XML 25 R10.htm IDEA: XBRL DOCUMENT
v3.25.2

Investment Securities | 6 Months Ended
--- | ---
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES Held-to-maturity (“HTM”) securities, which include any security for which the Company has both the positive intent and ability to hold until maturity, are carried at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized and accreted, respectively, to interest income using the constant effective yield method over the security’s estimated life. Prepayments are anticipated for mortgage-backed and SBA securities. Premiums on callable securities are amortized to their earliest call date. Available-for-sale (“AFS”) securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Realized gains and losses, based on specifically identified amortized cost of the individual security, are included in other income. Unrealized gains and losses are recorded, net of related income tax effects, in stockholders’ equity, further discussed below. Premiums and discounts are amortized and accreted, respectively, to interest income using the constant effective yield method over the estimated life of the security. Prepayments are anticipated for mortgage-backed and SBA securities. Premiums on callable securities are amortized to their earliest call date. During the quarters ended June 30, 2022 and September 30, 2021, the Company transferred, at fair value, $1.99 billion and $500.8 million, respectively, of securities from the AFS portfolio to the HTM portfolio. As of June 30, 2025, the related remaining combined net unrealized losses in accumulated other comprehensive income (loss) were $99.4 million. No gains or losses on these securities were recognized at the time of transfer. The amortized cost, fair value and allowance for credit losses of investment securities that are classified as HTM are as follows:
(In thousands) | Amortized Cost |  | Allowance for Credit Losses |  | Net Carrying Amount |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Estimated Fair Value
Held-to-maturity |  |  |  |  |  |  |  |  |  |  |
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | $ | 457,228 |  |  | $ | — |  |  | $ | 457,228 |  |  | $ | — |  |  | $ | (81,027) |  |  | $ | 376,201 |
Mortgage-backed securities | 1,024,313 |  |  | — |  |  | 1,024,313 |  |  | 337 |  |  | (103,501) |  |  | 921,149 |
State and political subdivisions | 1,855,816 |  |  | (202) |  |  | 1,855,614 |  |  | 59 |  |  | (501,614) |  |  | 1,354,059 |
Other securities | 257,388 |  |  | (3,012) |  |  | 254,376 |  |  | — |  |  | (13,811) |  |  | 240,565 |
Total HTM | $ | 3,594,745 |  |  | $ | (3,214) |  |  | $ | 3,591,531 |  |  | $ | 396 |  |  | $ | (699,953) |  |  | $ | 2,891,974 |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies | $ | 455,869 |  |  | $ | — |  |  | $ | 455,869 |  |  | $ | — |  |  | $ | (95,961) |  |  | $ | 359,908 |
Mortgage-backed securities | 1,070,032 |  |  | — |  |  | 1,070,032 |  |  | 212 |  |  | (133,746) |  |  | 936,498 |
State and political subdivisions | 1,857,373 |  |  | (196) |  |  | 1,857,177 |  |  | 20 |  |  | (436,061) |  |  | 1,421,136 |
Other securities | 256,576 |  |  | (3,018) |  |  | 253,558 |  |  | — |  |  | (21,149) |  |  | 232,409 |
Total HTM | $ | 3,639,850 |  |  | $ | (3,214) |  |  | $ | 3,636,636 |  |  | $ | 232 |  |  | $ | (686,917) |  |  | $ | 2,949,951 |
Mortgage-backed securities (“MBS”) are commercial MBS, secured by commercial properties, and residential MBS, generally secured by single-family residential properties. All mortgage-backed securities included in the table above were issued by U.S. government agencies or corporations. As of June 30, 2025, HTM MBS consisted of $132.5 million and $891.8 million of commercial MBS and residential MBS, respectively. As of December 31, 2024, HTM MBS consisted of $136.0 million and $934.1 million of commercial MBS and residential MBS, respectively. The amortized cost, fair value and allowance for credit losses of investment securities that are classified as AFS are as follows:
(In thousands) | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Estimated Fair Value
Available-for-sale |  |  |  |  |  |  |  |  |
June 30, 2025 |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 400 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 400 |
U.S. Government agencies | 50,204 |  |  | — |  |  | 7 |  |  | (713) |  |  | 49,498 |
Mortgage-backed securities | 1,464,212 |  |  | — |  |  | 195 |  |  | (114,416) |  |  | 1,349,991 |
State and political subdivisions | 1,042,284 |  |  | — |  |  | 31 |  |  | (234,473) |  |  | 807,842 |
Other securities | 207,536 |  |  | — |  |  | 101 |  |  | (10,048) |  |  | 197,589 |
Total AFS | $ | 2,764,636 |  |  | $ | — |  |  | $ | 334 |  |  | $ | (359,650) |  |  | $ | 2,405,320 |
December 31, 2024 |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 999 |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | 996 |
U.S. Government agencies | 55,589 |  |  | — |  |  | 5 |  |  | (1,047) |  |  | 54,547 |
Mortgage-backed securities | 1,545,539 |  |  | — |  |  | 4 |  |  | (152,784) |  |  | 1,392,759 |
State and political subdivisions | 1,015,619 |  |  | — |  |  | 132 |  |  | (157,569) |  |  | 858,182 |
Other securities | 235,028 |  |  | — |  |  | 166 |  |  | (12,252) |  |  | 222,942 |
Total AFS | $ | 2,852,774 |  |  | $ | — |  |  | $ | 307 |  |  | $ | (323,655) |  |  | $ | 2,529,426 |
As of June 30, 2025, AFS MBS consisted of $504.2 million and $845.8 million of commercial MBS and residential MBS, respectively. As of December 31, 2024, AFS MBS consisted of $517.2 million and $875.5 million of commercial MBS and residential MBS, respectively. Accrued interest receivable on HTM and AFS securities at June 30, 2025 was $20.2 million and $22.2 million, respectively, and is included in interest receivable on the consolidated balance sheets. The Company has made the election to exclude all accrued interest receivable from securities from the estimate of credit losses. The following table summarizes the Company’s AFS investments in an unrealized loss position for which an allowance for credit loss has not been recorded as of June 30, 2025 and December 31, 2024, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
| Less Than 12 Months |  | 12 Months or More |  | Total
(In thousands) | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses
Available-for-sale |  |  |  |  |  |  |  |  |  |  |
June 30, 2025 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
U.S. Government agencies | 1,286 |  |  | (14) |  |  | 45,388 |  |  | (699) |  |  | 46,674 |  |  | (713) |
Mortgage-backed securities | — |  |  | — |  |  | 1,331,598 |  |  | (114,416) |  |  | 1,331,598 |  |  | (114,416) |
State and political subdivisions | 7,757 |  |  | (148) |  |  | 778,668 |  |  | (234,325) |  |  | 786,425 |  |  | (234,473) |
Other securities | 7,820 |  |  | (118) |  |  | 135,965 |  |  | (9,930) |  |  | 143,785 |  |  | (10,048) |
Total AFS | $ | 16,863 |  |  | $ | (280) |  |  | $ | 2,291,619 |  |  | $ | (359,370) |  |  | $ | 2,308,482 |  |  | $ | (359,650) |
| Less Than 12 Months |  | 12 Months or More |  | Total
(In thousands) | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | — |  |  | $ | — |  |  | $ | 996 |  |  | $ | (3) |  |  | $ | 996 |  |  | $ | (3) |
U.S. Government agencies | 717 |  |  | (7) |  |  | 51,186 |  |  | (1,040) |  |  | 51,903 |  |  | (1,047) |
Mortgage-backed securities | 7,480 |  |  | (189) |  |  | 1,384,532 |  |  | (152,595) |  |  | 1,392,012 |  |  | (152,784) |
State and political subdivisions | 16,843 |  |  | (195) |  |  | 829,754 |  |  | (157,374) |  |  | 846,597 |  |  | (157,569) |
Other securities | 12,912 |  |  | (20) |  |  | 162,803 |  |  | (12,232) |  |  | 175,715 |  |  | (12,252) |
Total AFS | $ | 37,952 |  |  | $ | (411) |  |  | $ | 2,429,271 |  |  | $ | (323,244) |  |  | $ | 2,467,223 |  |  | $ | (323,655) |
As of June 30, 2025, the Company’s investment portfolio included $2.41 billion of AFS securities, of which $2.31 billion, or 96.0%, were in an unrealized loss position that were not deemed to have credit losses. A portion of the unrealized losses were related to the Company’s MBS, which are issued and guaranteed by U.S. government-sponsored entities and agencies, and the Company’s state and political subdivision securities, specifically investments in insured fixed rate municipal bonds for which the issuers continue to make timely principal and interest payments under the contractual terms of the securities. Furthermore, the decline in fair value for each of the above AFS securities is attributable to the rates for those investments yielding less than current market rates. Management does not believe any of the securities are impaired due to reasons of credit quality. Management believes the declines in fair value for the securities are temporary. As of June 30, 2025, management did not have, and at December 31, 2024 the Company did not have, the immediate intent to sell the securities, and management believed the accounting standard of “more likely than not” has not been met regarding whether the Company would be required to sell any of the AFS securities before recovery of amortized cost. Allowance for Credit Losses All MBS held by the Company are issued by U.S. government-sponsored entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, highly rated by major rating agencies and have a long history of no credit losses. Accordingly, no allowance for credit losses has been recorded for these securities. Regarding securities issued by state and political subdivisions and other HTM securities, the adequacy of the reserve for credit loss is determined quarterly based on methodology similar to the methodology for determining the allowance for credit losses on loans. The methodology considers, but is not limited to: (i) issuer bond ratings, (ii) issuer geography, (iii) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities, (iv) probability-weighted multiple scenario forecasts, and (v) the issuers’ size. The following table details activity in the allowance for credit losses by investment security type for the three and six months ended June 30, 2025 on the Company’s HTM securities portfolio.
(In thousands) | State and Political Subdivisions |  | Other Securities |  | Total
Three Months Ended June 30, 2025 |  |  |  |  |
Held-to-maturity |  |  |  |  |
Beginning balance, April 1, 2025 | $ | 171 |  |  | $ | 3,043 |  |  | $ | 3,214 |
Provision for credit loss expense | — |  |  | — |  |  | — |
Net increase (decrease) in allowance on previously impaired securities | 31 |  |  | (31) |  |  | — |
Ending balance, June 30, 2025 | $ | 202 |  |  | $ | 3,012 |  |  | $ | 3,214 |
Six Months Ended June 30, 2025 |  |  |  |  |
Held-to-maturity |  |  |  |  |
Beginning balance, January 1, 2025 | $ | 196 |  |  | $ | 3,018 |  |  | $ | 3,214 |
Provision for credit loss expense | — |  |  | — |  |  | — |
Net increase (decrease) in allowance on previously impaired securities | 6 |  |  | (6) |  |  | — |
Ending balance, June 30, 2025 | $ | 202 |  |  | $ | 3,012 |  |  | $ | 3,214 |
Activity in the allowance for credit losses by investment security type for the three and six months ended June 30, 2024 on the Company’s HTM securities portfolio was as follows:
(In thousands) | State and Political Subdivisions |  | Other Securities |  | Total
Three Months Ended June 30, 2024 |  |  |  |  |
Held-to-maturity |  |  |  |  |
Beginning balance, April 1, 2024 | $ | 2,252 |  |  | $ | 962 |  |  | $ | 3,214 |
Provision for credit loss expense | — |  |  | — |  |  | — |
Net (decrease) increase in allowance on previously impaired securities | (2,061) |  |  | 2,061 |  |  | — |
Ending balance, June 30, 2024 | $ | 191 |  |  | $ | 3,023 |  |  | $ | 3,214 |
Six Months Ended June 30, 2024 |  |  |  |  |
Held-to-maturity |  |  |  |  |
Beginning balance, January 1, 2024 | $ | 2,006 |  |  | $ | 1,208 |  |  | $ | 3,214 |
Provision for credit loss expense | — |  |  | — |  |  | — |
Net (decrease) increase in allowance on previously impaired securities | (1,815) |  |  | 1,815 |  |  | — |
Ending balance, June 30, 2024 | $ | 191 |  |  | $ | 3,023 |  |  | $ | 3,214 |
Based upon the Company’s analysis of the underlying risk characteristics of its HTM and AFS portfolios, including credit ratings and other qualitative factors, as previously discussed, there was no provision for credit losses related to the Company’s securities portfolios recorded for the three and six month periods ended June 30, 2025 or 2024. The following table summarizes bond ratings for the Company’s HTM portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2025:
| State and Political Subdivisions |  |
(In thousands) | Not Guaranteed or Pre-Refunded |  | Other Credit Enhancement or Insurance |  | Pre-Refunded |  | Total |  | Other Securities
Aaa/AAA | $ | 182,733 |  |  | $ | 293,544 |  |  | $ | — |  |  | $ | 476,277 |  |  | $ | — |
Aa/AA | 626,037 |  |  | 534,785 |  |  | — |  |  | 1,160,822 |  |  | — |
A | 38,175 |  |  | 160,776 |  |  | — |  |  | 198,951 |  |  | 103,765 |
Baa/BBB | — |  |  | 4,391 |  |  | — |  |  | 4,391 |  |  | 153,623 |
Not Rated | 15,375 |  |  | — |  |  | — |  |  | 15,375 |  |  | — |
Total | $ | 862,320 |  |  | $ | 993,496 |  |  | $ | — |  |  | $ | 1,855,816 |  |  | $ | 257,388 |
Historical loss rates associated with securities having similar grades as those in the Company’s portfolio have generally not been significant. Pre-refunded securities, if any, have been defeased by the issuer and are fully secured by cash and/or U.S. Treasury securities held in escrow for payment to holders when the underlying call dates of the securities are reached. Securities with other credit enhancement or insurance continue to make timely principal and interest payments under the contractual terms of the securities. Accordingly, no allowance for credit losses has been recorded for these securities as there is no current expectation of credit losses related to these securities. Income earned on securities for the three and six months ended June 30, 2025 and 2024, is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Taxable: |  |  |  |  |  |  |
Held-to-maturity | $ | 10,224 |  |  | $ | 10,842 |  |  | $ | 20,623 |  |  | $ | 21,845 |
Available-for-sale | 21,009 |  |  | 28,441 |  |  | 42,194 |  |  | 59,636 |
Non-taxable: |  |  |  |  |  |  |
Held-to-maturity | 10,052 |  |  | 10,097 |  |  | 20,103 |  |  | 20,197 |
Available-for-sale | 5,613 |  |  | 5,670 |  |  | 11,235 |  |  | 11,373 |
Total | $ | 46,898 |  |  | $ | 55,050 |  |  | $ | 94,155 |  |  | $ | 113,051 |
The amortized cost and estimated fair value by maturity of securities as of June 30, 2025 are shown in the following table. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. Accordingly, actual maturities may differ from contractual maturities.
| Held-to-Maturity |  | Available-for-Sale
(In thousands) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
One year or less | $ | 472 |  |  | $ | 470 |  |  | $ | 12,674 |  |  | $ | 12,558 |
After one through five years | 134,575 |  |  | 128,403 |  |  | 109,982 |  |  | 109,571 |
After five through ten years | 380,761 |  |  | 336,643 |  |  | 155,440 |  |  | 144,788 |
After ten years | 2,054,624 |  |  | 1,505,309 |  |  | 1,022,115 |  |  | 788,199 |
Securities not due on a single maturity date | 1,024,313 |  |  | 921,149 |  |  | 1,464,212 |  |  | 1,349,991 |
Other securities (no maturity) | — |  |  | — |  |  | 213 |  |  | 213 |
Total | $ | 3,594,745 |  |  | $ | 2,891,974 |  |  | $ | 2,764,636 |  |  | $ | 2,405,320 |
The carrying value, which approximates the fair value, of securities pledged as collateral, to secure public deposits and for other purposes, amounted to $2.61 billion at June 30, 2025 and $2.36 billion at December 31, 2024. There were no gross realized gains and no gross realized losses from the call or sale of securities during the three and six months ended June 30, 2025 and 2024, as they were recognized at book value of the security. The income tax expense/benefit related to security gains/losses was 26.135% of the gross amounts in 2025 and 2024. The Company has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair value of AFS securities. See Note 22, Derivative Instruments, for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities. During the third quarter of 2025, the Company and its subsidiaries initiated and completed steps taken to reposition the Company’s consolidated balance sheet and reclassified approximately $3.6 billion in HTM investment securities to AFS investment securities. Subsequently, the Company sold approximately $3.2 billion in amortized cost basis of AFS securities (including certain of those previously classified as HTM). The sale of investment securities resulted in an estimated, realized after-tax loss of approximately $604.0 million (based on an estimated tax rate of 24.3%), which will be recorded during the third quarter of 2025. See Note 23, Subsequent Events, for additional information.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration