XML 20 R10.htm IDEA: XBRL DOCUMENT v3.22.2.2
Securities
 9 Months Ended
Sep. 30, 2022
Cash and Cash Equivalents [Abstract]  
Securities

Note 2 - Securities

Debt securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, allowance for credit losses and the fair value of available-for-sale securities are as follows (dollars in thousands):

 

 

 

September 30, 2022

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost Basis

 

 

Holding Gains

 

 

Holding Losses

 

 

Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

504,457

 

 

$

2

 

 

$

(27,283

)

 

$

477,176

 

Obligations of states and political subdivisions

 

 

2,368,605

 

 

 

514

 

 

 

(285,307

)

 

 

2,083,812

 

Residential mortgage-backed securities

 

 

3,153,864

 

 

 

14

 

 

 

(456,997

)

 

 

2,696,881

 

Commercial mortgage-backed securities

 

 

406,530

 

 

 

1

 

 

 

(19,185

)

 

 

387,346

 

Corporate bonds and other

 

 

113,015

 

 

 

—

 

 

 

(12,787

)

 

 

100,228

 

Total securities available-for-sale

 

$

6,546,471

 

 

$

531

 

 

$

(801,559

)

 

$

5,745,443

 

 

 

 

 

September 30, 2021

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost Basis

 

 

Holding Gains

 

 

Holding Losses

 

 

Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of states and political subdivisions

 

$

2,568,224

 

 

$

103,646

 

 

$

(6,503

)

 

$

2,665,367

 

Residential mortgage-backed securities

 

 

2,999,369

 

 

 

35,950

 

 

 

(7,170

)

 

 

3,028,149

 

Commercial mortgage-backed securities

 

 

375,614

 

 

 

13,402

 

 

 

—

 

 

 

389,016

 

Corporate bonds and other

 

 

38,167

 

 

 

70

 

 

 

(785

)

 

 

37,452

 

Total securities available-for-sale

 

$

5,981,374

 

 

$

153,068

 

 

$

(14,458

)

 

$

6,119,984

 

 

 

 

December 31, 2021

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Estimated

 

 

 

Cost Basis

 

 

Holding Gains

 

 

Holding Losses

 

 

Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

126,716

 

 

$

125

 

 

$

—

 

 

$

126,841

 

Obligations of states and political subdivisions

 

 

2,638,369

 

 

 

116,319

 

 

 

(1,217

)

 

 

2,753,471

 

Residential mortgage-backed securities

 

 

3,256,746

 

 

 

23,990

 

 

 

(21,287

)

 

 

3,259,449

 

Commercial mortgage-backed securities

 

 

356,207

 

 

 

8,914

 

 

 

(1

)

 

 

365,120

 

Corporate bonds and other

 

 

69,472

 

 

 

32

 

 

 

(1,206

)

 

 

68,298

 

Total securities available-for-sale

 

$

6,447,510

 

 

$

149,380

 

 

$

(23,711

)

 

$

6,573,179

 

 

The Company did not hold any securities classified as held-to-maturity at September 30, 2022, September 30, 2021, or December 31, 2021.

The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at September 30, 2022 and 2021, and December 31, 2021, were computed by using scheduled amortization of balances and historical prepayment rates.

The amortized cost and estimated fair value of available-for-sale securities at September 30, 2022, by contractual and expected maturity, are shown below (dollars in thousands):

 

 

 

Amortized

 

 

Estimated

 

 

 

Cost Basis

 

 

Fair Value

 

Due within one year

 

$

239,974

 

 

$

238,511

 

Due after one year through five years

 

 

2,213,010

 

 

 

2,056,408

 

Due after five years through ten years

 

 

2,394,729

 

 

 

2,051,847

 

Due after ten years

 

 

1,698,758

 

 

 

1,398,677

 

Total

 

$

6,546,471

 

 

$

5,745,443

 

 

The following tables disclose as of September 30, 2022 and 2021, and December 31, 2021, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (dollars in thousands):

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

September 30, 2022

 

Fair Value

 

 

Unrealized
Loss

 

 

Fair Value

 

 

Unrealized
Loss

 

 

Fair Value

 

 

Unrealized
Loss

 

U.S. Treasury securities

 

$

476,696

 

 

$

27,283

 

 

$

—

 

 

$

—

 

 

$

476,696

 

 

$

27,283

 

Obligations of states and political subdivisions

 

 

1,828,105

 

 

 

254,212

 

 

 

139,732

 

 

 

31,095

 

 

 

1,967,837

 

 

 

285,307

 

Residential mortgage-backed securities

 

 

1,507,121

 

 

 

231,915

 

 

 

1,187,815

 

 

 

225,082

 

 

 

2,694,936

 

 

 

456,997

 

Commercial mortgage-backed securities

 

 

386,479

 

 

 

19,185

 

 

 

—

 

 

 

—

 

 

 

386,479

 

 

 

19,185

 

Corporate bonds and other

 

 

59,782

 

 

 

4,544

 

 

 

40,446

 

 

 

8,243

 

 

 

100,228

 

 

 

12,787

 

Total

 

$

4,258,183

 

 

$

537,139

 

 

$

1,367,993

 

 

$

264,420

 

 

$

5,626,176

 

 

$

801,559

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

September 30, 2021

 

Fair Value

 

 

Unrealized
Loss

 

 

Fair Value

 

 

Unrealized
Loss

 

 

Fair Value

 

 

Unrealized
Loss

 

Obligations of states and political subdivisions

 

$

570,916

 

 

$

6,036

 

 

$

18,711

 

 

$

467

 

 

$

589,627

 

 

$

6,503

 

Residential mortgage-backed securities

 

 

1,208,129

 

 

 

7,166

 

 

 

2,051

 

 

 

4

 

 

 

1,210,180

 

 

 

7,170

 

Corporate bonds and other

 

 

32,985

 

 

 

785

 

 

 

—

 

 

 

—

 

 

 

32,985

 

 

 

785

 

Total

 

$

1,812,030

 

 

$

13,987

 

 

$

20,762

 

 

$

471

 

 

$

1,832,792

 

 

$

14,458

 

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2021

 

Fair Value

 

 

Unrealized
Loss

 

 

Fair Value

 

 

Unrealized
Loss

 

 

Fair Value

 

 

Unrealized
Loss

 

Obligations of states and political subdivisions

 

$

163,698

 

 

$

1,096

 

 

$

18,943

 

 

$

122

 

 

$

182,641

 

 

$

1,218

 

Residential mortgage-backed securities

 

 

2,263,010

 

 

 

19,742

 

 

 

54,392

 

 

 

1,544

 

 

 

2,317,402

 

 

 

21,286

 

Commercial mortgage-backed securities

 

 

820

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

820

 

 

 

1

 

Corporate bonds and other

 

 

47,436

 

 

 

635

 

 

 

16,432

 

 

 

571

 

 

 

63,868

 

 

 

1,206

 

Total

 

$

2,474,964

 

 

$

21,474

 

 

$

89,767

 

 

$

2,237

 

 

$

2,564,731

 

 

$

23,711

 

 

The number of investments in an unrealized loss position totaled 1,115 at September 30, 2022. We believe any unrealized losses in the U.S. treasury securities, obligations of state and political subdivisions, residential and commercial mortgage-backed and asset-backed investment securities, and corporate bonds and other at September 30, 2022 and 2021, and December 31, 2021, are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required on these securities at September 30, 2022 and 2021, and December 31, 2021. Unrealized losses on investment securities are expected to recover over time as these securities approach maturity. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies. At September 30, 2022, 72.44% of our available-for-sale securities that are obligations of states and political subdivisions were issued within the State of Texas, of which 55.16% are guaranteed by the Texas Permanent School Fund.

At September 30, 2022, $3,447,317,000 of the Company’s securities were pledged, at fair value, as collateral for public or trust fund deposits, repurchase agreements, borrowings and for other purposes required or permitted by law.

During the three-months ended September 30, 2022, there were $17,081,000 of sales of investment securities that were classified as available-for-sale. During the three-months ended September 30, 2021, there were calls of investment securities that were classified as available-for-sale. Gross realized security gains from sales and calls during the third quarters of 2022 and 2021 totaled $334,000 and $1,000, respectively. There were no gross realized security losses from sales or calls during the third quarter of 2022 or 2021, respectively.

During the nine-months ended September 30, 2022 and 2021, sales of investment securities that were classified as available-for-sale totaled $205,444,000 and $10,631,000, respectively. Gross realized security gains from sales and calls during the nine-months ended September 30, 2022 and 2021 totaled $4,357,000 and $814,000, respectively. Gross realized security losses from sales and calls during the nine-months ended September 30, 2022 totaled $2,344,000 with no gross realized security losses from sales or calls during the nine-months ended September 30, 2021.

The specific identification method was used to determine cost in order to compute the realized gains and losses.