XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.25.1

Securities | 3 Months Ended
--- | ---
Mar. 31, 2025
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, net of allowance for credit losses, as of March 31, 2025 and December 31, 2024 are reflected in the tables below (in thousands):
|  | March 31, 2025
|  | Amortized |  | Gross Unrealized |  | Gross Unrealized |  | Less: Allowance for |  | Estimated |  |  |  |
AVAILABLE FOR SALE |  | Cost |  | Gains |  | Losses |  | Credit Losses |  | Fair Value |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 133,331 |  |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 133,341 |  |  |  |  |
State and political subdivisions |  | 454,442 |  |  | 30 |  |  | 53,465 |  |  | — |  |  | 401,007 |  |  |  |  |
Corporate bonds and other |  | 14,666 |  |  | 226 |  |  | 508 |  |  | — |  |  | 14,384 |  |  |  |  |
MBS: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | 901,493 |  |  | 6,877 |  |  | 3,978 |  |  | — |  |  | 904,392 |  |  |  |  |
Commercial |  | 5,220 |  |  | 44 |  |  | 449 |  |  | — |  |  | 4,815 |  |  |  |  |
Total |  | $ | 1,509,152 |  |  | $ | 7,187 |  |  | $ | 58,400 |  |  | $ | — |  |  | $ | 1,457,939 |  |  |  |  |
|  | Amortized |  | Gross Unrealized |  | Gross Unrealized |  |  |  | Estimated |  | Less: Allowance for |  | Net Carrying
|  | Cost |  | Gains |  | Losses |  |  |  | Fair Value |  | Credit Losses |  | Amount
HELD TO MATURITY |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions |  | $ | 1,041,455 |  |  | $ | 675 |  |  | $ | 156,350 |  |  |  |  | $ | 885,780 |  |  | $ | 27 |  |  | $ | 1,041,428 |
Corporate bonds and other |  | 124,256 |  |  | 369 |  |  | 5,763 |  |  |  |  | 118,862 |  |  | 37 |  |  | 124,219 |
MBS: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | 83,303 |  |  | 12 |  |  | 6,646 |  |  |  |  | 76,669 |  |  | — |  |  | 83,303 |
Commercial |  | 29,380 |  |  | — |  |  | 1,583 |  |  |  |  | 27,797 |  |  | — |  |  | 29,380 |
Total |  | $ | 1,278,394 |  |  | $ | 1,056 |  |  | $ | 170,342 |  |  |  |  | $ | 1,109,108 |  |  | $ | 64 |  |  | $ | 1,278,330 |
|  | December 31, 2024 |  |
|  | Amortized |  | Gross Unrealized |  | Gross Unrealized |  | Less: Allowance for |  | Estimated |  |  |  |
AVAILABLE FOR SALE |  | Cost |  | Gains |  | Losses |  | Credit Losses |  | Fair Value |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury |  | $ | 173,880 |  |  | $ | 76 |  |  | $ | — |  |  | $ | — |  |  | $ | 173,956 |  |  |  |  |
State and political subdivisions |  | 458,013 |  |  | 36 |  |  | 43,717 |  |  | — |  |  | 414,332 |  |  |  |  |
Corporate bonds and other |  | 14,646 |  |  | 263 |  |  | 401 |  |  | — |  |  | 14,508 |  |  |  |  |
MBS: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | 935,639 |  |  | 835 |  |  | 10,088 |  |  | — |  |  | 926,386 |  |  |  |  |
Commercial |  | 5,238 |  |  | — |  |  | 526 |  |  | — |  |  | 4,712 |  |  |  |  |
Total |  | $ | 1,587,416 |  |  | $ | 1,210 |  |  | $ | 54,732 |  |  | $ | — |  |  | $ | 1,533,894 |  |  |  |  |
|  | Amortized |  | Gross Unrealized |  | Gross Unrealized |  | Estimated |  | Less: Allowance for |  | Net Carrying |  |
HELD TO MATURITY |  | Cost |  | Gains |  | Losses |  | Fair Value |  | Credit Losses |  | Amount |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions |  | $ | 1,040,912 |  |  | $ | 4,004 |  |  | $ | 152,697 |  |  | $ | 892,219 |  |  | $ | — |  |  | $ | 1,040,912 |  |  |
Corporate bonds and other |  | 124,095 |  |  | 17 |  |  | 6,553 |  |  | 117,559 |  |  | — |  |  | 124,095 |  |  |
MBS: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential |  | 84,660 |  |  | 8 |  |  | 8,549 |  |  | 76,119 |  |  | — |  |  | 84,660 |  |  |
Commercial |  | 29,567 |  |  | — |  |  | 1,982 |  |  | 27,585 |  |  | — |  |  | 29,567 |  |  |
Total |  | $ | 1,279,234 |  |  | $ | 4,029 |  |  | $ | 169,781 |  |  | $ | 1,113,482 |  |  | $ | — |  |  | $ | 1,279,234 |  |  |
(1) All MBS are 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 three months ended March 31, 2025 or the year ended December 31, 2024. The remaining net unamortized, unrealized loss on the transferred securities included in AOCI in the accompanying balance sheets totaled $103.1 million ($81.4 million, net of tax) at March 31, 2025 and $105.1 million ($83.0 million, net of tax) at December 31, 2024. 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 $2.23 billion and $2.18 billion were pledged as of March 31, 2025 and December 31, 2024, respectively, to collateralize borrowings from the FRDW, repurchase agreements and public fund deposits, for potential liquidity needs or other purposes as required by law. At March 31, 2025 and December 31, 2024, the amount of excess collateral at the FRDW was $425.2 million and $431.7 million, respectively. The following tables present the fair value and unrealized losses on AFS, if applicable, for which an allowance for credit losses has not been recorded, as well as HTM investment securities and MBS, if applicable, as of March 31, 2025 and December 31, 2024, segregated by major security type and length of time in a continuous loss position (in thousands):
| March 31, 2025
| 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 | $ | 12,703 |  |  | $ | 163 |  |  | $ | 385,424 |  |  | $ | 53,302 |  |  | $ | 398,127 |  |  | $ | 53,465 |
Corporate bonds and other | 2,802 |  |  | 199 |  |  | 5,672 |  |  | 309 |  |  | 8,474 |  |  | 508 |
MBS: |  |  |  |  |  |  |  |  |  |  |
Residential | 165,837 |  |  | 1,052 |  |  | 30,986 |  |  | 2,926 |  |  | 196,823 |  |  | 3,978 |
Commercial | — |  |  | — |  |  | 2,537 |  |  | 449 |  |  | 2,537 |  |  | 449 |
Total | $ | 181,342 |  |  | $ | 1,414 |  |  | $ | 424,619 |  |  | $ | 56,986 |  |  | $ | 605,961 |  |  | $ | 58,400 |
HELD TO MATURITY |  |  |  |  |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions | $ | 131,425 |  |  | $ | 3,273 |  |  | $ | 717,769 |  |  | $ | 153,077 |  |  | $ | 849,194 |  |  | $ | 156,350 |
Corporate bonds and other | — |  |  | — |  |  | 103,289 |  |  | 5,763 |  |  | 103,289 |  |  | 5,763 |
MBS: |  |  |  |  |  |  |  |  |  |  |
Residential | 2,567 |  |  | 225 |  |  | 73,610 |  |  | 6,421 |  |  | 76,177 |  |  | 6,646 |
Commercial | — |  |  | — |  |  | 27,797 |  |  | 1,583 |  |  | 27,797 |  |  | 1,583 |
Total | $ | 133,992 |  |  | $ | 3,498 |  |  | $ | 922,465 |  |  | $ | 166,844 |  |  | $ | 1,056,457 |  |  | $ | 170,342 |
| December 31, 2024
| 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 | $ | 12,089 |  |  | $ | 64 |  |  | $ | 398,304 |  |  | $ | 43,653 |  |  | $ | 410,393 |  |  | $ | 43,717 |
Corporate bonds and other | 2,967 |  |  | 33 |  |  | 5,612 |  |  | 368 |  |  | 8,579 |  |  | 401 |
MBS: |  |  |  |  |  |  |  |  |  |  |
Residential | 723,855 |  |  | 6,517 |  |  | 31,527 |  |  | 3,571 |  |  | 755,382 |  |  | 10,088 |
Commercial | 2,223 |  |  | 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 other | 2,212 |  |  | 149 |  |  | 111,392 |  |  | 6,404 |  |  | 113,604 |  |  | 6,553 |
MBS: |  |  |  |  |  |  |  |  |  |  |
Residential | 2,548 |  |  | 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 |
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 March 31, 2025 and December 31, 2024, 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 361 and 421 AFS debt securities in an unrealized loss position at March 31, 2025 and December 31, 2024, respectively. 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 and 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. 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 collective evaluation method to model our HTM securities which aligns with our third-party fair value measurement process. The model determined an expected credit loss over the life of the HTM securities of $64,000, and such amount was recognized as credit loss for the three months ended March 31, 2025. Management evaluated the remote expectation of loss on the HTM portfolio, along with the qualitative factors associated with these securities, as well as the credit loss estimate of the model and concluded that an allowance for credit loss of $64,000 was sufficient as of March 31, 2025, due to the securities being highly rated municipals and primarily investment grade corporates with a long history of no credit losses. As of March 31, 2025, two corporate bonds were rated below investment grade. For the three months ended March 31, 2024, no credit loss was recognized. 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 March 31, 2025, accrued interest receivable on AFS and HTM debt securities totaled $8.3 million and $8.0 million, respectively. As of December 31, 2024, accrued interest receivable on AFS and HTM debt securities totaled $13.6 million and $12.9 million, respectively. No HTM debt securities were past-due or on nonaccrual status as of March 31, 2025 or December 31, 2024. The following table reflects interest income recognized on securities for the periods presented (in thousands):
| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |
U.S. Treasury | $ | 1,567 |  |  | $ | 2,023 |  |  |
State and political subdivisions | 11,660 |  |  | 14,269 |  |  |
Corporate bonds and other | 1,617 |  |  | 1,763 |  |  |
MBS | 13,523 |  |  | 10,119 |  |  |
Total interest income on securities | $ | 28,367 |  |  | $ | 28,174 |  |  |
There was a $554,000 net realized loss as a result of sales from the AFS securities portfolio for the three months ended March 31, 2025, which consisted of a net loss of $1.2 million on the unwind of fair value MBS hedges in the AFS securities portfolio, partially offset by $600,000 in realized gains. There was an $18,000 net realized loss as a result of sales from the AFS securities portfolio for the three months ended March 31, 2024, which consisted of $79,000 in realized losses and $61,000 in realized gains. There were no sales from the HTM portfolio during the three months ended March 31, 2025 or 2024. 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 March 31, 2025, are presented below by contractual maturity (in thousands):
| March 31, 2025
| Amortized Cost |  | Fair Value
AVAILABLE FOR SALE |
Investment securities: |  |  |
Due in one year or less | $ | 133,820 |  |  | $ | 133,834 |
Due after one year through five years | 6,782 |  |  | 6,662 |
Due after five years through ten years | 24,620 |  |  | 24,053 |
Due after ten years | 437,217 |  |  | 384,183 |
| 602,439 |  |  | 548,732 |
MBS: | 906,713 |  |  | 909,207 |
Total | $ | 1,509,152 |  |  | $ | 1,457,939 |
| March 31, 2025
| Amortized Cost |  | Fair Value
HELD TO MATURITY |
Investment securities: |  |  |
Due in one year or less | $ | 4,133 |  |  | $ | 4,134 |
Due after one year through five years | 16,584 |  |  | 16,527 |
Due after five years through ten years | 130,331 |  |  | 124,048 |
Due after ten years | 1,014,663 |  |  | 859,933 |
| 1,165,711 |  |  | 1,004,642 |
MBS: | 112,683 |  |  | 104,466 |
Total | $ | 1,278,394 |  |  | $ | 1,109,108 |
Equity Investments Equity investments on our consolidated balance sheets include Community Reinvestment Act funds with a readily determinable fair value as well as equity investments without readily determinable fair values. At March 31, 2025 and December 31, 2024, we had equity investments recorded in our consolidated balance sheets of $9.5 million. 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 three months ended March 31, 2025, 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):
| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Net gains (losses) recognized during the period on equity investments | $ | 79 |  |  | $ | (56) |  |  |  |  |
Less: Net gains recognized during the period on equity investments sold during the period | — |  |  | — |  |  |  |  |
Unrealized gains (losses) recognized during the reporting period on equity investments held at the reporting date | $ | 79 |  |  | $ | (56) |  |  |  |  |
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 March 31, 2025. 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 March 31, 2025, our FHLB stock was not impaired and thus was not considered to be other-than-temporarily impaired.

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

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration