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Securities
 12 Months Ended
Dec. 31, 2024
Cash and Cash Equivalents [Abstract]  
Securities

2. SECURITIES:

Debt securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, allowance for credit losses and the fair value of available-for-sale securities are as follows (dollars in thousands):

 

 

 

December 31, 2024

 

 

 

Amortized
Cost Basis

 

 

Gross
Unrealized
Holding Gains

 

 

Gross
Unrealized
Holding Losses

 

 

Estimated
Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

278,155

 

 

$

2

 

 

$

(4,595

)

 

$

273,562

 

Obligations of state and political subdivisions

 

 

1,578,749

 

 

 

338

 

 

 

(138,842

)

 

 

1,440,245

 

Residential mortgage-backed securities

 

 

2,729,096

 

 

 

184

 

 

 

(378,746

)

 

 

2,350,534

 

Commercial mortgage-backed securities

 

 

457,311

 

 

 

99

 

 

 

(9,658

)

 

 

447,752

 

Corporate bonds and other

 

 

111,994

 

 

 

50

 

 

 

(6,378

)

 

 

105,666

 

Total securities available-for-sale

 

$

5,155,305

 

 

$

673

 

 

$

(538,219

)

 

$

4,617,759

 

 

 

 

December 31, 2023

 

 

 

Amortized
Cost Basis

 

 

Gross
Unrealized
Holding Gains

 

 

Gross
Unrealized
Holding Losses

 

 

Estimated
Fair Value

 

Securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

496,975

 

 

$

4

 

 

$

(14,745

)

 

$

482,234

 

Obligations of state and political subdivisions

 

 

1,621,405

 

 

 

934

 

 

 

(125,182

)

 

 

1,497,157

 

Residential mortgage-backed securities

 

 

2,716,968

 

 

 

7

 

 

 

(352,883

)

 

 

2,364,092

 

Commercial mortgage-backed securities

 

 

295,663

 

 

 

—

 

 

 

(11,339

)

 

 

284,324

 

Corporate bonds and other

 

 

112,670

 

 

 

—

 

 

 

(7,715

)

 

 

104,955

 

Total securities available-for-sale

 

$

5,243,681

 

 

$

945

 

 

$

(511,864

)

 

$

4,732,762

 

 

The Company did not hold any securities classified as held-to-maturity for the years ended December 31, 2024 and 2023.

The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at December 31, 2024, were computed by using scheduled amortization of balances and historical prepayment rates.

The amortized cost and estimated fair value of available-for-sale securities at December 31, 2024, by contractual maturity, are shown below (in thousands):

 

 

Amortized
Cost Basis

 

 

Estimated
Fair Value

 

Due within one year

 

$

292,438

 

 

$

288,985

 

Due after one year through five years

 

 

1,815,382

 

 

 

1,678,422

 

Due after five years through ten years

 

 

2,073,461

 

 

 

1,821,254

 

Due after ten years

 

 

974,024

 

 

 

829,098

 

Total

 

$

5,155,305

 

 

$

4,617,759

 

 

The following tables disclose, as of December 31, 2024 and 2023, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands):

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2024

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

U.S. Treasury Securities

 

$

—

 

 

$

—

 

 

$

271,088

 

 

$

(4,595

)

 

$

271,088

 

 

$

(4,595

)

Obligations of state and political
   subdivisions

 

 

56,777

 

 

 

(1,224

)

 

 

1,361,628

 

 

 

(137,618

)

 

 

1,418,405

 

 

 

(138,842

)

Residential mortgage-backed securities

 

 

198,385

 

 

 

(4,990

)

 

 

2,048,727

 

 

 

(373,756

)

 

 

2,247,112

 

 

 

(378,746

)

Commercial mortgage-backed securities

 

 

196,640

 

 

 

(2,249

)

 

 

190,189

 

 

 

(7,409

)

 

 

386,829

 

 

 

(9,658

)

Corporate bonds and other

 

 

4,871

 

 

 

(44

)

 

 

95,840

 

 

 

(6,334

)

 

 

100,711

 

 

 

(6,378

)

Total

 

$

456,673

 

 

$

(8,507

)

 

$

3,967,472

 

 

$

(529,712

)

 

$

4,424,145

 

 

$

(538,219

)

 

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

December 31, 2023

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Unrealized
Loss

 

U.S. Treasury Securities

 

$

3,477

 

 

$

(7

)

 

$

477,306

 

 

$

(14,738

)

 

$

480,783

 

 

$

(14,745

)

Obligations of state and political
   subdivisions

 

 

11,855

 

 

 

(34

)

 

 

1,427,975

 

 

 

(125,148

)

 

 

1,439,830

 

 

 

(125,182

)

Residential mortgage-backed securities

 

 

1,631

 

 

 

(1

)

 

 

2,361,089

 

 

 

(352,882

)

 

 

2,362,720

 

 

 

(352,883

)

Commercial mortgage-backed securities

 

 

—

 

 

 

—

 

 

 

284,324

 

 

 

(11,339

)

 

 

284,324

 

 

 

(11,339

)

Corporate bonds and other

 

 

—

 

 

 

—

 

 

 

104,955

 

 

 

(7,715

)

 

 

104,955

 

 

 

(7,715

)

Total

 

$

16,963

 

 

$

(42

)

 

$

4,655,649

 

 

$

(511,822

)

 

$

4,672,612

 

 

$

(511,864

)

 

The number of investments in an unrealized loss position totaled 816 at December 31, 2024. Any unrealized losses in the U.S. treasuries and government agencies, state and municipal, mortgage-backed and asset-backed investment securities at December 31, 2024 are due to changes in interest rates and not credit-related events. As such, no allowance for credit losses is required at December 31, 2024. Unrealized losses on investment securities are expected to recover over time as these securities approach maturity. Based on evaluations of impaired securities as of December 31, 2024, the Company does not intend to sell any impaired available for sale securities before fair value recovers to the current amortized cost, and it is more-likely-than-not that the Company will not be required to sell impaired securities before fair value recovers, which may be maturity. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies. At December 31, 2024 and 2023, 67.17% and 66.15%, respectively, of our available-for-sale securities that are obligations of states and political subdivisions were issued within the State of Texas, of which 55.77% and 56.16%, respectively, were guaranteed by the Texas Permanent School Fund.

Securities, carried at approximately $2,545,822,000 and $2,964,467,000 on December 31, 2024 and 2023, respectively, were pledged as collateral for public or trust fund deposits, repurchase agreements, borrowings and for other purposes required or permitted by law.

During 2024, there were no sales of investment securities that were classified as available-for-sale. During 2023 and 2022, sales of investment securities that were classified as available-for-sale totaled $411,134,000 and $479,273,000, respectively. There were no gross realized securities gains or losses from sales and calls during 2024. Gross realized gains from 2023 and 2022 securities sales and calls were $1,699,000 and $6,618,000, respectively. Gross realized losses from securities sales and calls during 2023 and 2022 were $8,818,000 and $4,474,000, respectively.

The specific identification method was used to determine cost in order to compute the realized gains and losses