XML 33 R24.htm IDEA: XBRL DOCUMENT v3.22.2.2
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2022
Investments Debt And Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of September 30, 2022, and December 31, 2021, were as follows:

 

(dollars in thousands)

 

Amortized

Cost

 

 

Gross

Unrealized

Gains

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

259,692

 

 

$

885

 

 

$

(16,224

)

 

$

244,353

 

Debt Securities Issued by States and Political Subdivisions

 

 

74,057

 

 

 

—

 

 

 

(12,995

)

 

 

61,062

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

1,758

 

 

 

—

 

 

 

(140

)

 

 

1,618

 

Debt Securities Issued by Corporations

 

 

430,809

 

 

 

—

 

 

 

(60,091

)

 

 

370,718

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

864,919

 

 

 

305

 

 

 

(89,537

)

 

 

775,687

 

Residential - U.S. Government-Sponsored Enterprises

 

 

949,497

 

 

 

2

 

 

 

(129,814

)

 

 

819,685

 

Commercial - Government Agencies or Sponsored Agencies

 

 

171,632

 

 

 

—

 

 

 

(20,147

)

 

 

151,485

 

Total Mortgage-Backed Securities

 

 

1,986,048

 

 

 

307

 

 

 

(239,498

)

 

 

1,746,857

 

Total

 

$

2,752,364

 

 

$

1,192

 

 

$

(328,948

)

 

$

2,424,608

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

131,587

 

 

$

—

 

 

$

(19,180

)

 

$

112,407

 

Debt Securities Issued by Corporations

 

 

17,845

 

 

 

—

 

 

 

(2,522

)

 

 

15,323

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,900,988

 

 

 

19

 

 

 

(276,868

)

 

 

1,624,139

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,958,051

 

 

 

12

 

 

 

(411,442

)

 

 

2,546,621

 

Commercial - Government Agencies or Sponsored Agencies

 

 

452,689

 

 

 

—

 

 

 

(83,105

)

 

 

369,584

 

Total Mortgage-Backed Securities

 

 

5,311,728

 

 

 

31

 

 

 

(771,415

)

 

 

4,540,344

 

Total

 

$

5,461,160

 

 

$

31

 

 

$

(793,117

)

 

$

4,668,074

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

248,858

 

 

$

1,513

 

 

$

(284

)

 

$

250,087

 

Debt Securities Issued by States and Political Subdivisions

 

 

74,743

 

 

 

1,080

 

 

 

(5

)

 

 

75,818

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

1,758

 

 

 

33

 

 

 

(11

)

 

 

1,780

 

Debt Securities Issued by Corporations

 

 

384,590

 

 

 

2,339

 

 

 

(3,816

)

 

 

383,113

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,327,990

 

 

 

9,818

 

 

 

(18,766

)

 

 

1,319,042

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,127,781

 

 

 

4,792

 

 

 

(42,247

)

 

 

2,090,326

 

Commercial - Government Agencies or Sponsored Agencies

 

 

155,164

 

 

 

1,885

 

 

 

(1,159

)

 

 

155,890

 

Total Mortgage-Backed Securities

 

 

3,610,935

 

 

 

16,495

 

 

 

(62,172

)

 

 

3,565,258

 

Total

 

$

4,320,884

 

 

$

21,460

 

 

$

(66,288

)

 

$

4,276,056

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

131,495

 

 

$

287

 

 

$

(643

)

 

$

131,139

 

Debt Securities Issued by Corporations

 

 

20,316

 

 

 

76

 

 

 

(249

)

 

 

20,143

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,774,394

 

 

 

12,139

 

 

 

(30,621

)

 

 

1,755,912

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,286,880

 

 

 

15,508

 

 

 

(32,627

)

 

 

2,269,761

 

Commercial - Government Agencies or Sponsored Agencies

 

 

481,695

 

 

 

324

 

 

 

(12,355

)

 

 

469,664

 

Total Mortgage-Backed Securities

 

 

4,542,969

 

 

 

27,971

 

 

 

(75,603

)

 

 

4,495,337

 

Total

 

$

4,694,780

 

 

$

28,334

 

 

$

(76,495

)

 

$

4,646,619

 

 
Analysis of the Contractual Maturities of Investment Securities

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of September 30, 2022.  Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

 

(dollars in thousands)

 

Amortized

Cost

 

 

Fair Value

 

Available-for-Sale:

 

 

 

 

 

 

 

 

Due in One Year or Less

 

$

433

 

 

$

429

 

Due After One Year Through Five Years

 

 

277,971

 

 

 

255,858

 

Due After Five Years Through Ten Years

 

 

371,893

 

 

 

307,504

 

Due After Ten Years

 

 

13,130

 

 

 

10,251

 

 

 

 

663,427

 

 

 

574,042

 

Debt Securities Issued by Government Agencies

 

 

102,889

 

 

 

103,709

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

864,919

 

 

 

775,687

 

Residential - U.S. Government-Sponsored Enterprises

 

 

949,497

 

 

 

819,685

 

Commercial - Government Agencies or Sponsored Agencies

 

 

171,632

 

 

 

151,485

 

Total Mortgage-Backed Securities

 

 

1,986,048

 

 

 

1,746,857

 

Total

 

$

2,752,364

 

 

$

2,424,608

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

Due After One Year Through Five Years

 

 

14,260

 

 

 

13,208

 

Due After Five Year Through Ten Years

 

 

124,087

 

 

 

105,737

 

Due After Ten Years

 

 

11,085

 

 

 

8,785

 

 

 

 

149,432

 

 

 

127,730

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,900,988

 

 

 

1,624,139

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,958,051

 

 

 

2,546,621

 

Commercial - Government Agencies or Sponsored Agencies

 

 

452,689

 

 

 

369,584

 

Total Mortgage-Backed Securities

 

 

5,311,728

 

 

 

4,540,344

 

Total

 

$

5,461,160

 

 

$

4,668,074

 

 
Schedule of Losses on Sales of Investment Securities

The table below presents the losses from the sales of investment securities for the three and nine months ended September 30, 2022, and September 30, 2021:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Gross Gains on Sales of Investment Securities

 

$

—

 

 

$

110

 

 

$

—

 

 

$

3,785

 

Gross Losses on Sales of Investment Securities

 

 

(2,147

)

 

 

(1,369

)

 

 

(4,987

)

 

 

(3,824

)

Net Losses on Sales of Investment Securities

 

$

(2,147

)

 

$

(1,259

)

 

$

(4,987

)

 

$

(39

)

 
Schedule of AFS Debt Securities in an Unrealized Loss Position

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

(dollars in thousands)

 

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

 

Gross

Unrealized

Losses

 

 

Fair Value

 

 

Gross

Unrealized

Losses

 

September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury

   and Government Agencies

 

$

124,896

 

 

$

(12,517

)

 

$

28,316

 

 

$

(3,707

)

 

$

153,212

 

 

$

(16,224

)

Debt Securities Issued by States

   and Political Subdivisions

 

 

60,528

 

 

 

(12,952

)

 

 

434

 

 

 

(43

)

 

 

60,962

 

 

 

(12,995

)

Debt Securities Issued by U.S. Government-

   Sponsored Enterprises

 

 

1,011

 

 

 

(72

)

 

 

606

 

 

 

(68

)

 

 

1,617

 

 

 

(140

)

Debt Securities Issued by Corporations

 

 

125,121

 

 

 

(13,518

)

 

 

245,598

 

 

 

(46,573

)

 

 

370,719

 

 

 

(60,091

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

528,883

 

 

 

(40,230

)

 

 

235,024

 

 

 

(49,307

)

 

 

763,907

 

 

 

(89,537

)

Residential - U.S. Government-Sponsored

   Enterprises

 

 

393,814

 

 

 

(51,047

)

 

 

424,086

 

 

 

(78,767

)

 

 

817,900

 

 

 

(129,814

)

Commercial-Government Agencies or Sponsored Agencies

 

 

117,478

 

 

 

(13,776

)

 

 

34,007

 

 

 

(6,371

)

 

 

151,485

 

 

 

(20,147

)

Total Mortgage-Backed Securities

 

 

1,040,175

 

 

 

(105,053

)

 

 

693,117

 

 

 

(134,445

)

 

 

1,733,292

 

 

 

(239,498

)

Total

 

$

1,351,731

 

 

$

(144,112

)

 

$

968,071

 

 

$

(184,836

)

 

$

2,319,802

 

 

$

(328,948

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury

   and Government Agencies

 

$

51,455

 

 

$

(195

)

 

$

9,995

 

 

$

(89

)

 

$

61,450

 

 

$

(284

)

Debt Securities Issued by States

   and Political Subdivisions

 

 

643

 

 

 

(5

)

 

 

—

 

 

 

—

 

 

 

643

 

 

 

(5

)

Debt Securities Issued by U.S. Government-

   Sponsored Enterprises

 

 

814

 

 

 

(10

)

 

 

49

 

 

 

(1

)

 

 

863

 

 

 

(11

)

Debt Securities Issued by Corporations

 

 

249,629

 

 

 

(2,846

)

 

 

64,029

 

 

 

(970

)

 

 

313,658

 

 

 

(3,816

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

810,157

 

 

 

(17,131

)

 

 

41,471

 

 

 

(1,635

)

 

 

851,628

 

 

 

(18,766

)

Residential - U.S. Government-Sponsored Enterprises

 

 

1,670,500

 

 

 

(35,711

)

 

 

180,205

 

 

 

(6,536

)

 

 

1,850,705

 

 

 

(42,247

)

Commercial - Government Agencies or Sponsored Agencies

 

 

25,664

 

 

 

(223

)

 

 

21,810

 

 

 

(936

)

 

 

47,474

 

 

 

(1,159

)

Total Mortgage-Backed Securities

 

 

2,506,321

 

 

 

(53,065

)

 

 

243,486

 

 

 

(9,107

)

 

 

2,749,807

 

 

 

(62,172

)

Total

 

$

2,808,862

 

 

$

(56,121

)

 

$

317,559

 

 

$

(10,167

)

 

$

3,126,421

 

 

$

(66,288

)

 
Schedule of Interest Income from Taxable and Non-taxable Investment Securities

Interest income from taxable and non-taxable investment securities for the three and nine months ended September 30, 2022, and September 30, 2021, were as follows:

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Taxable

 

$

37,231

 

 

$

32,889

 

 

$

109,830

 

 

$

91,510

 

Non-Taxable

 

 

7

 

 

 

261

 

 

 

31

 

 

 

820

 

Total Interest Income from Investment Securities

 

$

37,238

 

 

$

33,150

 

 

$

109,861

 

 

$

92,330

 

 
Schedule of Carrying Value of Federal Home Loan Bank of Des Moines Stock and Federal Reserve Bank Stock

As of September 30, 2022, and December 31, 2021, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

 

(dollars in thousands)

 

September 30,

2022

 

 

December 31,

2021

 

Federal Home Loan Bank of Des Moines Stock

 

$

10,000

 

 

$

10,000

 

Federal Reserve Bank Stock

 

 

26,959

 

 

 

26,624

 

Total

 

$

36,959

 

 

$

36,624