securities before recovery of their amortized cost basis. Therefore, there was no provision for credit losses recognized on available-for-sale debt securities during the three and six months ended June 30, 2023 or 2022.
Equity Securities
As of June 30, 2023 and December 31, 2022, the Company had $3,031 and $2,990, in marketable equity securities recorded at fair value, respectively. The Company had equity securities without readily determinable market value included in other assets on the consolidated balance sheets with carrying amounts of $23,896 and $22,496 at June 30, 2023 and December 31, 2022, respectively. Additionally, the Company had $40,266 and $58,641 of Federal Home Loan Bank stock carried at cost at June 30, 2023 and December 31, 2022, respectively, included separately from the other equity securities discussed above.
The change in the fair value of equity securities and sale of equity securities with readily determinable fair values resulted in a net loss of $28 and of $110 for the three months ended June 30, 2023 and 2022, respectively, and in a net gain of $41 and a net loss of $264 for the six months ended June 30, 2023 and 2022, respectively.