DEBT SECURITIES

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

The following table presents the amortized cost and fair value of the debt securities portfolio as of the dates indicated:


	September 30, 2025
(in thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value

Securities available-for-sale
Obligations of states and political subdivisions	$459,834	$8,954	$(918)	$467,870
Mortgage-backed securities - residential	2,373,146	28,273	(27,264)	2,374,155
Mortgage-backed securities - commercial	389,469	1,402	(12,693)	378,178
Collateralized loan obligations	188,500	189	—	188,689
Corporate bonds	56,558	417	(3,491)	53,484
U.S. Treasury securities	20,597	—	(18)	20,579
Agency debentures	7,545	1	(23)	7,523
Total securities available-for-sale	$3,495,649	$39,236	$(44,407)	$3,490,478

Securities held-to-maturity
Obligations of states and political subdivisions	$15,082	$503	$(9)	$15,576
Mortgage-backed securities - residential	1,037,566	—	(144,497)	893,069
Mortgage-backed securities - commercial	310,988	—	(33,373)	277,615
Total securities held-to-maturity	$1,363,636	$503	$(177,879)	$1,186,260


	December 31, 2024
(in thousands)	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value

Securities available-for-sale
Obligations of states and political subdivisions	$91,799	$699	$(1,199)	$91,299
Mortgage-backed securities - residential	2,694,745	2,107	(53,164)	2,643,688
Mortgage-backed securities - commercial	259,793	22	(18,953)	240,862
Collateralized loan obligations	50,000	—	—	50,000
Corporate bonds	43,968	—	(4,566)	39,402
Total securities available-for-sale	$3,140,305	$2,828	$(77,882)	$3,065,251
Securities held-to-maturity
Obligations of states and political subdivisions	$14,193	$509	$(30)	$14,672
Mortgage-backed securities - residential	1,115,389	—	(196,949)	918,440
Mortgage-backed securities - commercial	310,912	—	(48,024)	262,888
Total securities held-to-maturity	$1,440,494	$509	$(245,003)	$1,196,000

In addition to the reported fair values of the debt securities reflected above, the Company is entitled to receive accrued

interest and dividends from its securities. Included in interest receivable and other assets on the consolidated balance sheets

as of September 30, 2025 and December 31, 2024 was $19.6 million and $15.9 million, respectively, of interest and

dividends receivable from the Company’s debt securities. Accrued interest receivable from securities available-for-sale

totaled $17.4 million and $13.6 million at September 30, 2025 and December 31, 2024, respectively. Accrued interest

receivable from securities held-to-maturity totaled $2.2 million and $2.4 million at September 30, 2025 and December 31,

2024, respectively.

Substantially all the mortgage-backed securities represent securities issued or guaranteed by government sponsored

enterprises and government entities. Municipal bonds are comprised of general obligation bonds (i.e., backed by the

general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being

financed) issued by various municipal and corporate entities. As of September 30, 2025 and December 31, 2024,

substantially all securities held, including municipal bonds, corporate debt securities, and collateralized loan obligations

were rated investment grade based upon nationally recognized statistical rating organizations where available.

At September 30, 2025, the Company held $50.4 million of trading securities, consisting of U.S. Treasury notes used as

economic hedges of our single family mortgage servicing rights, which are carried at fair value and reported as trading

securities on the consolidated balance sheet. For both the quarter and nine months ended September 30, 2025, the Company

had net gains of $98 thousand on trading securities, which were recorded in loan servicing income. At December 31, 2024,

there were no trading securities, and there were no net gains or losses on trading securities for the quarter and nine months

ended September 30, 2024.

In accordance with accounting standards, only the realized gains and losses from securities transactions are included in the

consolidated income statement as net gain (loss) on sale of investment securities. In 2025, investment securities were sold

primarily to generate liquidity for the Merger. During the first quarter of 2024, the Company executed an investment

portfolio restructuring of its AFS investment securities portfolio. The Company sold $1.8 billion of lower yielding AFS

securities and realized a loss of $207.2 million. The proceeds from the sale were used to purchase $1.6 billion of higher

yielding investments. No gross gains were realized on the sales.

The following table presents proceeds, gross realized gains and gross realized losses from sales and calls of available-for-

sale investments:


	Quarter Ended September 30,		Nine Months Ended September 30,
(in thousands)	2025	2024	2025	2024

Proceeds	$1,801	$—	$931,770	$1,629,114
Gross gains	155	—	5,215	—
Gross losses	—	—	923	207,203

Tax-exempt interest income on investment securities was $1.9 million and $776 thousand for the quarter ended September

30, 2025 and 2024, and $3.4 million and $2.4 million for the nine months ended September 30, 2025 and 2024,

respectively.

The Company reassessed classification of certain investments and effective January 1, 2022, transferred $1.7 billion in

residential and commercial mortgage-backed securities from available-for-sale to held-to-maturity securities. The transfer

occurred at fair value. The related net unrealized loss of $23.5 million, or $16.7 million net of deferred taxes, included in

other comprehensive income remained in other comprehensive income. For the three and nine months ended September 30,

2025 and 2024, $627 thousand, $648 thousand, $1.9 million and $1.9 million, respectively, of the unrealized loss was

accreted to interest income as a yield adjustment through earnings and will be accreted over the remaining term of the

securities. No gain or loss was recorded at the time of transfer.

The following table summarizes available-for-sale securities with unrealized and unrecognized losses at September 30,

2025 and December 31, 2024 aggregated by major security type and length of time in a continuous unrealized and

unrecognized loss position:


	September 30, 2025
	Less than 12 months		12 months or more		Total
(dollars in thousands)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses

Obligations of states and political subdivisions	$60,303	$222	$31,326	$696	$91,629	$918
Mortgage-backed securities - residential	196,863	517	438,518	26,747	635,381	27,264
Mortgage-backed securities - commercial	46,281	69	158,651	12,624	204,932	12,693
Corporate bonds	3,387	121	26,629	3,370	30,016	3,491
U.S. Treasury securities	20,579	18	—	—	20,579	18
Agency debentures	6,511	23	—	—	6,511	23
Total	$333,924	$970	$655,124	$43,437	$989,048	$44,407

Number of securities with unrealized losses		142		252		394


	December 31, 2024
	Less than 12 months		12 months or more		Total
(dollars in thousands)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses

Obligations of states and political subdivisions	$19,273	$162	$28,394	$1,037	$47,667	$1,199
Mortgage-backed securities - residential	1,381,125	15,337	311,751	37,827	1,692,876	53,164
Mortgage-backed securities - commercial	98,071	422	107,118	18,531	205,189	18,953
Corporate bonds	—	—	39,402	4,566	39,402	4,566
Total	$1,498,469	$15,921	$486,665	$61,961	$1,985,134	$77,882

Number of securities with unrealized losses		60		280		340

The Company did not record an ACL on the debt securities portfolio at September 30, 2025 or December 31, 2024. As of

both dates, the Company considers any unrealized loss across the classes of major security-type to be related to fluctuations

in market conditions, primarily interest rates, and not reflective of a deterioration in credit quality. The Company maintains

that it has intent and ability to hold these securities until the amortized cost basis of each security is recovered and likewise

concluded as of September 30, 2025 that it was not more likely than not that any of the securities in an unrealized loss

position would be required to be sold. The following factors were considered in determining that an ACL was not required

at September 30, 2025 or December 31, 2024.

Obligations of States and Political Subdivisions: The unrealized losses on the Company’s investments in obligations of

states and political subdivisions are primarily due to changes in interest rates and not due to credit losses. Management

monitors these securities on an ongoing basis and performs an internal analysis which takes into account the impact from

market rates movements, severity and duration of the unrealized loss position, viability of the issuer, recent downgrades in

ratings, and external credit rating assessments. As a result, management expects to recover the entire amortized cost basis

of these securities.

Mortgage-Backed Securities - Residential and Commercial: The unrealized losses on the Company’s investments in

residential and commercial MBS are primarily due to changes in interest rates. These securities are either implicitly or

explicitly guaranteed by the U.S. government, as such management expects to recover the entire amortized cost basis of

these securities.

Collateralized Loan Obligations: There were no unrealized losses on the Company’s collateralized loan obligations.

Corporate Bonds: The unrealized losses on the Company’s investments in corporate bonds are due to slight discount

margin variances related to changes in market rates and not due to credit losses. Management monitors these securities on

an ongoing basis and performs an internal analysis which includes a review of credit quality, changes in ratings, assessment

of regulatory and financial ratios, and general standing versus peer group. Management expects to recover the entire

amortized cost basis of these securities.

U.S. Treasury Securities: The unrealized losses on the Company’s investments in U.S. Treasury securities are primarily

due to changes in interest rates. These securities are backed by the full faith and credit of the U.S. government, as such

management expects to recover the entire amortized cost basis of these securities.

Agency Debentures: The unrealized losses on the Company’s investments in agency debentures are primarily due to

changes in interest rates. These securities are either implicitly or explicitly guaranteed by the U.S. government, as such

management expects to recover the entire amortized cost basis of these securities.

At September 30, 2025, investment securities with a carrying value of $3.0 billion were pledged to secure borrowings from

the Federal Reserve, and investment securities with a carrying value of $1.5 billion were pledged to secure the Company’s

obligations for securities sold under agreements to repurchase and to collateralize certain public, trust and bankruptcy

deposits as required by law.

As of September 30, 2025, there were no past due or nonaccrual available-for-sale or held-to-maturity securities.

The fair value of available-for-sale securities and the amortized cost and fair value of held-to-maturity debt securities are

shown by contractual maturity in the following tables. Expected maturities may differ from contractual maturities if

borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities

of securities as of September 30, 2025 were as follows:


	September 30, 2025

(in thousands)	Within One Year	After One Through Five Years	After Five Through Ten Years	After Ten Years	Total
Securities available-for-sale
Obligations of states and political subdivisions	$345	$45,276	$90,330	$331,919	$467,870
Mortgage-backed securities - residential	446	16,887	26,601	2,330,221	2,374,155
Mortgage-backed securities - commercial	2,460	190,384	158,333	27,001	378,178
Collateralized loan obligations	—	—	—	188,689	188,689
Corporate bonds	—	3,388	50,096	—	53,484
U.S. Treasury securities	—	20,579	—	—	20,579
Agency debentures	—	1,384	3,942	2,197	7,523
Total	$3,251	$277,898	$329,302	$2,880,027	$3,490,478


	September 30, 2025
(in thousands)	Within One Year		After One Through Five Years		After Five Through Ten Years		After Ten Years		Total

Securities held-to- maturity	Amortized Cost	Fair Value	Amortized Cost	Fair Value	Amortized Cost	Fair Value	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Obligations of states and political subdivisions	$5,244	$5,243	$3,592	$3,635	$4,621	$4,966	$1,625	$1,732	$15,082	$15,576
Mortgage-backed securities - residential	—	—	58	57	—	—	1,037,508	893,012	1,037,566	893,069
Mortgage-backed securities - commercial	—	—	139,756	126,430	171,232	151,185	—	—	310,988	277,615
Total	$5,244	$5,243	$143,406	$130,122	$175,853	$156,151	$1,039,133	$894,744	$1,363,636	$1,186,260