XML 20 R10.htm IDEA: XBRL DOCUMENT v3.22.2.2
Securities
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
(In Thousands, Except Number of Securities)

The amortized cost and fair value of securities available for sale were as follows as of the dates presented in the tables below.

There was no allowance for credit losses allocated to any of the Company’s available for sale securities as of September 30, 2022 or December 31, 2021.
 
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
September 30, 2022
Obligations of other U.S. Government agencies and corporations$170,000 $— $(5,480)$164,520 
Obligations of states and political subdivisions155,188 88 (14,635)140,641 
Residential mortgage backed securities:
Government agency mortgage backed securities528,196 13 (59,181)469,028 
Government agency collateralized mortgage obligations626,821 — (102,823)523,998 
Commercial mortgage backed securities:
Government agency mortgage backed securities11,204 — (957)10,247 
Government agency collateralized mortgage obligations214,617 — (25,129)189,488 
Other debt securities74,888 3 (3,571)71,320 
$1,780,914 $104 $(211,776)$1,569,242 
 
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
December 31, 2021
U.S. Treasury securities$3,007 $3 $— $3,010 
Obligations of states and political subdivisions153,847 5,532 (269)159,110 
Residential mortgage backed securities:
Government agency mortgage backed securities967,497 7,854 (6,816)968,535 
Government agency collateralized mortgage obligations1,008,514 457 (20,371)988,600 
Commercial mortgage backed securities:
Government agency mortgage backed securities14,717 365 (1)15,081 
Government agency collateralized mortgage obligations216,859 812 (3,419)214,252 
Other debt securities36,515 1,097 (148)37,464 
$2,400,956 $16,120 $(31,024)$2,386,052 
The amortized cost and fair value of securities held to maturity were as follows as of the dates presented:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
September 30, 2022
Obligations of states and political subdivisions$292,769 $— $(63,602)$229,167 
Residential mortgage backed securities
Government agency mortgage backed securities499,348 — (29,278)470,070 
Government agency collateralized mortgage obligations433,407 — (27,038)406,369 
Commercial mortgage backed securities:
Government agency mortgage backed securities17,011 — (3,429)13,582 
Government agency collateralized mortgage obligations45,655 — (6,200)39,455 
Other debt securities65,344 — (5,331)60,013 
$1,353,534 $— $(134,878)$1,218,656 
Allowance for credit losses - held to maturity securities(32)
Held to maturity securities, net of allowance for credit losses$1,353,502 
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
December 31, 2021
Obligations of states and political subdivisions$267,641 $333 $(685)$267,289 
Residential mortgage backed securities
Government agency mortgage backed securities60,507 1 (198)60,310 
Government agency collateralized mortgage obligations24,832 — (92)24,740 
Commercial mortgage backed securities:
Government agency mortgage backed securities1,855 — — 1,855 
Government agency collateralized mortgage obligations39,505 — (117)39,388 
Other debt securities22,049 — (79)21,970 
$416,389 $334 $(1,171)$415,552 
Allowance for credit losses - held to maturity securities(32)
Held to maturity securities, net of allowance for credit losses$416,357 

During the third quarter, the Company transferred, at fair value, $882,927 of securities from the available for sale portfolio to the held to maturity portfolio as the Company has no intention to sell these securities. The related net unrealized loss of $99,675 (after tax losses of $74,307) remained in accumulated other comprehensive income (loss) and will be amortized over the remaining life of the securities, offsetting the related amortization of discount on the transferred securities. No gains or losses were recognized at the time of transfer.
There were no securities sold during the three and nine months ended September 30, 2022. Securities sold during the three and nine months ended September 30, 2021 were as set forth in the table below.
Carrying ValueNet ProceedsGain/(Loss)
Three months ended September 30, 2021
Residential mortgage backed securities:
Government agency mortgage backed securities$9,232 $9,739 $507 
Government agency collateralized mortgage obligations6,736 6,866 130 
Other debt securities4,283 4,410 127 
$20,251 $21,015 $764 
Nine months ended September 30, 2021
Obligations of states and political subdivisions$47 $50 $3 
Residential mortgage backed securities:
Government agency mortgage backed securities145,572 149,474 3,902 
Government agency collateralized mortgage obligations12,362 12,512 150 
Trust preferred securities12,021 9,960 (2,061)
Other debt securities4,283 4,410 127 
$174,285 $176,406 $2,121 

Gross realized gains and losses on sales of securities available for sale for the three and nine months ended September 30, 2021 were as follows:
Three Months EndedNine Months Ended
 September 30,September 30,
 20212021
Gross gains on sales of securities available for sale$825 $4,333 
Gross losses on sales of securities available for sale(61)(2,212)
Gains on sales of securities available for sale, net$764 $2,121 

At September 30, 2022 and December 31, 2021, securities with a carrying value of $804,161 and $607,681, respectively, were pledged to secure government, public and trust deposits. Securities with a carrying value of $17,472 and $21,493 were pledged as collateral for short-term borrowings and derivative instruments at September 30, 2022 and December 31, 2021, respectively.
The amortized cost and fair value of securities at September 30, 2022 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may call or prepay obligations with or without call or prepayment penalties.
 
 Held to MaturityAvailable for Sale
 Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due within one year$150 $147 $8,900 $8,864 
Due after one year through five years1,863 1,750 227,785 221,447 
Due after five years through ten years44,350 37,553 77,471 71,942 
Due after ten years246,406 189,717 75,791 65,160 
Residential mortgage backed securities:
Government agency mortgage backed securities500,348 471,070 528,196 469,028 
Government agency collateralized mortgage obligations433,407 406,369 626,821 523,998 
Commercial mortgage backed securities:
Government agency mortgage backed securities17,011 13,582 11,204 10,247 
Government agency collateralized mortgage obligations45,655 39,455 214,617 189,488 
Other debt securities64,344 59,013 10,129 9,068 
$1,353,534 $1,218,656 $1,780,914 $1,569,242 
The following tables present the age of gross unrealized losses and fair value by investment category for which an allowance for credit losses has not been recorded as of the dates presented:
 
 Less than 12 Months12 Months or MoreTotal
 #Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses
Available for Sale:
September 30, 2022
Obligations of other U.S. Government agencies and corporations5$164,520 $(5,480)—$— $— 5$164,520 $(5,480)
Obligations of states and political subdivisions95100,822 (8,433)1131,571 (6,202)106132,393 (14,635)
Residential mortgage backed securities:
Government agency mortgage backed securities104291,428 (28,600)22176,036 (30,581)126467,464 (59,181)
Government agency collateralized mortgage obligations28248,142 (39,982)24275,856 (62,841)52523,998 (102,823)
Commercial mortgage backed securities:
Government agency mortgage backed securities410,247 (957)—— — 410,247 (957)
Government agency collateralized mortgage obligations18119,176 (11,340)1170,312 (13,789)29189,488 (25,129)
Other debt securities3270,317 (3,571)—— — 3270,317 (3,571)
Total286$1,004,652 $(98,363)68$553,775 $(113,413)354$1,558,427 $(211,776)
December 31, 2021
Obligations of states and political subdivisions8$34,303 $(216)3$3,892 $(53)11$38,195 $(269)
Residential mortgage backed securities:
Government agency mortgage backed securities41727,546 (6,312)112,305 (504)42739,851 (6,816)
Government agency collateralized mortgage obligations49966,126 (20,371)—— — 49966,126 (20,371)
Commercial mortgage backed securities:
Government agency mortgage backed securities11,791 (1)1432 — 22,223 (1)
Government agency collateralized mortgage obligations21160,919 (3,072)29,005 (347)23169,924 (3,419)
Trust preferred securities—— — —— — —— — 
Other debt securities18,699 (148)—— — 18,699 (148)
Total121$1,899,384 $(30,120)7$25,634 $(904)128$1,925,018 $(31,024)
 Less than 12 Months12 Months or MoreTotal
 #Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses
Held to Maturity:
September 30, 2022
Obligations of states and political subdivisions125$212,242 $(57,474)5$16,925 $(6,128)130$229,167 $(63,602)
Residential mortgage backed securities:
Government agency mortgage backed securities48272,247 (14,993)23197,823 (14,285)71470,070 (29,278)
Government agency collateralized mortgage obligations9206,711 (12,589)9199,658 (14,449)18406,369 (27,038)
Commercial mortgage backed securities:
Government agency mortgage backed securities113,582 (3,429)—— — 113,582 (3,429)
Government agency collateralized mortgage obligations313,190 (1,522)626,265 (4,678)939,455 (6,200)
Other debt securities1060,013 (5,331)—— — 1060,013 (5,331)
Total196$777,985 $(95,338)43$440,671 $(39,540)239$1,218,656 $(134,878)
December 31, 2021
Obligations of states and political subdivisions24$62,131 $(685)—$— $— 24$62,131 $(685)
Residential mortgage backed securities:
Government agency mortgage backed securities5053,560 (181)15,354 (17)5158,914 (198)
Government agency collateralized mortgage obligations124,740 (92)—— — 124,740 (92)
Commercial mortgage backed securities:
Government agency collateralized mortgage obligations739,388 (117)—— — 739,388 (117)
Other debt securities821,972 (79)—— — 821,972 (79)
Total90$201,791 $(1,154)1$5,354 $(17)91$207,145 $(1,171)
 
The Company evaluates its investment portfolio for impairment related to credit losses on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. If the Company intends to sell the investment security or if the Company does not expect to recover the entire amortized cost basis of the security before the Company is required to sell the security or before the security’s maturity, the security is impaired and written down to fair value with all losses recognized in earnings.

The Company does not intend to sell any securities in an unrealized loss position, and it is not more likely than not that the Company will be required to sell any such security prior to the recovery of its amortized cost basis, which may be at maturity. Furthermore, even though a number of these securities have been in a continuous unrealized loss position for a period longer than twelve months, the Company is collecting principal and interest payments from the respective issuers as scheduled. Based upon its review of securities with unrealized losses as of September 30, 2022, the Company determined that all such losses resulted from factors not deemed credit related. As such, the Company did not record any impairment for the first nine months of 2022.

The allowance for credit losses on held to maturity securities was $32 at September 30, 2022 and December 31, 2021. The Company monitors the credit quality of debt securities held to maturity using bond investment grades assigned by third party ratings agencies. Updated investment grades are obtained as they become available from agencies. As of September 30, 2022, 99.99% of the amortized cost of debt securities held to maturity were rated A or higher by the ratings agencies.