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Investment Securities | 9 Months Ended
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Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment securities The following tables summarize the amortized cost, allowance for credit losses and fair value of the AFS debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss, net at September 30, 2024 and December 31, 2023:
|  | September 30, 2024
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Allowance for credit losses on investments |  | Fair Value
Investment Securities |  |  |  |  |  |  |  |  |  |
AFS debt securities |  |  |  |  |  |  |  |  |  |
U.S. government agency securities |  | $ | 515,775 |  |  | $ | 1,401 |  |  | $ | (343) |  |  | $ | — |  |  | $ | 516,833 |
Mortgage-backed securities - residential |  | 968,294 |  |  | 1,471 |  |  | (90,176) |  |  | — |  |  | 879,589 |
Mortgage-backed securities - commercial |  | 17,147 |  |  | — |  |  | (858) |  |  | — |  |  | 16,289 |
Municipal securities |  | 170,865 |  |  | 143 |  |  | (16,779) |  |  | — |  |  | 154,229 |
Corporate securities |  | 998 |  |  | — |  |  | (16) |  |  | — |  |  | 982 |
Total |  | $ | 1,673,079 |  |  | $ | 3,015 |  |  | $ | (108,172) |  |  | $ | — |  |  | $ | 1,567,922 |
|  | December 31, 2023 |  |
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Allowance for credit losses on investments |  | Fair Value |  |
Investment Securities |  |  |  |  |  |  |  |  |  |  |  |
AFS debt securities |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agency securities |  | $ | 204,663 |  |  | $ | 470 |  |  | $ | (1,177) |  |  | $ | — |  |  | $ | 203,956 |  |  |
Mortgage-backed securities - residential |  | 1,057,389 |  |  | — |  |  | (160,418) |  |  | — |  |  | 896,971 |  |  |
Mortgage-backed securities - commercial |  | 18,186 |  |  | — |  |  | (1,225) |  |  | — |  |  | 16,961 |  |  |
Municipal securities |  | 263,312 |  |  | 370 |  |  | (21,419) |  |  | — |  |  | 242,263 |  |  |
U.S. Treasury securities |  | 111,729 |  |  | — |  |  | (3,233) |  |  | — |  |  | 108,496 |  |  |
Corporate securities |  | 3,500 |  |  | — |  |  | (174) |  |  | — |  |  | 3,326 |  |  |
Total |  | $ | 1,658,779 |  |  | $ | 840 |  |  | $ | (187,646) |  |  | $ | — |  |  | $ | 1,471,973 |  |  |
The components of amortized cost for AFS debt securities on the consolidated balance sheets exclude accrued interest receivable since the Company elected to present accrued interest receivable separately on the consolidated balance sheets. As of September 30, 2024 and December 31, 2023, total accrued interest receivable on AFS debt securities was $5,848 and $7,212, respectively. AFS debt securities pledged at September 30, 2024 and December 31, 2023 had carrying amounts of $1,057,384 and $929,546, respectively, and were pledged to secure a Federal Reserve line of credit, public deposits and repurchase agreements. Additionally at December 31, 2023, AFS debt securities were pledged to secure Bank Term Funding Program borrowings. Within AFS debt securities, there were no aggregate holdings of any single issuer, other than U.S. Government sponsored enterprises, in an amount greater than 10% of shareholders’ equity during any period presented. AFS debt securities transactions are recorded as of the trade date. At September 30, 2024, there were $365 in trade date receivables related to sales settled after period end. At December 31, 2023, there were no such trade date receivables. At both September 30, 2024 and December 31, 2023, there were no trade date payables that related to purchases settled after period end. The following tables show gross unrealized losses on AFS debt securities for which an allowance for credit losses has not been recorded at September 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
|  | September 30, 2024
|  | Less than 12 months |  | 12 months or more |  | Total
|  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
U.S. government agency securities |  | $ | 143,783 |  |  | $ | (338) |  |  | $ | 816 |  |  | $ | (5) |  |  | $ | 144,599 |  |  | $ | (343) |
Mortgage-backed securities - residential |  | — |  |  | — |  |  | 470,625 |  |  | (90,176) |  |  | 470,625 |  |  | (90,176) |
Mortgage-backed securities - commercial |  | — |  |  | — |  |  | 16,289 |  |  | (858) |  |  | 16,289 |  |  | (858) |
Municipal securities |  | 23,993 |  |  | (1,772) |  |  | 115,191 |  |  | (15,007) |  |  | 139,184 |  |  | (16,779) |
Corporate securities |  | — |  |  | — |  |  | 982 |  |  | (16) |  |  | 982 |  |  | (16) |
Total |  | $ | 167,776 |  |  | $ | (2,110) |  |  | $ | 603,903 |  |  | $ | (106,062) |  |  | $ | 771,679 |  |  | $ | (108,172) |
|  | December 31, 2023
|  | Less than 12 months |  | 12 months or more |  | Total
|  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
U.S. government agency securities |  | $ | 25,923 |  |  | $ | (21) |  |  | $ | 14,040 |  |  | $ | (1,156) |  |  | $ | 39,963 |  |  | $ | (1,177) |
Mortgage-backed securities - residential |  | — |  |  | — |  |  | 896,971 |  |  | (160,418) |  |  | 896,971 |  |  | (160,418) |
Mortgage-backed securities - commercial |  | — |  |  | — |  |  | 16,961 |  |  | (1,225) |  |  | 16,961 |  |  | (1,225) |
Municipal securities |  | 14,480 |  |  | (148) |  |  | 188,669 |  |  | (21,271) |  |  | 203,149 |  |  | (21,419) |
U.S. Treasury securities |  | — |  |  | — |  |  | 108,496 |  |  | (3,233) |  |  | 108,496 |  |  | (3,233) |
Corporate securities |  | — |  |  | — |  |  | 3,326 |  |  | (174) |  |  | 3,326 |  |  | (174) |
Total |  | $ | 40,403 |  |  | $ | (169) |  |  | $ | 1,228,463 |  |  | $ | (187,477) |  |  | $ | 1,268,866 |  |  | $ | (187,646) |
As of September 30, 2024 and December 31, 2023, the Company’s AFS debt securities portfolio consisted of 266 and 439 individual securities, 207 and 370 of which were in an unrealized loss position, respectively. The majority of the investment portfolio was either government guaranteed, an issuance of a government sponsored entity or highly rated by major credit rating agencies, and the Company has historically not recorded any credit losses associated with these investments. Municipal debt securities with market values below amortized cost at September 30, 2024 were reviewed for material credit events and/or rating downgrades with individual credit reviews performed. The issuers of these AFS debt securities continue to make timely principal and interest payments under the contractual terms of the securities and the issuers will continue to be observed as a part of the Company’s ongoing credit monitoring. As such, as of September 30, 2024 and December 31, 2023, it was determined that all AFS debt securities that experienced a decline in fair value below amortized cost basis were due to noncredit-related factors. Further, it is not likely that the Company will be required to sell these securities before recovery of their amortized cost basis. Therefore, there was no allowance for credit losses recognized on AFS debt securities as of September 30, 2024 or December 31, 2023. Periodically, AFS debt securities may be sold, or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes or preparing for anticipated changes in market interest rates. The amortized cost and fair value of AFS debt securities by contractual maturity as of September 30, 2024 and December 31, 2023 are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | September 30, |  | December 31,
|  | 2024 |  |  | 2023 |
|  | Available-for-sale |  | Available-for-sale
|  | Amortized cost |  | Fair Value |  | Amortized cost |  | Fair Value
Due in one year or less |  | $ | 1,895 |  |  | $ | 1,892 |  |  | $ | 64,776 |  |  | $ | 64,279 |
Due in one to five years |  | 4,189 |  |  | 4,143 |  |  | 75,996 |  |  | 71,801 |
Due in five to ten years |  | 229,469 |  |  | 228,476 |  |  | 51,162 |  |  | 49,630 |
Due in over ten years |  | 452,085 |  |  | 437,533 |  |  | 391,270 |  |  | 372,331 |
|  | 687,638 |  |  | 672,044 |  |  | 583,204 |  |  | 558,041 |
Mortgage-backed securities - residential |  | 968,294 |  |  | 879,589 |  |  | 1,057,389 |  |  | 896,971 |
Mortgage-backed securities - commercial |  | 17,147 |  |  | 16,289 |  |  | 18,186 |  |  | 16,961 |
Total AFS debt securities |  | $ | 1,673,079 |  |  | $ | 1,567,922 |  |  | $ | 1,658,779 |  |  | $ | 1,471,973 |
Sales and other dispositions of AFS debt securities were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |  |  |
Proceeds from sales | $ | 318,194 |  |  | $ | 75,857 |  |  | $ | 526,076 |  |  | $ | 75,857 |  |  |
Proceeds from maturities, prepayments and calls | 89,834 |  |  | 32,946 |  |  | 224,070 |  |  | 91,361 |  |  |
Gross realized gains | — |  |  | 19 |  |  | 90 |  |  | 19 |  |  |
Gross realized losses | 40,165 |  |  | 14,119 |  |  | 56,468 |  |  | 14,119 |  |  |
Equity Securities The Company had equity securities without readily determinable market value included in other assets on the consolidated balance sheets with carrying amounts of $23,301 and $25,191 at September 30, 2024 and December 31, 2023, respectively. Additionally, the Company had equity securities accounted for under the equity method of accounting included in other assets on the consolidated balance sheets of $20,000 at September 30, 2024. The Company also had $32,859 and $34,190 of FHLB stock carried at cost at September 30, 2024 and December 31, 2023, respectively, included separately from the other equity securities discussed above.

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