Securities

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

2. 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 March 31, 2026 and December 31, 2025. Amortized cost of securities does not include accrued interest which is reflected in the accrued interest line item on the consolidated balance sheets totaling $33.6 million at March 31, 2026 and $31.7 million at December 31, 2025, respectively.


	March 31, 2026								December 31, 2025
			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	$	279,080	$	4,562	$	1,175	$	282,467	$	266,825	$	3,705	$	1,198	$	269,332
Municipal obligations		180,786		49		692		180,143		191,754		82		508		191,328
Residential mortgage-backed securities		2,567,467		6,254		240,316		2,333,405		2,620,980		11,643		256,994		2,375,629
Commercial mortgage-backed securities		3,218,115		6,457		84,252		3,140,320		3,217,663		10,530		144,868		3,083,325
Collateralized mortgage obligations		24,998		—		1,184		23,814		27,100		—		1,154		25,946
Corporate debt securities		17,000		—		763		16,237		17,000		37		680		16,357
Total	$	6,287,446	$	17,322	$	328,382	$	5,976,386	$	6,341,322	$	25,997	$	405,402	$	5,961,917


	March 31, 2026								December 31, 2025
			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	$	368,667	$	271	$	29,171	$	339,767	$	373,605	$	248	$	30,143	$	343,710
Municipal obligations		457,346		370		11,556		446,160		511,516		708		11,455		500,769
Residential mortgage-backed securities		480,249		—		35,764		444,485		497,338		—		34,239		463,099
Commercial mortgage-backed securities		728,004		—		48,510		679,494		731,329		—		46,455		684,874
Collateralized mortgage obligations		17,362		—		539		16,823		19,094		—		520		18,574
Total	$	2,051,628	$	641	$	125,540	$	1,926,729	$	2,132,882	$	956	$	122,812	$	2,011,026

The following tables present the amortized cost and fair value of debt securities available for sale and held to maturity at March 31, 2026 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	$	35,304	$	35,323
Due after one year through five years		1,382,114		1,360,911
Due after five years through ten years		2,091,263		2,020,407
Due after ten years		2,778,765		2,559,745
Total	$	6,287,446	$	5,976,386


Debt Securities Held to Maturity	Amortized		Fair
($ in thousands)	Cost		Value
Due in one year or less	$	139,208	$	138,554
Due after one year through five years		701,252		678,711
Due after five years through ten years		419,862		397,573
Due after ten years		791,306		711,891
Total	$	2,051,628	$	1,926,729

The Company held no securities classified as trading at March 31, 2026 and December 31, 2025.

In January 2026, the Company completed a restructuring of its available for sale investment securities portfolio, whereby lower-yielding securities with an amortized cost of $1.5 billion were sold and the proceeds were reinvested in higher-yielding securities. Certain securities that were sold were previously hedged in derivative instruments designated as fair value hedges of interest rate risk that were subsequently terminated. At the time of termination, the value of the swap was recorded as basis adjustment to the amortized cost of the underlying security. The basis adjustment is amortized as yield adjustment while the security is held, and affects the net gain or loss realized by the remaining unamortized basis adjustment when sold. The unamortized basis adjustment recognized in connection with this portfolio restructure reduced the net loss by approximately $50.4 million, resulting in a net realized loss of $98.6 million. Refer to Note 6 – Derivatives for a discussion of fair value hedges of interest rate risk.

The following table presents the proceeds from, gross gains on, and gross losses on sales of securities during the three months ended March 31, 2026 and 2025. Net gains or losses are reflected in the "Securities transactions, net" line item on the Consolidated Statements of Income.


	Three Months Ended March 31,
($ in thousands)	2026			2025
Proceeds	$	1,414,258		$	—
Gross gains		7			—
Gross losses		98,602			—
Net loss	$	(98,595	)	$	—

Securities with carrying values totaling approximately $3.5 billion and $3.9 billion were pledged as collateral at March 31, 2026 and December 31, 2025, 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.


Available for Sale
March 31, 2026	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	$	11,910	$	101	$	6,708	$	1,074	$	18,618	$	1,175
Municipal obligations		47,068		400		95,944		292		143,012		692
Residential mortgage-backed securities		395,000		3,778		1,283,981		236,538		1,678,981		240,316
Commercial mortgage-backed securities		1,758,136		19,383		829,335		64,869		2,587,471		84,252
Collateralized mortgage obligations		—		—		23,814		1,184		23,814		1,184
Corporate debt securities		2,989		11		13,248		752		16,237		763
Total	$	2,215,103	$	23,673	$	2,253,030	$	304,709	$	4,468,133	$	328,382


Available for Sale
December 31, 2025	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	$	17,468	$	9	$	14,677	$	1,189	$	32,145	$	1,198
Municipal obligations		—		—		124,852		508		124,852		508
Residential mortgage-backed securities		54,250		598		1,442,746		256,396		1,496,996		256,994
Commercial mortgage-backed securities		374,740		1,787		2,158,865		143,081		2,533,605		144,868
Collateralized mortgage obligations		—		—		25,946		1,154		25,946		1,154
Corporate debt securities		1,998		2		11,322		678		13,320		680
Total	$	448,456	$	2,396	$	3,778,408	$	403,006	$	4,226,864	$	405,402

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.


Held to Maturity
March 31, 2026	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	$	8,563	$	24	$	313,146	$	29,147	$	321,709	$	29,171
Municipal obligations		101,661		305		171,360		11,251		273,021		11,556
Residential mortgage-backed securities		—		—		444,485		35,764		444,485		35,764
Commercial mortgage-backed securities		—		—		679,494		48,510		679,494		48,510
Collateralized mortgage obligations		—		—		16,823		539		16,823		539
Total	$	110,224	$	329	$	1,625,308	$	125,211	$	1,735,532	$	125,540


Held to Maturity
December 31, 2025	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	$	—	$	—	$	316,814	$	30,143	$	316,814	$	30,143
Municipal obligations		98,559		97		325,241		11,358		423,800		11,455
Residential mortgage-backed securities		—		—		463,099		34,239		463,099		34,239
Commercial mortgage-backed securities		—		—		684,874		46,455		684,874		46,455
Collateralized mortgage obligations		—		—		18,574		520		18,574		520
Total	$	98,559	$	97	$	1,808,602	$	122,715	$	1,907,161	$	122,812

As of March 31, 2026 and December 31, 2025, the Company had 592 and 604 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 March 31, 2026 and December 31, 2025. At March 31, 2026, 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.