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Investments
 3 Months Ended
Mar. 31, 2021
Investments [Abstract]  
Investments INVESTMENTS
The amortized cost and fair value of investment securities at March 31, 2021 and December 31, 2020, were as follows:
March 31, 2021
(Dollars in thousands)Amortized costGross
unrealized
gains		Gross unrealized
losses		Fair
value
Investment securities available for sale
Government agency$852,305 $784 $6,403 $846,686 
Residential mortgage-backed securities4,736,893 47,742 26,046 4,758,589 
Commercial mortgage-backed securities1,096,259 14,619 11,891 1,098,987 
Corporate bonds585,095 18,313 548 602,860 
Total investment securities available for sale$7,270,552 $81,458 $44,888 $7,307,122 
Investment in marketable equity securities84,297 22,872 283 106,886 
Investment securities held to maturity
Residential mortgage-backed securities 1,740,314 5,191 20,510 1,724,995 
Commercial mortgage-backed securities 1,065,778 13 17,811 1,047,980 
Other2,007 — — 2,007 
Total investment securities held to maturity2,808,099 5,204 38,321 2,774,982 
Total investment securities$10,162,948 $109,534 $83,492 $10,188,990 
December 31, 2020
(Dollars in thousands)Amortized costGross
unrealized
gains		Gross unrealized
losses		Fair
value
Investment securities available for sale
U.S. Treasury$499,832 $101 $— $499,933 
Government agency706,241 723 5,573 701,391 
Residential mortgage-backed securities4,369,130 70,283 1,310 4,438,103 
Commercial mortgage-backed securities745,892 25,645 — 771,537 
Corporate bonds590,870 14,437 2,028 603,279 
Total investment securities available for sale$6,911,965 $111,189 $8,911 $7,014,243 
Investment in marketable equity securities84,837 8,654 1,811 91,680 
Investment securities held to maturity
Residential mortgage-backed securities 1,877,692 17,689 — 1,895,381 
Commercial mortgage-backed securities 937,034 3,884 56 940,862 
Other2,256 — — 2,256 
Total investment securities held to maturity2,816,982 21,573 56 2,838,499 
Total investment securities$9,813,784 $141,416 $10,778 $9,944,422 
On November 1, 2020, mortgage-backed securities with an amortized cost of $1.46 billion were transferred from investment securities available for sale to the held to maturity portfolio. At the time of transfer, the mortgage-backed securities had a fair value of $1.47 billion and a weighted average contractual maturity of 18 years. The unrealized gain on these securities at the date of transfer was $5.9 million, or $4.5 million net of tax, and was reported as a component of AOCI. This unrealized gain is accreted over the remaining expected life of the securities as an adjustment of yield.
Investments in residential and commercial mortgage-backed securities represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in government agency securities represent securities issued by the United States Small Business Administration. Investments in corporate bonds and marketable equity securities represent positions in securities of other financial institutions. Other held to maturity investments include certificates of deposit with other financial institutions.
BancShares also holds approximately 354,000 shares of Visa Class B common stock, which are not considered to have a readily determinable fair value and are recorded at $0. BancShares held FHLB stock of $40.6 million and $45.4 million and other non-marketable equity securities of $11.4 million and $11.6 million at March 31, 2021 and December 31, 2020, respectively. These securities are recorded at cost within other assets.
As of March 31, 2021 and December 31, 2020, no ACL was required for available for sale and held to maturity debt securities. Accrued interest receivables for available for sale and held to maturity debt securities were excluded from the estimate for credit losses. At March 31, 2021, accrued interest receivables for available for sale and held to maturity debt securities were $21.3 million and $5.3 million, respectively. At December 31, 2020, accrued interest receivables for available for sale and held to maturity debt securities were $17.6 million and $5.4 million, respectively. During the three months ended March 31, 2021 and 2020, no accrued interest was deemed uncollectible and written off against interest income.
The following table provides the amortized cost and fair value by contractual maturity for investment securities available for sale and held to maturity. Expected maturities will differ from contractual maturities on certain securities because issuers and borrowers of underlying collateral may have the right to call or prepay obligations with or without prepayment penalties. Residential and commercial mortgage-backed and government agency securities are stated separately as they are not due at a single maturity date.
 March 31, 2021December 31, 2020
(Dollars in thousands)Amortized costFair
value		Amortized costFair
value
Investment securities available for sale
Non-amortizing securities maturing in:
One year or less$1,020 $1,021 $500,846 $500,954 
One through five years72,340 74,536 72,565 73,881 
Five through 10 years502,757 517,922 508,320 519,570 
Over 10 years8,978 9,381 8,971 8,807 
Government agency852,305 846,686 706,241 701,391 
Residential mortgage-backed securities4,736,893 4,758,589 4,369,130 4,438,103 
Commercial mortgage-backed securities1,096,259 1,098,987 745,892 771,537 
Total investment securities available for sale$7,270,552 $7,307,122 $6,911,965 $7,014,243 
Investment securities held to maturity
Non-amortizing securities maturing in:
One year or less998 998 1,507 1,507 
One through five years1,009 1,009 749 749 
Residential mortgage-backed securities 1,740,314 1,724,995 1,877,692 1,895,381 
Commercial mortgage-backed securities 1,065,778 1,047,980 937,034 940,862 
Total investment securities held to maturity$2,808,099 $2,774,982 $2,816,982 $2,838,499 
The following table provides the gross realized gains and losses on the sales of investment securities available for sale for the three months ended March 31, 2021 and 2020:
Three months ended March 31
(Dollars in thousands)20212020
Gross realized gains on sales of investment securities available for sale$9,207 $20,474 
Gross realized losses on sales of investment securities available for sale— (679)
Net realized gains on sales of investment securities available for sale$9,207 $19,795 
The following table provides the realized and unrealized gains and losses on marketable equity securities for the three months ended March 31, 2021 and 2020:
Three months ended March 31
(Dollars in thousands)20212020
Marketable equity securities gains (losses), net$16,011 $(51,408)
Less net gains recognized on marketable equity securities sold263 323 
Unrealized gains (losses) recognized on marketable equity securities held$15,748 $(51,731)
The following table provides information regarding securities with unrealized losses as of March 31, 2021 and December 31, 2020:
March 31, 2021
 Less than 12 months12 months or moreTotal
(Dollars in thousands)Fair
value		Unrealized
losses		Fair
value		Unrealized
losses		Fair
value		Unrealized
losses
Investment securities available for sale
Government agency$331,034 $3,501 $415,379 $2,902 $746,413 $6,403 
Residential mortgage-backed securities2,345,301 26,001 12,495 45 2,357,796 26,046 
Commercial mortgage-backed securities685,575 11,891 — — 685,575 11,891 
Corporate bonds8,394 14 26,183 534 34,577 548 
Total$3,370,304 $41,407 $454,057 $3,481 $3,824,361 $44,888 
December 31, 2020
Less than 12 months12 months or moreTotal
(Dollars in thousands)Fair
value		Unrealized
losses		Fair
value		Unrealized
losses		Fair
value		Unrealized
losses
Investment securities available for sale
Government agency$268,622 $3,197 $328,777 $2,376 $597,399 $5,573 
Residential mortgage-backed securities433,816 1,241 23,064 69 456,880 1,310 
Corporate bonds57,715 2,028 — — 57,715 2,028 
Total$760,153 $6,466 $351,841 $2,445 $1,111,994 $8,911 
As of March 31, 2021, there were 60 investment securities available for sale with continuous losses for more than 12 months, of which 54 were government sponsored enterprise-issued mortgage-backed securities or government agency securities and six were corporate bonds.
None of the unrealized losses identified as of March 31, 2021, or December 31, 2020, relate to the issuer’s ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the investment securities were purchased, and do not indicate credit-related impairment. BancShares considered other factors including changes in credit ratings, delinquencies, and other macroeconomic factors in this determination. As a result, none of the securities were deemed to require an allowance for credit losses. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses.
Investment securities having an aggregate carrying value of $4.8 billion at March 31, 2021, and $4.6 billion at December 31, 2020, were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law.
BancShares’ portfolio of held to maturity debt securities consists of mortgage-backed securities issued by government agencies and government sponsored entities. Given the consistently strong credit rating of the U.S. Treasury and the long history of no credit losses on debt securities issued by government agencies and government sponsored entities, no further credit monitoring is performed on these portfolios. Should there be downgrades to the credit rating of the U.S. Treasury or losses reported on securities issued by government agencies and government sponsored entities, BancShares will reevaluate its determination of zero expected credit losses on held to maturity debt securities.
There were no debt securities held to maturity on nonaccrual status as of March 31, 2021.
A security is considered past due once it is 30 days contractually past due under the terms of the agreement. There were no securities past due as of March 31, 2021.