Investment Securities

3 Months Ended

Mar. 31, 2026

Investment securities consisted of the following at March 31, 2026 and December 31, 2025.


(In thousands)	March 31, 2026		December 31, 2025
Available for sale debt securities	$	8,646,127	$	9,095,513
Trading debt securities	44,329		40,080
Equity securities:
Readily determinable fair value	46,193		47,551
No readily determinable fair value	10,000		9,803
Other:
Federal Reserve Bank stock	54,434		35,918
Federal Home Loan Bank stock	10,141		10,198

Private equity investments	183,764		184,343
Total investment securities (1)	$	8,994,988	$	9,423,406

(1)Accrued interest receivable totaled $36.4 million and $42.0 million at March 31, 2026 and December 31, 2025, 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 and common 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, 2026, this portfolio included the Company’s 411,723 shares of Visa Inc. (“Visa”) Class B-2 common stock, which are held by Commerce Bancshares, Inc. and were acquired by participating in a public exchange offer by Visa in 2024 (2024 Exchange Offer). At March 31, 2026, the Company’s Visa Class B-2 shares are carried at cost, which is $0, as the Company elected the measurement alternative approach for these shares and there have not been 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.

As a condition of participating in the 2024 Exchange Offer, the Company entered into a Makewhole Agreement (2024 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 had been effectively indemnified by Visa USA members through reductions to the conversion ratio for its Class B-1 common stock. The purpose of the 2024 Makewhole Agreement was 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.

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 March 31, 2026 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	$	422,299	$	423,185
After 1 but within 5 years	1,704,983		1,707,211
After 5 but within 10 years	913,297		910,616
After 10 years	106,606		106,281
Total U.S. government and federal agency obligations	3,147,185		3,147,293
Government-sponsored enterprise obligations:

After 1 but within 5 years	3,962		3,737
After 5 but within 10 years	30,816		26,321
After 10 years	19,821		13,927
Total government-sponsored enterprise obligations	54,599		43,985
State and municipal obligations:
Within 1 year	55,782		55,348
After 1 but within 5 years	428,431		409,208
After 5 but within 10 years	116,777		103,102
After 10 years	104,874		87,166
Total state and municipal obligations	705,864		654,824
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,701,146		3,123,669
Non-agency mortgage-backed securities	446,168		414,777
Asset-backed securities	1,104,943		1,093,819
Total mortgage and asset-backed securities	5,252,257		4,632,265
Other debt securities:
Within 1 year	8,021		7,924
After 1 but within 5 years	59,891		55,915
After 5 but within 10 years	81,872		80,151
After 10 years	23,937		23,770
Total other debt securities	173,721		167,760
Total available for sale debt securities	$	9,333,626	$	8,646,127

Investments in U.S. government and federal agency obligations include U.S. Treasury inflation-protected securities, which totaled $380.7 million, at fair value, at March 31, 2026. 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 March 31, 2026, the fair value of securities on this watch list was $970.5 million compared to $896.7 million at December 31, 2025. 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 March 31, 2026, 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 March 31, 2026, the Company did not identify any securities for which a credit loss exists, and for the three

months ended March 31, 2026 and 2025, 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 March 31, 2026 and December 31, 2025. 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 March 31, 2026, 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
March 31, 2026
U.S. government and federal agency obligations	$	1,321,452	$	9,277	$	190,275	$	7,123	$	1,511,727	$	16,400
Government-sponsored enterprise obligations	—		—		43,985		10,614		43,985		10,614
State and municipal obligations	30,515		118		614,192		50,935		644,707		51,053
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,670		47		3,047,265		578,793		3,050,935		578,840
Non-agency mortgage-backed securities	—		—		401,037		31,665		401,037		31,665
Asset-backed securities	68,558		181		514,421		16,102		582,979		16,283
Total mortgage and asset-backed securities	72,228		228		3,962,723		626,560		4,034,951		626,788
Other debt securities	18,832		10		93,283		6,578		112,115		6,588
Total	$	1,443,027	$	9,633	$	4,904,458	$	701,810	$	6,347,485	$	711,443
December 31, 2025
U.S. government and federal agency obligations	$	612,167	$	2,620	$	314,006	$	8,244	$	926,173	$	10,864
Government-sponsored enterprise obligations	—		—		44,712		10,239		44,712		10,239
State and municipal obligations	12,157		18		636,492		50,323		648,649		50,341
Mortgage and asset-backed securities:
Agency mortgage-backed securities	2,437		30		3,148,627		565,056		3,151,064		565,086
Non-agency mortgage-backed securities	—		—		421,508		31,942		421,508		31,942
Asset-backed securities	32,875		36		546,984		16,925		579,859		16,961
Total mortgage and asset-backed securities	35,312		66		4,117,119		613,923		4,152,431		613,989
Other debt securities	—		—		110,038		6,661		110,038		6,661
Total	$	659,636	$	2,704	$	5,222,367	$	689,390	$	5,882,003	$	692,094

The entire available for sale debt portfolio included $6.3 billion of securities that were in a loss position at March 31, 2026, compared to $5.9 billion at December 31, 2025. The total amount of unrealized loss on these securities was $711.4 million at March 31, 2026, an increase of $19.3 million compared to the unrealized loss at December 31, 2025. 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 March 31, 2026 and December 31, 2025, 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
March 31, 2026
U.S. government and federal agency obligations	$	3,147,185	$	16,508	$	(16,400)	$	—	$	3,147,293
Government-sponsored enterprise obligations	54,599		—		(10,614)		—		43,985
State and municipal obligations	705,864		13		(51,053)		—		654,824
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,701,146		1,363		(578,840)		—		3,123,669
Non-agency mortgage-backed securities	446,168		274		(31,665)		—		414,777
Asset-backed securities	1,104,943		5,159		(16,283)		—		1,093,819
Total mortgage and asset-backed securities	5,252,257		6,796		(626,788)		—		4,632,265
Other debt securities	173,721		627		(6,588)		—		167,760
Total	$	9,333,626	$	23,944	$	(711,443)	$	—	$	8,646,127
December 31, 2025
U.S. government and federal agency obligations	$	3,257,561	$	32,403	$	(10,864)	$	—	$	3,279,100
Government-sponsored enterprise obligations	54,951		—		(10,239)		—		44,712
State and municipal obligations	715,037		37		(50,341)		—		664,733
Mortgage and asset-backed securities:
Agency mortgage-backed securities	3,786,811		1,380		(565,086)		—		3,223,105
Non-agency mortgage-backed securities	467,200		430		(31,942)		—		435,688
Asset-backed securities	1,269,503		9,503		(16,961)		—		1,262,045
Total mortgage and asset-backed securities	5,523,514		11,313		(613,989)		—		4,920,838
Other debt securities	191,215		1,576		(6,661)		—		186,130
Total	$	9,742,278	$	45,329	$	(692,094)	$	—	$	9,095,513

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 Three Months Ended March 31
(In thousands)	2026		2025
Proceeds from sales of securities:


Other investments	$	17,662	$	6,757
Total proceeds	$	17,662	$	6,757

Investment securities gains (losses), net:
Available for sale debt securities:

Gains realized on sales	$	—	$	4


Equity securities:




Gains (losses) on equity securities, net	160		(97)
Other:
Gains realized on sales	597		1,071
Losses realized on sales	—		(44)
Fair value adjustments, net	10,890		(8,525)
Total investment securities gains (losses), net	$	11,647	$	(7,591)

Net gains on investment securities for the three months ended March 31, 2026 were mainly comprised of net gains in fair value of $10.9 million on private equity investments.

Pledged securities

At March 31, 2026, securities totaling $6.7 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 $7.3 billion at December 31, 2025. Excluding obligations of various government-sponsored enterprises such as FNMA, FHLB and FHLMC, no investment in a single issuer exceeded 10% of shareholders’ equity.