Investments

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

The following tables present the amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of securities available-for-sale and held-to-maturity:


	June 30, 2025
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	252,037	$	125	$	(9,792)	$	242,370
Obligations of states and political subdivisions	547,277		257		(83,482)		464,052
Agency mortgage-backed securities	1,395,601		8,368		(45,459)		1,358,510
U.S. Treasury bills	116,992		11		(948)		116,055
Corporate debt securities	23,698		81		(255)		23,524
Total securities available-for-sale	$	2,335,605	$	8,842	$	(139,936)	$	2,204,511
Held-to-maturity securities:

Obligations of states and political subdivisions	$	928,973	$	2,372	$	(68,867)	$	862,478
Agency mortgage-backed securities	45,922		—		(3,866)		42,056
Corporate debt securities	116,638		297		(5,080)		111,855
Total securities held-to-maturity	$	1,091,533	$	2,669	$	(77,813)	$	1,016,389
Allowance for credit losses	(295)
Total securities held-to-maturity, net	$	1,091,238


	December 31, 2024
($ in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government-sponsored enterprises	$	290,329	$	69	$	(14,358)	$	276,040
Obligations of states and political subdivisions	492,896		12		(83,711)		409,197
Agency mortgage-backed securities	1,090,495		1,072		(64,173)		1,027,394
U.S. Treasury Bills	130,565		34		(1,706)		128,893
Corporate debt securities	21,198		—		(452)		20,746
Total securities available-for-sale	$	2,025,483	$	1,187	$	(164,400)	$	1,862,270
Held-to-maturity securities:

Obligations of states and political subdivisions	$	759,059	$	2,366	$	(60,351)	$	701,074
Agency mortgage-backed securities	47,912		—		(5,004)		42,908
Corporate debt securities	122,221		269		(7,601)		114,889
Total securities held-to-maturity	$	929,192	$	2,635	$	(72,956)	$	858,871
Allowance for credit losses	(257)
Total securities held-to-maturity, net	$	928,935

The balance of held-to-maturity securities in the “Amortized Cost” column in the table above includes a cumulative net unamortized unrealized gain of $9.2 million and $10.8 million at June 30, 2025 and December 31, 2024, respectively. Such amounts are amortized over the remaining life of the securities.

At June 30, 2025 and December 31, 2024, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity, other than U.S. Government agencies and sponsored enterprises. The agency mortgage-backed securities are all issued by U.S. Government agencies and sponsored enterprises. Securities of $1.7 billion and $1.5 billion at June 30, 2025 and December 31, 2024, respectively, were pledged as collateral to secure deposits of public institutions and for other purposes as required by law or contract provisions, in addition to collateral securing borrowing bases with the FHLB and the Federal Reserve.

The amortized cost and estimated fair value of debt securities at June 30, 2025, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The weighted average life of the mortgage-backed securities is approximately six years.


	Available-for-sale				Held-to-maturity
($ in thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due in one year or less	$	171,956	$	170,028	$	4,527	$	4,518
Due after one year through five years	177,526		171,763		125,076		120,366
Due after five years through ten years	294,410		253,855		235,371		230,589
Due after ten years	296,112		250,355		680,637		618,860
Agency mortgage-backed securities	1,395,601		1,358,510		45,922		42,056

	$	2,335,605	$	2,204,511	$	1,091,533	$	1,016,389

The following tables presents a summary of available-for-sale investment securities in an unrealized loss position:


	June 30, 2025
	Less than 12 months				12 months or more				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	8,521	$	25	$	220,414	$	9,767	$	228,935	$	9,792
Obligations of states and political subdivisions	9,484		210		402,776		83,272		412,260		83,482
Agency mortgage-backed securities	90,236		1,345		439,829		44,114		530,065		45,459
U.S. Treasury bills	37,886		23		42,465		925		80,351		948
Corporate debt securities	1,960		39		6,534		216		8,494		255
	$	148,087	$	1,642	$	1,112,018	$	138,294	$	1,260,105	$	139,936


	December 31, 2024
	Less than 12 months				12 months or more				Total
($ in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Obligations of U.S. Government-sponsored enterprises	$	21,044	$	132	$	234,191	$	14,226	$	255,235	$	14,358
Obligations of states and political subdivisions	3,117		143		403,767		83,568		406,884		83,711
Agency mortgage-backed securities	423,600		6,763		478,790		57,410		902,390		64,173
U.S. Treasury bills	11,708		23		54,177		1,683		65,885		1,706
Corporate debt securities	1,956		44		8,342		408		10,298		452
	$	461,425	$	7,105	$	1,179,267	$	157,295	$	1,640,692	$	164,400

The unrealized losses at both June 30, 2025 and December 31, 2024 were attributable primarily to changes in market interest rates after the securities were purchased. At each of June 30, 2025 and December 31, 2024, the Company did not have an allowance for credit losses on available-for-sale securities.

Accrued interest on held-to-maturity debt securities totaled $10.7 million and $8.6 million at June 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of expected credit losses. The estimate of expected credit losses considers historical credit loss information adjusted for current conditions and reasonable and supportable forecasts. The ACL on held-to-maturity securities was $0.3 million at both June 30, 2025 and December 31, 2024, respectively.

There were no sales of available-for-sale securities during the three months ended June 30, 2025 and June 30, 2024, respectively, or the six months ended June 30, 2024. The Company sold $9.5 million of available-for-sale securities during the six months ended June 30, 2025 for a gain of $0.1 million.

Other Investments

At June 30, 2025 and December 31, 2024, other investments totaled $88.6 million and $72.8 million, respectively. As a member of the FHLB system administered by the Federal Housing Finance Agency, the Bank is required to maintain a minimum investment in capital stock with the FHLB consisting of membership stock and activity-based stock. The FHLB capital stock of $22.6 million at June 30, 2025 and $8.7 million at December 31, 2024 is recorded at cost, which represents redemption value, and is included in other investments in the consolidated balance sheets. The remaining amounts in other investments primarily include investments in Small Business Investment Companies, Community Development Financial Institutions, private equity investments, and the Company’s investment in unconsolidated trusts used to issue trust preferred securities to third parties.