XML 18 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Investment Securities
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

Note 2. Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of March 31, 2025 and December 31, 2024, were as follows:

(dollars in thousands)

 

Amortized Cost

 

 

Gross Unrealized Gains

 

 

Gross Unrealized Losses

 

 

Fair Value

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

233,515

 

 

$

149

 

 

$

(6,268

)

 

$

227,396

 

Debt Securities Issued by States and Political Subdivisions

 

 

72,968

 

 

 

—

 

 

 

(7,972

)

 

 

64,996

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

1,365

 

 

 

—

 

 

 

(29

)

 

 

1,336

 

Debt Securities Issued by Corporations

 

 

728,334

 

 

 

667

 

 

 

(28,529

)

 

 

700,472

 

Collateralized Mortgage Obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

1,110,283

 

 

 

716

 

 

 

(102,495

)

 

 

1,008,504

 

Commercial - Government Agencies or Sponsored Enterprises

 

 

330,746

 

 

 

265

 

 

 

(21,961

)

 

 

309,050

 

Total Collateralized Mortgage Obligations

 

 

1,441,029

 

 

 

981

 

 

 

(124,456

)

 

 

1,317,554

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

634,028

 

 

 

506

 

 

 

(59,269

)

 

 

575,265

 

Total Mortgage-Backed Securities

 

 

634,028

 

 

 

506

 

 

 

(59,269

)

 

 

575,265

 

Total

 

$

3,111,239

 

 

$

2,303

 

 

$

(226,523

)

 

$

2,887,019

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

131,900

 

 

$

—

 

 

$

(12,329

)

 

$

119,571

 

Debt Securities Issued by Corporations

 

 

10,422

 

 

 

—

 

 

 

(1,905

)

 

 

8,517

 

Collateralized Mortgage Obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

2,142,080

 

 

 

4

 

 

 

(338,686

)

 

 

1,803,398

 

Commercial - Government Agencies or Sponsored Enterprises

 

 

414,089

 

 

 

—

 

 

 

(84,927

)

 

 

329,162

 

Total Collateralized Mortgage Obligations

 

 

2,556,169

 

 

 

4

 

 

 

(423,613

)

 

 

2,132,560

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

1,826,625

 

 

 

48

 

 

 

(271,727

)

 

 

1,554,946

 

Commercial - Government Agencies or Sponsored Enterprises

 

 

9,992

 

 

 

—

 

 

 

(1,931

)

 

 

8,061

 

Total Mortgage-Backed Securities

 

 

1,836,617

 

 

 

48

 

 

 

(273,658

)

 

 

1,563,007

 

Total

 

$

4,535,108

 

 

$

52

 

 

$

(711,505

)

 

$

3,823,655

 

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

257,036

 

 

$

221

 

 

$

(8,185

)

 

$

249,072

 

Debt Securities Issued by States and Political Subdivisions

 

 

73,208

 

 

 

—

 

 

 

(9,349

)

 

 

63,859

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

1,505

 

 

 

—

 

 

 

(41

)

 

 

1,464

 

Debt Securities Issued by Corporations

 

 

703,579

 

 

 

376

 

 

 

(32,280

)

 

 

671,675

 

Collateralized Mortgage Obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

1,050,299

 

 

 

322

 

 

 

(115,401

)

 

 

935,220

 

Commercial - Government Agencies or Sponsored Enterprises

 

 

306,696

 

 

 

199

 

 

 

(23,421

)

 

 

283,474

 

Total Collateralized Mortgage Obligations

 

 

1,356,995

 

 

 

521

 

 

 

(138,822

)

 

 

1,218,694

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

555,092

 

 

 

130

 

 

 

(70,458

)

 

 

484,764

 

Total Mortgage-Backed Securities

 

 

555,092

 

 

 

130

 

 

 

(70,458

)

 

 

484,764

 

Total

 

$

2,947,415

 

 

$

1,248

 

 

$

(259,135

)

 

$

2,689,528

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

131,868

 

 

$

—

 

 

$

(14,927

)

 

$

116,941

 

Debt Securities Issued by Corporations

 

 

10,490

 

 

 

—

 

 

 

(2,156

)

 

 

8,334

 

Collateralized Mortgage Obligations:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

2,185,210

 

 

 

3

 

 

 

(377,149

)

 

 

1,808,064

 

Commercial - Government Agencies or Sponsored Enterprises

 

 

416,389

 

 

 

—

 

 

 

(92,211

)

 

 

324,178

 

Total Collateralized Mortgage Obligations

 

 

2,601,599

 

 

 

3

 

 

 

(469,360

)

 

 

2,132,242

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

1,864,591

 

 

 

37

 

 

 

(309,093

)

 

 

1,555,535

 

Commercial - Government Agencies or Sponsored Enterprises

 

 

9,995

 

 

 

—

 

 

 

(2,165

)

 

 

7,830

 

Total Mortgage-Backed Securities

 

 

1,874,586

 

 

 

37

 

 

 

(311,258

)

 

 

1,563,365

 

Total

 

$

4,618,543

 

 

$

40

 

 

$

(797,701

)

 

$

3,820,882

 

 

 

The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. For available-for-sale (“AFS”) debt securities, AIR totaled $9.7 million and $9.0 million as of March 31, 2025 and December 31, 2024, respectively. For held-to-maturity (“HTM”) debt securities, AIR totaled $8.6 million as of both March 31, 2025 and December 31, 2024.

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of March 31, 2025. Debt securities issued by government agencies (such as Small Business Administration securities), collateralized mortgage obligations, and mortgage-backed securities are disclosed separately, as these investment securities may prepay prior to their scheduled contractual maturity dates.

 

(dollars in thousands)

 

Amortized Cost

 

 

Fair Value

 

Available-for-Sale:

 

 

 

 

 

 

Due in One Year or Less

 

$

72,361

 

 

$

70,634

 

Due After One Year Through Five Years

 

 

659,774

 

 

 

642,114

 

Due After Five Years Through Ten Years

 

 

209,128

 

 

 

186,565

 

 

 

941,263

 

 

 

899,313

 

Debt Securities Issued by Government Agencies

 

 

94,919

 

 

 

94,887

 

Collateralized Mortgage Obligations:

 

 

 

 

 

 

    Residential - Government Agencies or Sponsored Enterprises

 

 

1,110,283

 

 

 

1,008,504

 

    Commercial - Government Agencies or Sponsored Enterprises

 

 

330,746

 

 

 

309,050

 

Total Collateralized Mortgage Obligations

 

 

1,441,029

 

 

 

1,317,554

 

Mortgage-Backed Securities:

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

634,028

 

 

 

575,265

 

Total Mortgage-Backed Securities

 

 

634,028

 

 

 

575,265

 

Total

 

$

3,111,239

 

 

$

2,887,019

 

Held-to-Maturity:

 

 

 

 

 

 

Due in One Year or Less

 

$

7,500

 

 

$

7,343

 

Due After One Year Through Five Years

 

 

74,829

 

 

 

69,267

 

Due After Five Year Through Ten Years

 

 

59,993

 

 

 

51,478

 

 

 

142,322

 

 

 

128,088

 

Collateralized Mortgage Obligations:

 

 

 

 

 

 

    Residential - Government Agencies or Sponsored Enterprises

 

 

2,142,080

 

 

 

1,803,398

 

    Commercial - Government Agencies or Sponsored Enterprises

 

 

414,089

 

 

 

329,162

 

Total Collateralized Mortgage Obligations

 

 

2,556,169

 

 

 

2,132,560

 

Mortgage-Backed Securities:

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

1,826,625

 

 

 

1,554,946

 

Commercial - Government Agencies or Sponsored Agencies

 

 

9,992

 

 

 

8,061

 

Total Mortgage-Backed Securities

 

 

1,836,617

 

 

 

1,563,007

 

Total

 

$

4,535,108

 

 

$

3,823,655

 

 

Investment securities with carrying values of $7.3 billion and $7.2 billion as of March 31, 2025 and December 31, 2024, respectively, were pledged to secure deposits of governmental entities, securities sold under agreements to repurchase, support the Company's borrowing capacity with the Federal Reserve Bank, and secure derivative transactions.

 

During the three months ended March 31, 2025 and 2024, the Company recognized net realized losses on sales of investments of $1.6 million and $1.5 million, respectively. The losses on sales of investment securities were due to fees paid to the counterparties of the Company’s prior Visa Class B share sale transactions, which are expensed as incurred.

 

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

(dollars in thousands)

 

Fair Value

 

 

Gross Unrealized Losses

 

 

Fair Value

 

 

Gross Unrealized Losses

 

 

Fair Value

 

 

Gross Unrealized Losses

 

March 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

34,196

 

 

$

(51

)

 

$

140,229

 

 

$

(6,217

)

 

$

174,425

 

 

$

(6,268

)

Debt Securities Issued by States and Political Subdivisions

 

 

—

 

 

 

—

 

 

 

64,996

 

 

 

(7,972

)

 

 

64,996

 

 

 

(7,972

)

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

—

 

 

 

—

 

 

 

1,336

 

 

 

(29

)

 

 

1,336

 

 

 

(29

)

Debt Securities Issued by Corporations

 

 

74,877

 

 

 

(123

)

 

 

549,445

 

 

 

(28,406

)

 

 

624,322

 

 

 

(28,529

)

Collateralized Mortgage Obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

180,884

 

 

 

(276

)

 

 

655,542

 

 

 

(102,219

)

 

 

836,426

 

 

 

(102,495

)

Commercial - Government Agencies or Sponsored Enterprises

 

 

109,378

 

 

 

(155

)

 

 

128,467

 

 

 

(21,806

)

 

 

237,845

 

 

 

(21,961

)

Total Collateralized Mortgage Obligations

 

 

290,262

 

 

 

(431

)

 

 

784,009

 

 

 

(124,025

)

 

 

1,074,271

 

 

 

(124,456

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

53,435

 

 

 

(111

)

 

 

472,385

 

 

 

(59,158

)

 

 

525,820

 

 

 

(59,269

)

Total Mortgage-Backed Securities

 

 

53,435

 

 

 

(111

)

 

 

472,385

 

 

 

(59,158

)

 

 

525,820

 

 

 

(59,269

)

Total

 

$

452,770

 

 

$

(716

)

 

$

2,012,400

 

 

$

(225,807

)

 

$

2,465,170

 

 

$

(226,523

)

December 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

38,854

 

 

$

(288

)

 

$

157,456

 

 

$

(7,897

)

 

$

196,310

 

 

$

(8,185

)

Debt Securities Issued by States and Political Subdivisions

 

 

—

 

 

 

—

 

 

 

63,644

 

 

 

(9,349

)

 

 

63,644

 

 

 

(9,349

)

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

—

 

 

 

—

 

 

 

1,464

 

 

 

(41

)

 

 

1,464

 

 

 

(41

)

Debt Securities Issued by Corporations

 

 

24,892

 

 

 

(108

)

 

 

546,407

 

 

 

(32,172

)

 

 

571,299

 

 

 

(32,280

)

Collateralized Mortgage Obligations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

153,104

 

 

 

(275

)

 

 

673,141

 

 

 

(115,126

)

 

 

826,245

 

 

 

(115,401

)

Commercial - Government Agencies or Sponsored Enterprises

 

 

92,485

 

 

 

(5

)

 

 

128,430

 

 

 

(23,416

)

 

 

220,915

 

 

 

(23,421

)

Total Collateralized Mortgage Obligations

 

 

245,589

 

 

 

(280

)

 

 

801,571

 

 

 

(138,542

)

 

 

1,047,160

 

 

 

(138,822

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies or Sponsored Enterprises

 

 

135

 

 

 

—

 

 

 

480,189

 

 

 

(70,458

)

 

 

480,324

 

 

 

(70,458

)

Total Mortgage-Backed Securities

 

 

135

 

 

 

—

 

 

 

480,189

 

 

 

(70,458

)

 

 

480,324

 

 

 

(70,458

)

Total

 

$

309,470

 

 

$

(676

)

 

$

2,050,731

 

 

$

(258,459

)

 

$

2,360,201

 

 

$

(259,135

)

 

The Company does not believe the AFS debt securities that were in an unrealized loss position represent a credit loss impairment. As of March 31, 2025 and December 31, 2024, the Company's unrealized losses from AFS debt securities were generated from 376 positions and 386 positions, respectively. As of March 31, 2025 and December 31, 2024, total gross unrealized losses were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Debt securities issued by corporations are of high credit quality and the issuers continue to make timely principal and interest payments. The Company does not intend to sell the investment securities that were in an unrealized loss position and it is more likely than not that the Company will not be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity.

Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of March 31, 2025 and December 31, 2024.

Interest income from taxable and non-taxable investment securities for the three months ended March 31, 2025 and 2024 were as follows:

 

 

 

Three Months Ended March 31,

 

(dollars in thousands)

 

2025

 

 

2024

 

Taxable

 

$

44,279

 

 

$

43,887

 

Non-Taxable

 

 

380

 

 

 

6

 

Total Interest Income from Investment Securities

 

$

44,659

 

 

$

43,893