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.

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 third quarter of 2025, the Company and its subsidiaries initiated and completed steps taken to reposition the Company’s consolidated balance sheet and reclassified approximately $3.59 billion in HTM investment securities to AFS investment securities. Subsequently, the Company sold approximately $3.16 billion in amortized cost basis of AFS securities (including certain of those previously classified as HTM). The sale of investment securities resulted in a realized, after-tax ordinary loss of $625.6 million (based on actual tax rate of 21.946%).

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. No gains or losses on these securities were recognized at the time of transfer. During the balance sheet repositioning that occurred during 2025, the remaining securities were transferred out of the HTM portfolio to the AFS portfolio at fair value and either subsequently sold or maintained within the AFS portfolio.

As a result of the balance sheet repositioning, the Company did not hold any investment securities classified as HTM as of December 31, 2025. The amortized cost, fair value and allowance for credit losses of investment securities that were classified as HTM as of December 31, 2024 were as follows:


(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

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.


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

December 31, 2025

U.S. Government agencies	$	47,786	$	—	$	6	$	(620)	$	47,172
Mortgage-backed securities	2,385,646		—		6,072		(189,760)		2,201,958
State and political subdivisions	1,046,121		—		42		(187,092)		859,071
Other securities	163,256		—		209		(5,445)		158,020
Total AFS	$	3,642,809	$	—	$	6,329	$	(382,917)	$	3,266,221

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

All mortgage-backed securities included in the table above were issued by U.S. government agencies or corporations. As of December 31, 2025, AFS MBS consisted of $597.4 million and $1.60 billion of commercial MBS and residential MBS, respectively. As of December 31, 2024, AFS MBS consisted of $517.2 million and $875.5 million of commercial MBS and residential MBS, respectively.

Accrued interest receivable on AFS securities at December 31, 2025 was $23.8 million, and is included in interest receivable on the consolidated balance sheet. 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, 2025 and 2024, 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, 2025

U.S. Government agencies	$	2,247	$	(17)	$	43,767	$	(603)	$	46,014	$	(620)
Mortgage-backed securities	15,305		(74)		1,672,723		(189,686)		1,688,028		(189,760)
State and political subdivisions	5,757		(969)		824,265		(186,123)		830,022		(187,092)
Other securities	—		—		96,176		(5,445)		96,176		(5,445)
Total AFS	$	23,309	$	(1,060)	$	2,636,931	$	(381,857)	$	2,660,240	$	(382,917)

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)

As of December 31, 2025, the Company’s investment portfolio included $3.27 billion of AFS securities, of which $2.66 billion, or 81.4%, 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. 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, 2025
Held-to-maturity
Beginning balance, January 1, 2025	$	196	$	3,018	$	3,214
Provision for credit loss expense	(202)		(3,012)		(3,214)
Net (decrease) increase in allowance on previously impaired securities	6		(6)		—
Ending balance, December 31, 2025	$	—	$	—	$	—









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

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.

Based upon the Company’s analysis of the underlying risk characteristics of its AFS portfolio, including credit ratings and other qualitative factors, as previously discussed, there was no provision for credit losses related to the Company’s AFS portfolio recorded for the years ended December 31, 2025 and 2024. During the year ended December 31, 2025, the Company recaptured $3.2 million of the allowance for credit loss related to HTM securities due to the balance sheet repositioning.


(In thousands)	2025		2024		2023
Taxable:
Held-to-maturity	$	22,993	$	42,848	$	44,093
Available-for-sale	97,242		110,565		99,085

Non-taxable:
Held-to-maturity	22,048		40,371		40,612
Available-for-sale	23,169		22,649		23,128
Total	$	165,452	$	216,433	$	206,918

The amortized cost and estimated fair value by maturity of AFS securities are shown in the following table as of December 31, 2025. 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.


	Available-for-Sale
(In thousands)		Amortized Cost		Fair Value
One year or less		$	10,322	$	10,230
After one through five years		114,551		114,184
After five through ten years		108,618		102,835
After ten years		1,023,469		836,811
Securities not due on a single maturity date		2,385,646		2,201,958
Other securities (no maturity)		203		203
Total		$	3,642,809	$	3,266,221

There were no gross realized gains and $801.5 million gross realized losses from the sale of securities during the twelve months ended December 31, 2025 related to the balance sheet repositioning during the year. 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. The income tax expense/benefit related to security gains/losses was 21.946% of the gross amounts in 2025 and 26.135% of the gross amounts in 2024 and 2023.

The Company has entered into various 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.