Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Note 4—Securities

The following tables summarize the amortized cost and fair values of securities available-for-sale, securities held-to-maturity and equity and other securities at December 31, 2024 and 2023 and the corresponding amounts of gross unrealized gains and losses:


2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	32,783	$	—	$	(213	)	$	32,570
U.S. Government agencies		151,912		1		(15,426	)		136,487
Obligations of states, municipalities, and political subdivisions		84,188		177		(5,059	)		79,306
Residential mortgage-backed securities
Agency		849,297		1,415		(99,910	)		750,802
Non-agency		160,427		6		(22,553	)		137,880
Commercial mortgage-backed securities
Agency		261,947		160		(35,167	)		226,940
Corporate securities		40,623		—		(2,161	)		38,462
Asset-backed securities		14,406		13		(1,170	)		13,249
Total	$	1,595,583	$	1,772	$	(181,659	)	$	1,415,696


2024	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held-to-maturity
Obligations of states, municipalities, and political subdivisions	$	605	$	—	$	—	$	605
Total	$	605	$	—	$	—	$	605


2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale
U.S. Treasury Notes	$	116,398	$	61	$	(1,025	)	$	115,434
U.S. Government agencies		147,062		37		(16,404	)		130,695
Obligations of states, municipalities, and political subdivisions		86,022		396		(4,143	)		82,275
Residential mortgage-backed securities
Agency		786,970		4,247		(95,414	)		695,803
Non-agency		122,359		—		(22,099	)		100,260
Commercial mortgage-backed securities
Agency		181,452		—		(34,248	)		147,204
Corporate securities		40,681		—		(4,510	)		36,171
Asset-backed securities		35,857		2		(1,221	)		34,638
Total	$	1,516,801	$	4,743	$	(179,064	)	$	1,342,480


2023	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Held-to-maturity
Obligations of states, municipalities, and political subdivisions	$	1,157	$	—	$	(8	)	$	1,149
Total	$	1,157	$	—	$	(8	)	$	1,149

The Company did not classify securities as trading during 2024 and 2023.

Note 4—Securities (continued)

Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2024 and 2023 are summarized as follows:


			Less than 12 Months					12 Months or Longer					Total
2024	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Treasury Notes		7	$	9,808	$	(15	)	$	22,762	$	(198	)	$	32,570	$	(213	)
U.S. Government agencies		22		13,629		(33	)		120,222		(15,393	)		133,851		(15,426	)
Obligations of states, municipalities and political subdivisions		79		20,271		(418	)		49,154		(4,641	)		69,425		(5,059	)
Residential mortgage-backed securities
Agency		129		183,980		(3,879	)		472,665		(96,031	)		656,645		(99,910	)
Non-agency		22		37,882		(1,361	)		91,303		(21,192	)		129,185		(22,553	)
Commercial mortgage-backed securities
Agency		53		63,959		(1,887	)		139,283		(33,280	)		203,242		(35,167	)
Corporate securities		21		2,470		(21	)		35,992		(2,140	)		38,462		(2,161	)
Asset-backed securities		1		—		—			5,829		(1,170	)		5,829		(1,170	)
Total		334	$	331,999	$	(7,614	)	$	937,210	$	(174,045	)	$	1,269,209	$	(181,659	)


			Less than 12 Months					12 Months or Longer					Total
2023	# of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Available-for-sale
U.S. Treasury Notes		7	$	5,018	$	(4	)	$	31,843	$	(1,021	)	$	36,861	$	(1,025	)
U.S. Government agencies		18		535		(9	)		119,109		(16,395	)		119,644		(16,404	)
Obligations of states, municipalities and political subdivisions		61		12,267		(156	)		49,617		(3,987	)		61,884		(4,143	)
Residential mortgage-backed securities
Agency		102		8,332		(49	)		543,648		(95,365	)		551,980		(95,414	)
Non-agency		20		636		—			99,624		(22,099	)		100,260		(22,099	)
Commercial mortgage-backed securities
Agency		48		6,765		(1,517	)		140,439		(32,731	)		147,204		(34,248	)
Corporate securities		21		—		—			36,171		(4,510	)		36,171		(4,510	)
Asset-backed securities		6		—		—			25,653		(1,221	)		25,653		(1,221	)
Total		283	$	33,553	$	(1,735	)	$	1,046,104	$	(177,329	)	$	1,079,657	$	(179,064	)
Held to Maturity
Obligations of states, municipalities and political subdivisions		2	$	—	$	—		$	1,149	$	(8	)	$	1,149	$	(8	)
Total		2	$	—	$	—		$	1,149	$	(8	)	$	1,149	$	(8	)

Note 4—Securities (continued)

Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities which had unrealized losses for potential credit losses and determined there were none. There were 334 securities available-for-sale with unrealized losses at December 31, 2024, compared to 283 at December 31, 2023. There was one security held-to-maturity with unrealized losses at December 31, 2024 and two securities held-to-maturity with unrealized losses at December 31, 2023. In January 2025, we received payment in full for the one security held-to-maturity outstanding at December 31, 2024. There was no allowance for credit losses for held-to-maturity debt securities at December 31, 2024 or December 31, 2023. The evaluation for potential credit losses is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing payment performance of the securities.

Management measures expected credit losses on held-to-maturity debt securities on a collective basis by major security types. The Company’s held-to-maturity portfolio consisted of municipal bonds that are typically rated by major rating agencies as ‘Aa’ or better. The Company uses industry historical credit loss information adjusted for current conditions to establish an allowance for credit losses. Accrued interest receivable on securities available-for-sale and held-to-maturity totaled $4.9 million and $4.5 million at December 31, 2024 and December 31, 2023, respectively, and are excluded from the estimate of credit losses.

The Company anticipates full recovery of amortized cost with respect to these securities by maturity, or sooner, in the event of a more favorable market interest rate environment. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity.

The proceeds from all sales and calls of securities were available-for-sale, and the associated gains and losses for the years ended December 31, 2024, 2023, and 2022 are listed below:


	2024		2023		2022
Proceeds	$	8,949	$	163,649	$	23,293
Gross gains		—		—		100
Gross losses		699		—		50

There were $163.6 million of sales of acquired Inland securities during the year ended December 31, 2023. The sales did not result in gains or losses given their close proximity to the acquisition date.

Securities posted and pledged as collateral at December 31, 2024 and 2023 had carrying amounts of $540.0 million and $464.5 million, respectively. At December 31, 2024 and 2023, the carrying amounts of those securities pledged as collateral for public fund deposits were $471.2 million and $390.3 million, respectively, and for customer repurchase agreements of $42.0 million and $47.8 million, respectively. At December 31, 2024 and 2023, there were no securities pledged for advances from the Federal Home Loan Bank. Other securities were pledged for derivative positions, letters of credit and for purposes required or permitted by law. At December 31, 2024 and 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity.

At December 31, 2024, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Fair Value
Available-for-sale
Due in one year or less	$	50,425	$	49,900
Due from one to five years		92,638		88,012
Due from five to ten years		141,506		127,133
Due after ten years		39,343		35,029
Mortgage-backed securities		1,271,671		1,115,622
Total	$	1,595,583	$	1,415,696
Held-to-maturity
Due in one year or less	$	605	$	605
Total	$	605	$	605