Held-to-maturity (“HTM”) securities, which include any security for which the Company has both the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized and accreted, respectively, to interest income using the constant effective yield method over the security’s estimated life. Prepayments are anticipated for mortgage-backed and SBA securities. Premiums on callable securities are amortized to their earliest call date.

Available-for-sale (“AFS”) securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Realized gains and losses, based on specifically identified amortized cost of the individual security, are included in other income. Unrealized gains and losses are recorded, net of related income tax effects, in stockholders’ equity, further discussed below. Premiums and discounts are amortized and accreted, respectively, to interest income using the constant effective yield method over the estimated life of the security. Prepayments are anticipated for mortgage-backed and SBA securities. Premiums on callable securities are amortized to their earliest call date.

During the quarters ended June 30, 2022 and September 30, 2021, the Company transferred, at fair value, $1.99 billion and $500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio. As of December 31, 2024, the related remaining combined net unrealized losses of $108.1 million in accumulated other comprehensive income (loss) will be amortized over the remaining life of the securities. No gains or losses on these securities were recognized at the time of transfer.


(In thousands)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
Held-to-maturity

December 31, 2024
U.S. Government agencies	$	455,869	$	—	$	455,869	$	—	$	(95,961)	$	359,908
Mortgage-backed securities	1,070,032		—		1,070,032		212		(133,746)		936,498
State and political subdivisions	1,857,373		(196)		1,857,177		20		(436,061)		1,421,136
Other securities	256,576		(3,018)		253,558		—		(21,149)		232,409
Total HTM	$	3,639,850	$	(3,214)	$	3,636,636	$	232	$	(686,917)	$	2,949,951

December 31, 2023
U.S. Government agencies	$	453,121	$	—	$	453,121	$	—	$	(89,203)	$	363,918
Mortgage-backed securities	1,161,694		—		1,161,694		354		(107,834)		1,054,214
State and political subdivisions	1,858,680		(2,006)		1,856,674		284		(369,509)		1,487,449
Other securities	256,007		(1,208)		254,799		—		(25,010)		229,789
Total HTM	$	3,729,502	$	(3,214)	$	3,726,288	$	638	$	(591,556)	$	3,135,370

Mortgage-backed securities (“MBS”) are commercial MBS, secured by commercial properties, and residential MBS, generally secured by single-family residential properties. All mortgage-backed securities included in the table above were issued by U.S. government agencies or corporations. As of December 31, 2024, HTM MBS consisted of $136.0 million and $934.1 million of commercial MBS and residential MBS, respectively. As of December 31, 2023, HTM MBS consisted of $141.6 million and $1.02 billion of commercial MBS and residential MBS, respectively.


(In thousands)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized (Losses)		Estimated Fair Value
Available-for-sale

December 31, 2024
U.S. Treasury	$	999	$	—	$	—	$	(3)	$	996
U.S. Government agencies	55,589		—		5		(1,047)		54,547
Mortgage-backed securities	1,545,539		—		4		(152,784)		1,392,759
State and political subdivisions	1,015,619		—		132		(157,569)		858,182
Other securities	235,028		—		166		(12,252)		222,942
Total AFS	$	2,852,774	$	—	$	307	$	(323,655)	$	2,529,426

December 31, 2023
U.S. Treasury	$	2,285	$	—	$	—	$	(31)	$	2,254
U.S. Government agencies	74,460		—		35		(1,993)		72,502
Mortgage-backed securities	2,138,652		—		8		(198,353)		1,940,307
State and political subdivisions	1,035,147		—		187		(132,541)		902,793
Other securities	259,165		—		—		(24,868)		234,297
Total AFS	$	3,509,709	$	—	$	230	$	(357,786)	$	3,152,153

All mortgage-backed securities included in the table above were issued by U.S. government agencies or corporations. As of December 31, 2024, AFS MBS consisted of $517.2 million and $875.5 million of commercial MBS and residential MBS, respectively. As of December 31, 2023, AFS MBS consisted of $710.1 million and $1.23 billion of commercial MBS and residential MBS, respectively.

Accrued interest receivable on HTM and AFS securities at December 31, 2024 was $20.3 million and $24.1 million, respectively, and is included in interest receivable on the consolidated balance sheets. The Company has made the election to exclude all accrued interest receivable from securities from the estimate of credit losses.

The following tables summarize the Company’s AFS investments in an unrealized loss position for which an allowance for credit loss has not been recorded as of the years ended December 31, 2024 and 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:


	Less Than 12 Months				12 Months or More				Total
(In thousands)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Available-for-sale
December 31, 2024
U.S. Treasury	$	—	$	—	$	996	$	(3)	$	996	$	(3)
U.S. Government agencies	717		(7)		51,186		(1,040)		51,903		(1,047)
Mortgage-backed securities	7,480		(189)		1,384,532		(152,595)		1,392,012		(152,784)
State and political subdivisions	16,843		(195)		829,754		(157,374)		846,597		(157,569)
Other securities	12,912		(20)		162,803		(12,232)		175,715		(12,252)
Total AFS	$	37,952	$	(411)	$	2,429,271	$	(323,244)	$	2,467,223	$	(323,655)

December 31, 2023
U.S. Treasury	$	—	$	—	$	2,254	$	(31)	$	2,254	$	(31)
U.S. Government agencies	8,614		(39)		59,732		(1,954)		68,346		(1,993)
Mortgage-backed securities	9,182		(135)		1,930,105		(198,218)		1,939,287		(198,353)
State and political subdivisions	3,050		(163)		869,379		(132,378)		872,429		(132,541)
Other securities	11,016		(2,654)		223,025		(22,214)		234,041		(24,868)
Total AFS	$	31,862	$	(2,991)	$	3,084,495	$	(354,795)	$	3,116,357	$	(357,786)

As of December 31, 2024, the Company’s investment portfolio included $2.53 billion of AFS securities, of which $2.47 billion, or 97.5%, were in an unrealized loss position that are not deemed to have credit losses. A portion of the unrealized losses were related to the Company’s MBS, which are issued and guaranteed by U.S. government-sponsored entities and agencies, and the Company’s state and political subdivision securities, specifically investments in insured fixed rate municipal bonds for which the issuers continue to make timely principal and interest payments under the contractual terms of the securities.

Furthermore, the decline in fair value for each of the above AFS securities is attributable to the rates for those investments yielding less than current market rates. Management does not believe any of the securities are impaired due to reasons of credit quality. Management believes the declines in fair value for the securities are temporary. As of December 31, 2024, management does not have the immediate intent to sell the securities, and management believes the accounting standard of “more likely than not” has not been met regarding whether the Company would be required to sell any of the AFS securities before recovery of amortized cost.

All MBS held by the Company are issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. Accordingly, no allowance for credit losses has been recorded for these securities.

Regarding securities issued by state and political subdivisions and other HTM securities, the adequacy of the reserve for credit loss is determined quarterly based on methodology similar to the methodology for determining the allowance for credit losses on loans. The methodology considers, but is not limited to: (i) issuer bond ratings, (ii) issuer geography, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) probability-weighted multiple scenario forecasts, and (v) the issuers’ size.


(In thousands)	State and Political Subdivisions		Other Securities		Total
December 31, 2024
Held-to-maturity
Beginning balance, January 1, 2024	$	2,006	$	1,208	$	3,214
Provision for credit loss expense	—		—		—
Net (decrease) increase in allowance on previously impaired securities	(1,810)		1,810		—
Ending balance, December 31, 2024	$	196	$	3,018	$	3,214









December 31, 2023
Held-to-maturity
Beginning balance, January 1, 2023	$	110	$	1,278	$	1,388
Provision for credit loss expense	824		1,002		1,826
Net increase (decrease) in allowance on previously impaired securities	1,072		(1,072)		—
Ending balance, December 31, 2023	$	2,006	$	1,208	$	3,214

Available-for-sale
Beginning balance, January 1, 2023	$	—	$	—	$	—
Provision for credit loss expense	—		12,800		12,800
Reduction due to sales	—		(2,078)		(2,078)
Securities charged-off	—		(7,000)		(7,000)
Net decrease in allowance on previously impaired securities	—		(3,722)		(3,722)
Ending balance, December 31, 2023	$	—	$	—	$	—

Based upon the Company’s analysis of the underlying risk characteristics of its HTM and AFS portfolios, including credit ratings and other qualitative factors, as previously discussed, there was no provision for credit losses related to the Company’s securities portfolios recorded for the year ended December 31, 2024. The Company recorded a provision for credit losses related to AFS securities of $12.8 million for the year ended December 31, 2023. During the same period, the provision for credit loss expense on AFS securities was reduced by $3.7 million related to previously impaired securities. Additionally, during the year ended December 31, 2023, the Company charged-off $7.0 million directly related to one corporate bond which was deemed uncollectible in the period.


	State and Political Subdivisions
(In thousands)	Not Guaranteed or Pre-Refunded		Other Credit Enhancement or Insurance		Pre-Refunded		Total		Other Securities
Aaa/AAA	$	182,920	$	300,196	$	—	$	483,116	$	—
Aa/AA	627,680		526,027		—		1,153,707		—
A	38,673		161,904		—		200,577		108,527
Baa/BBB	—		4,386		—		4,386		148,049
Not Rated	15,587		—		—		15,587		—
Total	$	864,860	$	992,513	$	—	$	1,857,373	$	256,576

Historical loss rates associated with securities having similar grades as those in the Company’s portfolio have generally not been significant. Pre-refunded securities, if any, have been defeased by the issuer and are fully secured by cash and/or U.S. Treasury securities held in escrow for payment to holders when the underlying call dates of the securities are reached. Securities with other credit enhancement or insurance continue to make timely principal and interest payments under the contractual terms of the securities. Accordingly, no allowance for credit losses has been recorded for these securities as there is no current expectation of credit losses related to these securities.


(In thousands)	2024		2023		2022
Taxable:
Held-to-maturity	$	42,848	$	44,093	$	33,778
Available-for-sale	110,565		99,085		60,659

Non-taxable:
Held-to-maturity	40,371		40,612		36,516
Available-for-sale	22,649		23,128		27,250
Total	$	216,433	$	206,918	$	158,203

The amortized cost and estimated fair value by maturity of securities are shown in the following table as of December 31, 2024. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities.


	Held-to-Maturity				Available-for-Sale
(In thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,906	$	1,904	$	4,170	$	4,148
After one through five years	58,191		54,579		106,939		106,602
After five through ten years	393,485		345,000		194,665		181,393
After ten years	2,116,236		1,611,970		1,001,235		844,298
Securities not due on a single maturity date	1,070,032		936,498		1,545,539		1,392,759
Other securities (no maturity)	—		—		226		226
Total	$	3,639,850	$	2,949,951	$	2,852,774	$	2,529,426

The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $2.36 billion at December 31, 2024 and $3.32 billion at December 31, 2023.

There were no gross realized gains and $28.4 million gross realized losses from the sale of securities during the twelve months ended December 31, 2024, as the Company sold approximately $251.5 million of AFS investment securities as part of a strategic decision to sell low yielding securities to pay off higher rate wholesale fundings consisting of Federal Home Loan Bank (“FHLB”) advances during the year. There were no gross realized gains and approximately $20.6 million of gross realized losses from the sale of securities during the year ended December 31, 2023. The Company sold approximately $247.9 million of investment securities during 2023 related to a strategic decision to sell low yielding securities and use the proceeds to pay off higher rate wholesale fundings, including both brokered deposits and FHLB advances. There were approximately $46,000 of gross realized gains and $324,000 of gross realized losses from the call of securities during the year ended December 31, 2022. The income tax expense/benefit related to security gains/losses was 26.135% of the gross amounts in 2024, 2023 and 2022.

The Company has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair value of AFS securities. See Note 20, Derivative Instruments, for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.