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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost and Estimated Fair Value of Investment Securities


	June 30, 2024
	Amortized Cost		Gross Unrealized Holding Gain		Gross Unrealized Holding Loss			Fair Value		Total Percent
	(Dollars in thousands)
Investment securities available-for-sale:
Government agency/GSE	$	33,496	$	—	$	(19	)	$	33,477		1.22	%
Mortgage-backed securities		2,682,003		7		(365,935	)		2,316,075		84.35	%
CMO/REMIC		490,390		—		(119,899	)		370,491		13.49	%
Municipal bonds		26,484		27		(2,085	)		24,426		0.89	%
Other securities		1,327		—		—			1,327		0.05	%
Unallocated portfolio layer fair value basis adjustments (1)		13,728		—		(13,728	)		—		0.00	%
Total available-for-sale securities	$	3,247,428	$	34	$	(501,666	)	$	2,745,796		100.00	%
Investment securities held-to-maturity:
Government agency/GSE	$	522,678	$	—	$	(105,876	)	$	416,802		21.51	%
Mortgage-backed securities		639,889		—		(111,532	)		528,356		26.34	%
CMO/REMIC		793,753		—		(167,006	)		626,747		32.67	%
Municipal bonds		462,111		1,477		(40,858	)		422,730		19.02	%
Other securities (2)		11,455		—		—			11,455		0.46	%
Total held-to-maturity securities	$	2,429,886	$	1,477	$	(425,272	)	$	2,006,090		100.00	%

(1)

Represents the amount of portfolio layer method basis adjustments related to AFS MBS securities hedged in a closed portfolio. Under U.S. GAAP, portfolio layer method basis adjustments are not allocated to individual securities, however the amounts impact the unrealized gains or losses for the individual securities being hedged. Refer to Note 3 and Note 9 for additional information.

(2)

Represents Commercial Property Assessed Clean Energy ("C-PACE") bonds.


	December 31, 2023
	Amortized Cost			Gross Unrealized Holding Gain		Gross Unrealized Holding Loss			Fair Value		Total Percent
	(Dollars in thousands)
Investment securities available-for-sale:
Government agency/GSE	$	32,229		$	24	$	—		$	32,253		1.09	%
Mortgage-backed securities		2,843,744			42		(336,107	)		2,507,679		84.83	%
CMO/REMIC		502,234			—		(112,872	)		389,362		13.17	%
Municipal bonds		26,477			46		(888	)		25,635		0.87	%
Other securities		1,196			—		—			1,196		0.04	%
Unallocated portfolio layer fair value basis adjustments (1)		(6,938	)		6,938		—			—		0.00	%
Total available-for-sale securities	$	3,398,942		$	7,050	$	(449,867	)	$	2,956,125		100.00	%
Investment securities held-to-maturity:
Government agency/GSE	$	530,656		$	—	$	(97,972	)	$	432,684		21.53	%
Mortgage-backed securities		663,090			—		(97,436	)		565,654		26.90	%
CMO/REMIC		802,892			—		(156,155	)		646,737		32.58	%
Municipal bonds		467,972			3,438		(33,604	)		437,806		18.99	%
Total held-to-maturity securities	$	2,464,610		$	3,438	$	(385,167	)	$	2,082,881		100.00	%

Summary of Interest Income Earned on Investment Securities

The following table provides information about the amount of interest income earned on investment securities which is fully taxable and which is exempt from regular federal income tax.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
	(Dollars in thousands)
Investment securities available-for-sale:
Taxable	$	21,057	$	19,187	$	42,337	$	38,615
Tax-advantaged		168		169		334		337
Total interest income from available-for-sale securities		21,225		19,356		42,671		38,952
Investment securities held-to-maturity:
Taxable		11,050		11,293		22,034		22,800
Tax-advantaged		2,395		2,447		4,813		4,896
Total interest income from held-to-maturity securities		13,445		13,740		26,847		27,696
Total interest income from investment securities	$	34,670	$	33,096	$	69,518	$	66,648

Summary of Continuous Unrealized Loss Position of Securities

The following table presents the Company’s available-for-sale and held-to-maturity investment securities, by investment category, in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2024 and December 31, 2023.


	June 30, 2024
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Holding Losses			Fair Value		Gross Unrealized Holding Losses			Fair Value		Gross Unrealized Holding Losses
	(Dollars in thousands)
Investment securities available-for-sale:
Government agency/GSE	$	28,599	$	(19	)	$	—	$	—		$	28,599	$	(19	)
Mortgage-backed securities		248		(1	)		2,314,832		(365,934	)		2,315,080		(365,935	)
CMO/REMIC		1		(0	)		370,490		(119,899	)		370,491		(119,899	)
Municipal bonds		3,188		(183	)		20,362		(1,902	)		23,550		(2,085	)
Total available-for-sale securities	$	32,036	$	(203	)	$	2,705,684	$	(487,735	)	$	2,737,720	$	(487,938	)
Investment securities held-to-maturity:
Government agency/GSE	$	—	$	—		$	416,802	$	(105,876	)	$	416,802	$	(105,876	)
Mortgage-backed securities		—		—			528,357		(111,532	)		528,357		(111,532	)
CMO/REMIC		—		—			626,747		(167,006	)		626,747		(167,006	)
Municipal bonds		45,913		(737	)		300,985		(40,121	)		346,898		(40,858	)
Total held-to-maturity securities	$	45,913	$	(737	)	$	1,872,891	$	(424,535	)	$	1,918,804	$	(425,272	)


	December 31, 2023
	Less Than 12 Months					12 Months or Longer					Total
	Fair Value		Gross Unrealized Holding Losses			Fair Value		Gross Unrealized Holding Losses			Fair Value		Gross Unrealized Holding Losses
	(Dollars in thousands)
Investment securities available-for-sale:
Government agency/GSE	$	—	$	—		$	—	$	—		$	—	$	—
Mortgage-backed securities		48		—			2,506,162		(336,107	)		2,506,210		(336,107	)
CMO/REMIC		—		—			389,359		(112,872	)		389,359		(112,872	)
Municipal bonds		3,286		(17	)		18,105		(871	)		21,391		(888	)
Total available-for-sale securities	$	3,334	$	(17	)	$	2,913,626	$	(449,850	)	$	2,916,960	$	(449,867	)

Investment securities held-to-maturity:
Government agency/GSE	$	—	$	—		$	432,684	$	(97,972	)	$	432,684	$	(97,972	)
Mortgage-backed securities		—		—			565,655		(97,436	)		565,655		(97,436	)
CMO/REMIC		—		—			646,737		(156,155	)		646,737		(156,155	)
Municipal bonds		20,609		(200	)		293,467		(33,404	)		314,076		(33,604	)
Total held-to-maturity securities	$	20,609	$	(200	)	$	1,938,543	$	(384,967	)	$	1,959,152	$	(385,167	)

Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity


	June 30, 2024
	Available-for-sale				Held-to-maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
			(Dollars in thousands)
Due in one year or less	$	43,972	$	43,677	$	10,613	$	10,341
Due after one year through five years		240,902		216,478		48,043		45,765
Due after five years through ten years		2,470,052		2,114,826		323,158		280,962
Due after ten years		492,502		370,815		2,048,072		1,669,022
Total investment securities	$	3,247,428	$	2,745,796	$	2,429,886	$	2,006,090