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Investment Securities | 9 Months Ended
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Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of September 30, 2025 and December 31, 2024, were as follows:
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value
September 30, 2025 |  |  |  |
Available-for-Sale: |  |  |  |
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 245,946 |  | $ | 176 |  | $ | (4,281) |  | $ | 241,841 |
Debt Securities Issued by States and Political Subdivisions | 72,434 |  | — |  | (6,393) |  | 66,041 |
Debt Securities Issued by U.S. Government-Sponsored Enterprises | 1,004 |  | — |  | (13) |  | 991 |
Debt Securities Issued by Corporations | 752,393 |  | 2,011 |  | (21,477) |  | 732,927 |
Collateralized Mortgage Obligations: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 1,295,644 |  | 2,190 |  | (87,243) |  | 1,210,591 |
Commercial - Government Agencies or Sponsored Enterprises | 351,102 |  | 544 |  | (21,461) |  | 330,185 |
Commercial - Non-Agency | 60,644 |  | 82 |  | (127) |  | 60,599 |
Total Collateralized Mortgage Obligations | 1,707,390 |  | 2,816 |  | (108,831) |  | 1,601,375 |
Mortgage-Backed Securities: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 681,396 |  | 2,966 |  | (47,127) |  | 637,235 |
Total Mortgage-Backed Securities | 681,396 |  | 2,966 |  | (47,127) |  | 637,235 |
Total | $ | 3,460,563 |  | $ | 7,969 |  | $ | (188,122) |  | $ | 3,280,410 |
Held-to-Maturity: |  |  |  |
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 129,463 |  | $ | — |  | $ | (9,696) |  | $ | 119,767 |
Debt Securities Issued by Corporations | 10,286 |  | — |  | (1,738) |  | 8,548 |
Collateralized Mortgage Obligations: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 2,041,489 |  | 4 |  | (291,372) |  | 1,750,121 |
Commercial - Government Agencies or Sponsored Enterprises | 409,775 |  | — |  | (80,542) |  | 329,233 |
Total Collateralized Mortgage Obligations | 2,451,264 |  | 4 |  | (371,914) |  | 2,079,354 |
Mortgage-Backed Securities: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 1,739,033 |  | 328 |  | (237,717) |  | 1,501,644 |
Commercial - Government Agencies or Sponsored Enterprises | 9,986 |  | — |  | (1,726) |  | 8,260 |
Total Mortgage-Backed Securities | 1,749,019 |  | 328 |  | (239,443) |  | 1,509,904 |
Total | $ | 4,340,032 |  | $ | 332 |  | $ | (622,791) |  | $ | 3,717,573 |
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value
December 31, 2024 |  |  |  |
Available-for-Sale: |  |  |  |
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 257,036 |  | $ | 221 |  | $ | (8,185) |  | $ | 249,072 |
Debt Securities Issued by States and Political Subdivisions | 73,208 |  | — |  | (9,349) |  | 63,859 |
Debt Securities Issued by U.S. Government-Sponsored Enterprises | 1,505 |  | — |  | (41) |  | 1,464 |
Debt Securities Issued by Corporations | 703,579 |  | 376 |  | (32,280) |  | 671,675 |
Collateralized Mortgage Obligations: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 1,050,299 |  | 322 |  | (115,401) |  | 935,220 |
Commercial - Government Agencies or Sponsored Enterprises | 306,696 |  | 199 |  | (23,421) |  | 283,474 |
Total Collateralized Mortgage Obligations | 1,356,995 |  | 521 |  | (138,822) |  | 1,218,694 |
Mortgage-Backed Securities: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 555,092 |  | 130 |  | (70,458) |  | 484,764 |
Total Mortgage-Backed Securities | 555,092 |  | 130 |  | (70,458) |  | 484,764 |
Total | $ | 2,947,415 |  | $ | 1,248 |  | $ | (259,135) |  | $ | 2,689,528 |
Held-to-Maturity: |  |  |  |
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 131,868 |  | $ | — |  | $ | (14,927) |  | $ | 116,941 |
Debt Securities Issued by Corporations | 10,490 |  | — |  | (2,156) |  | 8,334 |
Collateralized Mortgage Obligations: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 2,185,210 |  | 3 |  | (377,149) |  | 1,808,064 |
Commercial - Government Agencies or Sponsored Enterprises | 416,389 |  | — |  | (92,211) |  | 324,178 |
Total Collateralized Mortgage Obligations | 2,601,599 |  | 3 |  | (469,360) |  | 2,132,242 |
Mortgage-Backed Securities: |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 1,864,591 |  | 37 |  | (309,093) |  | 1,555,535 |
Commercial - Government Agencies or Sponsored Enterprises | 9,995 |  | — |  | (2,165) |  | 7,830 |
Total Mortgage-Backed Securities | 1,874,586 |  | 37 |  | (311,258) |  | 1,563,365 |
Total | $ | 4,618,543 |  | $ | 40 |  | $ | (797,701) |  | $ | 3,820,882 |
The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities disclosed throughout this footnote. For AFS debt securities, AIR totaled $11.3 million and $9.0 million as of September 30, 2025 and December 31, 2024, respectively. For held-to-maturity (“HTM”) debt securities, AIR totaled $8.3 million and $8.6 million as of September 30, 2025 and December 31, 2024, respectively. The following table presents an analysis of the contractual maturities of the Company’s investment securities as of September 30, 2025. Debt securities issued by government agencies (such as Small Business Administration securities), collateralized mortgage obligations, and mortgage-backed securities are disclosed separately in the following table as these investment securities may prepay prior to their scheduled contractual maturity dates.
(dollars in thousands) | Amortized Cost | Fair Value
Available-for-Sale: |  |
Due in One Year or Less | $ | 126,490 |  | $ | 125,203 |
Due After One Year Through Five Years | 690,513 |  | 672,931 |
Due After Five Years Through Ten Years | 150,762 |  | 139,926 |
| 967,765 |  | 938,060 |
Debt Securities Issued by Government Agencies | 104,012 |  | 103,740 |
Collateralized Mortgage Obligations: |  |
Residential - Government Agencies or Sponsored Agencies | 1,295,644 |  | 1,210,591 |
Commercial - Government Agencies or Sponsored Agencies | 351,102 |  | 330,185 |
Commercial - Non-Agency | 60,644 |  | 60,599 |
Total Collateralized Mortgage Obligations | 1,707,390 |  | 1,601,375 |
Mortgage-Backed Securities: |  |
Residential - Government Agencies or Sponsored Agencies | 681,396 |  | 637,235 |
Total Mortgage-Backed Securities | 681,396 |  | 637,235 |
Total | $ | 3,460,563 |  | $ | 3,280,410 |
Held-to-Maturity: |  |
Due in One Year or Less | $ | 5,000 |  | $ | 4,970 |
Due After One Year Through Five Years | 74,857 |  | 70,682 |
Due After Five Year Through Ten Years | 59,892 |  | 52,663 |
| 139,749 |  | 128,315 |
Collateralized Mortgage Obligations: |  |
Residential - Government Agencies or Sponsored Agencies | 2,041,489 |  | 1,750,121 |
Commercial - Government Agencies or Sponsored Agencies | 409,775 |  | 329,233 |
Total Collateralized Mortgage Obligations | 2,451,264 |  | 2,079,354 |
Mortgage-Backed Securities: |  |
Residential - Government Agencies or Sponsored Agencies | 1,739,033 |  | 1,501,644 |
Commercial - Government Agencies or Sponsored Agencies | 9,986 |  | 8,260 |
Total Mortgage-Backed Securities | 1,749,019 |  | 1,509,904 |
Total | $ | 4,340,032 |  | $ | 3,717,573 |
Investment securities with carrying values of $7.5 billion and $7.2 billion as of September 30, 2025 and December 31, 2024, respectively, were pledged to secure deposits of governmental entities, securities sold under agreements to repurchase, support the Company's borrowing capacity with the Federal Reserve Bank, and secure derivative transactions. During the three months ended September 30, 2025 and 2024, the Company recognized net realized losses on sales of investments of $1.9 million and $1.1 million, respectively. During the nine months ended September 30, 2025 and 2024, the Company recognized net realized losses on sales of investments of $4.7 million and $4.2 million, respectively. The losses on sales of investment securities were due to fees paid to the counterparties of the Company's prior Visa Class B share sale transactions, which are expensed as incurred. The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:
| Less Than 12 Months | 12 Months or Longer | Total
(dollars in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses
September 30, 2025 |  |  |  |  |  |
Available-for-Sale: |  |  |  |  |  |
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 61,949 |  | $ | (248) |  | $ | 142,395 |  | $ | (4,033) |  | $ | 204,344 |  | $ | (4,281) |
Debt Securities Issued by States and Political Subdivisions | — |  | — |  | 65,905 |  | (6,393) |  | 65,905 |  | (6,393) |
Debt Securities Issued by U.S. Government- Sponsored Enterprises | — |  | — |  | 992 |  | (13) |  | 992 |  | (13) |
Debt Securities Issued by Corporations | 74,824 |  | (176) |  | 555,825 |  | (21,301) |  | 630,649 |  | (21,477) |
Collateralized Mortgage Obligations: |  |  |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 83,117 |  | (227) |  | 624,852 |  | (87,016) |  | 707,969 |  | (87,243) |
Commercial - Government Agencies or Sponsored Enterprises | 76,777 |  | (78) |  | 173,115 |  | (21,383) |  | 249,892 |  | (21,461) |
Commercial - Non-Agency | 29,548 |  | (127) |  | — |  | — |  | 29,548 |  | (127) |
Total Collateralized Mortgage Obligations | 189,442 |  | (432) |  | 797,967 |  | (108,399) |  | 987,409 |  | (108,831) |
Mortgage-Backed Securities: |  |  |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | — |  | — |  | 444,626 |  | (47,127) |  | 444,626 |  | (47,127) |
Total Mortgage-Backed Securities | — |  | — |  | 444,626 |  | (47,127) |  | 444,626 |  | (47,127) |
Total | $ | 326,215 |  | $ | (856) |  | $ | 2,007,710 |  | $ | (187,266) |  | $ | 2,333,925 |  | $ | (188,122) |
December 31, 2024 |  |  |  |  |  |
Available-for-Sale: |  |  |  |  |  |
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 38,854 |  | $ | (288) |  | $ | 157,456 |  | $ | (7,897) |  | $ | 196,310 |  | $ | (8,185) |
Debt Securities Issued by States and Political Subdivisions | — |  | — |  | 63,644 |  | (9,349) |  | 63,644 |  | (9,349) |
Debt Securities Issued by U.S. Government-Sponsored Enterprises | — |  | — |  | 1,464 |  | (41) |  | 1,464 |  | (41) |
Debt Securities Issued by Corporations | 24,892 |  | (108) |  | 546,407 |  | (32,172) |  | 571,299 |  | (32,280) |
Collateralized Mortgage Obligations: |  |  |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 153,104 |  | (275) |  | 673,141 |  | (115,126) |  | 826,245 |  | (115,401) |
Commercial - Government Agencies or Sponsored Enterprises | 92,485 |  | (5) |  | 128,430 |  | (23,416) |  | 220,915 |  | (23,421) |
Total Collateralized Mortgage Obligations | 245,589 |  | (280) |  | 801,571 |  | (138,542) |  | 1,047,160 |  | (138,822) |
Mortgage-Backed Securities: |  |  |  |  |  |
Residential - Government Agencies or Sponsored Enterprises | 135 |  | 0 |  | 480,189 |  | (70,458) |  | 480,324 |  | (70,458) |
Total Mortgage-Backed Securities | 135 |  | 0 |  | 480,189 |  | (70,458) |  | 480,324 |  | (70,458) |
Total | $ | 309,470 |  | $ | (676) |  | $ | 2,050,731 |  | $ | (258,459) |  | $ | 2,360,201 |  | $ | (259,135) |
The Company does not believe the AFS debt securities that were in an unrealized loss position represent a credit loss impairment. As of September 30, 2025 and December 31, 2024, the Company's unrealized losses from AFS debt securities were generated from 355 positions and 386 positions, respectively. As of September 30, 2025 and December 31, 2024, total gross unrealized losses were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. Mortgage-backed securities issued by U.S. government agencies or U.S. government-sponsored enterprises carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Debt securities issued by corporations and non-agency commercial mortgage-backed securities are of high credit quality and the issuers continue to make timely principal and interest payments. As of September 30, 2025, the Company did not have any plans to sell the investment securities that were in an unrealized loss position and it is more likely than not that the Company will not be required to sell the investment securities before recovery of their amortized cost basis, which may be at maturity. In October 2025, the Company initiated the process of repositioning a portion of its AFS securities. As a result, the Company expects to realize a loss on the sale of certain securities during the quarter ending December 31, 2025 that is expected to range from $16 million to $17 million. Substantially all of the Company’s HTM debt securities are issued by U.S. government agencies or U.S. government-sponsored enterprises. These securities carry the explicit and/or implicit guarantee of the U.S. government and have a long history of zero credit loss. Therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2025 and December 31, 2024. Interest income from taxable and non-taxable investment securities for the three and nine months ended September 30, 2025 and 2024 were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(dollars in thousands) | 2025 | 2024 |  | 2025 | 2024
Taxable | $ | 48,511 |  | $ | 44,068 |  |  | $ | 139,175 |  | $ | 130,724 |
Non-Taxable | 523 |  | 296 |  |  | 1,360 |  | 596 |
Total Interest Income from Investment Securities | $ | 49,034 |  | $ | 44,364 |  |  | $ | 140,535 |  | $ | 131,320 |

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