XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.25.1

Investment Securities | 3 Months Ended
--- | ---
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost, estimated fair values and allowance for credit losses of investments in debt securities are summarized in the following tables:
| March 31, 2025
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  |  |  | Estimated Fair Value
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 1,242,037 |  |  | $ | 288 |  |  | $ | (147,835) |  |  |  |  | $ | 1,094,490 |
Obligations of states and political subdivisions | 241,062 |  |  | 42 |  |  | (27,905) |  |  |  |  | 213,199 |
Corporate bonds | 6,184 |  |  | 26 |  |  | (229) |  |  |  |  | 5,981 |
Asset backed securities | 285,784 |  |  | 239 |  |  | (1,513) |  |  |  |  | 284,510 |
Non-agency collateralized mortgage obligations | 279,559 |  |  | 207 |  |  | (25,596) |  |  |  |  | 254,170 |
Total debt securities available for sale | $ | 2,054,626 |  |  | $ | 802 |  |  | $ | (203,078) |  |  |  |  | $ | 1,852,350 |
Debt Securities Held to Maturity |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 104,146 |  |  | $ | 3 |  |  | $ | (5,775) |  |  |  |  | 98,374 |
Obligations of states and political subdivisions | 2,722 |  |  | 2 |  |  | (82) |  |  |  |  | 2,642 |
Total debt securities held to maturity | $ | 106,868 |  |  | $ | 5 |  |  | $ | (5,857) |  |  |  |  | $ | 101,016 |
| December 31, 2024
(in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  |  |  | Estimated Fair Value
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 1,268,654 |  |  | $ | 16 |  |  | $ | (174,485) |  |  |  |  | $ | 1,094,185 |
Obligations of states and political subdivisions | 249,627 |  |  | 66 |  |  | (28,949) |  |  |  |  | 220,744 |
Corporate bonds | 6,182 |  |  | — |  |  | (345) |  |  |  |  | 5,837 |
Asset backed securities | 314,814 |  |  | 687 |  |  | (1,238) |  |  |  |  | 314,263 |
Non-agency collateralized mortgage obligations | 299,256 |  |  | 238 |  |  | (29,638) |  |  |  |  | 269,856 |
Total debt securities available for sale | $ | 2,138,533 |  |  | $ | 1,007 |  |  | $ | (234,655) |  |  |  |  | $ | 1,904,885 |
Debt Securities Held to Maturity |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 109,155 |  |  | $ | 3 |  |  | $ | (7,443) |  |  |  |  | $ | 101,715 |
Obligations of states and political subdivisions | 2,711 |  |  | 2 |  |  | (79) |  |  |  |  | 2,634 |
Total debt securities held to maturity | $ | 111,866 |  |  | $ | 5 |  |  | $ | (7,522) |  |  |  |  | $ | 104,349 |
Proceeds from the sale of available for sale investment securities totaled $30.0 million and zero for the three months ended March 31, 2025 and 2024, respectively, resulting in gross realized losses of $1.1 million and zero, respectively. Investment securities with an aggregate carrying value of $919.2 million and $716.0 million at March 31, 2025 and December 31, 2024, respectively, were pledged as collateral for specific borrowings, lines of credit or local agency deposits. The amortized cost and estimated fair value of debt securities at March 31, 2025 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. At March 31, 2025, obligations of the U.S. government and agencies with a cost basis totaling $1.2 billion consist almost entirely of residential real estate mortgage-backed securities whose contractual maturity, or principal repayment, will follow the repayment of the underlying mortgages. For purposes of the following table, the entire outstanding balance of these mortgage-backed securities issued by the U.S. government and agencies is categorized based on final maturity date. At March 31, 2025, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 6.61 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half. As of March 31, 2025, the contractual final maturity for available for sale and held to maturity investment securities is as follows:
Debt Securities | Available for Sale |  | Held to Maturity
(in thousands) | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due in one year | $ | 6,847 |  |  | $ | 6,749 |  |  | $ | 1,158 |  |  | $ | 1,159 |
Due after one year through five years | 51,271 |  |  | 49,281 |  |  | 2,694 |  |  | 2,628 |
Due after five years through ten years | 176,291 |  |  | 165,236 |  |  | 102,035 |  |  | 96,297 |
Due after ten years | 1,820,217 |  |  | 1,631,084 |  |  | 981 |  |  | 932 |
Totals | $ | 2,054,626 |  |  | $ | 1,852,350 |  |  | $ | 106,868 |  |  | $ | 101,016 |
Based on an evaluation of available information including security type, counterparty credit quality, past events, current conditions, and reasonable and supportable forecasts that are relevant to collectability of cash flows, as of March 31, 2025, the Company has concluded that it expects to receive all contractual cash flows from each security held in its AFS and HTM debt securities portfolio. There was no allowance for credit losses related to investment securities as of March 31, 2025 or December 31, 2024. Gross unrealized losses on debt securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:
March 31, 2025: | Less than 12 months |  | 12 months or more |  | Total
(in thousands) | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 46,095 |  |  | $ | (101) |  |  | $ | 1,008,710 |  |  | $ | (147,734) |  |  | $ | 1,054,805 |  |  | $ | (147,835) |
Obligations of states and political subdivisions | 10,493 |  |  | (415) |  |  | 199,107 |  |  | (27,490) |  |  | 209,600 |  |  | (27,905) |
Corporate bonds | — |  |  | — |  |  | 4,710 |  |  | (229) |  |  | 4,710 |  |  | (229) |
Asset backed securities | 88,756 |  |  | (176) |  |  | 76,155 |  |  | (1,337) |  |  | 164,911 |  |  | (1,513) |
Non-agency collateralized mortgage obligations | — |  |  | — |  |  | 221,288 |  |  | (25,596) |  |  | 221,288 |  |  | (25,596) |
Total debt securities available for sale | $ | 145,344 |  |  | $ | (692) |  |  | $ | 1,509,970 |  |  | $ | (202,386) |  |  | $ | 1,655,314 |  |  | $ | (203,078) |
Debt Securities Held to Maturity |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | — |  |  | $ | — |  |  | $ | 98,213 |  |  | $ | (5,775) |  |  | $ | 98,213 |  |  | $ | (5,775) |
Obligations of states and political subdivisions | — |  |  | — |  |  | 1,482 |  |  | (82) |  |  | 1,482 |  |  | (82) |
Total debt securities held to maturity | $ | — |  |  | $ | — |  |  | $ | 99,695 |  |  | $ | (5,857) |  |  | $ | 99,695 |  |  | $ | (5,857) |
December 31, 2024: | Less than 12 months |  | 12 months or more |  | Total
(in thousands) | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss |  | Fair Value |  | Unrealized Loss
Debt Securities Available for Sale |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | 63,714 |  |  | $ | (842) |  |  | $ | 1,021,654 |  |  | $ | (173,643) |  |  | $ | 1,085,368 |  |  | $ | (174,485) |
Obligations of states and political subdivisions | 7,457 |  |  | (140) |  |  | 208,063 |  |  | (28,809) |  |  | 215,520 |  |  | (28,949) |
Corporate bonds | 1,229 |  |  | (17) |  |  | 4,608 |  |  | (328) |  |  | 5,837 |  |  | (345) |
Asset backed securities | 44,707 |  |  | (30) |  |  | 75,734 |  |  | (1,208) |  |  | 120,441 |  |  | (1,238) |
Non-agency collateralized mortgage obligations | — |  |  | — |  |  | 236,671 |  |  | (29,638) |  |  | 236,671 |  |  | (29,638) |
Total debt securities available for sale | $ | 117,107 |  |  | $ | (1,029) |  |  | $ | 1,546,730 |  |  | $ | (233,626) |  |  | $ | 1,663,837 |  |  | $ | (234,655) |
Debt Securities Held to Maturity |  |  |  |  |  |  |  |  |  |  |
Obligations of U.S. government agencies | $ | — |  |  | $ | — |  |  | $ | 101,553 |  |  | $ | (7,443) |  |  | $ | 101,553 |  |  | $ | (7,443) |
Obligations of states and political subdivisions | — |  |  | — |  |  | 1,485 |  |  | (79) |  |  | 1,485 |  |  | (79) |
Total debt securities held to maturity | $ | — |  |  | $ | — |  |  | $ | 103,038 |  |  | $ | (7,522) |  |  | $ | 103,038 |  |  | $ | (7,522) |
Obligations of U.S. government agencies: The unrealized losses on investments in obligations of U.S. government agencies are caused by interest rate increases and illiquidity. The contractual cash flows of these securities are guaranteed by U.S. Government Sponsored Entities (principally Fannie Mae and Freddie Mac). It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no credit losses recorded as of March 31, 2025. At March 31, 2025, 143 debt securities representing obligations of U.S. government agencies had unrealized losses with aggregate depreciation of 12.30% from the Company’s amortized cost basis. Obligations of states and political subdivisions: The unrealized losses on investments in obligations of states and political subdivisions were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no credit losses recorded as of March 31, 2025. At March 31, 2025, 150 debt securities representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 11.80% from the Company’s amortized cost basis. Corporate bonds: The unrealized losses on investments in corporate bonds were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no credit losses recorded as of March 31, 2025. At March 31, 2025, 5 debt securities representing corporate bonds had unrealized losses with aggregate depreciation of 4.60% from the Company’s amortized cost basis. Asset backed securities: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors for these types of securities. At the time of purchase, each of these securities was rated AA or AAA and through March 31, 2025 has not experienced any deterioration in credit rating. At March 31, 2025, 23 asset backed securities had unrealized losses with aggregate depreciation of 1.00% from the Company’s amortized cost basis. The Company continues to monitor these securities for changes in credit rating or other indications of credit deterioration. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no credit losses recorded as of March 31, 2025. Non-agency collateralized mortgage obligations: The unrealized losses on investments in asset backed securities were caused by increases in required yields by investors in these types of securities. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. Because management believes the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell and more likely than not will not be required to sell, there is no impairment on these securities and there has been no credit losses recorded as of March 31, 2025. At March 31, 2025, 17 asset backed securities had unrealized losses with aggregate depreciation of 10.40% from the Company’s amortized cost basis. The Company monitors credit quality of debt securities held-to-maturity through the use of credit rating. The Company monitors the credit rating on a monthly basis. The following table summarizes the amortized cost of debt securities held-to-maturity at the dates indicated, aggregated by credit quality indicator:
| March 31, 2025 |  | December 31, 2024
(in thousands) | AAA/AA/A |  | BBB/BB/B |  | AAA/AA/A |  | BBB/BB/B
Obligations of U.S. government agencies | $ | 104,146 |  |  | $ | — |  |  | $ | 109,155 |  |  | $ | — |
Obligations of states and political subdivisions | 2,722 |  |  | — |  |  | 2,711 |  |  | — |
Total debt securities held to maturity | $ | 106,868 |  |  | $ | — |  |  | $ | 111,866 |  |  | $ | — |

X
- Definition The entire disclosure for investments owned by investment company. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 210 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478795/946-210-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/946-320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-12(Column A)(Footnote 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-12(Column C)(Footnote 8)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-12B(Column C)(Footnote 11)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-3 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 6 -Subparagraph (SX 210.12-14(Column F)(Footnote 5)(a)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-6 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-12B(Column A)(Footnote 8)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477271/946-320-S99-3 + Details
Name: | us-gaap_InvestmentHoldingsScheduleOfInvestmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration