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Investment Securities | 6 Months Ended
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Jun. 30, 2025
Investment Securities [Abstract] |
Investment Securities | Investment Securities Investment securities consisted of the following at June 30, 2025 and December 31, 2024.
(In thousands) | June 30, 2025 | December 31, 2024
Available for sale debt securities | $ | 8,915,779 |  | $ | 9,136,853 |
Trading debt securities | 46,630 |  | 38,034 |
Equity securities: |  |
Readily determinable fair value | 45,098 |  | 48,359 |
No readily determinable fair value | 9,413 |  | 9,083 |
Other: |  |
Federal Reserve Bank stock | 35,736 |  | 35,545 |
Federal Home Loan Bank stock | 10,100 |  | 10,120 |
Private equity investments | 174,070 |  | 184,386 |
Total investment securities (1) | $ | 9,236,826 |  | $ | 9,462,380 |
(1)Accrued interest receivable totaled $36.1 million and $35.0 million at June 30, 2025 and December 31, 2024, respectively, and was included within other assets on the consolidated balance sheets. 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. Equity Securities 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. The Company sold all of the Visa Class C shares during the second and third quarters of 2024. 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. Changes in equity investments with no readily determinable fair value for each period were as follows:
|  | Three Months Ended June 30 |  |  | Six Months Ended June 30
(In thousands) |  | 2024 |  |  | 2024
Balance at beginning of period |  | $ | 6,988 |  |  |  | $ | 6,978 |
Observable upward price adjustments |  | 178,227 |  |  |  | 178,227 |
Observable downward price adjustments |  | — |  |  |  | — |
Impairment charges |  | — |  |  |  | — |
Sales of securities and other activity |  | (119,435) |  |  |  | (119,425) |
Balance at end of period |  | $ | 65,780 |  |  |  | $ | 65,780 |
Net gains and losses for the Company's equity securities portfolio for each period were as follows:
|  | Three Months Ended June 30 |  |  | Six Months Ended June 30
(In thousands) |  | 2024 |  |  | 2024
Net gains (losses) recognized during the period on equity securities |  | $ | 178,164 |  |  |  | $ | 178,306 |
Less: Net (gains) losses recognized during the period on equity securities sold during the period |  | (119,987) |  |  |  | (119,987) |
Net unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date |  | $ | 58,177 |  |  |  | $ | 58,319 |
Available for sale debt securities portfolio 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 June 30, 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 | $ | 439,321 |  | $ | 439,782 |
After 1 but within 5 years | 1,429,778 |  | 1,437,921 |
After 5 but within 10 years | 717,757 |  | 720,034 |
Total U.S. government and federal agency obligations | 2,586,856 |  | 2,597,737 |
Government-sponsored enterprise obligations: |  |
After 5 but within 10 years | 35,212 |  | 30,195 |
After 10 years | 19,820 |  | 13,953 |
Total government-sponsored enterprise obligations | 55,032 |  | 44,148 |
State and municipal obligations: |  |
Within 1 year | 70,837 |  | 70,298 |
After 1 but within 5 years | 416,047 |  | 393,723 |
After 5 but within 10 years | 176,358 |  | 155,555 |
After 10 years | 111,498 |  | 95,382 |
Total state and municipal obligations | 774,740 |  | 714,958 |
Mortgage and asset-backed securities: |  |
Agency mortgage-backed securities | 3,991,521 |  | 3,356,039 |
Non-agency mortgage-backed securities | 539,853 |  | 499,996 |
Asset-backed securities | 1,516,911 |  | 1,496,323 |
Total mortgage and asset-backed securities | 6,048,285 |  | 5,352,358 |
Other debt securities: |  |
Within 1 year | 24,459 |  | 24,152 |
After 1 but within 5 years | 73,750 |  | 68,648 |
After 5 but within 10 years | 92,265 |  | 89,325 |
After 10 years | 24,748 |  | 24,453 |
Total other debt securities | 215,222 |  | 206,578 |
Total available for sale debt securities | $ | 9,680,135 |  | $ | 8,915,779 |
Investments in U.S. government and federal agency obligations include U.S. Treasury inflation-protected securities, which totaled $413.4 million, at fair value, at June 30, 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. Allowance for credit losses on available for sale debt securities 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 June 30, 2025, the fair value of securities on this watch list was $1.1 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 June 30, 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 June 30, 2025, the Company did not identify any securities for which a credit loss exists, and for the six months ended June 30, 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 June 30, 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 June 30, 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
June 30, 2025 |  |  |  |  |  |  |  |
U.S. government and federal agency obligations | $ | 690,639 |  | $ | 4,040 |  |  | $ | 291,903 |  | $ | 8,709 |  |  | $ | 982,542 |  | $ | 12,749 |
Government-sponsored enterprise obligations | — |  | — |  |  | 44,148 |  | 10,884 |  |  | 44,148 |  | 10,884 |
State and municipal obligations | 10,292 |  | 272 |  |  | 690,932 |  | 59,513 |  |  | 701,224 |  | 59,785 |
Mortgage and asset-backed securities: |  |  |  |  |  |  |  |
Agency mortgage-backed securities | 1,964 |  | 16 |  |  | 3,308,242 |  | 636,145 |  |  | 3,310,206 |  | 636,161 |
Non-agency mortgage-backed securities | — |  | — |  |  | 454,609 |  | 40,278 |  |  | 454,609 |  | 40,278 |
Asset-backed securities | 110,990 |  | 479 |  |  | 701,808 |  | 26,682 |  |  | 812,798 |  | 27,161 |
Total mortgage and asset-backed securities | 112,954 |  | 495 |  |  | 4,464,659 |  | 703,105 |  |  | 4,577,613 |  | 703,600 |
Other debt securities | 26,800 |  | 170 |  |  | 129,891 |  | 9,116 |  |  | 156,691 |  | 9,286 |
Total | $ | 840,685 |  | $ | 4,977 |  |  | $ | 5,621,533 |  | $ | 791,327 |  |  | $ | 6,462,218 |  | $ | 796,304 |
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 $6.5 billion of securities that were in a loss position at June 30, 2025, compared to $8.1 billion at December 31, 2024. The total amount of unrealized loss on these securities was $796.3 million at June 30, 2025, a decrease of $198.2 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. For debt securities classified as available for sale, the following table shows the amortized cost, fair value, and allowance for credit losses of securities available for sale at June 30, 2025 and December 31, 2024, and the corresponding amounts of gross unrealized gains and losses (pre-tax) in AOCI, by security type.
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value
June 30, 2025 |  |  |  |  |
U.S. government and federal agency obligations | $ | 2,586,856 |  | $ | 23,630 |  | $ | (12,749) |  | $ | — |  | $ | 2,597,737 |
Government-sponsored enterprise obligations | 55,032 |  | — |  | (10,884) |  | — |  | 44,148 |
State and municipal obligations | 774,740 |  | 3 |  | (59,785) |  | — |  | 714,958 |
Mortgage and asset-backed securities: |  |  |  |  |
Agency mortgage-backed securities | 3,991,521 |  | 679 |  | (636,161) |  | — |  | 3,356,039 |
Non-agency mortgage-backed securities | 539,853 |  | 421 |  | (40,278) |  | — |  | 499,996 |
Asset-backed securities | 1,516,911 |  | 6,573 |  | (27,161) |  | — |  | 1,496,323 |
Total mortgage and asset-backed securities | 6,048,285 |  | 7,673 |  | (703,600) |  | — |  | 5,352,358 |
Other debt securities | 215,222 |  | 642 |  | (9,286) |  | — |  | 206,578 |
Total | $ | 9,680,135 |  | $ | 31,948 |  | $ | (796,304) |  | $ | — |  | $ | 8,915,779 |
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 |
The following table presents proceeds from sales of securities and the components of investment securities gains and losses which have been recognized in earnings.
| For the Six Months Ended June 30
(In thousands) | 2025 | 2024
Proceeds from sales of securities: |  |
Available for sale debt securities | $ | 36,065 |  | $ | 1,015,845 |
Equity securities | — |  | 120,012 |
Other investments | 10,029 |  | 21,319 |
Total proceeds | $ | 46,094 |  | $ | 1,157,176 |
Investment securities gains (losses), net: |  |
Available for sale debt securities: |  |
Gains realized on sales | $ | 4 |  | $ | — |
Losses realized on sales | (4,218) |  | (187,543) |
Equity securities: |  |
Gains (losses) on equity securities, net | 1,777 |  | 178,306 |
Other: |  |
Gains realized on sales | 1,167 |  | 956 |
Losses realized on sales | (1,773) |  | (1,522) |
Fair value adjustments, net | (4,111) |  | 12,777 |
Total investment securities gains (losses), net | $ | (7,154) |  | $ | 2,974 |
Net losses on investment securities for the six months ended June 30, 2025 were mainly comprised of net losses of $4.2 million on sales of available for sale securities, net losses of $606 thousand on sales of private equity investments, and net losses in fair value of $4.1 million recorded on private equity investments. These losses were partially offset by net gains of $1.8 million on equity investments. During 2024, the Company executed a plan to to reposition a portion of its available for sale debt securities portfolio through the sale of securities with an amortized cost of $1.2 billion. The securities that the Company sold had a yield of approximately 2.1%, which resulted in a loss of $179.1 million, and the Company reinvested $928.8 million of the proceeds into U.S. Treasury securities yielding approximately 4.6%. Pledged securities At June 30, 2025, securities totaling $6.9 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.

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- Definition The entire disclosure for investment holdings. This includes the long positions of investments for the entity. It contains investments in affiliated and unaffiliated issuers. The investments include securities and non securities (i.e. commodities and futures contracts). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 210 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478795/946-210-50-12 + Details
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