Securities

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

3. Securities

The following tables set forth the amortized cost, gross unrealized gains and losses, and estimated fair value of debt securities classified as available for sale and held to maturity at September 30, 2025 and December 31, 2024. Amortized cost of securities does not include accrued interest which is reflected in the accrued interest line item on the consolidated balance sheets totaling $31.8 million at September 30, 2025 and $29.8 million at December 31, 2024.


	September 30, 2025								December 31, 2024
			Gross		Gross						Gross		Gross
Securities Available for Sale	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
($ in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury and government agency securities	$	290,196	$	3,391	$	1,594	$	291,993	$	185,827	$	349	$	3,894	$	182,282
Municipal obligations		193,771		90		728		193,133		200,272		—		3,942		196,330
Residential mortgage-backed securities		2,578,927		9,188		272,605		2,315,510		2,482,109		496		353,554		2,129,051
Commercial mortgage-backed securities		3,093,658		13,912		159,154		2,948,416		2,849,372		2,185		250,592		2,600,965
Collateralized mortgage obligations		29,402		—		1,374		28,028		37,553		—		2,306		35,247
Corporate debt securities		17,500		—		910		16,590		19,000		—		1,384		17,616
Total	$	6,203,454	$	26,581	$	436,365	$	5,793,670	$	5,774,133	$	3,030	$	615,672	$	5,161,491


	September 30, 2025								December 31, 2024
			Gross		Gross						Gross		Gross
Securities Held to Maturity	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
($ in thousands)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
U.S. Treasury and government agency securities	$	379,390	$	230	$	32,414	$	347,206	$	394,689	$	—	$	45,876	$	348,813
Municipal obligations		545,276		619		12,206		533,689		623,907		169		20,867		603,209
Residential mortgage-backed securities		516,257		—		38,581		477,676		573,057		—		61,525		511,532
Commercial mortgage-backed securities		735,969		—		50,025		685,944		818,604		—		72,854		745,750
Collateralized mortgage obligations		20,719		—		643		20,076		25,406		—		1,184		24,222
Total	$	2,197,611	$	849	$	133,869	$	2,064,591	$	2,435,663	$	169	$	202,306	$	2,233,526

The following tables present the amortized cost and fair value of debt securities available for sale and held to maturity at September 30, 2025 by contractual maturity. Actual maturities will differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateral mortgage obligations.


Debt Securities Available for Sale	Amortized		Fair
($ in thousands)	Cost		Value
Due in one year or less	$	30,778	$	30,776
Due after one year through five years		1,612,998		1,576,482
Due after five years through ten years		1,904,156		1,787,534
Due after ten years		2,655,522		2,398,878
Total debt securities available for sale	$	6,203,454	$	5,793,670


Debt Securities Held to Maturity	Amortized		Fair
($ in thousands)	Cost		Value
Due in one year or less	$	134,954	$	133,941
Due after one year through five years		680,676		660,373
Due after five years through ten years		507,188		482,174
Due after ten years		874,793		788,103
Total debt securities held to maturity	$	2,197,611	$	2,064,591

The Company held no securities classified as trading at September 30, 2025 and December 31, 2024.

There were no gross gains or gross losses on sales of securities during the three or nine months ended September 30, 2025 and 2024. Net gains or losses, when applicable, are reflected in the "Securities transactions, net" line item on the Consolidated Statements of Income.

Securities with carrying values totaling approximately $3.2 billion and $3.9 billion were pledged as collateral at September 30, 2025 and December 31, 2024, respectively, primarily to secure public deposits or securities sold under agreements to repurchase.

Credit Quality

The Company’s policy is to invest only in securities of investment grade quality. These investments are largely limited to U.S. agency securities and municipal securities. Management has concluded, based on the long history of no credit losses, that the expectation of nonpayment of the held to maturity securities carried at amortized cost is zero for securities that are backed by the full faith and credit of and/or guaranteed by the U.S. government. As such, no allowance for credit losses has been recorded for these securities. The municipal portfolio is analyzed separately for allowance for credit loss in accordance with the applicable guidance for each portfolio as noted below.

The Company evaluates credit impairment for individual securities available for sale whose fair value was below amortized cost with a more than inconsequential risk of default and where the Company had assessed whether the decline in fair value was significant enough to suggest a credit event occurred. There were no securities with a material credit loss event and, therefore, no allowance for credit loss was recorded in any period presented.

The fair value and gross unrealized losses for securities classified as available for sale with unrealized losses for the periods indicated follow.


	September 30, 2025
Available for Sale	Losses < 12 months				Losses 12 months or >				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury and government agency securities	$	32,243	$	109	$	14,382	$	1,485	$	46,625	$	1,594
Municipal obligations		—		—		133,878		728		133,878		728
Residential mortgage-backed securities		37		—		1,515,716		272,605		1,515,753		272,605
Commercial mortgage-backed securities		1,023		6		2,265,794		159,148		2,266,817		159,154
Collateralized mortgage obligations		—		—		28,029		1,374		28,029		1,374
Corporate debt securities		2,000		—		14,590		910		16,590		910
Total	$	35,303	$	115	$	3,972,389	$	436,250	$	4,007,692	$	436,365


	December 31, 2024
Available for Sale	Losses < 12 Months				Losses 12 Months or >				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury and government agency securities	$	130,453	$	2,243	$	7,247	$	1,651	$	137,700	$	3,894
Municipal obligations		24,149		247		170,110		3,695		194,259		3,942
Residential mortgage-backed securities		347,772		2,935		1,554,001		350,619		1,901,773		353,554
Commercial mortgage-backed securities		184,534		2,738		2,139,191		247,854		2,323,725		250,592
Collateralized mortgage obligations		—		—		35,247		2,306		35,247		2,306
Corporate debt securities		—		—		15,616		1,384		15,616		1,384
Total	$	686,908	$	8,163	$	3,921,412	$	607,509	$	4,608,320	$	615,672

At each reporting period, the Company evaluated its held to maturity municipal obligation portfolio for credit loss using probability of default and loss given default models. The models were run using a long-term average probability of default migration and with a probability weighting of Moody’s economic forecasts. The resulting credit losses, if any, were negligible and no allowance for credit loss was recorded.

The fair value and gross unrealized losses for securities classified as held to maturity with unrealized losses for the periods indicated follow.


	September 30, 2025
Held to Maturity	Losses < 12 Months				Losses 12 Months or >				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury and government agency securities	$	—	$	—	$	328,482	$	32,414	$	328,482	$	32,414
Municipal obligations		50,829		30		360,613		12,176		411,442		12,206
Residential mortgage-backed securities		—		—		477,676		38,581		477,676		38,581
Commercial mortgage-backed securities		—		—		685,944		50,025		685,944		50,025
Collateralized mortgage obligations		—		—		20,076		643		20,076		643
Total	$	50,829	$	30	$	1,872,791	$	133,839	$	1,923,620	$	133,869


	December 31, 2024
Held to Maturity	Losses < 12 Months				Losses 12 Months or >				Total
($ in thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S. Treasury and government agency securities	$	27,660	$	840	$	321,154	$	45,036	$	348,814	$	45,876
Municipal obligations		82,028		451		497,999		20,416		580,027		20,867
Residential mortgage-backed securities		—		—		511,531		61,525		511,531		61,525
Commercial mortgage-backed securities		—		—		745,750		72,854		745,750		72,854
Collateralized mortgage obligations		—		—		24,222		1,184		24,222		1,184
Total	$	109,688	$	1,291	$	2,100,656	$	201,015	$	2,210,344	$	202,306

As of September 30, 2025 and December 31, 2024, the Company had 611 and 729 securities, respectively, with market values below their cost basis. There were no material unrealized losses related to the marketability of the securities or the issuer’s ability to meet contractual obligations. In all cases, the indicated impairment on these debt securities would be recovered no later than the security’s maturity date or possibly earlier if the market price for the security increases with a reduction in the yield required by the market. The unrealized losses were deemed to be non-credit related at September 30, 2025 and December 31, 2024. At September 30, 2025, the Company had adequate liquidity and, therefore, neither planned nor expected to be required to liquidate these securities before recovery of the amortized cost basis.