XML 32 R10.htm IDEA: XBRL DOCUMENT v3.25.2
Investment Securities
 6 Months Ended
Jun. 30, 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:
June 30, 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$1,221,272 $727 $(135,917)$1,086,082 
Obligations of states and political subdivisions240,719 34 (28,182)212,571 
Corporate bonds5,690 4 (191)5,503 
Asset backed securities265,749 171 (2,241)263,679 
Non-agency collateralized mortgage obligations271,434 174 (24,067)247,541 
Total debt securities available for sale$2,004,864 $1,110 $(190,598)$1,815,376 
Debt Securities Held to Maturity
Obligations of U.S. government agencies$98,940 $3 $(4,646)94,297 
Obligations of states and political subdivisions2,732 1 (57)2,676 
Total debt securities held to maturity$101,672 $4 $(4,703)$96,973 
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 subdivisions249,627 66 (28,949)220,744 
Corporate bonds6,182 — (345)5,837 
Asset backed securities314,814 687 (1,238)314,263 
Non-agency collateralized mortgage obligations299,256 238 (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 subdivisions2,711 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 $0.7 million and $28.6 million for the three months ended June 30, 2025 and 2024, respectively, and resulted in gross realized gains of $4.0 thousand and gross realized losses of $2.9 million during those respective periods. Proceeds from the sale of available for sale investment securities totaled $30.7 million and $28.6 million for the six months ended June 30, 2025 and 2024, respectively, resulting in gross realized losses of $1.1 million and $2.9 million, respectively.
Investment securities with an aggregate carrying value of $891.9 million and $716.0 million at June 30, 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 June 30, 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 June 30, 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 June 30, 2025, the Company estimates the average remaining life of these mortgage-backed securities issued by U.S. government corporations and agencies to be approximately 6.35 years. Average remaining life is defined as the time span after which the principal balance has been reduced by half.
As of June 30, 2025, the contractual final maturity for available for sale and held to maturity investment securities is as follows:
Debt SecuritiesAvailable for SaleHeld to Maturity
(in thousands)Amortized
Cost		Estimated
Fair Value		Amortized
Cost		Estimated
Fair Value
Due in one year$6,846 $6,808 $1,168 $1,169 
Due after one year through five years54,833 53,091 2,334 2,282 
Due after five years through ten years163,284 152,467 97,202 92,601 
Due after ten years1,779,901 1,603,010 968 921 
Totals$2,004,864 $1,815,376 $101,672 $96,973 
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 June 30, 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 June 30, 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:
June 30, 2025:Less than 12 months12 months or moreTotal
(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$12,636 $(54)$992,579 $(135,863)$1,005,215 $(135,917)
Obligations of states and political subdivisions10,508 (401)198,470 (27,781)208,978 (28,182)
Corporate bonds— — 4,253 (191)4,253 (191)
Asset backed securities66,780 (340)72,002 (1,901)138,782 (2,241)
Non-agency collateralized mortgage obligations— — 215,877 (24,067)215,877 (24,067)
Total debt securities available for sale$89,924 $(795)$1,483,181 $(189,803)$1,573,105 $(190,598)
Debt Securities Held to Maturity
Obligations of U.S. government agencies$— $— $94,137 $(4,646)$94,137 $(4,646)
Obligations of states and political subdivisions— — 1,507 (57)1,507 (57)
Total debt securities held to maturity$— $— $95,644 $(4,703)$95,644 $(4,703)
December 31, 2024:Less than 12 months12 months or moreTotal
(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 subdivisions7,457 (140)208,063 (28,809)215,520 (28,949)
Corporate bonds1,229 (17)4,608 (328)5,837 (345)
Asset backed securities44,707 (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 June 30, 2025. At June 30, 2025, 228 debt securities representing obligations of U.S. government agencies had unrealized losses with aggregate depreciation of 11.34% 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 June 30, 2025. At June 30, 2025, 153 debt securities representing obligations of states and political subdivisions had unrealized losses with aggregate depreciation of 11.83% 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 June 30, 2025. At June 30, 2025, 4 debt securities representing corporate bonds had unrealized losses with aggregate depreciation of 4.30% 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 June 30, 2025 has not experienced any deterioration in credit rating. At June 30, 2025, 23 asset backed securities had unrealized losses with aggregate depreciation of 1.59% 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 June 30, 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 June 30, 2025. At June 30, 2025, 17 asset backed securities had unrealized losses with aggregate depreciation of 10.03% 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:
June 30, 2025December 31, 2024
(in thousands)
AAA/AA/ABBB/BB/BAAA/AA/ABBB/BB/B
Obligations of U.S. government agencies$98,940 $— $109,155 $— 
Obligations of states and political subdivisions2,732 — 2,711 — 
Total debt securities held to maturity$101,672 $— $111,866 $—