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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Summary of Amortized Cost and Estimated Fair Value of 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.
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.

 

 

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

 
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 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

)
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.

 

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