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Securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
The amortized cost, estimated fair value, and allowance for securities credit losses of debt securities available-for-sale and held-to-maturity at March 31, 2024 and December 31, 2023 are as follows (in thousands):
Amortized
Cost (1)
Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		Allowance for Securities Credit Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations$65,818 $— $(6,166)$59,652 $— 
Corporate debt securities11,831 17 (1,178)10,670 — 
Asset-backed securities289,632 113 (1,619)288,126 — 
Mortgage-backed securities (“MBS”):
Agency residential291,759 1,460 (12)293,207 — 
Agency commercial109,352 — (16,063)93,289 — 
Total mortgage-backed securities401,111 1,460 (16,075)386,496 — 
Total debt securities available-for-sale$768,392 $1,590 $(25,038)$744,944 $— 
Debt securities held-to-maturity:
State and municipal debt obligations$213,231 $188 $(15,535)$197,884 $(36)
Corporate debt securities66,583 192 (3,543)63,232 (916)
Mortgage-backed securities:
Agency residential747,094 178 (75,407)671,865 — 
Agency commercial82,208 2 (4,312)77,898 — 
Non-agency commercial20,608 — (1,522)19,086 (106)
Total mortgage-backed securities849,910 180 (81,241)768,849 (106)
Total debt securities held-to-maturity$1,129,724 $560 $(100,319)$1,029,965 $(1,058)
Total debt securities$1,898,116 $2,150 $(125,357)$1,774,909 $(1,058)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations$66,490 $— $(5,796)$60,694 $— 
Corporate debt securities10,096 11 (981)9,126 — 
Asset-backed securities295,796 — (4,252)291,544 — 
Mortgage-backed securities:
Agency residential298,107 183 (97)298,193 — 
Agency commercial 109,590 — (15,255)94,335 — 
Total mortgage-backed securities407,697 183 (15,352)392,528 — 
Total debt securities available-for-sale$780,079 $194 $(26,381)$753,892 $— 
Debt securities held-to-maturity:
State, municipal, and sovereign debt obligations$222,009 $251 $(14,550)$207,710 $(39)
Corporate debt securities69,809 391 (3,941)66,259 (987)
Mortgage-backed securities:
Agency residential765,632 901 (70,040)696,493 — 
Agency commercial82,734 10 (3,678)79,066 — 
Non-agency commercial20,684 — (1,774)18,910 (107)
Total mortgage-backed securities869,050 911 (75,492)794,469 (107)
Total debt securities held-to-maturity$1,160,868 $1,553 $(93,983)$1,068,438 $(1,133)
Total debt securities$1,940,947 $1,747 $(120,364)$1,822,330 $(1,133)
The following table presents the activity in the allowance for credit losses for debt securities held-to-maturity for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended March 31,
20242023
Allowance for securities credit losses
Beginning balance$(1,133)$(1,128)
Benefit for credit losses75 85 
Total ending allowance balance$(1,058)$(1,043)
The Company monitors the credit quality of debt securities held-to-maturity on a quarterly basis through the use of internal credit analysis supplemented by external credit ratings. Credit ratings of BBB- or Baa3 or higher are considered investment grade. Where multiple ratings are available, the Company considers the lowest rating when determining the allowance for securities credit losses. Under this approach, the amortized cost of debt securities held-to-maturity at March 31, 2024, aggregated by credit quality indicator, are as follows (in thousands):
Investment GradeNon-Investment Grade/Non-ratedTotal
As of March 31, 2024
State and municipal debt obligations$213,231 $— $213,231 
Corporate debt securities53,047 13,536 66,583 
Non-agency commercial MBS20,608 — 20,608 
Total debt securities held-to-maturity$286,886 $13,536 $300,422 
There were $110,000 and $697,000 of realized losses on sale of debt securities available-for-sale for the three months ended March 31, 2024 and 2023, respectively. These realized gains/losses on debt securities are presented within Other under Total other income of the Consolidated Statements of Income.
The amortized cost and estimated fair value of debt securities at March 31, 2024 by contractual maturity are shown below (in thousands):
March 31, 2024Amortized
Cost		Estimated
Fair Value
Less than one year$32,582 $32,182 
Due after one year through five years194,788 180,665 
Due after five years through ten years194,267 189,112 
Due after ten years225,458 217,605 
$647,095 $619,564 
Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2024, corporate debt securities, state and municipal obligations, and asset-backed securities with an amortized cost of $77.4 million, $60.8 million, and $289.6 million, respectively, and an estimated fair value of $72.9 million, $59.0 million, and $288.1 million, respectively, were callable prior to the maturity date. Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments.
The estimated fair value and unrealized losses for debt securities available-for-sale and held-to-maturity at March 31, 2024 and December 31, 2023, segregated by the duration of the unrealized losses, are as follows (in thousands):
 Less than 12 months12 months or longerTotal
 Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses		Estimated
Fair
Value		Unrealized
Losses
At March 31, 2024
Debt securities available-for-sale:
U.S. government and agency obligations$5,383 $(14)$54,269 $(6,152)$59,652 $(6,166)
Corporate debt securities1,432 (25)7,496 (1,153)8,928 (1,178)
Asset-backed securities9,291 (9)216,864 (1,610)226,155 (1,619)
MBS:
Agency residential23,921 (12)— — 23,921 (12)
Agency commercial— — 93,289 (16,063)93,289 (16,063)
Total MBS23,921 (12)93,289 (16,063)117,210 (16,075)
Total debt securities available-for-sale40,027 (60)371,918 (24,978)411,945 (25,038)
Debt securities held-to-maturity:
State and municipal debt obligations2,675 (30)185,307 (15,505)187,982 (15,535)
Corporate debt securities2,996 (568)57,739 (2,975)60,735 (3,543)
MBS:
Agency residential104,295 (1,702)530,150 (73,705)634,445 (75,407)
Agency commercial19,736 (440)57,153 (3,872)76,889 (4,312)
Non-agency commercial— — 19,086 (1,522)19,086 (1,522)
Total MBS124,031 (2,142)606,389 (79,099)730,420 (81,241)
Total debt securities held-to-maturity129,702 (2,740)849,435 (97,579)979,137 (100,319)
Total debt securities$169,729 $(2,800)$1,221,353 $(122,557)$1,391,082 $(125,357)
At December 31, 2023
Debt securities available-for-sale:
U.S. government and agency obligations$833 $(2)$59,861 $(5,794)$60,694 $(5,796)
Corporate debt securities1,543 (165)6,116 (816)7,659 (981)
Asset-backed securities— — 291,544 (4,252)291,544 (4,252)
MBS:
Agency residential169,000 (97)— — 169,000 (97)
Agency commercial— — 94,335 (15,255)94,335 (15,255)
Total MBS169,000 (97)94,335 (15,255)263,335 (15,352)
Total debt securities available-for-sale171,376 (264)451,856 (26,117)623,232 (26,381)
Debt securities held-to-maturity:
State and municipal debt obligations6,671 (23)191,511 (14,527)198,182 (14,550)
Corporate debt securities3,084 (473)58,386 (3,468)61,470 (3,941)
MBS:
Agency residential95,776 (693)525,751 (69,347)621,527 (70,040)
Agency commercial18,902 (370)55,051 (3,308)73,953 (3,678)
Non-agency commercial— — 18,910 (1,774)18,910 (1,774)
Total MBS114,678 (1,063)599,712 (74,429)714,390 (75,492)
Total debt securities held-to-maturity124,433 (1,559)849,609 (92,424)974,042 (93,983)
Total debt securities$295,809 $(1,823)$1,301,465 $(118,541)$1,597,274 $(120,364)

The Company concluded that debt securities were not impaired at March 31, 2024 based on consideration of several factors. The Company noted that each issuer made all contractually due payments when required. There were no defaults on principal or interest payments, and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality. Additionally, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales.
Equity Investments
At March 31, 2024 and December 31, 2023, the Company held equity investments of $103.2 million and $100.2 million, respectively. The equity investments are primarily comprised of select financial services institutions’ preferred stocks, investments in other financial institutions and funds.
The realized and unrealized gains or losses on equity securities for the three months ended March 31, 2024 and 2023 are shown in the table below (in thousands):
Three Months Ended March 31,
20242023
Net gain (loss) on equity investments$1,923 $(6,801)
Less: Net losses recognized on equity investments sold— (4,608)
Unrealized gains (losses) recognized on equity investments still held$1,923 $(2,193)