
(In thousands)	March 31, 2025		December 31, 2024
Available for sale debt securities	$	9,264,947	$	9,136,853
Trading debt securities	56,569		38,034
Equity securities:
Readily determinable fair value	48,951		48,359
No readily determinable fair value	9,231		9,083
Other:
Federal Reserve Bank stock	35,638		35,545
Federal Home Loan Bank stock	10,114		10,120

Private equity investments	175,618		184,386
Total investment securities (1)	$	9,601,068	$	9,462,380

Most of the Company’s investment securities are classified as available for sale debt securities, and this portfolio is discussed in more detail below. The Company’s equity securities are also discussed below. Other investment securities include Federal Reserve Bank (FRB) stock, Federal Home Loan Bank (FHLB) stock, and investments in portfolio concerns held by the Company’s private equity subsidiary. FRB stock and FHLB stock are held for liquidity management and regulatory purposes. Investment in FRB stock is based on the capital structure of the investing bank, and investment in FHLB stock is tied to the asset size of the borrowing bank and the level of borrowings from the FHLB. These holdings are carried at cost. The Company’s private equity investments are carried at estimated fair value.

The Company’s equity securities portfolio includes mutual funds, common stock, and preferred stock with readily determinable fair values as well as equity securities with no readily determinable fair value. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for the identical or similar investment of the same issuer. At March 31, 2024, this portfolio included the Company’s 823,447 shares of Visa Inc. (“Visa”) Class B-1 common stock (formerly Class B common stock), which were held by Commerce Bancshares, Inc. The Company’s Visa Class B-1 shares had a carrying value of zero at March 31, 2024, as there had not been observable price changes in orderly transactions for identical or similar investments of the same issuer.

On April 8, 2024, Visa announced the commencement of a public offering to permit the exchange of its Class B-1 common stock for a combination of shares of its Class B-2 common stock and its Class C common stock (“Exchange Offer”). The Company tendered all of its Visa Class B-1 shares pursuant to the Exchange Offer. On May 3, 2024, the Exchange Offer closed, and in exchange for its 823,447 shares of Visa Class B-1 common stock, the Company received 411,723 shares of Visa Class B-2 common stock (which will be convertible under certain circumstances, as further described below, into Visa’s publicly traded Class A common stock at an initial rate of 1.5875 shares of Class A common for each share of Class B-2 common stock, subject to adjustment) and 163,404 shares of Visa Class C common stock which automatically convert into four shares of Visa's Class A common stock (subject to future adjustments for any stock splits, recapitalizations or similar transactions) upon any transfer to a person other than a Visa member or an affiliate of a Visa member.

As a condition of participating in the exchange, the Company entered into a Makewhole Agreement with Visa that provides for cash payments to Visa to the extent (if any) that future adjustments to the conversion ratio for the Visa Class B-2 common stock to Class A common stock cause such ratio to fall below zero. Changes to the conversion ratio occur when Visa deposits funds to a litigation escrow established by Visa to pay settlements for certain covered litigation that pre-dated Visa’s initial public offering, for which Visa has been effectively indemnified by Visa USA members through reductions to the conversion ratio for its Class B-1 common stock. The purpose of the Makewhole Agreement is to preserve the economic benefit of these adjustments to the Class B-1 conversion ratio for the benefit of Visa’s Class A and Class C common stockholders following the exchange. As further described in Visa’s related Issuer Tender Offer Statement on Schedule TO and Prospectus, each dated April 8, 2024, publicly filed with the U. S. Securities and Exchange Commission, both the Makewhole Agreement and the related escrow fund and transfer restrictions on Visa’s Class B-1 common stock and the new Class B-2 common stock will terminate whenever the covered litigation is ultimately resolved, at which future date outstanding shares of Visa Class B-2 common stock will be convertible into shares of its Class A common stock at the then-applicable conversion ratio.

As a result of the exchange, the Company elected the measurement alternative approach for its Visa Class C common stock and marked the stock to fair value, recording a gain based on the conversion privilege of the Visa Class C common stock and the closing price of Visa Class A common stock. During the second quarter of 2024, the Company sold 436 thousand shares of Visa Class A common stock at an average price of $274.91, resulting in proceeds of $119.8 million. During the third quarter of 2024, the Company sold 218 thousand Visa Class A shares at an average price of $260.56, resulting of proceeds of $56.8 million. As of September 30, 2024, the Company has sold all of the Visa Class C shares it received from the Visa Exchange Offer. The Company’s Visa Class B-2 common stock will continue to be carried at cost of $0 as the Company elected the measurement alternative approach for these shares as well, and there are not observable price changes in orderly transactions for identical or similar investments of the same issuer for the Visa Class B-2 shares held by the Company.

The majority of the Company’s investment portfolio is comprised of available for sale debt securities, which are carried at fair value with changes in fair value reported in accumulated other comprehensive income (AOCI). A summary of the available for sale debt securities by maturity groupings as of March 31, 2025 is shown below. The investment portfolio includes agency mortgage-backed securities, which are guaranteed by agencies such as FHLMC, FNMA, and Government National Mortgage Association (GNMA), in addition to non-agency mortgage-backed securities, which have no guarantee but are collateralized by commercial and residential mortgages. Also included are certain other asset-backed securities, which are primarily collateralized by credit cards, automobiles, student loans, and commercial loans. These securities differ from traditional debt securities primarily in that they may have uncertain maturity dates and are priced based on estimated prepayment rates on the underlying collateral.


(In thousands)	Amortized Cost		Fair Value
U.S. government and federal agency obligations:
Within 1 year	$	437,727	$	438,583
After 1 but within 5 years	1,449,802		1,451,299
After 5 but within 10 years	738,986		736,753

Total U.S. government and federal agency obligations	2,626,515		2,626,635
Government-sponsored enterprise obligations:


After 5 but within 10 years	35,221		30,150
After 10 years	19,820		13,906
Total government-sponsored enterprise obligations	55,041		44,056
State and municipal obligations:
Within 1 year	69,962		69,275
After 1 but within 5 years	400,964		376,308
After 5 but within 10 years	205,286		179,376
After 10 years	113,367		96,228
Total state and municipal obligations	789,579		721,187
Mortgage and asset-backed securities:
Agency mortgage-backed securities	4,098,966		3,430,566
Non-agency mortgage-backed securities	614,798		566,126
Asset-backed securities	1,652,018		1,625,282
Total mortgage and asset-backed securities	6,365,782		5,621,974
Other debt securities:
Within 1 year	64,955		64,330
After 1 but within 5 years	68,308		63,659
After 5 but within 10 years	102,874		98,777
After 10 years	24,747		24,329
Total other debt securities	260,884		251,095
Total available for sale debt securities	$	10,097,801	$	9,264,947

Investments in U.S. government and federal agency obligations include U.S. Treasury inflation-protected securities, which totaled $410.5 million, at fair value, at March 31, 2025. Interest earned on these securities increases with inflation and decreases with deflation, as measured by the non-seasonally adjusted Consumer Price Index (CPI-U). At maturity, the principal paid is the greater of an inflation-adjusted principal or the original principal.

Securities for which fair value is less than amortized cost are reviewed for impairment. Special emphasis is placed on securities whose credit rating has fallen below Baa3 (Moody's) or BBB- (Standard & Poor's), whose fair values have fallen more than 20% below purchase price, or those which have been identified based on management’s judgment. These securities are placed on a watch list and cash flow analyses are prepared on an individual security basis. Certain securities are analyzed using a projected cash flow model, discounted to present value, and compared to the current amortized cost bases of the securities. The model uses input factors such as cash flow projections, contractual payments required, expected delinquency rates, credit support from other tranches, prepayment speeds, collateral loss severity rates (including loan to values), and various other information related to the underlying collateral. Securities not analyzed using the cash flow model are analyzed by reviewing credit ratings, credit support agreements, and industry knowledge to project future cash flows and any possible credit impairment.

At March 31, 2025, the fair value of securities on this watch list was $1.2 billion compared to $1.6 billion at December 31, 2024. Almost all of the securities included on the Company's watch list in the current quarter were experiencing unrealized loss positions due to the increase in interest rates since their purchase and were analyzed outside of the cash flow model. At March 31, 2025, the securities on the Company's watch list that were not deemed to be solely related to increasing interest rates were securities backed by government-guaranteed student loans and are expected to perform as contractually required. As of March 31, 2025, the Company did not identify any securities for which a credit loss exists, and for the three months ended March 31, 2025 and 2024, the Company did not recognize a credit loss expense on any available for sale debt securities.

The table below summarizes debt securities available for sale in an unrealized loss position, aggregated by length of loss period, for which an allowance for credit losses has not been recorded at March 31, 2025 and December 31, 2024. Unrealized losses on these available for sale securities have not been recognized into income because after review, the securities were deemed not to be impaired. The unrealized losses on these securities are primarily attributable to changes in interest rates and current market conditions. At March 31, 2025, the Company does not intend to sell the securities, nor is it anticipated that it would be required to sell any of these securities at a loss.


	Less than 12 months				12 months or longer				Total
(In thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2025
U.S. government and federal agency obligations	$	764,764	$	8,128	$	289,771	$	8,437	$	1,054,535	$	16,565
Government-sponsored enterprise obligations	—		—		44,056		10,985		44,056		10,985
State and municipal obligations	14,633		368		701,240		68,024		715,873		68,392
Mortgage and asset-backed securities:
Agency mortgage-backed securities	2,920		13		3,382,090		668,998		3,385,010		669,011
Non-agency mortgage-backed securities	38,677		169		512,713		48,799		551,390		48,968
Asset-backed securities	193,670		1,499		792,889		29,393		986,559		30,892
Total mortgage and asset-backed securities	235,267		1,681		4,687,692		747,190		4,922,959		748,871
Other debt securities	37,211		128		161,965		10,338		199,176		10,466
Total	$	1,051,875	$	10,305	$	5,884,724	$	844,974	$	6,936,599	$	855,279
December 31, 2024
U.S. government and federal agency obligations	$	1,492,875	$	24,662	$	353,129	$	17,197	$	1,846,004	$	41,859
Government-sponsored enterprise obligations	—		—		42,848		12,576		42,848		12,576
State and municipal obligations	14,860		230		724,587		79,685		739,447		79,915
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,882		42		3,409,405		750,664		3,413,287		750,706
Non-agency mortgage-backed securities	10		—		564,637		56,986		564,647		56,986
Asset-backed securities	219,414		2,371		1,083,938		36,824		1,303,352		39,195
Total mortgage and asset-backed securities	223,306		2,413		5,057,980		844,474		5,281,286		846,887
Other debt securities	26,390		579		198,936		12,718		225,326		13,297
Total	$	1,757,431	$	27,884	$	6,377,480	$	966,650	$	8,134,911	$	994,534

The entire available for sale debt portfolio included $6.9 billion of securities that were in a loss position at March 31, 2025, compared to $8.1 billion at December 31, 2024. The total amount of unrealized loss on these securities was $855.3 million at March 31, 2025, a decrease of $139.3 million compared to the unrealized loss at December 31, 2024. Securities with significant unrealized losses are discussed in the "Allowance for credit losses on available for sale debt securities" section above.


(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
March 31, 2025
U.S. government and federal agency obligations	$	2,626,515	$	16,685	$	(16,565)	$	—	$	2,626,635
Government-sponsored enterprise obligations	55,041		—		(10,985)		—		44,056
State and municipal obligations	789,579		—		(68,392)		—		721,187
Mortgage and asset-backed securities:
Agency mortgage-backed securities	4,098,966		611		(669,011)		—		3,430,566
Non-agency mortgage-backed securities	614,798		296		(48,968)		—		566,126
Asset-backed securities	1,652,018		4,156		(30,892)		—		1,625,282
Total mortgage and asset-backed securities	6,365,782		5,063		(748,871)		—		5,621,974
Other debt securities	260,884		677		(10,466)		—		251,095
Total	$	10,097,801	$	22,425	$	(855,279)	$	—	$	9,264,947
December 31, 2024
U.S. government and federal agency obligations	$	2,594,130	$	2,981	$	(41,859)	$	—	$	2,555,252
Government-sponsored enterprise obligations	55,425		—		(12,576)		—		42,849
State and municipal obligations	822,790		16		(79,915)		—		742,891
Mortgage and asset-backed securities:
Agency mortgage-backed securities	4,195,182		415		(750,706)		—		3,444,891
Non-agency mortgage-backed securities	625,539		136		(56,986)		—		568,689
Asset-backed securities	1,595,797		413		(39,195)		—		1,557,015
Total mortgage and asset-backed securities	6,416,518		964		(846,887)		—		5,570,595
Other debt securities	238,563		—		(13,297)		—		225,266
Total	$	10,127,426	$	3,961	$	(994,534)	$	—	$	9,136,853


	For the Three Months Ended March 31
(In thousands)	2025		2024
Proceeds from sales of securities:
Available for sale debt securities	$	—	$	25,494

Other investments	6,757		10,250
Total proceeds	$	6,757	$	35,744

Investment securities gains (losses), net:
Available for sale debt securities:

Gains realized on sales	$	4	$	—
Losses realized on sales	—		(8,470)

Equity securities:




Gains (losses) on equity securities, net	(97)		142
Other:
Gains realized on sales	1,071		969
Losses realized on sales	(44)		—
Fair value adjustments, net	(8,525)		7,100
Total investment securities gains (losses), net	$	(7,591)	$	(259)

Net losses on investment securities for the three months ended March 31, 2025 were mainly comprised of net losses in fair value of $8.5 million recorded on private equity investments and net losses in fair value of $97 thousand of on equity investments. These losses were partially offset by net gains of $1.0 million on sales of private equity securities.

At March 31, 2025, securities totaling $6.3 billion in fair value were pledged to secure public fund deposits, securities sold under agreements to repurchase, trust funds, and borrowings at the FRB and FHLB, compared to $6.9 billion at December 31, 2024. Excluding obligations of various government-sponsored enterprises such as FNMA, FHLB and FHLMC, no investment in a single issuer exceeded 10% of stockholders’ equity.