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Investment Securities | 3 Months Ended
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Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The amortized cost and estimated fair value of the Company's available-for-sale and held-to-maturity securities are summarized as follows:
(dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Estimated Fair Value
March 31, 2024 |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | $ | 49,919 |  |  | $ | — |  |  | $ | (1,686) |  |  | $ | — |  |  | $ | 48,233 |
U.S. agency securities |  | 698,189 |  |  | — |  |  | (58,863) |  |  | — |  |  | 639,326 |
Residential mortgage-backed securities |  | 800,793 |  |  | 23 |  |  | (102,266) |  |  | — |  |  | 698,550 |
Commercial mortgage-backed securities |  | 54,018 |  |  | — |  |  | (5,080) |  |  | — |  |  | 48,938 |
Municipal bonds |  | 8,740 |  |  | — |  |  | (434) |  |  | — |  |  | 8,306 |
Corporate bonds |  | 2,000 |  |  | — |  |  | (302) |  |  | (17) |  |  | 1,681 |
Total available-for-sale securities |  | $ | 1,613,659 |  |  | $ | 23 |  |  | $ | (168,631) |  |  | $ | (17) |  |  | $ | 1,445,034 |
(dollars in thousands) |  | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Estimated Fair Value
March 31, 2024 |  |  |  |  |  |  |  |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 655,388 |  |  | $ | — |  |  | $ | (87,348) |  |  | $ | 568,040 |
Commercial mortgage-backed securities |  | 89,966 |  |  | — |  |  | (13,000) |  |  | 76,966 |
Municipal bonds |  | 125,003 |  |  | — |  |  | (9,789) |  |  | 115,214 |
Corporate bonds |  | 132,332 |  |  | — |  |  | (14,393) |  |  | 117,939 |
Total |  | $ | 1,002,689 |  |  | $ | — |  |  | $ | (124,530) |  |  | $ | 878,159 |
Allowance for credit losses |  | (1,957) |  |  |  |  |  |  |
Total held-to-maturity securities, net of ACL |  | $ | 1,000,732 |  |  |  |  |  |  |
(dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Estimated Fair Value
December 31, 2023 |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | $ | 49,894 |  |  | $ | — |  |  | $ | (1,993) |  |  | $ | — |  |  | $ | 47,901 |
U.S. agency securities |  | 729,090 |  |  | — |  |  | (57,693) |  |  | — |  |  | 671,397 |
Residential mortgage-backed securities |  | 823,992 |  |  | 45 |  |  | (96,684) |  |  | — |  |  | 727,353 |
Commercial mortgage-backed securities |  | 54,557 |  |  | — |  |  | (4,993) |  |  | — |  |  | 49,564 |
Municipal bonds |  | 8,783 |  |  | — |  |  | (293) |  |  | — |  |  | 8,490 |
Corporate bonds |  | 2,000 |  |  | — |  |  | (300) |  |  | (17) |  |  | 1,683 |
Total available-for-sale securities |  | $ | 1,668,316 |  |  | $ | 45 |  |  | $ | (161,956) |  |  | $ | (17) |  |  | $ | 1,506,388 |
(dollars in thousands) |  | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  | Estimated Fair Value
December 31, 2023 |  |  |  |  |  |  |  |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 670,043 |  |  | $ | — |  |  | $ | (79,980) |  |  | $ | 590,063 |
Commercial mortgage-backed securities |  | 90,227 |  |  | — |  |  | (12,867) |  |  | 77,360 |
Municipal bonds |  | 125,114 |  |  | 5 |  |  | (8,540) |  |  | 116,579 |
Corporate bonds |  | 132,309 |  |  | — |  |  | (14,729) |  |  | 117,580 |
Total |  | $ | 1,017,693 |  |  | $ | 5 |  |  | $ | (116,116) |  |  | $ | 901,582 |
Allowance for credit losses |  | (1,956) |  |  |  |  |  |  |
Total held-to-maturity securities, net of ACL |  | $ | 1,015,737 |  |  |  |  |  |  |
At March 31, 2024 and December 31, 2023, the Company held $54.7 million and $25.7 million, respectively, of equity securities in a combination of Federal Reserve System ("Federal Reserve Board," "Federal Reserve" or "FRB") and FHLB stocks, which are required to be held for regulatory purposes. The securities are not marketable, and therefore are carried at cost; they are classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of par value. At March 31, 2024 and December 31, 2023, the Company had $50.0 million and $51.7 million, respectively, of unamortized unrealized losses outstanding following the transfer of investment securities from available-for-sale to held-to-maturity in 2022. These unrealized losses are included in accumulated other comprehensive loss and are amortized through interest income as a yield adjustment over the remaining term of the securities. Accrued interest receivable on investment securities totaled $7.8 million and $7.6 million at March 31, 2024 and December 31, 2023, respectively. The accrued interest receivable is excluded from the amortized cost of the securities and is reported in other assets in the Consolidated Balance Sheets. The following tables summarize available-for-sale and held-to-maturity securities in an unrealized loss position by length of time:
|  |  |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 48,233 |  |  | $ | (1,686) |  |  | $ | 48,233 |  |  | $ | (1,686) |
U. S. agency securities |  | 76 |  |  | 2,904 |  |  | (5) |  |  | 636,422 |  |  | (58,858) |  |  | 639,326 |  |  | (58,863) |
Residential mortgage-backed securities |  | 151 |  |  | 8,180 |  |  | (60) |  |  | 688,525 |  |  | (102,206) |  |  | 696,705 |  |  | (102,266) |
Commercial mortgage-backed securities |  | 13 |  |  | — |  |  | — |  |  | 48,938 |  |  | (5,080) |  |  | 48,938 |  |  | (5,080) |
Municipal bonds |  | 1 |  |  | — |  |  | — |  |  | 8,306 |  |  | (434) |  |  | 8,306 |  |  | (434) |
Corporate bonds |  | 1 |  |  | — |  |  | — |  |  | 1,681 |  |  | (302) |  |  | 1,681 |  |  | (302) |
Total |  | 244 |  |  | $ | 11,084 |  |  | $ | (65) |  |  | $ | 1,432,105 |  |  | $ | (168,566) |  |  | $ | 1,443,189 |  |  | $ | (168,631) |
|  |  |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) |  | Number of Securities |  | Estimated Fair Value |  | Unrecognized Losses |  | Estimated Fair Value |  | Unrecognized Losses |  | Estimated Fair Value |  | Unrecognized Losses
March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | 142 |  | $ | — |  |  | $ | — |  |  | $ | 568,040 |  |  | $ | (87,348) |  |  | $ | 568,040 |  |  | $ | (87,348) |
Commercial mortgage-backed securities |  | 16 |  | — |  |  | — |  |  | 76,966 |  |  | (13,000) |  |  | 76,966 |  |  | (13,000) |
Municipal bonds |  | 42 |  | 3,474 |  |  | (63) |  |  | 111,740 |  |  | (9,726) |  |  | 115,214 |  |  | (9,789) |
Corporate bonds |  | 30 |  | — |  |  | — |  |  | 105,887 |  |  | (14,393) |  |  | 105,887 |  |  | (14,393) |
Total |  | 230 |  |  | $ | 3,474 |  |  | $ | (63) |  |  | $ | 862,633 |  |  | $ | (124,467) |  |  | $ | 866,107 |  |  | $ | (124,530) |
|  |  |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) |  | Number of Securities |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses |  | Estimated Fair Value |  | Unrealized Losses
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | 47,901 |  |  | $ | (1,993) |  |  | $ | 47,901 |  |  | $ | (1,993) |
U. S. agency securities |  | 78 |  |  | 3,084 |  |  | (4) |  |  | 668,313 |  |  | (57,689) |  |  | 671,397 |  |  | (57,693) |
Residential mortgage-backed securities |  | 149 |  |  | — |  |  | — |  |  | 718,042 |  |  | (96,684) |  |  | 718,042 |  |  | (96,684) |
Commercial mortgage-backed securities |  | 13 |  |  | — |  |  | — |  |  | 49,564 |  |  | (4,993) |  |  | 49,564 |  |  | (4,993) |
Municipal bonds |  | 1 |  |  | — |  |  | — |  |  | 8,490 |  |  | (293) |  |  | 8,490 |  |  | (293) |
Corporate bonds |  | 1 |  |  | — |  |  | — |  |  | 1,683 |  |  | (300) |  |  | 1,683 |  |  | (300) |
Total |  | 244 |  |  | $ | 3,084 |  |  | $ | (4) |  |  | $ | 1,493,993 |  |  | $ | (161,952) |  |  | $ | 1,497,077 |  |  | $ | (161,956) |
|  |  |  | Less Than 12 Months |  | 12 Months or Greater |  | Total
(dollars in thousands) |  | Number of Securities |  | Estimated Fair Value |  | Unrecognized Losses |  | Estimated Fair Value |  | Unrecognized Losses |  | Estimated Fair Value |  | Unrecognized Losses
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | 142 |  |  | $ | — |  |  | $ | — |  |  | $ | 590,063 |  |  | $ | (79,980) |  |  | $ | 590,063 |  |  | $ | (79,980) |
Commercial mortgage-backed securities |  | 16 |  |  | — |  |  | — |  |  | 77,360 |  |  | (12,867) |  |  | 77,360 |  |  | (12,867) |
Municipal bonds |  | 40 |  |  | — |  |  | — |  |  | 113,031 |  |  | (8,540) |  |  | 113,031 |  |  | (8,540) |
Corporate bonds |  | 30 |  |  | — |  |  | — |  |  | 105,523 |  |  | (14,729) |  |  | 105,523 |  |  | (14,729) |
Total |  | 228 |  |  | $ | — |  |  | $ | — |  |  | $ | 885,977 |  |  | $ | (116,116) |  |  | $ | 885,977 |  |  | $ | (116,116) |
Unrealized losses at March 31, 2024 were generally attributable to changes in market interest rates and interest spread relationships subsequent to the dates the securities were originally purchased and were considered to be temporary, and not due to credit quality concerns on the investment securities. The fair values of these securities are expected to recover as the securities approach their respective maturity dates. The Company does not intend to sell and it is likely that it will not be required to sell the securities prior to their anticipated recovery. The Company measures its AFS and HTM security portfolios for current expected credit losses as part of its ACL analysis. During the three months ended March 31, 2024 and 2023, the Company recorded a provision for credit losses on its held-to-maturity portfolio of $1 thousand and $1.2 million, respectively. During the three months ended March 31, 2023, the Company recorded a provision for credit losses on its available-for-sale portfolio of $14 thousand. No provision was recorded for its available-for-sale security portfolio during the three months ended March 31, 2024. At March 31, 2024 and December 31, 2023, the Company had a total allowance of $17 thousand on its available-for-sale securities and $2.0 million on its held-to-maturity securities, each of which primarily comprise allowances for corporate bonds. The following table summarizes the Company's investment securities available-for-sale and investment securities held-to-maturity by contractual maturity. Expected maturities for mortgage-backed securities ("MBS") will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | March 31, 2024
(dollars in thousands) |  | Amortized Cost |  | Estimated Fair Value
Investment securities available-for-sale: |  |  |  |
Within one year |  | $ | 139,224 |  |  | $ | 135,426 |
One to five years |  | 486,394 |  |  | 446,955 |
Five to ten years |  | 112,838 |  |  | 97,570 |
Beyond ten years |  | 20,392 |  |  | 17,612 |
Residential mortgage-backed securities |  | 800,793 |  |  | 698,550 |
Commercial mortgage-backed securities |  | 54,018 |  |  | 48,938 |
Less: allowance for credit losses |  | — |  |  | (17) |
Total investment securities available-for-sale |  | 1,613,659 |  |  | 1,445,034 |
Investment securities held-to-maturity: |  |  |  |
Within one year |  | 4,282 |  |  | 4,247 |
One to five years |  | 61,707 |  |  | 59,309 |
Five to ten years |  | 117,237 |  |  | 102,274 |
Beyond ten years |  | 74,109 |  |  | 67,323 |
Residential mortgage-backed securities: |  | 655,388 |  |  | 568,040 |
Commercial mortgage-backed securities |  | 89,966 |  |  | 76,966 |
Less: allowance for credit losses |  | (1,957) |  |  | — |
Total investment securities held-to-maturity |  | 1,000,732 |  |  | 878,159 |
Total |  | $ | 2,614,391 |  |  | $ | 2,323,193 |
For the three months ended March 31, 2024 and 2023, gross realized gains on calls of investment securities were $4 thousand and $5 thousand, respectively. There were no gross realized losses on sales or calls of investment securities during the three months ended March 31, 2024. During the three months ended March 31, 2023, there were $26 thousand of gross realized losses on sales or calls of investment securities. Gross sales and call proceeds were $27.1 million and $8.4 million for the three months ended March 31, 2024 and 2023, respectively. The book value of securities pledged as collateral for certain government deposits, securities sold under agreements to repurchase, and certain lines of credit with correspondent banks at March 31, 2024 and December 31, 2023 was $2.1 billion, which were well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of March 31, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and U.S. agency securities, which exceeded ten percent of shareholders' equity.

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