Securities

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Securities

Note 3—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale and securities held-to-maturity as of the dates shown and the corresponding amounts of gross unrealized gains and losses:

June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	32,721	$	—	$	(939	)	$	31,782
U.S. Government agencies		148,844		371		(13,696	)		135,519
Obligations of states, municipalities, and    political subdivisions		82,261		108		(4,916	)		77,453
Residential mortgage-backed securities
Agency		741,009		25		(85,572	)		655,462
Non-agency		135,928		—		(18,191	)		117,737
Commercial mortgage-backed securities
Agency		198,007		—		(24,900	)		173,107
Corporate securities		48,328		21		(2,388	)		45,961
Asset-backed securities		36,703		22		(608	)		36,117
Total	$	1,423,801	$	547	$	(151,210	)	$	1,273,138

June 30, 2022	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Held-to-maturity
Obligations of states, municipalities, and    political subdivisions	$	3,880	$	7	$	(11	)	$	3,876
Total	$	3,880	$	7	$	(11	)	$	3,876

December 31, 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

December 31, 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

The Company did not classify securities as trading during the six months ended June 30, 2022 or during 2021.

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 June 30, 2022 and December 31, 2021, are summarized as follows:

			Less than 12 Months					12 Months or Longer					Total
June 30, 2022	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Treasury Notes		6	$	31,782	$	(939	)	$	—	$	—		$	31,782	$	(939	)
U.S. Government agencies		16		45,627		(3,195	)		71,078		(10,501	)		116,705		(13,696	)
Obligations of states,    municipalities and political    subdivisions		54		57,133		(4,916	)		—		—			57,133		(4,916	)
Residential mortgage-backed    securities
Agency		95		212,418		(17,737	)		432,353		(67,835	)		644,771		(85,572	)
Non-agency		19		100,359		(14,574	)		17,377		(3,617	)		117,736		(18,191	)
Commercial mortgage-backed    securities
Agency		47		104,174		(11,233	)		62,360		(13,667	)		166,534		(24,900	)
Corporate securities		23		42,463		(2,388	)		—		—			42,463		(2,388	)
Asset-backed securities		6		31,404		(608	)		—		—			31,404		(608	)
Total		266	$	625,360	$	(55,590	)	$	583,168	$	(95,620	)	$	1,208,528	$	(151,210	)
Held-to-maturiy
Obligations of states,   municipalities, and   political subdivisions		3	$	2,088	$	(11	)	$	—	$	—		$	2,088	$	(11	)
Total		3	$	2,088	$	(11	)	$	—	$	—		$	2,088	$	(11	)

			Less than 12 Months					12 Months or Longer					Total
December 31, 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	)

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities that had an unrealized loss for other than temporary impairment and determined all declines in value to be temporary. There were 266 securities available-for-sale with unrealized losses at June 30, 2022. There were three securities held-to-maturity with unrealized losses at June 30, 2022. The Company anticipates full recovery of amortized cost with respect to these securities by maturity. 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 of securities available-for-sale, and the associated gains and losses on sales and calls of securities, for the three and six months ended June 30, 2022 and 2021 are listed below:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Proceeds	$	13,006	$	97,549	$	13,006	$	186,850
Gross gains		62		769		62		2,395
Gross losses		10		905		10		1,069

There were $52,000 in net gains on sales of securities reclassified from accumulated other comprehensive income into earnings during the three and six months ended June 30, 2022. There were $136,000 in net losses and $1.3 million in net gains reclassified from accumulated other comprehensive income into earnings for the three and six months ended June 30, 2021, respectively.

Securities posted and pledged as collateral were $378.6 million and $332.3 million at June 30, 2022 and December 31, 2021. At June 30, 2022 and December 31, 2021, of those pledged, the carrying amounts of securities pledged as collateral for public fund deposits were $297.9 million and $277.1 million, respectively, and for customer repurchase agreements of $62.5 million and $38.8 million, respectively. At June 30, 2022 and December 31, 2021, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for letters of credit and for purposes required or permitted by law. At June 30, 2022 and December 31, 2021, 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 June 30, 2022, 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. Securities not due at a single maturity date are shown separately.

	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	6,756	$	6,766
Due from one to five years		80,510		78,083
Due from five to ten years		187,727		175,797
Due after ten years		73,864		66,186
Mortgage-backed securities		1,074,944		946,306
Total	$	1,423,801	$	1,273,138
Held-to-maturity
Due in one year or less	$	1,718	$	1,720
Due from one to five years		2,162		2,156
Total	$	3,880	$	3,876