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Debt Securities
6 Months Ended
Jun. 30, 2022
Debt Securities  
Debt Securities

Note 3:  Debt Securities

​

The tables below provide the amortized cost, unrealized gains and losses, and fair values of debt securities summarized by major category (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of June 30, 2022

​

​

Amortized

​

Unrealized

​

Fair

​

    

Cost

    

Gross Gains

    

Gross Losses

    

Value

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

151,222

​

$

1

​

$

(4,083)

​

$

147,140

Obligations of U.S. government corporations and agencies

​

 

29,867

​

 

53

​

 

(81)

​

 

29,839

Obligations of states and political subdivisions

​

 

305,545

​

 

455

​

 

(18,388)

​

 

287,612

Asset-backed securities

​

​

490,932

​

​

—

​

​

(22,803)

​

​

468,129

Commercial mortgage-backed securities

​

​

105,584

​

​

—

​

​

(7,222)

​

​

98,362

Residential mortgage-backed securities

​

 

1,599,774

​

 

50

​

 

(158,667)

​

 

1,441,157

Corporate debt securities

​

 

293,667

​

 

49

​

 

(21,309)

​

 

272,407

Total debt securities available for sale

​

$

2,976,591

​

$

608

​

$

(232,553)

​

$

2,744,646

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt securities held to maturity

    

​

​

    

​

​

    

​

​

​

​

​

Commercial mortgage-backed securities

​

$

492,924

​

$

—

​

$

(38,687)

​

$

454,237

Residential mortgage-backed securities

​

​

460,088

​

​

—

​

​

(37,587)

​

​

422,501

Total debt securities held to maturity

​

$

953,012

​

$

—

​

$

(76,274)

​

$

876,738

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2021

​

​

Amortized

​

Unrealized

​

Fair

​

    

Cost

    

Gross Gains

    

Gross Losses

    

Value

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

166,768

​

$

41

​

$

(1,047)

​

$

165,762

Obligations of U.S. government corporations and agencies

​

 

37,579

​

 

891

​

 

—

​

 

38,470

Obligations of states and political subdivisions

​

 

300,602

​

 

7,760

​

 

(1,493)

​

 

306,869

Asset-backed securities

​

​

492,055

​

​

295

​

​

(164)

​

​

492,186

Commercial mortgage-backed securities

​

​

625,339

​

​

3,425

​

​

(13,766)

​

​

614,998

Residential mortgage-backed securities

​

 

2,095,104

​

 

8,889

​

 

(34,680)

​

 

2,069,313

Corporate debt securities

​

 

296,076

​

 

1,081

​

 

(3,504)

​

 

293,653

Total debt securities available for sale

​

$

4,013,523

​

$

22,382

​

$

(54,654)

​

$

3,981,251

​

Maturities of debt securities

​

Amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below.  Mortgages underlying mortgage-backed securities and asset-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities.  All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

As of June 30, 2022

​

    

Amortized

    

Fair

​

    

Cost

    

Value

Debt securities available for sale

​

​

​

​

​

​

Due in one year or less

​

$

191,190

​

$

189,295

Due after one year through five years

​

 

421,603

​

 

399,194

Due after five years through ten years

​

 

326,834

​

 

307,336

Due after ten years

​

 

2,036,964

​

 

1,848,821

Debt securities available for sale

​

$

2,976,591

​

$

2,744,646

​

​

​

​

​

​

​

Debt securities held to maturity

​

​

​

​

​

​

Due after one year through five years

​

 

48,232

​

 

46,533

Due after five years through ten years

​

 

66,107

​

 

61,995

Due after ten years

​

 

838,673

​

 

768,210

Debt securities held to maturity

​

$

953,012

​

$

876,738

​

Gains and losses on debt securities

​

Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended June 30, 

​

Six Months Ended June 30, 

​

    

2022

    

2021

    

2022

    

2021

Realized gains and losses on debt securities

​

​

​

​

​

​

​

​

​

​

​

​

Gross gains on debt securities

​

$

1

​

$

499

​

$

114

​

$

524

Gross (losses) on debt securities

​

​

(5)

​

​

(405)

​

​

(12)

​

​

(405)

Realized net gains (losses) on debt securities (1)

​

$

(4)

​

$

94

​

$

102

​

$

119

(1)Net gains (losses) on sales of securities reported in the unaudited Consolidated Statements of Income include sales of equity securities, excluded in this table.

​

Debt securities with carrying amounts of $685.2 million on June 30, 2022, and $708.9 million on December 31, 2021, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required.

​

Debt securities in an unrealized loss position

​

The following information pertains to debt securities with gross unrealized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of June 30, 2022

​

​

Less than 12 months

​

12 months or more

​

Total

​

​

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

​

    

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

21,976

​

$

(154)

​

$

124,094

​

$

(3,929)

​

$

146,070

​

$

(4,083)

Obligations of U.S. government corporations and agencies

​

​

17,078

​

​

(81)

​

​

—

​

​

—

​

​

17,078

​

​

(81)

Obligations of states and political subdivisions

​

​

192,737

​

​

(16,868)

​

​

11,056

​

​

(1,520)

​

​

203,793

​

​

(18,388)

Asset-backed securities

​

​

465,293

​

​

(22,632)

​

​

2,835

​

​

(171)

​

​

468,128

​

​

(22,803)

Commercial mortgage-backed securities

​

​

91,564

​

​

(6,560)

​

​

6,798

​

​

(662)

​

​

98,362

​

​

(7,222)

Residential mortgage-backed securities

​

 

1,035,112

​

 

(96,222)

​

 

399,554

​

 

(62,445)

​

 

1,434,666

​

 

(158,667)

Corporate debt securities

​

 

178,170

​

 

(14,790)

​

 

83,656

​

 

(6,519)

​

 

261,826

​

 

(21,309)

Debt securities available for sale with gross unrealized losses

​

$

2,001,930

​

$

(157,307)

​

$

627,993

​

$

(75,246)

​

$

2,629,923

​

$

(232,553)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Debt securities held to maturity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Commercial mortgage-backed securities

​

$

241,060

​

$

(19,840)

​

$

213,177

​

$

(18,847)

​

$

454,237

​

$

(38,687)

Residential mortgage-backed securities

​

​

382,897

​

​

(33,909)

​

​

39,603

​

​

(3,678)

​

​

422,500

​

​

(37,587)

Debt securities held to maturity with gross unrealized losses

​

$

623,957

​

$

(53,749)

​

$

252,780

​

$

(22,525)

​

$

876,737

​

$

(76,274)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2021

​

​

Less than 12 months

​

12 months or more

​

Total

​

​

Fair

    

Unrealized

    

Fair

    

Unrealized

    

Fair

    

Unrealized

​

    

Value

    

Losses

    

Value

    

Losses

    

Value

    

Losses

Debt securities available for sale

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury securities

​

$

163,653

​

$

(1,047)

​

$

—

​

$

—

​

$

163,653

​

$

(1,047)

Obligations of states and political subdivisions

​

​

92,680

​

​

(1,493)

​

​

—

​

​

—

​

​

92,680

​

​

(1,493)

Asset-backed securities

​

​

89,983

​

​

(164)

​

​

—

​

​

—

​

​

89,983

​

​

(164)

Commercial mortgage-backed securities

​

​

389,078

​

​

(10,186)

​

​

85,905

​

​

(3,580)

​

​

474,983

​

​

(13,766)

Residential mortgage-backed securities

​

 

1,700,187

​

 

(33,453)

​

 

20,538

​

 

(1,227)

​

 

1,720,725

​

 

(34,680)

Corporate debt securities

​

 

241,153

​

 

(3,504)

​

 

—

​

 

—

​

 

241,153

​

 

(3,504)

Debt securities available for sale with gross unrealized losses

​

$

2,676,734

​

$

(49,847)

​

$

106,443

​

$

(4,807)

​

$

2,783,177

​

$

(54,654)

​

Additional information about debt securities in an unrealized loss position is presented in the tables below (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of June 30, 2022

​

​

    

Available for Sale

    

Held to Maturity

    

Total

​

Debt securities with gross unrealized losses, fair value

​

$

2,629,923

​

$

876,737

​

$

3,506,660

​

Gross unrealized losses on debt securities

​

$

232,553

​

$

76,274

​

$

308,827

​

Ratio of gross unrealized losses to debt securities with gross unrealized losses

​

​

8.8

%

​

8.7

%

​

8.8

%

​

​

​

​

​

​

​

​

​

​

​

Count of debt securities

​

​

1,177

​

​

55

​

​

1,232

​

Count of debt securities in an unrealized loss position

​

​

881

​

​

55

​

​

936

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2021

​

​

    

Available for Sale

    

Held to Maturity

    

Total

​

Debt securities with gross unrealized losses, fair value

​

$

2,783,177

​

$

—

​

$

2,783,177

​

Gross unrealized losses on debt securities

​

$

54,654

​

$

—

​

$

54,654

​

Ratio of gross unrealized losses to debt securities with gross unrealized losses

​

​

2.0

%

​

—

​

​

2.0

%

​

​

​

​

​

​

​

​

​

​

​

Count of debt securities

​

​

1,252

​

​

—

​

​

1,252

​

Count of debt securities in an unrealized loss position

​

​

373

​

​

—

​

​

373

​

​

Unrealized losses were related to changes in market interest rates and market conditions that do not represent credit-related impairments.  The Company does not intend to sell securities that are in an unrealized loss position, and it is more likely than not that the Company will recover the amortized cost prior to being required to sell the debt securities.  Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, no ACL was recorded in relation to debt securities, and the impairment related to noncredit factors is recognized in AOCI, net of applicable taxes.  As of June 30, 2022, the Company did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of the Company’s stockholders’ equity.