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DEBT SECURITIES | 3 Months Ended
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Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract] |
DEBT SECURITIES | DEBT SECURITIES The following table presents the amortized cost and fair value of the debt securities portfolio as of the dates indicated:
| March 31, 2026
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities available-for-sale |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 454,978 |  |  | $ | 6,612 |  |  | $ | (1,721) |  |  | $ | 459,869 |
Mortgage-backed securities - residential | 2,818,727 |  |  | 20,363 |  |  | (31,371) |  |  | 2,807,719 |
Mortgage-backed securities - commercial | 369,056 |  |  | 1,210 |  |  | (12,285) |  |  | 357,981 |
Collateralized loan obligations | 230,500 |  |  | — |  |  | (792) |  |  | 229,708 |
Corporate bonds | 52,028 |  |  | 985 |  |  | (1,878) |  |  | 51,135 |
U.S. Treasury securities | 20,648 |  |  | — |  |  | (112) |  |  | 20,536 |
Agency debentures | 6,816 |  |  | — |  |  | (59) |  |  | 6,757 |
Total securities available-for-sale | $ | 3,952,753 |  |  | $ | 29,170 |  |  | $ | (48,218) |  |  | $ | 3,933,705 |
(in thousands) | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Fair Value
Securities held-to-maturity |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 12,967 |  |  | $ | 401 |  |  | $ | (9) |  |  | $ | 13,359 |
Mortgage-backed securities - residential | 989,514 |  |  | — |  |  | (132,144) |  |  | 857,370 |
Mortgage-backed securities - commercial | 311,039 |  |  | — |  |  | (31,799) |  |  | 279,240 |
Total securities held-to-maturity | $ | 1,313,520 |  |  | $ | 401 |  |  | $ | (163,952) |  |  | $ | 1,149,969 |
| December 31, 2025
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Securities available-for-sale |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 458,290 |  |  | $ | 13,518 |  |  | $ | (649) |  |  | $ | 471,159 |
Mortgage-backed securities - residential | 2,871,733 |  |  | 36,881 |  |  | (24,325) |  |  | 2,884,289 |
Mortgage-backed securities - commercial | 381,934 |  |  | 1,622 |  |  | (11,750) |  |  | 371,806 |
Collateralized loan obligations | 188,500 |  |  | 1 |  |  | (185) |  |  | 188,316 |
Corporate bonds | 51,828 |  |  | 527 |  |  | (2,440) |  |  | 49,915 |
U.S. Treasury securities | 20,623 |  |  | 46 |  |  | — |  |  | 20,669 |
Agency debentures | 7,243 |  |  | 9 |  |  | (21) |  |  | 7,231 |
Total securities available-for-sale | $ | 3,980,151 |  |  | $ | 52,604 |  |  | $ | (39,370) |  |  | $ | 3,993,385 |
(in thousands) | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Fair Value
Securities held-to-maturity |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 12,902 |  |  | $ | 545 |  |  | $ | (6) |  |  | $ | 13,441 |
Mortgage-backed securities - residential | 1,012,716 |  |  | — |  |  | (134,994) |  |  | 877,722 |
Mortgage-backed securities - commercial | 311,014 |  |  | — |  |  | (31,359) |  |  | 279,655 |
Total securities held-to-maturity | $ | 1,336,632 |  |  | $ | 545 |  |  | $ | (166,359) |  |  | $ | 1,170,818 |
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 March 31, 2026 and December 31, 2025 was $19.1 million and $20.2 million, respectively, of interest and dividends receivable from the Company’s debt securities. Accrued interest receivable from securities available-for-sale totaled $16.7 million and $17.8 million at March 31, 2026 and December 31, 2025, respectively. Accrued interest receivable from securities held-to-maturity totaled $2.1 million and $2.2 million at March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025, the Company held $49.5 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 sheets. For the quarter ended March 31, 2026, net losses of $533 thousand on trading securities were recorded in loan servicing income. There were no net gains or losses on trading securities for the quarter ended March 31, 2025. The trading securities were acquired in the Merger. The following table presents proceeds, gross realized gains and gross realized losses from sales and calls of available-for-sale investments:
|  |  | Quarter Ended March 31,
(in thousands) |  |  |  |  | 2026 |  | 2025
Proceeds |  |  |  |  | $ | 1,372 |  |  | $ | — |
Gross gains |  |  |  |  | 52 |  |  | — |
Gross losses |  |  |  |  | — |  |  | — |
Tax-exempt interest income on investment securities was $4.3 million and $770 thousand for the quarter ended March 31, 2026 and 2025, 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 accumulated other comprehensive income remained in accumulated other comprehensive income. For the quarter ended March 31, 2026 and 2025, $605 thousand and $627 thousand, 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 losses at March 31, 2026 and December 31, 2025 aggregated by major security type and length of time in a continuous unrealized loss position:
| March 31, 2026
| 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 | $ | 124,671 |  |  | $ | 1,214 |  |  | $ | 22,600 |  |  | $ | 507 |  |  | $ | 147,271 |  |  | $ | 1,721 |
Mortgage-backed securities - residential | 769,984 |  |  | 5,785 |  |  | 375,934 |  |  | 25,586 |  |  | 1,145,918 |  |  | 31,371 |
Mortgage-backed securities - commercial | 96,247 |  |  | 675 |  |  | 153,402 |  |  | 11,610 |  |  | 249,649 |  |  | 12,285 |
Collateralized loan obligations | 179,708 |  |  | 792 |  |  | — |  |  | — |  |  | 179,708 |  |  | 792 |
Corporate bonds | 1,072 |  |  | 13 |  |  | 28,135 |  |  | 1,865 |  |  | 29,207 |  |  | 1,878 |
U.S. Treasury securities | 20,536 |  |  | 112 |  |  | — |  |  | — |  |  | 20,536 |  |  | 112 |
Agency debentures | 6,757 |  |  | 59 |  |  | — |  |  | — |  |  | 6,757 |  |  | 59 |
Total | $ | 1,198,975 |  |  | $ | 8,650 |  |  | $ | 580,071 |  |  | $ | 39,568 |  |  | $ | 1,779,046 |  |  | $ | 48,218 |
Number of securities with unrealized losses |  |  | 261 |  |  |  | 228 |  |  |  | 489
| December 31, 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 | $ | 27,015 |  |  | $ | 151 |  |  | $ | 30,244 |  |  | $ | 498 |  |  | $ | 57,259 |  |  | $ | 649 |
Mortgage-backed securities - residential | 72,234 |  |  | 384 |  |  | 393,915 |  |  | 23,941 |  |  | 466,149 |  |  | 24,325 |
Mortgage-backed securities - commercial | 106,225 |  |  | 405 |  |  | 156,600 |  |  | 11,345 |  |  | 262,825 |  |  | 11,750 |
Collateralized loan obligations | 138,315 |  |  | 185 |  |  | — |  |  | — |  |  | 138,315 |  |  | 185 |
Corporate bonds | 3,543 |  |  | 101 |  |  | 27,661 |  |  | 2,339 |  |  | 31,204 |  |  | 2,440 |
Agency debentures | 4,877 |  |  | 21 |  |  | — |  |  | — |  |  | 4,877 |  |  | 21 |
Total | $ | 352,209 |  |  | $ | 1,247 |  |  | $ | 608,420 |  |  | $ | 38,123 |  |  | $ | 960,629 |  |  | $ | 39,370 |
Number of securities with unrealized losses |  |  | 83 |  |  |  | 240 |  |  |  | 323
The Company did not record an ACL on the debt securities portfolio at March 31, 2026 and December 31, 2025. As of both dates, the Company considers any unrealized or unrecognized 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 the intent and ability to hold these securities until the amortized cost basis of each security is recovered, which may be at maturity, and likewise concluded as of March 31, 2026, 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 factors that were considered in determining that an ACL was not required at March 31, 2026 and December 31, 2025 are discussed below. 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 a result, management expects to recover the entire amortized cost basis of these securities. Collateralized Loan Obligations: The unrealized losses on the Company’s collateralized loan obligations are primarily due to slightly wider spreads. Management conducts ongoing monitoring of these securities including analysis of credit enhancement and performance of the underlying collateral. Management expects to recover the entire amortized cost basis of these securities. 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 a result, 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 a result, management expects to recover the entire amortized cost basis of these securities. At March 31, 2026, investment securities with a carrying value of $3.3 billion were pledged to secure borrowings from the Federal Reserve, and investment securities with a carrying value of $1.6 billion were pledged to secure the Company’s obligations to collateralize certain public, trust and bankruptcy deposits as required by law. As of March 31, 2026, 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 March 31, 2026, were as follows:
| March 31, 2026
(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 | $ | 342 |  |  | $ | 44,871 |  |  | $ | 125,131 |  |  | $ | 289,525 |  |  | $ | 459,869 |
Mortgage-backed securities - residential | 376 |  |  | 12,295 |  |  | 23,170 |  |  | 2,771,878 |  |  | 2,807,719 |
Mortgage-backed securities - commercial | 2,600 |  |  | 196,499 |  |  | 143,676 |  |  | 15,206 |  |  | 357,981 |
Collateralized loan obligations | — |  |  | — |  |  | — |  |  | 229,708 |  |  | 229,708 |
Corporate bonds | — |  |  | 4,302 |  |  | 46,833 |  |  | — |  |  | 51,135 |
U.S. Treasury securities | — |  |  | 20,536 |  |  | — |  |  | — |  |  | 20,536 |
Agency debentures | — |  |  | 1,109 |  |  | 3,501 |  |  | 2,147 |  |  | 6,757 |
Total | $ | 3,318 |  |  | $ | 279,612 |  |  | $ | 342,311 |  |  | $ | 3,308,464 |  |  | $ | 3,933,705 |
| March 31, 2026
(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 | $ | 3,500 |  |  | $ | 3,500 |  |  | $ | 3,106 |  |  | $ | 3,129 |  |  | $ | 4,708 |  |  | $ | 4,958 |  |  | $ | 1,653 |  |  | $ | 1,772 |  |  | $ | 12,967 |  |  | $ | 13,359 |
Mortgage-backed securities - residential | — |  |  | — |  |  | 53 |  |  | 51 |  |  | — |  |  | — |  |  | 989,461 |  |  | 857,319 |  |  | 989,514 |  |  | 857,370 |
Mortgage-backed securities - commercial | — |  |  | — |  |  | 179,638 |  |  | 162,829 |  |  | 131,401 |  |  | 116,411 |  |  | — |  |  | — |  |  | 311,039 |  |  | 279,240 |
Total | $ | 3,500 |  |  | $ | 3,500 |  |  | $ | 182,797 |  |  | $ | 166,009 |  |  | $ | 136,109 |  |  | $ | 121,369 |  |  | $ | 991,114 |  |  | $ | 859,091 |  |  | $ | 1,313,520 |  |  | $ | 1,149,969 |

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