Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Securities

Note 4—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities at December 31, 2021 and 2020 and the corresponding amounts of gross unrealized gains and losses:

2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	18,447	$	37	$	(8	)	$	18,476
U.S. Government agencies		141,096		661		(2,367	)		139,390
Obligations of states, municipalities, and political    subdivisions		86,454		3,238		(56	)		89,636
Residential mortgage-backed securities
Agency		756,549		2,122		(15,015	)		743,656
Non-agency		146,499		4		(1,267	)		145,236
Commercial mortgage-backed securities
Agency		214,417		2,795		(3,661	)		213,551
Corporate securities		65,814		1,586		(54	)		67,346
Asset-backed securities		37,206		49		(4	)		37,251
Total	$	1,466,482	$	10,492	$	(22,432	)	$	1,454,542

2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political    subdivisions	$	3,885	$	107	$	—	$	3,992
Total	$	3,885	$	107	$	—	$	3,992

Note 4—Securities (continued)

2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	23,468	$	344	$	—		$	23,812
U.S. Government agencies		113,088		600		(137	)		113,551
Obligations of states, municipalities, and political    subdivisions		135,513		6,991		(85	)		142,419
Residential mortgage-backed securities
Agency		764,951		13,645		(205	)		778,391
Non-agency		32,654		332		(5	)		32,981
Commercial mortgage-backed securities
Agency		244,496		6,046		(390	)		250,152
Corporate securities		59,020		1,850		(102	)		60,768
Asset-backed securities		45,255		26		(125	)		45,156
Total	$	1,418,445	$	29,834	$	(1,049	)	$	1,447,230

2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political    subdivisions	$	4,395	$	178	$	—	$	4,573
Total	$	4,395	$	178	$	—	$	4,573

The Company did not classify securities as trading during 2021 and 2020.

The Company adopted the provisions of ASU No. 2016-01 as of January 1, 2019. The adoption of this ASU resulted in the reclassification of available-for-sale equity securities, at fair value to a separate line item on the Company’s Consolidated Statements of Financial Condition, and the reclassification of $1.4 million from other comprehensive income to retained earnings, representing the net unrealized gain, net of tax, on available-for-sale for sale equity securities at the date of adoption. At December 31, 2018, the Company held $6.6 million of equity investment securities which were reported as available-for-sale securities, at fair value, and are now reported as equity and other securities, at fair value. Additionally, the Company adopted the provisions of ASU No. 2017-12 on January 1, 2019, and elected to reclassify $94.8 million of securities held-to-maturity to securities available-for-sale, which did not impact the Consolidated Statements of Operations.

Note 4—Securities (continued)

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2021 and 2020 are summarized as follows:

			Less than 12 Months					12 Months or Longer					Total
2021	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Treasury Notes		1	$	9,946	$	(8	)	$	—	$	—		$	9,946	$	(8	)
U.S. Government agencies		10		64,585		(1,590	)		19,223		(777	)		83,808	$	(2,367	)
Obligations of states, municipalities and    political subdivisions		3		9,507		(56	)		—		—			9,507		(56	)
Residential mortgage-backed securities
Agency		51		612,280		(13,894	)		25,412		(1,121	)		637,692		(15,015	)
Non-agency		14		96,372		(1,257	)		761		(10	)		97,133		(1,267	)
Commercial mortgage-backed securities
Agency		19		64,473		(1,994	)		37,063		(1,667	)		101,536		(3,661	)
Corporate securities		3		7,502		(54	)		—		—			7,502		(54	)
Asset-backed securities		3		15,978		(4	)		—		—			15,978		(4	)
Total		104	$	880,643	$	(18,857	)	$	82,459	$	(3,575	)	$	963,102	$	(22,432	)

			Less than 12 Months					12 Months or Longer					Total
2020	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Government agencies		5	$	30,639	$	(137	)	$	—	$	—			30,639		(137	)
Obligations of states, municipalities    and political subdivisions		2		210		(85	)		—		—			210		(85	)
Residential mortgage-backed securities
Agency		8		45,253		(198	)		472		(7	)		45,725		(205	)
Non-agency		2		3,963		(5	)		—		—			3,963		(5	)
Commercial mortgage-backed securities
Agency		8		55,554		(390	)		—		—			55,554		(390	)
Corporate securities		6		10,916		(102	)		—		—			10,916		(102	)
Asset-backed securities		6		24,436		(99	)		4,952		(26	)		29,388		(125	)
Total		37	$	170,971	$	(1,016	)	$	5,424	$	(33	)	$	176,395	$	(1,049	)

Note 4—Securities (continued)

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities which had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 104 securities available-for-sale with unrealized losses at December 31, 2021, compared to 37 at December 31, 2020. There were no securities held-to-maturity with unrealized losses at December 31, 2021, or December 31, 2020. The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The proceeds from all sales and calls of securities were available-for-sale, and the associated gains and losses for the years ended December 31, 2021, 2020, and 2019 are listed below:

	2021		2020		2019
Proceeds	$	203,791	$	208,978	$	92,103
Gross gains		2,830		5,383		1,274
Gross losses		1,395		82		123

Securities posted as collateral at December 31, 2021 and 2020 had carrying amounts of $332.3 million and $731.8 million, respectively, of which carrying amounts of $332.3 million and $323.9 million, were pledged at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $277.1 million and $245.1 million, respectively, and for customer repurchase agreements of $38.8 million and $64.1 million, respectively. At December 31, 2021, and 2020 there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At December 31, 2021 and 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

At December 31, 2021, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	19,225	$	19,354
Due from one to five years		56,817		57,843
Due from five to ten years		207,232		208,360
Due after ten years		65,743		66,542
Mortgage and asset-backed securities		1,117,465		1,102,443
Total	$	1,466,482	$	1,454,542
Held-to-maturity
Due from one to five years	$	1,175	$	1,199
Due from five to ten years		2,710		2,793
Total	$	3,885	$	3,992