XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Investment Securities | 12 Months Ended
--- | ---
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | 4. INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities are summarized below. Fair value is based on quoted prices for similar assets in active markets or quoted prices for identical assets in markets that are not active. Estimated fair values were obtained from an independent pricing service based upon market quotes.
| December 31, 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 | $ | 34,149 |  |  | $ | 106 |  |  | $ | — |  |  | $ | 34,255 |  |  |  | 1.35 | %
Mortgage-backed securities |  | 2,460,573 |  |  |  | 337 |  |  |  | (326,376 | ) |  |  | 2,134,534 |  |  |  | 83.97 | %
CMO/REMIC |  | 471,921 |  |  |  | — |  |  |  | (120,399 | ) |  |  | 351,522 |  |  |  | 13.82 | %
Municipal bonds |  | 21,755 |  |  |  | 28 |  |  |  | (1,406 | ) |  |  | 20,377 |  |  |  | 0.80 | %
Other securities |  | 1,427 |  |  |  | — |  |  |  | — |  |  |  | 1,427 |  |  |  | 0.06 | %
Unallocated portfolio layer fair value basis adjustments (1) |  | 7,222 |  |  |  | — |  |  |  | (7,222 | ) |  |  | — |  |  |  | 0.00 | %
Total available-for-sale securities | $ | 2,997,047 |  |  | $ | 471 |  |  | $ | (455,403 | ) |  | $ | 2,542,115 |  |  |  | 100.00 | %
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSE | $ | 514,572 |  |  | $ | — |  |  | $ | (106,315 | ) |  | $ | 408,257 |  |  |  | 21.62 | %
Mortgage-backed securities |  | 614,383 |  |  |  | — |  |  |  | (110,020 | ) |  |  | 504,363 |  |  |  | 25.82 | %
CMO/REMIC |  | 784,059 |  |  |  | — |  |  |  | (170,121 | ) |  |  | 613,938 |  |  |  | 32.95 | %
Municipal bonds |  | 455,199 |  |  |  | 1,158 |  |  |  | (40,025 | ) |  |  | 416,332 |  |  |  | 19.13 | %
Other securities (2) |  | 11,455 |  |  |  | — |  |  |  | — |  |  |  | 11,455 |  |  |  | 0.48 | %
Total held-to-maturity securities | $ | 2,379,668 |  |  | $ | 1,158 |  |  | $ | (426,481 | ) |  | $ | 1,954,345 |  |  |  | 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 18 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 | %
(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 18 for additional information. 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.
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
|  | (Dollars in thousands) |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |
Taxable |  | $ | 80,226 |  |  | $ | 82,889 |  |  | $ | 67,803 |
Tax-advantaged |  |  | 664 |  |  |  | 674 |  |  |  | 705 |
Total interest income from available-for-sale securities |  |  | 80,890 |  |  |  | 83,563 |  |  |  | 68,508 |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |
Taxable |  |  | 43,574 |  |  |  | 44,990 |  |  |  | 41,403 |
Tax-advantaged |  |  | 9,577 |  |  |  | 9,760 |  |  |  | 7,645 |
Total interest income from held-to-maturity securities |  |  | 53,151 |  |  |  | 54,750 |  |  |  | 49,048 |
Total interest income from investment securities |  | $ | 134,041 |  |  | $ | 138,313 |  |  | $ | 117,556 |
Approximately 90% of the total investment securities portfolio at December 31, 2024 represents securities issued by the U.S. government or U.S. government-sponsored enterprises, with the implied guarantee of payment of principal and interest. The remaining securities are predominately AA or better general-obligation municipal bonds. The allowance for credit losses for held-to-maturity investment securities under the CECL model was zero at December 31, 2024 and December 31, 2023. 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 December 31, 2024 and December 31, 2023.
| December 31, 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | 204,428 |  |  | $ | (700 | ) |  | $ | 1,757,066 |  |  | $ | (325,677 | ) |  | $ | 1,961,494 |  |  | $ | (326,377 | )
CMO/REMIC |  | 1 |  |  |  | — |  |  |  | 351,521 |  |  |  | (120,399 | ) |  |  | 351,522 |  |  |  | (120,399 | )
Municipal bonds |  | 3,215 |  |  |  | (155 | ) |  |  | 16,262 |  |  |  | (1,250 | ) |  |  | 19,477 |  |  |  | (1,405 | )
Total available-for-sale securities | $ | 207,644 |  |  | $ | (855 | ) |  | $ | 2,124,849 |  |  | $ | (447,326 | ) |  | $ | 2,332,493 |  |  | $ | (448,181 | )
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government agency/GSE | $ | — |  |  | $ | — |  |  | $ | 408,257 |  |  | $ | (106,315 | ) |  | $ | 408,257 |  |  | $ | (106,315 | )
Mortgage-backed securities |  | 2,072 |  |  |  | (42 | ) |  |  | 502,292 |  |  |  | (109,978 | ) |  |  | 504,364 |  |  |  | (110,020 | )
CMO/REMIC |  | — |  |  |  | — |  |  |  | 613,937 |  |  |  | (170,121 | ) |  |  | 613,937 |  |  |  | (170,121 | )
Municipal bonds |  | 63,668 |  |  |  | (1,067 | ) |  |  | 286,868 |  |  |  | (38,958 | ) |  |  | 350,536 |  |  |  | (40,025 | )
Total held-to-maturity securities | $ | 65,740 |  |  | $ | (1,109 | ) |  | $ | 1,811,354 |  |  | $ | (425,372 | ) |  | $ | 1,877,094 |  |  | $ | (426,481 | )
| 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 | )
The following summarizes our analysis of these securities and the unrealized losses. Government Agency & Government-Sponsored Enterprise — The government agency bonds are backed by the full faith and credit of agencies of the U.S. Government. While the Government-Sponsored Enterprise bonds are not expressly guaranteed by the U.S. Government, they are currently being supported by the U.S. Government under a conservatorship arrangement. These securities are bullet securities, that is, they have a defined maturity date on which the principal is paid. The contractual term of these investments provides that the Company will receive the face value of the bond at maturity which will equal the amortized cost of the bond. Interest is received throughout the life of the security. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the bonds. Mortgage-Backed Securities (“MBS”) and CMO/REMIC — Most of the Company’s mortgage-backed and CMO/REMIC securities are issued by Government Agencies or Government-Sponsored Enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. These securities are collateralized or backed by the underlying residential or commercial mortgages. All mortgage-backed securities are considered to be rated investment grade with a weighted average life of approximately 7.5 years. Of the total MBS/CMO, 100% have the implied guarantee of U.S. Government-Sponsored Agencies and Enterprises. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost of the bonds. There were no credit-related impairments for the year ended December 31, 2024 and 2023. Municipal Bonds — The majority of the Company’s municipal bonds, with maturities of approximately 12.0 years, represented approximately 9.7% of the total investment portfolio and are predominately AA or higher rated securities. The Company diversifies its holdings by owning selections of securities from different issuers and by holding securities from geographically diversified municipal issuers, thus reducing the Company’s exposure to any single adverse event. The decline in fair value is primarily due to the changes in interest rates. There were no credit-related impairments for the years ended December 31, 2024 and December 31, 2023. At December 31, 2024, investment securities with carrying values of $2.79 billio n were pledged to secure various types of deposits, including $1.18 bill ion of public funds, $315 million for repurchase agreements, and for other purposes as required or permitted by law. In addition, investment securities with carrying values o f $1.63 bil lion were pledged for unused borrowing capacity. At December 31, 2023, investment securities with carrying values of $2.26 billion were pledged to secure various types of deposits, including $1.38 billion of public funds. In addition, investment securities, with carrying values of $3.02 billion were pledged to secure $372.5 million for repurchase agreements, $1.8 billion for outstanding borrowings, $796 million for unused borrowing capacity and approximately $51 million for other purposes as required or permitted by law. The amortized cost and fair value of debt securities at December 31, 2024, by contractual maturity, are shown in the table below. Although mortgage-backed and CMO/REMIC securities have weighted average remaining contractual maturities of approximate ly 25 years, expected maturities will differ from contractual maturities because borrowers may have the right to prepay such obligations wit hout penalty. Mortgage-backed and CMO/REMIC securities are included in maturity categories based upon estimated average lives which incorporate estimated prepayment speeds.
| December 31, 2024 |
| Available-for-sale |  |  | Held-to-maturity |
| Amortized Cost |  |  | Fair Value |  |  | Amortized Cost |  |  | Fair Value |
|  |  |  | (Dollars in thousands) |  |  |  |
Due in one year or less | $ | 43,237 |  |  | $ | 43,205 |  |  | $ | 20,556 |  |  | $ | 19,897 |
Due after one year through five years |  | 159,911 |  |  |  | 136,474 |  |  |  | 44,550 |  |  |  | 43,049 |
Due after five years through ten years |  | 1,937,667 |  |  |  | 1,629,085 |  |  |  | 318,541 |  |  |  | 277,213 |
Due after ten years |  | 856,232 |  |  |  | 733,351 |  |  |  | 1,996,021 |  |  |  | 1,614,186 |
Total investment securities | $ | 2,997,047 |  |  | $ | 2,542,115 |  |  | $ | 2,379,668 |  |  | $ | 1,954,345 |
The Bank is a member of the FHLB and members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors. FHLB stock is carried at cost and is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through December 31, 2024.

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