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SECURITIES
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
Debt securities
The amortized cost, gross unrealized gains and losses and estimated fair value of investment and mortgage-backed AFS and HTM securities as of December 31, 2024 and 2023 are reflected in the tables below (in thousands):
 December 31, 2024
AmortizedGross
Unrealized		Gross UnrealizedEstimated
AVAILABLE FOR SALECostGainsLossesFair Value
Investment securities:
U.S. Treasury$173,880 $76 $— $173,956 
State and political subdivisions458,013 36 43,717 414,332 
Corporate bonds and other 14,646 263 401 14,508 
MBS: (1)
   
Residential935,639 835 10,088 926,386 
Commercial5,238 — 526 4,712 
Total$1,587,416 $1,210 $54,732 $1,533,894 
HELD TO MATURITY
Investment securities:   
State and political subdivisions$1,040,912 $4,004 $152,697 $892,219 
Corporate bonds and other124,095 17 6,553 117,559 
MBS: (1)
Residential84,660 8 8,549 76,119 
Commercial29,567 — 1,982 27,585 
Total $1,279,234 $4,029 $169,781 $1,113,482 
 December 31, 2023
AmortizedGross
Unrealized		Gross UnrealizedEstimated
AVAILABLE FOR SALECostGainsLossesFair Value
Investment securities: 
U.S. Treasury
$139,706 $19 $— $139,725 
State and political subdivisions603,913 362 35,530 568,745 
Corporate bonds and other 14,569 31 507 14,093 
MBS: (1)
 
Residential
569,039 3,202 3,258 568,983 
Commercial
5,240 44 536 4,748 
Total$1,332,467 $3,658 $39,831 $1,296,294 
HELD TO MATURITY
Investment securities:
State and political subdivisions$1,039,440 $10,070 $126,233 $923,277 
Corporate bonds and other146,712 488 15,738 131,462 
MBS: (1)
 
Residential90,619 13 7,263 83,369 
Commercial30,282 — 2,228 28,054 
Total$1,307,053 $10,571 $151,462 $1,166,162 

(1)    All MBS issued and/or guaranteed by U.S. government agencies or U.S. GSEs.

From time to time, we transfer securities from AFS to HTM due to overall balance sheet strategies and our intent and ability to hold these securities until maturity. We did not transfer any securities from AFS to HTM during the years ended December 31, 2024 or 2023. The remaining net unamortized, unrealized loss on the transferred securities included in AOCI in the accompanying balance sheets totaled $105.1 million ($83.0 million, net of tax) at December 31, 2024 and $113.5 million ($89.7 million, net of tax) at December 31, 2023. Any net unrealized gain or loss on the transferred securities included in AOCI at the time of transfer will be amortized over the remaining life of the underlying security as an adjustment to the yield on those securities. Securities transferred with losses included in AOCI continue to be included in management’s assessment for impairment for each individual security.
Investment securities and MBS with carrying values of $2.18 billion and $2.28 billion were pledged as of December 31, 2024 and December 31, 2023, respectively, to collateralize borrowings from the FRDW, including from the BTFP, repurchase agreements and public fund deposits, for potential liquidity needs or other purposes as required by law. At December 31, 2024 and December 31, 2023, the amount of excess collateral at the FRDW was $431.7 million and $213.1 million, respectively.
The following tables present the fair value and unrealized losses on AFS and HTM investment securities and MBS, if applicable, for which an allowance for credit losses has not been recorded as of December 31, 2024 or 2023, segregated by major security type and length of time in a continuous loss position (in thousands):
December 31, 2024
 Less Than 12 MonthsMore Than 12 MonthsTotal
Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss		Fair ValueUnrealized
Loss
AVAILABLE FOR SALE      
Investment securities:
State and political subdivisions$12,089 $64 $398,304 $43,653 $410,393 $43,717 
Corporate bonds and other2,967 33 5,612 368 8,579 401 
MBS:
Residential723,855 6,517 31,527 3,571 755,382 10,088 
Commercial2,223 12 2,489 514 4,712 526 
Total$741,134 $6,626 $437,932 $48,106 $1,179,066 $54,732 
HELD TO MATURITY      
Investment securities:
State and political subdivisions$73,272 $1,779 $704,563 $150,918 $777,835 $152,697 
Corporate bonds and other2,212 149 111,392 6,404 113,604 6,553 
MBS:
Residential2,548 292 73,064 8,257 75,612 8,549 
Commercial— — 27,585 1,982 27,585 1,982 
Total$78,032 $2,220 $916,604 $167,561 $994,636 $169,781 
December 31, 2023
Less Than 12 Months
More Than 12 Months
Total
Fair Value
Unrealized
Loss
Fair Value
Unrealized
Loss
Fair Value
Unrealized
Loss
AVAILABLE FOR SALE      
Investment securities:
State and political subdivisions$26,371 $297 $516,520 $35,233 $542,891 $35,530 
Corporate bonds and other8,103 319 5,071 188 13,174 507 
MBS:
Residential150,865 549 36,864 2,709 187,729 3,258 
Commercial— — 2,484 536 2,484 536 
Total$185,339 $1,165 $560,939 $38,666 $746,278 $39,831 
HELD TO MATURITY      
Investment securities:
State and political subdivisions$16,549 $123 $713,499 $126,110 $730,048 $126,233 
Corporate bonds and other9,956 1,135 114,787 14,603 124,743 15,738 
MBS:
Residential— — 82,747 7,263 82,747 7,263 
Commercial— — 28,054 2,228 28,054 2,228 
Total $26,505 $1,258 $939,087 $150,204 $965,592 $151,462 
For those AFS debt securities in an unrealized loss position (i) where management has the intent to sell or (ii) where it will more-likely-than-not be required to sell the security before the recovery of its amortized cost basis, we recognize the loss in earnings. For those AFS debt securities in an unrealized loss position that do not meet either of these criteria, management assesses whether the decline in fair value has resulted from credit-related factors, using both qualitative and quantitative criteria. Determining the allowance under the credit loss method requires the use of a discounted cash flow method to assess the credit losses. Any credit-related impairment will be recognized in allowance for credit losses on the balance sheet with a corresponding adjustment to earnings. Noncredit-related temporary impairment, the portion of the impairment relating to factors other than credit (such as changes in market interest rates), is recognized in other comprehensive income, net of tax.
As of December 31, 2024 and December 31, 2023, we did not have an allowance for credit losses on our AFS securities, based on our consideration of the qualitative factors associated with each security type in our AFS portfolio. The unrealized losses on our investment and MBS are due to changes in interest rates and spreads and other market conditions. We had 421 AFS debt securities in an unrealized loss position at December 31, 2024. Our state and political subdivisions are highly rated municipal securities with a long history of no credit losses. Our AFS MBS are highly rated securities which are either explicitly or implicitly backed by the U.S. Government through its agencies which are highly rated by major ratings agencies and also have a long history of no credit losses. Our corporate bonds and other investment securities consist of primarily investment grade bonds and private placement bonds.
We assess the likelihood of default and the potential amount of default when assessing our HTM securities for credit losses. We utilize term structures and, due to no prior loss exposure on our state and political subdivision securities or our corporate securities, we currently apply a third-party average loss given default rate to model these securities. We elected to use the specific identification method to model our HTM securities which aligns with our third-party fair value measurement process. As of December 31, 2024, two bonds were rated below investment grade. The model determined any expected credit loss over the life of these securities to be insignificant. Management further evaluated the remote expectation of loss on the remainder of the HTM portfolio, along with the qualitative factors associated with these securities and concluded that, due to the securities being highly rated municipals and primarily investment grade corporates, private placement bonds with a long history of no credit losses, no credit loss should be recognized for these securities for the year ended December 31, 2024 or 2023.
The accrued interest receivable on our debt securities is excluded from the credit loss estimate and is included in interest receivable on our consolidated balance sheets. As of December 31, 2024, accrued interest receivable on AFS and HTM debt securities totaled $13.6 million and $12.9 million, respectively. As of December 31, 2023, accrued interest receivable on AFS and HTM debt securities totaled $15.4 million and $13.7 million, respectively. No HTM debt securities were past-due or on nonaccrual status as of December 31, 2024 or 2023.
The following table reflects interest income recognized on securities for the periods presented (in thousands):
 Years Ended December 31,
 202420232022
U.S. Treasury$8,538 $11,331 $271 
State and political subdivisions53,186 67,355 57,663 
Corporate bonds and other6,820 7,129 6,007 
MBS45,222 19,450 16,639 
Total interest income on securities$113,766 $105,265 $80,580 

There was a $2.5 million net realized loss as a result of sales from the AFS securities portfolio for the year ended December 31, 2024, which consisted of $6.1 million in realized losses and $88,000 in realized gains, offset by a net gain of $3.5 million on the unwind of fair value municipal security hedges in the AFS securities portfolio. There was a $16.0 million net realized loss as a result of sales from the AFS securities portfolio for the year ended December 31, 2023, which consisted of $24.5 million in realized losses and $2.0 million in realized gains, offset by a net gain of $6.5 million on the unwind of fair value municipal security hedges in the AFS securities portfolio. There were no sales from the HTM portfolio during the year ended December 31, 2024, 2023 or 2022.  We calculate realized gains and losses on sales of securities under the specific identification method.
Expected maturities on our securities may differ from contractual maturities because issuers may have the right to call or prepay obligations.  MBS are presented in total by category since MBS are typically issued with stated principal amounts and are backed by pools of mortgages that have loans with varying maturities.  The characteristics of the underlying pool of mortgages, such as fixed-rate or adjustable-rate, as well as prepayment risk, are passed on to the security holder.  The term of a mortgage-backed pass-through security thus approximates the term of the underlying mortgages and can vary significantly due to prepayments.
The amortized cost and estimated fair value of AFS and HTM securities at December 31, 2024, are presented below by contractual maturity (in thousands):
 December 31, 2024
 Amortized CostFair Value
AVAILABLE FOR SALE
Investment securities:  
Due in one year or less$176,153 $176,226 
Due after one year through five years2,299 2,296 
Due after five years through ten years25,117 24,718 
Due after ten years442,970 399,556 
 646,539 602,796 
MBS:940,877 931,098 
Total$1,587,416 $1,533,894 
 December 31, 2024
 Amortized Cost
Fair Value
HELD TO MATURITY
Investment securities:  
Due in one year or less$4,125 $4,111 
Due after one year through five years16,387 16,157 
Due after five years through ten years128,894 121,652 
Due after ten years1,015,601 867,858 
 1,165,007 1,009,778 
MBS:114,227 103,704 
Total$1,279,234 $1,113,482 

Equity Investments
Equity investments on our consolidated balance sheets include CRA funds with a readily determinable fair value as well as equity investments without readily determinable fair values. At December 31, 2024 and 2023, we had equity investments recorded in our consolidated balance sheets of $9.5 million and $9.7 million, respectively.
Any realized and unrealized gains and losses on equity investments are reported in income. Equity investments without readily determinable fair values are recorded at cost less impairment, if any. For the year ended December 31, 2024, there was no gain or loss on the sale of equity securities.
The following is a summary of unrealized and realized gains and losses on equity investments recognized in other noninterest income in the consolidated statements of income during the periods presented (in thousands):
 Years Ended December 31,
 202420232022
Net gains (losses) recognized during the period on equity investments$(51)$5,131 $(685)
Less: Net gains recognized during the period on equity investments sold during the period— 5,058 — 
Unrealized gains (losses) recognized during the reporting period on equity investments still held at the reporting date$(51)$73 $(685)
Equity investments are assessed quarterly for other-than-temporary impairment. Based upon that evaluation, management does not consider any of our equity investments to be other-than-temporarily impaired at December 31, 2024.
FHLB Stock
Our FHLB stock, which has limited marketability, is carried at cost and is assessed quarterly for other-than-temporary impairment. Based upon evaluation by management at December 31, 2024, our FHLB stock was not impaired and thus was not considered to be other-than-temporarily impaired.