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Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Summary of Amortized Cost and Estimated Fair Value of Investment Securities

 

March 31, 2025

 

 

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

$

34,757

 

 

$

46

 

 

$

—

 

 

$

34,803

 

 

 

1.37

%

Mortgage-backed securities

 

2,398,291

 

 

 

1,058

 

 

 

(274,693

)

 

 

2,124,656

 

 

 

83.81

%

CMO/REMIC

 

467,263

 

 

 

—

 

 

 

(113,401

)

 

 

353,862

 

 

 

13.96

%

Municipal bonds

 

21,762

 

 

 

27

 

 

 

(1,470

)

 

 

20,319

 

 

 

0.80

%

Other securities

 

1,426

 

 

 

—

 

 

 

—

 

 

 

1,426

 

 

 

0.06

%

Unallocated portfolio layer fair value basis
  adjustments (1)

 

(1,095

)

 

 

1,095

 

 

 

—

 

 

 

—

 

 

 

0.00

%

Total available-for-sale securities

$

2,922,404

 

 

$

2,226

 

 

$

(389,564

)

 

$

2,535,066

 

 

 

100.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

$

510,593

 

 

$

—

 

 

$

(93,645

)

 

$

416,948

 

 

 

21.64

%

Mortgage-backed securities

 

603,927

 

 

 

—

 

 

 

(99,271

)

 

 

504,656

 

 

 

25.60

%

CMO/REMIC

 

777,391

 

 

 

—

 

 

 

(159,636

)

 

 

617,755

 

 

 

32.95

%

Municipal bonds

 

454,075

 

 

 

482

 

 

 

(41,983

)

 

 

412,574

 

 

 

19.25

%

Other securities (2)

 

13,155

 

 

 

—

 

 

 

—

 

 

 

13,155

 

 

 

0.56

%

Total held-to-maturity securities

$

2,359,141

 

 

$

482

 

 

$

(394,535

)

 

$

1,965,088

 

 

 

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

 

 

March 31,

 

 

2025

 

 

2024

 

 

(Dollars in thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

Taxable

$

18,590

 

 

$

21,280

 

Tax-advantaged

 

144

 

 

 

166

 

Total interest income from available-for-sale securities

 

18,734

 

 

 

21,446

 

Investment securities held-to-maturity:

 

 

 

 

 

Taxable

 

10,659

 

 

 

10,984

 

Tax-advantaged

 

2,362

 

 

 

2,418

 

Total interest income from held-to-maturity securities

 

13,021

 

 

 

13,402

 

Total interest income from investment securities

$

31,755

 

 

$

34,848

 
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 March 31, 2025 and December 31, 2024.

 

 

March 31, 2025

 

 

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

$

85,194

 

 

$

(159

)

 

$

1,756,443

 

 

$

(274,534

)

 

$

1,841,637

 

 

$

(274,693

)

CMO/REMIC

 

—

 

 

 

—

 

 

 

353,861

 

 

 

(113,401

)

 

 

353,861

 

 

 

(113,401

)

Municipal bonds

 

—

 

 

 

—

 

 

 

19,409

 

 

 

(1,470

)

 

 

19,409

 

 

 

(1,470

)

Total available-for-sale securities

$

85,194

 

 

$

(159

)

 

$

2,129,713

 

 

$

(389,405

)

 

$

2,214,907

 

 

$

(389,564

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities held-to-maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government agency/GSE

$

—

 

 

$

—

 

 

$

416,948

 

 

$

(93,645

)

 

$

416,948

 

 

$

(93,645

)

Mortgage-backed securities

 

2,016

 

 

 

(17

)

 

 

502,640

 

 

 

(99,254

)

 

 

504,656

 

 

 

(99,271

)

CMO/REMIC

 

—

 

 

 

—

 

 

 

617,755

 

 

 

(159,636

)

 

 

617,755

 

 

 

(159,636

)

Municipal bonds

 

75,606

 

 

 

(2,413

)

 

 

298,020

 

 

 

(39,569

)

 

 

373,626

 

 

 

(41,983

)

Total held-to-maturity securities

$

77,622

 

 

$

(2,430

)

 

$

1,835,363

 

 

$

(392,105

)

 

$

1,912,984

 

 

$

(394,535

)

 

 

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

)

 
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.

 

 

March 31, 2025

 

 

Available-for-sale

 

 

Held-to-maturity

 

 

Amortized Cost

 

 

Fair Value

 

 

Amortized Cost

 

 

Fair Value

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

Due in one year or less

$

42,417

 

 

$

42,370

 

 

$

22,354

 

 

$

21,879

 

Due after one year through five years

 

145,113

 

 

 

132,724

 

 

 

47,513

 

 

 

46,017

 

Due after five years through ten years

 

1,894,064

 

 

 

1,633,571

 

 

 

320,024

 

 

 

282,325

 

Due after ten years

 

840,810

 

 

 

726,401

 

 

 

1,969,250

 

 

 

1,614,867

 

Total investment securities

$

2,922,404

 

 

$

2,535,066

 

 

$

2,359,141

 

 

$

1,965,088