Quarterly report pursuant to Section 13 or 15(d)

SECURITIES AND OTHER INVESTMENTS (Tables)

v3.24.2.u1
SECURITIES AND OTHER INVESTMENTS (Tables)
6 Months Ended
Jun. 30, 2024
Amortized Cost of HTM Securities by Security Type and Credit Rating

The following table presents the amortized cost of HTM securities as of the periods ended, by security type and credit rating (dollars in thousands):

    

Obligations of states and political

    

Corporate and other

    

Mortgage-backed

    

Total HTM

subdivisions

bonds

securities

securities

June 30, 2024

Credit Rating:

 

 

AAA/AA/A

$

684,104

$

$

8,301

$

692,405

BBB/BB/B

1,155

1,155

Not Rated – Agency(1)

66,823

66,823

Not Rated – Non-Agency(2)

 

9,513

 

3,804

36,750

50,067

Total

$

694,772

$

3,804

$

111,874

$

810,450

December 31, 2023

Credit Rating:

 

 

AAA/AA/A

$

688,499

$

$

9,720

$

698,219

BBB/BB/B

1,166

1,166

Not Rated – Agency(1)

68,039

68,039

Not Rated – Non-Agency(2)

 

9,524

 

4,349

56,081

69,954

Total

$

699,189

$

4,349

$

133,840

$

837,378

(1) Generally considered not to have credit risk given the government guarantees associated with these agencies.

(2) Non-agency mortgage-backed and asset-backed securities have limited credit risk, supported by most receiving a 20% simplified supervisory formula approach rating.

Gross Realized Gain and Losses on the Sale of Securities

The following table presents the gross realized gains and losses on and the proceeds from the sale of securities during the three and six months ended June 30, (dollars in thousands):

    

Three Months Ended

    

Six Months Ended

2024

2024

Realized gains (losses)(1):

 

  

 

  

Gross realized gains

$

9

$

12

Gross realized losses

 

(6,525)

 

(6,525)

Net realized losses

$

(6,516)

$

(6,513)

Proceeds from sales of securities

$

455,574

$

517,517

    

Three Months Ended

    

Six Months Ended

2023

2023

Realized gains (losses)(1):

 

  

 

  

Gross realized gains

$

2

$

1,348

Gross realized losses

 

 

(14,746)

Net realized gains (losses)

$

2

$

(13,398)

Proceeds from sales of securities

$

41,635

$

600,101

(1) Includes gains (losses) on sales and calls of securities.

Available-for-sale Securities  
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Values of Investment Securities

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of June 30, 2024 are as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

    

Cost

    

Gains

    

(Losses)

    

Fair Value

June 30, 2024

 

  

 

  

 

  

  

U.S. government and agency securities

$

65,328

$

$

(78)

$

65,250

Obligations of states and political subdivisions

 

600,467

 

9

 

(131,091)

 

469,385

Corporate and other bonds (1)

 

289,123

 

250

 

(17,569)

 

271,804

Commercial MBS

 

 

Agency

290,895

 

377

 

(43,817)

247,455

Non-agency

78,267

 

10

 

(2,036)

76,241

Total commercial MBS

369,162

 

387

 

(45,853)

323,696

Residential MBS

Agency

1,547,394

 

762

 

(223,054)

1,325,102

Non-agency

103,143

 

389

 

(4,851)

98,681

Total residential MBS

1,650,537

 

1,151

 

(227,905)

1,423,783

Other securities

 

1,805

 

 

 

1,805

Total AFS securities

$

2,976,422

$

1,797

$

(422,496)

$

2,555,723

(1) Other bonds include asset-backed securities.

The amortized cost, gross unrealized gains and losses, and estimated fair values of AFS securities as of December 31, 2023 are as follows (dollars in thousands):

Amortized

Gross Unrealized

Estimated

    

Cost

    

Gains

    

(Losses)

    

Fair Value

December 31, 2023

U.S. government and agency securities

$

62,367

$

1,023

$

(34)

$

63,356

Obligations of states and political subdivisions

586,865

 

33

 

(111,451)

 

475,447

Corporate and other bonds (1)

 

261,656

 

7

 

(19,774)

 

241,889

Commercial MBS

 

 

Agency

233,775

 

274

 

(41,181)

192,868

Non-agency

66,743

 

 

(1,965)

64,778

Total commercial MBS

300,518

 

274

 

(43,146)

257,646

Residential MBS

Agency

1,312,538

 

114

 

(205,635)

1,107,017

Non-agency

89,840

 

141

 

(5,827)

84,154

Total residential MBS

1,402,378

 

255

 

(211,462)

1,191,171

Other securities

 

1,752

 

 

 

1,752

Total AFS securities

$

2,615,536

$

1,592

$

(385,867)

$

2,231,261

(1) Other bonds include asset-backed securities.

Schedule of Gross Unrealized Losses and Fair Value of Investments

The following table shows the gross unrealized losses and fair value of the Company’s AFS securities with unrealized losses, which are aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position for the following periods ended (dollars in thousands).

Less than 12 months

More than 12 months

Total

  

Fair

  

Unrealized

  

Fair

  

Unrealized

  

Fair

  

Unrealized

Value

Losses

Value(2)

Losses

Value

Losses

June 30, 2024

 

 

 

 

 

 

U.S. government and agency securities

$

63,583

$

(49)

$

1,584

$

(29)

$

65,167

$

(78)

Obligations of states and political subdivisions

26,598

(2,454)

437,301

(128,637)

463,899

(131,091)

Corporate and other bonds(1)

 

67,638

 

(319)

 

143,787

 

(17,250)

 

211,425

 

(17,569)

Commercial MBS

 

Agency

49,908

(195)

143,907

(43,622)

193,815

(43,817)

Non-agency

34,606

(822)

40,520

(1,214)

75,126

(2,036)

Total commercial MBS

84,514

(1,017)

184,427

(44,836)

268,941

(45,853)

Residential MBS

Agency

142,153

(755)

943,832

(222,299)

1,085,985

(223,054)

Non-agency

42,418

(128)

31,608

(4,723)

74,026

(4,851)

Total residential MBS

184,571

(883)

975,440

(227,022)

1,160,011

(227,905)

Total AFS securities

$

426,904

$

(4,722)

$

1,742,539

$

(417,774)

$

2,169,443

$

(422,496)

December 31, 2023

 

  

 

  

 

  

 

  

 

  

 

  

U.S. government and agency securities

$

$

$

1,980

$

(34)

$

1,980

$

(34)

Obligations of states and political subdivisions

11,758

(2,090)

455,931

(109,361)

467,689

(111,451)

Corporate and other bonds(1)

 

89,450

 

(531)

 

144,155

 

(19,243)

 

233,605

 

(19,774)

Commercial MBS

 

Agency

35,665

(547)

143,657

(40,634)

179,322

(41,181)

Non-agency

64,778

(1,965)

64,778

(1,965)

Total commercial MBS

35,665

(547)

208,435

(42,599)

244,100

(43,146)

Residential MBS

Agency

59,707

(491)

1,011,809

(205,144)

1,071,516

(205,635)

Non-agency

9,022

(41)

40,085

(5,786)

49,107

(5,827)

Total residential MBS

68,729

(532)

1,051,894

(210,930)

1,120,623

(211,462)

Total AFS securities

$

205,602

$

(3,700)

$

1,862,395

$

(382,167)

$

2,067,997

$

(385,867)

(1) Other bonds include asset-backed securities.

(2) Comprised of 761 and 757 individual securities as of June 30, 2024 and December 31, 2023, respectively.

Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of AFS securities as of the periods ended, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

June 30, 2024

December 31, 2023

    

Amortized

    

Estimated

    

Amortized

    

Estimated

Cost

Fair Value

Cost

Fair Value

Due in one year or less

$

44,020

$

43,708

$

52,427

$

51,936

Due after one year through five years

 

209,438

 

207,620

 

150,271

 

149,545

Due after five years through ten years

 

332,192

 

309,850

 

282,309

 

261,720

Due after ten years

 

2,390,772

 

1,994,545

 

2,130,529

 

1,768,060

Total AFS securities

$

2,976,422

$

2,555,723

$

2,615,536

$

2,231,261

Held-to-maturity Securities  
Schedule of Amortized Cost and Estimated Fair Value of Securities

The following table presents the amortized cost and estimated fair value of HTM securities as of the periods ended, by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

June 30, 2024

December 31, 2023

    

Carrying

    

Estimated

    

Carrying

    

Estimated

Value

Fair Value

Value

Fair Value

Due in one year or less

$

5,333

$

5,291

$

3,065

$

3,058

Due after one year through five years

 

14,017

 

14,151

 

34,093

 

34,613

Due after five years through ten years

 

83,225

 

80,084

 

45,919

 

45,263

Due after ten years

 

707,875

 

666,946

 

754,301

 

725,140

Total HTM securities

$

810,450

$

766,472

$

837,378

$

808,074

Schedule of Carrying Values, Gross Unrealized Gains and Losses and Estimated Fair Value of Securities

The Company reports HTM securities on the Company’s Consolidated Balance Sheets at carrying value. Carrying value is amortized cost, which includes any unamortized unrealized gains and losses recognized in AOCI prior to reclassifying the securities from AFS securities to HTM securities. The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of June 30, 2024 are as follows (dollars in thousands):

Carrying

Gross Unrealized

Estimated

    

Value

    

Gains

    

(Losses)

Fair Value

June 30, 2024

  

 

  

 

  

  

Obligations of states and political subdivisions

$

694,772

$

1,015

$

(31,356)

$

664,431

Corporate and other bonds(1)

3,804

(130)

3,674

Commercial MBS

 

Agency

27,273

(6,024)

21,249

Non-agency

21,775

6

(653)

21,128

Total commercial MBS

49,048

6

(6,677)

42,377

Residential MBS

Agency

39,409

(6,468)

32,941

Non-agency

23,417

19

(387)

23,049

Total residential MBS

62,826

19

(6,855)

55,990

Total HTM securities

$

810,450

$

1,040

$

(45,018)

$

766,472

(1) Other bonds include asset-backed securities.

The carrying value, gross unrealized gains and losses, and estimated fair values of HTM securities as of December 31, 2023 are as follows (dollars in thousands):

Carrying

Gross Unrealized

Estimated

    

Value

    

Gains

    

(Losses)

    

Fair Value

December 31, 2023

 

  

 

  

 

  

 

  

Obligations of states and political subdivisions

$

699,189

$

6,175

$

(23,464)

$

681,900

Corporate and other bonds(1)

4,349

(100)

4,249

Commercial MBS

Agency

27,477

(5,570)

21,907

Non-agency

24,503

37

(449)

24,091

Total commercial MBS

51,980

37

(6,019)

45,998

Residential MBS

Agency

40,562

(5,713)

34,849

Non-agency

41,298

122

(342)

41,078

Total residential MBS

81,860

122

(6,055)

75,927

Total HTM securities

$

837,378

$

6,334

$

(35,638)

$

808,074

(1) Other bonds include asset-backed securities.