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v3.23.1

Investment Securities (Tables) | 3 Months Ended
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Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
Amortized Cost and Approximate Fair Values of Investment Securities | The amortized cost and the approximate fair values of investment securities are summarized as follows:
March 31, 2023 | Amortized Cost | Allowance for Credit Losses | Net Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value
Available-for-Sale: |  |  |  |  |  |
U.S. Treasury notes | $ | 250.1 |  | $ | — |  | $ | 250.1 |  | $ | — |  | $ | (26.9) |  | $ | 223.2 |
State, county, and municipal securities | 262.0 |  | — |  | 262.0 |  | — |  | (40.9) |  | 221.1 |
Obligations of U.S. government agencies | 186.4 |  | — |  | 186.4 |  | — |  | (12.3) |  | 174.1 |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations | 4,221.0 |  | — |  | 4,221.0 |  | 0.2 |  | (362.8) |  | 3,858.4 |
Private mortgage-backed securities | 260.3 |  | — |  | 260.3 |  | — |  | (35.2) |  | 225.1 |
Collateralized loan obligations | 1,143.3 |  |  | 1,143.3 |  | — |  | (29.4) |  | 1,113.9 |
Corporate securities | 261.7 |  | (2.6) |  | 259.1 |  | — |  | (25.6) |  | 233.5 |
Total | $ | 6,584.8 |  | $ | (2.6) |  | $ | 6,582.2 |  | $ | 0.2 |  | $ | (533.1) |  | $ | 6,049.3 |
March 31, 2023 | Amortized Cost | Allowance for Credit Losses | Net Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value
Held-to-Maturity: |  |  |  |  |  |
U.S. Treasury notes | $ | 397.2 |  | $ | — |  | $ | 397.2 |  | $ | — |  | $ | (7.6) |  | $ | 389.6 |
State, county, and municipal securities | 180.9 |  | — |  | 180.9 |  | 0.4 |  | (25.2) |  | 156.1 |
Obligations of U.S. government agencies | 352.3 |  | — |  | 352.3 |  | — |  | (44.7) |  | 307.6 |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations (1) | 2,389.4 |  | — |  | 2,389.4 |  | 1.0 |  | (269.7) |  | 2,120.7 |
Corporate securities | 57.1 |  | (0.7) |  | 56.4 |  | — |  | (4.6) |  | 51.8 |
Total | $ | 3,376.9 |  | $ | (0.7) |  | $ | 3,376.2 |  | $ | 1.4 |  | $ | (351.8) |  | $ | 3,025.8 |
(1) Amortized cost presented above include $19.7 million of unamortized losses and $13.2 million of unamortized gains in U.S. agency residential and commercial mortgage-backed securities and collateralized mortgage obligations related to the 2021 and 2022 transfer of securities from available-for-sale to held-to-maturity.
December 31, 2022 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses |  | Estimated Fair Value
Available-for-Sale: |  |  |  |  |
U.S. Treasury notes | $ | 675.1 |  | $ | 2.1 |  | $ | (34.5) |  |  | $ | 642.7 |
State, county, and municipal securities | 314.3 |  | — |  | (50.6) |  |  | 263.7 |
Obligations of U.S. government agencies | 216.2 |  | — |  | (17.3) |  |  | 198.9 |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations | 4,685.5 |  | 0.2 |  | (426.0) |  |  | 4,259.7 |
Private mortgage-backed securities | 264.9 |  | — |  | (36.9) |  |  | 228.0 |
Collateralized loan obligations | 1,145.2 |  | — |  | (33.6) |  |  | 1,111.6 |
Corporate securities | 272.3 |  | — |  | (30.8) |  |  | 241.5 |
Total | $ | 7,573.5 |  | $ | 2.3 |  | $ | (629.7) |  |  | $ | 6,946.1 |
December 31, 2022 | Amortized Cost | Allowance for Credit Losses | Net Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value |
Held-to-Maturity: |  |  |  |  |  |  |
U.S. Treasury notes | $ | 396.6 |  | $ | — |  | $ | 396.6 |  | $ | — |  | $ | (10.2) |  | $ | 386.4 |  |
State, county, and municipal securities | 181.2 |  | (0.1) |  | 181.1 |  | 0.2 |  | (31.6) |  | 149.7 |  |
Obligations of U.S. government agencies | 351.7 |  | — |  | 351.7 |  | — |  | (49.6) |  | 302.1 |  |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations(1) | 2,444.1 |  | — |  | 2,444.1 |  | 0.2 |  | (301.6) |  | 2,142.7 |  |
Corporate securities | 80.1 |  | (1.8) |  | 78.3 |  | — |  | (7.0) |  | 71.3 |  |
Total | $ | 3,453.7 |  | $ | (1.9) |  | $ | 3,451.8 |  | $ | 0.4 |  | $ | (400.0) |  | $ | 3,052.2 |  |
(1) Amortized cost presented above include $20.1 million of unamortized gains in U.S. agency residential and commercial mortgage-backed securities and collateralized mortgage obligations related to the 2021 transfer of securities from available-for-sale to held-to-maturity. |
Gross Unrealized Losses and Fair Values of Investment Securities | The following tables show the gross unrealized losses and fair values of available-for-sale investment securities and the length of time individual investment securities have been in an unrealized loss position as of March 31, 2023 and December 31, 2022.
| Less than 12 Months |  | 12 Months or More |  | Total
March 31, 2023 | Fair Value | Gross Unrealized Losses |  | Fair Value | Gross Unrealized Losses |  | Fair Value | Gross Unrealized Losses
Available-for-Sale: |  |  |  |  |  |  |  |
U.S. Treasury notes | $ | 48.1 |  | $ | (1.3) |  |  | $ | 175.1 |  | $ | (25.6) |  |  | $ | 223.2 |  | $ | (26.9) |
State, county, and municipal securities | 8.0 |  | (0.3) |  |  | 210.0 |  | (40.6) |  |  | 218.0 |  | (40.9) |
Obligations of U.S. government agencies | 86.7 |  | (4.0) |  |  | 86.8 |  | (8.3) |  |  | 173.5 |  | (12.3) |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations | 1,388.6 |  | (63.5) |  |  | 2,459.5 |  | (299.3) |  |  | 3,848.1 |  | (362.8) |
Private mortgage-backed securities | 0.1 |  | — |  |  | 225.0 |  | (35.2) |  |  | 225.1 |  | (35.2) |
Collateralized loan obligations | 117.3 |  | (3.0) |  |  | 996.6 |  | (26.4) |  |  | 1,113.9 |  | (29.4) |
Corporate securities | 80.0 |  | (2.8) |  |  | 153.5 |  | (22.8) |  |  | 233.5 |  | (25.6) |
Total | $ | 1,728.8 |  | $ | (74.9) |  |  | $ | 4,306.5 |  | $ | (458.2) |  |  | $ | 6,035.3 |  | $ | (533.1) |
| Less than 12 Months |  | 12 Months or More |  | Total
December 31, 2022 | Fair Value | Gross Unrealized Losses |  | Fair Value | Gross Unrealized Losses |  | Fair Value | Gross Unrealized Losses
Available-for-Sale: |  |  |  |  |  |  |  |
U.S. Treasury notes | $ | 168.8 |  | $ | (4.7) |  |  | $ | 170.4 |  | $ | (29.8) |  |  | $ | 339.2 |  | $ | (34.5) |
State, county, and municipal securities | 104.9 |  | (9.0) |  |  | 146.1 |  | (41.6) |  |  | 251.0 |  | (50.6) |
Obligations of U.S. government agencies | 152.2 |  | (10.1) |  |  | 46.1 |  | (7.2) |  |  | 198.3 |  | (17.3) |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations | 3,299.7 |  | (262.3) |  |  | 948.4 |  | (163.7) |  |  | 4,248.1 |  | (426.0) |
Private mortgage-backed securities | 133.1 |  | (19.1) |  |  | 94.9 |  | (17.8) |  |  | 228.0 |  | (36.9) |
Collateralized loan obligations | 1,082.6 |  | (33.1) |  |  | 28.9 |  | (0.5) |  |  | 1,111.5 |  | (33.6) |
Corporate securities | 130.6 |  | (8.3) |  |  | 110.8 |  | (22.5) |  |  | 241.4 |  | (30.8) |
Total | $ | 5,071.9 |  | $ | (346.6) |  |  | $ | 1,545.6 |  | $ | (283.1) |  |  | $ | 6,617.5 |  | $ | (629.7) |
Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses related to investment securities:
|  | Three Months Ended March 31, |  |
|  | 2023 |  | 2022 |  |  |  |
Beginning balance |  | $ | 1.9 |  |  | $ | — |  |  |  |  |
Provision for available-for-sale credit losses |  | 2.6 |  |  | — |  |  |  |  |
Reversal of held-to-maturity credit loss losses |  | (1.2) |  |  | 1.6 |  |  |  |  |
Ending balance |  | $ | 3.3 |  |  | $ | 1.6 |  |  |  |  |
Debt Securities, Held-to-maturity, Credit Quality Indicator | The following table summarizes the credit quality indicators of held-to-maturity securities at amortized cost for the periods indicated:
March 31, 2023 | AAA | AA | A | BBB | BB | Not Rated | Total
U.S. Treasury notes | $ | 397.2 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 397.2 |
State, county, and municipal securities | 68.2 |  | 92.7 |  | 11.5 |  | — |  | — |  | 8.5 |  | 180.9 |
Obligations of U.S. government agencies | 352.3 |  | — |  | — |  | — |  | — |  | — |  | 352.3 |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations |  |  |  |  |  |  |
FNMA/FHLMC | 2,183.2 |  | — |  | — |  | — |  | — |  | — |  | 2,183.2 |
GNMA | 206.2 |  | — |  | — |  | — |  | — |  | — |  | 206.2 |
Corporate securities | — |  | — |  | — |  | 52.1 |  | — |  | 5.0 |  | 57.1 |
Total | $ | 3,207.1 |  | $ | 92.7 |  | $ | 11.5 |  | $ | 52.1 |  | $ | — |  | $ | 13.5 |  | $ | 3,376.9 |
December 31, 2022 | AAA | AA | A | BBB | BB | Not Rated | Total
U.S. Treasury notes | $ | 396.6 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 396.6 |
State, county, and municipal securities | 68.3 |  | 92.8 |  | 11.5 |  | — |  | — |  | 8.6 |  | 181.2 |
Obligations of U.S. government agencies | 351.7 |  | — |  | — |  | — |  | — |  | — |  | 351.7 |
U.S. agency residential & commercial mortgage-backed securities & collateralized mortgage obligations |  |  |  |  |  |  |
FNMA/FHLMC | 2,233.6 |  | — |  | — |  | — |  | — |  | — |  | 2,233.6 |
GNMA | 210.5 |  | — |  | — |  | — |  | — |  | — |  | 210.5 |
Corporate securities | — |  | — |  | — |  | 65.1 |  | 10.0 |  | 5.0 |  | 80.1 |
Total | $ | 3,260.7 |  | $ | 92.8 |  | $ | 11.5 |  | $ | 65.1 |  | $ | 10.0 |  | $ | 13.6 |  | $ | 3,453.7 |
Maturities of Investment Securities | Maturities of mortgage-backed securities have been adjusted to reflect shorter maturities based upon estimated prepayments of principal. All other investment securities maturities are shown at contractual maturity dates.
| Available-for-Sale |  | Held-to-Maturity
March 31, 2023 | Amortized Cost | Estimated Fair Value |  | Amortized Cost | Estimated Fair Value
Within one year | $ | 0.5 |  | $ | 0.5 |  |  | $ | 307.2 |  | $ | 300.4 |
After one year but within five years | 786.6 |  | 746.1 |  |  | 301.1 |  | 287.2 |
After five years but within ten years | 1,686.5 |  | 1,524.1 |  |  | 704.1 |  | 624.4 |
After ten years | 4,111.2 |  | 3,778.6 |  |  | 2,064.5 |  | 1,813.8 |
Total | $ | 6,584.8 |  | $ | 6,049.3 |  |  | $ | 3,376.9 |  | $ | 3,025.8 |

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