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SECURITIES (Tables)

6 Months Ended

Jun. 30, 2022

Amortized Cost of HTM Securities by Security Type and Credit Rating

The following table presents the amortized cost of HTM securities as of June 30, 2022 and December 31, 2021 by security type and credit rating (dollars in thousands):


	U.S. Government and Agency		Obligations of states and political		Mortgage-backed		Total HTM
	securities		subdivisions		securities		securities
June 30, 2022
Credit Rating:
AAA/AA/A	$	—	$	693,070	$	—	$	693,070
Not Rated - Agency⁽¹⁾		2,178		—		67,918		70,096
Not Rated - Non-Agency		—		—		17,583		17,583
Total	$	2,178	$	693,070	$	85,501	$	780,749
December 31, 2021
Credit Rating:
AAA/AA/A	$	—	$	620,873	$	—	$	620,873
Not Rated - Agency⁽¹⁾		2,604		—		4,523		7,127
Total	$	2,604	$	620,873	$	4,523	$	628,000

⁽¹⁾ Generally considered not to have credit risk given the government guarantees associated with these agencies

Gross Realized Gain and Losses on the Sale of Securities

The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the three and six months ended June 30, 2022 and 2021 (dollars in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2022		June 30, 2022
Realized gains (losses)⁽¹⁾:
Gross realized gains	$	—	$	—
Gross realized losses		(2)		(2)
Net realized gains	$	(2)	$	(2)

Proceeds from sales of securities	$	12,469	$	12,469


	Three Months Ended		Six Months Ended
	June 30, 2021		June 30, 2021
Realized gains (losses)⁽¹⁾:
Gross realized gains	$	—	$	138
Gross realized losses		—		(60)
Net realized gains	$	—	$	78

Proceeds from sales of securities	$	—	$	45,436

⁽¹⁾ Includes gains (losses) on sales and calls of securities

Available-for-sale Securities

Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of June 30, 2022 are summarized as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

Cost

Gains

(Losses)

Fair Value

June 30, 2022

U.S. government and agency securities

71,665

—

(5,925)

65,740

Obligations of states and political subdivisions

964,651

578

(142,802)

822,427

Corporate and other bonds ⁽¹⁾

184,304

(6,484)

177,892

Commercial MBS

Agency

326,117

(27,246)

298,961

Non-agency

104,465

—

(3,591)

100,874

Total commercial MBS

430,582

(30,837)

399,835

Residential MBS

Agency

1,571,036

665

(161,629)

1,410,072

Non-agency

78,888

(5,083)

73,806

Total residential MBS

1,649,924

666

(166,712)

1,483,878

Other securities

1,649

—

1,649

Total AFS securities

3,302,775

1,406

(352,760)

2,951,421

⁽¹⁾ Other bonds include asset-backed securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of December 31, 2021 are summarized as follows (dollars in thousands):


	Amortized		Gross Unrealized				Estimated
	Cost		Gains		(Losses)		Fair Value
December 31, 2021
U.S. government and agency securities	$	73,830	$	179	$	(160)	$	73,849
Obligations of states and political subdivisions		971,126		39,343		(2,073)		1,008,396
Corporate and other bonds ⁽¹⁾		150,201		3,353		(178)		153,376
Commercial MBS
Agency		361,806		6,761		(4,215)		364,352
Non-agency		107,087		139		(421)		106,805
Total commercial MBS		468,893		6,900		(4,636)		471,157
Residential MBS
Agency		1,691,651		15,180		(24,337)		1,682,494
Non-agency		91,443		243		(948)		90,738
Total residential MBS		1,783,094		15,423		(25,285)		1,773,232
Other securities		1,640		—		—		1,640
Total AFS securities	$	3,448,784	$	65,198	$	(32,332)	$	3,481,650

⁽¹⁾ Other bonds include asset-backed securities

Schedule of Gross Unrealized Losses and Fair Value of Investments

The following table shows the gross unrealized losses and fair value of the Company’s AFS securities with unrealized losses for which an ACL has not been recorded at June 30, 2022 and December 31, 2021 and that are not deemed to be impaired as of those dates. These are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position (dollars in thousands).


	Less than 12 months				More than 12 months				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
June 30, 2022
U.S. government and agency securities	$	62,470	$	(5,882)	$	3,199	$	(42)	$	65,669	$	(5,924)
Obligations of states and political subdivisions		686,807		(131,328)		28,077		(11,474)		714,884		(142,802)
Corporate and other bonds⁽¹⁾		162,871		(6,484)		—		—		162,871		(6,484)
Commercial MBS
Agency		237,590		(19,318)		48,976		(7,928)		286,566		(27,246)
Non-agency		84,220		(2,604)		16,654		(987)		100,874		(3,591)
Total commercial MBS		321,810		(21,922)		65,630		(8,915)		387,440		(30,837)
Residential MBS
Agency		1,002,897		(110,921)		346,933		(50,708)		1,349,830		(161,629)
Non-agency		61,820		(3,981)		11,868		(1,103)		73,688		(5,084)
Total residential MBS		1,064,717		(114,902)		358,801		(51,811)		1,423,518		(166,713)
Total AFS securities	$	2,298,675	$	(280,518)	$	455,707	$	(72,242)	$	2,754,382	$	(352,760)

December 31, 2021
U.S. government and agency securities	$	64,474	$	(115)	$	3,900	$	(45)	$	68,374	$	(160)
Obligations of states and political subdivisions		249,701		(2,020)		2,123		(53)		251,824		(2,073)
Corporate and other bonds⁽¹⁾		21,134		(177)		703		(1)		21,837		(178)
Commercial MBS
Agency		175,588		(4,053)		3,172		(162)		178,760		(4,215)
Non-agency		33,759		(313)		11,029		(108)		44,788		(421)
Total commercial MBS		209,347		(4,366)		14,201		(270)		223,548		(4,636)
Residential MBS
Agency		1,140,701		(21,147)		106,104		(3,190)		1,246,805		(24,337)
Non-agency		48,392		(584)		12,716		(364)		61,108		(948)
Total residential MBS		1,189,093		(21,731)		118,820		(3,554)		1,307,913		(25,285)
Total AFS securities	$	1,733,749	$	(28,409)	$	139,747	$	(3,923)	$	1,873,496	$	(32,332)

⁽¹⁾ Other bonds include asset-backed securities

Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of AFS securities as of June 30, 2022 and December 31, 2021, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	June 30, 2022				December 31, 2021
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	32,481	$	32,235	$	18,247	$	18,317
Due after one year through five years		167,808		165,280		180,080		183,981
Due after five years through ten years		346,288		329,509		324,615		331,215
Due after ten years		2,756,198		2,424,397		2,925,842		2,948,137
Total AFS securities	$	3,302,775	$	2,951,421	$	3,448,784	$	3,481,650

Held-to-maturity Securities

Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of HTM securities as of June 30, 2022 and December 31, 2021, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	June 30, 2022				December 31, 2021
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Due in one year or less	$	5,023	$	4,971	$	3,034	$	3,027
Due after one year through five years		19,746		20,087		5,852		6,065
Due after five years through ten years		15,838		16,130		14,019		15,984
Due after ten years		740,142		702,031		605,095		668,698
Total HTM securities	$	780,749	$	743,219	$	628,000	$	693,774

Schedule of Carrying Values, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of June 30, 2022 are summarized as follows (dollars in thousands):

Carrying

Gross Unrealized

Estimated

Value

Gains

(Losses)

Fair Value

June 30, 2022

U.S. government and agency securities

2,178

—

(80)

2,098

Obligations of states and political subdivisions

693,070

3,125

(33,413)

662,782

Commercial Agency MBS

29,404

—

(3,193)

26,211

Residential MBS

Agency

38,514

—

(3,833)

34,681

Non-agency

17,583

—

(136)

17,447

Total residential MBS

56,097

—

(3,969)

52,128

Total held-to-maturity securities

780,749

3,125

(40,655)

743,219

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of December 31, 2021 are summarized as follows (dollars in thousands):


	Carrying		Gross Unrealized				Estimated
	Value		Gains		(Losses)		Fair Value
December 31, 2021
U.S. government and agency securities	$	2,604	$	—	$	(29)	$	2,575
Obligations of states and political subdivisions		620,873		65,982		(121)		686,734
Commercial Agency MBS		4,523		—		(58)		4,465
Total held-to-maturity securities	$	628,000	$	65,982	$	(208)	$	693,774