Available for Sale Debt Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities as of December 31, 2024 and 2023 (in thousands):


	2024
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
U.S. Treasury obligations	$	348,621	317	(18,340)	330,598
Government-agency obligations	105,965		1,461	(191)	107,235
Mortgage-backed securities	2,243,725		4,982	(186,548)	2,062,159
Asset-backed securities	47,203		645	(285)	47,563
State and municipal obligations	126,766		243	(10,092)	116,917
Corporate obligations	103,415		3,958	(2,930)	104,443
	$	2,975,695	11,606	(218,386)	2,768,915


	2023
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
U.S. Treasury obligations	$	276,618	—	(22,740)	253,878
Government-agency obligations	26,310		1,188	—	27,498
Mortgage-backed securities	1,462,159		377	(176,927)	1,285,609
Asset-backed securities	31,809		594	(168)	32,235
State and municipal obligations	64,454		—	(7,870)	56,584
Corporate obligations	40,448		—	(6,140)	34,308
	$	1,901,798	2,159	(213,845)	1,690,112

Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $9.7 million and $4.9 million as of December 31, 2024 and December 31, 2023, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

Available for sale debt securities having a carrying value of $863.9 million and $1.13 billion as of December 31, 2024 and 2023, respectively, were pledged as collateral for municipal deposits and repurchase agreements.

The amortized cost and fair value of available for sale debt securities as of December 31, 2024, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.


	2024
	Amortized cost		Fair value
Due in one year or less	$	141,817	141,426
Due after one year through five years	308,423		290,212
Due after five years through ten years	116,395		114,993
Due after ten years	71,796		65,051
	$	638,431	611,682

Investments which pay principal on a periodic basis, which are primarily related to mortgage-backed securities, totaling $2.34 billion at amortized cost and $2.16 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments.

During 2024, proceeds from sales on securities in the available for sale debt securities portfolio totaled $569.9 million with no gains and $3.0 million of losses recognized, of which $2.8 million was related to the sale of subordinated debt issued by Lakeland from its investment portfolio. There were no sales of securities from the available for sale debt securities portfolio for the year ended December 31, 2023. During 2024, proceeds from calls on securities in the available for sale debt securities portfolio totaled $780,000 with no gains and no losses recognized. For 2023, proceeds from calls on securities in the available for sale debt securities portfolio totaled $2.3 million with no gains and no losses recognized.

The number of securities in an unrealized loss position as of December 31, 2024 totaled 646, compared with 436 as of December 31, 2023. The increase in the number of securities in an unrealized loss position as of December 31, 2024 was primarily due to the addition of Lakeland securities, combined with higher current market interest rates on the intermediate part of the curve compared to rates as of December 31, 2023.