XML 21 R11.htm IDEA: XBRL DOCUMENT v3.22.2.2
INVESTMENTS
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Investments available-for-sale and held-to-maturity
During the first quarter ended March 31, 2022, the Company transferred certain debt securities from available-for-sale to held-to-maturity. The total amortized cost of debt securities transferred was $305.6 million with the associated fair value of $289.4 million and unrealized losses of $16.2 million at the date of transfer. All of these investments are either issued by a direct governmental entity or a government-sponsored entity and have no historical evidence supporting expected credit losses. Therefore, the Company has estimated these losses at zero and will monitor this assumption in the future for any economic or governmental policies that could affect this assumption.

The amortized cost and estimated fair values of investments available-for-sale and held-to-maturity at the dates indicated are presented in the following table:
 September 30, 2022December 31, 2021
(In thousands)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
Available-for-sale debt securities:
U.S. treasuries and government agencies$100,740 $— $(7,935)$92,805 $68,487 $202 $(150)$68,539 
State and municipal342,492 5 (65,558)276,939 323,286 6,561 (3,445)326,402 
Mortgage-backed and asset-backed968,111 94 (93,614)874,591 1,074,577 8,203 (11,825)1,070,955 
Total available-for-sale debt securities$1,411,343 $99 $(167,107)$1,244,335 $1,466,350 $14,966 $(15,420)$1,465,896 
Held-to-maturity debt securities:
Mortgage-backed and asset-backed265,648 — (39,618)226,030 — — — — 
Total held-to-maturity debt securities$265,648 $— $(39,618)$226,030 $— $— $— $— 
Total debt securities$1,676,991 $99 $(206,725)$1,470,365 $1,466,350 $14,966 $(15,420)$1,465,896 
 
Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed available-for-sale debt securities at September 30, 2022 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at September 30, 2022. Unrealized losses on available-for-sale debt securities are expected to recover over time as these securities approach maturity. The Company does not intend to sell, nor is it more likely than not it will be required to sell, these securities and has sufficient liquidity to hold these securities for an adequate period of time, which may be maturity, to allow for any anticipated recovery in fair value.

The available-for-sale and held-to-maturity mortgage-backed securities portfolio at September 30, 2022 is composed entirely of either the most senior tranches of GNMA, FNMA or FHLMC collateralized mortgage obligations ($503.3 million), GNMA, FNMA or FHLMC mortgage-backed securities ($686.8 million) or SBA asset-backed securities ($43.7 million).
 
Gross unrealized losses and fair value by length of time that the individual available-for-sale debt securities have been in an unrealized loss position at the dates indicated are presented in the following tables:
 September 30, 2022
 Number
of
Securities		Less Than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
U.S. treasuries and government agencies10 $88,079 $7,672 $4,724 $263 $92,803 $7,935 
State and municipal160 222,651 42,761 52,441 22,797 275,092 65,558 
Mortgage-backed and asset-backed328 635,793 61,543 214,757 32,071 850,550 93,614 
Total498 $946,523 $111,976 $271,922 $55,131 $1,218,445 $167,107 

 December 31, 2021
 Number
of
Securities		Less Than 12 Months12 Months or MoreTotal
(Dollars in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
U.S. treasuries and government agencies5 $49,695 $150 $— $— $49,695 $150 
State and municipal32 63,206 2,288 21,740 1,157 84,946 3,445 
Mortgage-backed and asset-backed104 665,813 10,145 37,857 1,680 703,670 11,825 
Total141 $778,714 $12,583 $59,597 $2,837 $838,311 $15,420 
 
The Company has allocated mortgage-backed securities into the four maturity groupings reflected in the following tables using the expected average life of the individual securities based on statistics provided by independent third-party industry sources. Expected maturities will differ from contractual maturities as borrowers may have the right to prepay obligations with or without prepayment penalties.

The estimated fair values and amortized costs of available-for-sale and held-to-maturity debt securities by contractual maturity are provided in the following tables.

September 30, 2022December 31, 2021
(In thousands)Fair ValueAmortized CostFair ValueAmortized Cost
Available-for-sale debt securities
U.S. treasuries and government agencies:
One year or less$— $— $12,029 $11,995 
One to five years92,805 100,740 56,510 56,492 
Five to ten years— — — — 
After ten years— — — — 
State and municipal:
One year or less4,297 4,306 12,821 12,709 
One to five years68,727 71,754 27,408 26,637 
Five to ten years31,787 37,090 42,960 42,661 
After ten years172,128 229,342 243,213 241,279 
Mortgage-backed and asset-backed:
One year or less5,602 5,639 9,272 9,239 
One to five years48,806 50,257 14,752 14,575 
Five to ten years318,785 353,118 388,918 390,569 
After ten years501,398 559,097 658,013 660,194 
Total available-for-sale debt securities$1,244,335 $1,411,343 $1,465,896 $1,466,350 
September 30, 2022December 31, 2021
(In thousands)Fair ValueAmortized CostFair ValueAmortized Cost
Held-to-maturity debt securities
Mortgage-backed and asset-backed:
One year or less$— $— $— $— 
One to five years— — — — 
Five to ten years36,205 40,229 — — 
After ten years189,825 225,419 — — 
Total held-to-maturity debt securities$226,030 $265,648 $— $— 

At September 30, 2022 and December 31, 2021, available-for-sale and held-to-maturity debt securities with a book value of $549.7 million and $531.6 million, respectively, were pledged as collateral for certain government deposits and for other purposes as required or permitted by law. The outstanding balance of no single issuer, except for U.S. Agencies securities, exceeded ten percent of stockholders' equity at September 30, 2022 and December 31, 2021.
 
Other investments
Other investments are presented in the following table:
(In thousands)September 30, 2022December 31, 2021
Federal Reserve Bank stock, at cost$38,826 $34,097 
Federal Home Loan Bank of Atlanta stock, at cost37,793 6,392 
Other677 677 
Other investments$77,296 $41,166