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Investment Securities | 12 Months Ended
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Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities The following tables summarize the Company's investment in AFS and HTM securities by major security type:
(dollars in thousands) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Losses |  | Estimated Fair Value
December 31, 2024 |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | $ | 24,988 |  |  | $ | — |  |  | $ | (212) |  |  | $ | — |  |  | $ | 24,776 |
U.S. agency securities |  | 600,277 |  |  | — |  |  | (41,742) |  |  | — |  |  | 558,535 |
Residential mortgage-backed securities |  | 719,815 |  |  | 36 |  |  | (94,535) |  |  | — |  |  | 625,316 |
Commercial mortgage-backed securities |  | 53,248 |  |  | — |  |  | (4,303) |  |  | — |  |  | 48,945 |
Municipal bonds |  | 8,607 |  |  | — |  |  | (593) |  |  | — |  |  | 8,014 |
Corporate bonds |  | 2,000 |  |  | — |  |  | (160) |  |  | (22) |  |  | 1,818 |
Total available-for-sale securities |  | $ | 1,408,935 |  |  | $ | 36 |  |  | $ | (141,545) |  |  | $ | (22) |  |  | $ | 1,267,404 |
(dollars in thousands) |  | Amortized Cost |  | Gross Unrecognized Gains |  | Gross Unrecognized Losses |  |  |  | Estimated Fair Value
December 31, 2024 |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | $ | 605,904 |  |  | $ | — |  |  | $ | (85,941) |  |  |  |  | $ | 519,963 |
Commercial mortgage-backed securities |  | 88,575 |  |  | — |  |  | (13,069) |  |  |  |  | 75,506 |
Municipal bonds |  | 114,060 |  |  | — |  |  | (11,389) |  |  |  |  | 102,671 |
Corporate bonds |  | 131,414 |  |  | — |  |  | (9,172) |  |  |  |  | 122,242 |
Total |  | 939,953 |  |  | $ | — |  |  | $ | (119,571) |  |  |  |  | $ | 820,382 |
Less: allowance for credit losses |  | (1,306) |  |  |  |  |  |  |  |  |
Total held-to-maturity securities, net of ACL |  | $ | 938,647 |  |  |  |  |  |  |  |  |
(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 |
Less: allowance for credit losses |  | (1,956) |  |  |  |  |  |  |  |  |
Total held-to-maturity securities, net of ACL |  | $ | 1,015,737 |  |  |  |  |  |  |  |  |
In addition, at December 31, 2024 and December 31, 2023, the Company held $51.8 million and $25.7 million in non marketable equity securities, respectively, 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. These securities cannot be disposed of other than through redemption by the issuer and, if redeemed, would be redeemed at the original cost. The securities are carried at cost, classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of par value. The Company reassessed classification of certain investments in the first quarter of 2022 and, effective March 31, 2022, it transferred a total of $1.1 billion of MBS, municipal bonds and corporate bonds from available-for-sale to held-to-maturity securities, including $237.0 million of securities acquired in the first quarter of 2022 for which its intention to hold to maturity was finalized. At the time of transfer, the Company reversed the allowance for credit losses associated with the available-for-sale securities through the provision for credit losses. The securities were transferred at their amortized cost basis, net of any remaining unrealized gain or loss reported in accumulated other comprehensive income (loss). The related unrealized loss of $66.2 million was included in other comprehensive loss at the time of transfer and, as of December 31, 2024, $44.8 million remains in accumulated other comprehensive loss, to be amortized out through interest income as a yield adjustment over the remaining term of the securities. No gain or loss was recorded at the time of transfer. Subsequent to transfer, the allowance for credit losses on these securities was evaluated under the accounting policy for held-to-maturity securities. Accrued interest receivable on investment securities totaled $6.6 million and $7.6 million at December 31, 2024 and December 31, 2023, respectively. The accrued interest on investment securities is excluded from the amortized cost of the securities and is reported in other assets in the Consolidated Balance Sheets. The following tables summarize, by length of time, the Company's AFS securities that have been in a continuous unrealized loss position and HTM securities that have been in a continuous unrecognized loss position:
|  |  |  | 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, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury bonds |  | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 24,776 |  |  | $ | (212) |  |  | $ | 24,776 |  |  | $ | (212) |
U.S. agency securities |  | 71 |  |  | 2,300 |  |  | (8) |  |  | 556,235 |  |  | (41,734) |  |  | 558,535 |  |  | (41,742) |
Residential mortgage-backed securities |  | 148 |  |  | 7,530 |  |  | (128) |  |  | 616,392 |  |  | (94,407) |  |  | 623,922 |  |  | (94,535) |
Commercial mortgage-backed securities |  | 13 |  |  | — |  |  | — |  |  | 48,945 |  |  | (4,303) |  |  | 48,945 |  |  | (4,303) |
Municipal bonds |  | 1 |  |  | — |  |  | — |  |  | 8,014 |  |  | (593) |  |  | 8,014 |  |  | (593) |
Corporate bonds |  | 1 |  |  | — |  |  | — |  |  | 1,818 |  |  | (160) |  |  | 1,818 |  |  | (160) |
Total |  | 235 |  | $ | 9,830 |  |  | $ | (136) |  |  | $ | 1,256,180 |  |  | $ | (141,409) |  |  | $ | 1,266,010 |  |  | $ | (141,545) |
|  |  |  | 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, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities |  | 140 |  |  | $ | — |  |  | $ | — |  |  | $ | 519,963 |  |  | $ | (85,941) |  |  | $ | 519,963 |  |  | $ | (85,941) |
Commercial mortgage-backed securities |  | 16 |  |  | — |  |  | — |  |  | 75,506 |  |  | (13,069) |  |  | 75,506 |  |  | (13,069) |
Municipal bonds |  | 36 |  |  | 4,026 |  |  | (75) |  |  | 98,645 |  |  | (11,314) |  |  | 102,671 |  |  | (11,389) |
Corporate bonds |  | 30 |  |  | 1,928 |  |  | (77) |  |  | 110,280 |  |  | (9,095) |  |  | 112,208 |  |  | (9,172) |
Total |  | 222 |  | $ | 5,954 |  |  | $ | (152) |  |  | $ | 804,394 |  |  | $ | (119,419) |  |  | $ | 810,348 |  |  | $ | (119,571) |
|  |  |  | 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 December 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 securities portfolios for current expected credit losses as part of its ACL analysis. For further information on provision for credit losses on AFS and HTM securities, see Allowance for Credit Losses discussion in "Note 1. Summary of Significant Accounting Policies". As of December 31, 2024 and 2023, the Company had an allowance for credit losses outstanding of 22 thousand and 17 thousand, respectively, on its AFS securities and $1.3 million and $2.0 million, respectively, on its HTM securities, each of which primarily comprise allowances for corporate bonds. The following table summarizes the Company's investment in AFS securities and HTM securities by contractual maturity. Expected maturities for MBS will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
|  | December 31, 2024
(dollars in thousands) |  | Amortized Cost |  | Estimated Fair Value
Investment securities available-for-sale: |  |  |  |
Within one year |  | $ | 188,499 |  |  | $ | 184,939 |
One to five years |  | 359,242 |  |  | 331,649 |
Five to ten years |  | 68,580 |  |  | 59,826 |
Beyond ten years |  | 19,551 |  |  | 16,751 |
Residential mortgage-backed securities |  | 719,815 |  |  | 625,316 |
Commercial mortgage-backed securities |  | 53,248 |  |  | 48,945 |
Less: allowance for credit losses |  | — |  |  | (22) |
Total investment securities available-for-sale |  | 1,408,935 |  |  | 1,267,404 |
Investment securities held-to-maturity: |  |  |  |
Within one year |  | 6,946 |  |  | 6,900 |
One to five years |  | 64,060 |  |  | 61,728 |
Five to ten years |  | 105,977 |  |  | 96,087 |
Beyond ten years |  | 68,491 |  |  | 60,198 |
Residential mortgage-backed securities: |  | 605,904 |  |  | 519,963 |
Commercial mortgage-backed securities |  | 88,575 |  |  | 75,506 |
Less: allowance for credit losses |  | (1,306) |  |  | — |
Total investment securities held-to-maturity |  | 938,647 |  |  | 820,382 |
Total |  | $ | 2,347,582 |  |  | $ | 2,087,786 |
During the years ended December 31, 2024, 2023 and 2022, proceeds from the sale or call of investment securities were $153.0 million, $11.2 million and $14.6 million, respectively. During the year ended December 31, 2024, gross realized gains on sales and calls of investment securities were $14 thousand and gross realized losses on sales of investment securities were $0. During the year ended December 31, 2023, gross realized gains on sales of investment securities were $129 thousand and gross realized losses on sales of investment securities were $140 thousand. During the year ended December 31, 2022, gross realized gains on sales of investment securities were $18 thousand and gross realized losses on sales of investment securities were $187 thousand. At December 31, 2024 and 2023, 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 was $0.4 billion and $2.1 billion, respectively, which were well in excess of required amounts in order to operationally provide significant reserve amounts for new business. As of December 31, 2024 and 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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