XML 32 R25.htm IDEA: XBRL DOCUMENT v3.24.3
Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of Amortized Cost and Estimated Fair Value of Investment Securities

 

September 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

$

33,921

 

 

$

208

 

 

$

—

 

 

$

34,129

 

 

 

1.38

%

Mortgage-backed securities

 

2,295,381

 

 

 

43

 

 

 

(261,825

)

 

 

2,033,599

 

 

 

82.48

%

CMO/REMIC

 

476,051

 

 

 

—

 

 

 

(105,044

)

 

 

371,007

 

 

 

15.05

%

Municipal bonds

 

26,489

 

 

 

46

 

 

 

(1,115

)

 

 

25,420

 

 

 

1.03

%

Other securities

 

1,430

 

 

 

—

 

 

 

—

 

 

 

1,430

 

 

 

0.06

%

Unallocated portfolio layer fair value basis adjustments (1)

 

(14,959

)

 

 

14,959

 

 

 

—

 

 

 

—

 

 

 

0.00

%

Total available-for-sale securities

$

2,818,313

 

 

$

15,256

 

 

$

(367,984

)

 

$

2,465,585

 

 

 

100.00

%

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

$

518,446

 

 

$

—

 

 

$

(84,898

)

 

$

433,548

 

 

 

21.55

%

Mortgage-backed securities

 

626,474

 

 

 

5

 

 

 

(85,320

)

 

 

541,159

 

 

 

26.05

%

CMO/REMIC

 

788,622

 

 

 

—

 

 

 

(144,801

)

 

 

643,821

 

 

 

32.79

%

Municipal bonds

 

460,257

 

 

 

2,994

 

 

 

(29,540

)

 

 

433,711

 

 

 

19.14

%

Other securities (2)

 

11,455

 

 

 

—

 

 

 

—

 

 

 

11,455

 

 

 

0.47

%

Total held-to-maturity securities

$

2,405,254

 

 

$

2,999

 

 

$

(344,559

)

 

$

2,063,694

 

 

 

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 10 for additional information.
(2)
Represents Commercial Property Assessed Clean Energy ("C-PACE") bonds.

 

During the third quarter of 2024, the Bank sold AFS securities with a book value of $312 million, resulting in a net pre-tax loss of $11.6 million.

 

 

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

(Dollars in thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

Taxable

$

20,010

 

 

$

22,272

 

 

$

62,347

 

 

$

60,887

 

Tax-advantaged

 

168

 

 

 

169

 

 

 

502

 

 

 

506

 

Total interest income from available-for-sale securities

 

20,178

 

 

 

22,441

 

 

 

62,849

 

 

 

61,393

 

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

10,896

 

 

 

11,139

 

 

 

32,930

 

 

 

33,939

 

Tax-advantaged

 

2,388

 

 

 

2,437

 

 

 

7,201

 

 

 

7,333

 

Total interest income from held-to-maturity securities

 

13,284

 

 

 

13,576

 

 

 

40,131

 

 

 

41,272

 

Total interest income from investment securities

$

33,462

 

 

$

36,017

 

 

$

102,980

 

 

$

102,665

 
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 September 30, 2024 and December 31, 2023.

 

 

September 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

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Mortgage-backed securities

 

9

 

 

 

—

 

 

 

2,032,214

 

 

 

(261,824

)

 

 

2,032,223

 

 

 

(261,825

)

CMO/REMIC

 

—

 

 

 

—

 

 

 

371,006

 

 

 

(105,044

)

 

 

371,006

 

 

 

(105,044

)

Municipal bonds

 

3,323

 

 

 

(48

)

 

 

21,190

 

 

 

(1,068

)

 

 

24,513

 

 

 

(1,115

)

Total available-for-sale securities

$

3,332

 

 

$

(48

)

 

$

2,424,410

 

 

$

(367,936

)

 

$

2,427,742

 

 

$

(367,984

)

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

$

—

 

 

$

—

 

 

$

433,548

 

 

$

(84,898

)

 

$

433,548

 

 

$

(84,898

)

Mortgage-backed securities

 

—

 

 

 

—

 

 

 

538,947

 

 

 

(85,320

)

 

 

538,947

 

 

 

(85,320

)

CMO/REMIC

 

—

 

 

 

—

 

 

 

643,821

 

 

 

(144,801

)

 

 

643,821

 

 

 

(144,801

)

Municipal bonds

 

12,760

 

 

 

(101

)

 

 

301,057

 

 

 

(29,439

)

 

 

313,817

 

 

 

(29,539

)

Total held-to-maturity securities

$

12,760

 

 

$

(101

)

 

$

1,917,373

 

 

$

(344,458

)

 

$

1,930,134

 

 

$

(344,558

)

 

 

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 Mortgage-backed and CMO/REMIC securities are included in maturity categories based upon estimated average lives which incorporate estimated prepayment speeds.

 

 

September 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

$

43,249

 

 

$

43,327

 

 

$

10,211

 

 

$

10,049

 

Due after one year through five years

 

110,874

 

 

 

116,476

 

 

 

48,525

 

 

 

47,616

 

Due after five years through ten years

 

2,180,665

 

 

 

1,928,902

 

 

 

322,507

 

 

 

291,783

 

Due after ten years

 

483,525

 

 

 

376,880

 

 

 

2,024,011

 

 

 

1,714,246

 

Total investment securities

$

2,818,313

 

 

$

2,465,585

 

 

$

2,405,254

 

 

$

2,063,694