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Securities
 12 Months Ended
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]  
Securities

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):

 

 

 

December 31, 2023

 

 

 

Amortized
Cost Basis

 

 

Gross
Unrealized
Holding Gains

 

 

Gross
Unrealized
Holding Losses

 

 

Estimated
Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

496,975

 

 

$

4

 

 

$

(14,745

)

 

$

482,234

 

Obligations of state and political subdivisions

 

 

1,621,405

 

 

 

934

 

 

 

(125,182

)

 

 

1,497,157

 

Residential mortgage-backed securities

 

 

2,716,968

 

 

 

7

 

 

 

(352,883

)

 

 

2,364,092

 

Commercial mortgage-backed securities

 

 

295,663

 

 

 

—

 

 

 

(11,339

)

 

 

284,324

 

Corporate bonds and other

 

 

112,670

 

 

 

—

 

 

 

(7,715

)

 

 

104,955

 

Total securities available-for-sale

 

$

5,243,681

 

 

$

945

 

 

$

(511,864

)

 

$

4,732,762

 

 

 

 

December 31, 2022

 

 

 

Amortized
Cost Basis

 

 

Gross
Unrealized
Holding Gains

 

 

Gross
Unrealized
Holding Losses

 

 

Estimated
Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

508,275

 

 

$

11

 

 

$

(25,737

)

 

$

482,549

 

Obligations of state and political subdivisions

 

 

2,104,193

 

 

 

1,217

 

 

 

(206,799

)

 

 

1,898,611

 

Residential mortgage-backed securities

 

 

3,034,120

 

 

 

8

 

 

 

(417,562

)

 

 

2,616,566

 

Commercial mortgage-backed securities

 

 

392,914

 

 

 

1

 

 

 

(18,046

)

 

 

374,869

 

Corporate bonds and other

 

 

112,846

 

 

 

—

 

 

 

(11,082

)

 

 

101,764

 

Total securities available-for-sale

 

$

6,152,348

 

 

$

1,237

 

 

$

(679,226

)

 

$

5,474,359

 

 

The Company did not hold any securities classified as held-to-maturity for the years ended December 31, 2023 and 2022.

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 December 31, 2023, 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 December 31, 2023, by contractual maturity, are shown below (in thousands):

 

 

Amortized
Cost Basis

 

 

Estimated
Fair Value

 

Due within one year

 

$

360,853

 

 

$

355,802

 

Due after one year through five years

 

 

1,399,375

 

 

 

1,308,406

 

Due after five years through ten years

 

 

2,751,006

 

 

 

2,455,882

 

Due after ten years

 

 

732,447

 

 

 

612,672

 

Total

 

$

5,243,681

 

 

$

4,732,762

 

 

The following tables disclose, as of December 31, 2023 and 2022, 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 (in thousands):

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2023

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

U.S. Treasury Securities

 

$

3,477

 

 

$

7

 

 

$

477,306

 

 

$

14,738

 

 

$

480,783

 

 

$

14,745

 

Obligations of state and political
   subdivisions

 

 

11,855

 

 

 

34

 

 

 

1,427,975

 

 

 

125,148

 

 

 

1,439,830

 

 

 

125,182

 

Residential mortgage-backed securities

 

 

1,631

 

 

 

1

 

 

 

2,361,089

 

 

 

352,882

 

 

 

2,362,720

 

 

 

352,883

 

Commercial mortgage-backed securities

 

 

—

 

 

 

—

 

 

 

284,324

 

 

 

11,339

 

 

 

284,324

 

 

 

11,339

 

Corporate bonds and other

 

 

—

 

 

 

—

 

 

 

104,955

 

 

 

7,715

 

 

 

104,955

 

 

 

7,715

 

Total

 

$

16,963

 

 

$

42

 

 

$

4,655,649

 

 

$

511,822

 

 

$

4,672,612

 

 

$

511,864

 

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2022

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

U.S. Treasury Securities

 

$

307,012

 

 

$

11,650

 

 

$

173,105

 

 

$

14,087

 

 

$

480,117

 

 

$

25,737

 

Obligations of state and political
   subdivisions

 

 

770,469

 

 

 

55,943

 

 

 

946,571

 

 

 

150,856

 

 

 

1,717,040

 

 

 

206,799

 

Residential mortgage-backed securities

 

 

470,970

 

 

 

37,065

 

 

 

2,143,869

 

 

 

380,497

 

 

 

2,614,839

 

 

 

417,562

 

Commercial mortgage-backed securities

 

 

319,303

 

 

 

11,677

 

 

 

54,862

 

 

 

6,369

 

 

 

374,165

 

 

 

18,046

 

Corporate bonds and other

 

$

41,920

 

 

$

1,698

 

 

$

59,844

 

 

$

9,384

 

 

 

101,764

 

 

 

11,082

 

Total

 

$

1,909,674

 

 

$

118,033

 

 

$

3,378,251

 

 

$

561,193

 

 

$

5,287,925

 

 

$

679,226

 

 

The number of investments in an unrealized loss position totaled 780 at December 31, 2023. Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed investment securities at December 31, 2023 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at December 31, 2023. Unrealized losses on investment securities are expected to recover over time as these securities approach maturity. Based on evaluations of impaired securities as of December 31, 2023, the Company does not intend to sell any impaired available for sale securities before fair value recovers to the current amortized cost, and it is more-likely-than-not that the Company will not be required to sell impaired securities before fair value recovers, which may be maturity. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies. At December 31, 2023 and 2022, 66.15% and 71.86%, respectively, of our available-for-sale securities that are obligations of states and political subdivisions were issued within the State of Texas, of which 56.16% and 54.77%, respectively, were guaranteed by the Texas Permanent School Fund.

Securities, carried at approximately $2,964,467,000 and $4,070,454,000 on December 31, 2023 and 2022, respectively, were pledged as collateral for public or trust fund deposits, repurchase agreements, borrowings and for other purposes required or permitted by law.

During 2023, 2022 and 2021, sales of investment securities that were classified as available-for-sale totaled $411,134,000, $479,273,000 and $10,631,000. Gross realized gains from 2023, 2022 and 2021 securities sales and calls were $1,699,000, $6,618,000 and $815,000, respectively. Gross realized losses from 2023 and 2022 securities sales and calls were $8,818,000 and $4,474,000, respectively. There were no gross realized losses from security sales and calls during 2021.

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