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Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of the Company’s investment securities as of June 30, 2024 and December 31, 2023, were as follows:

 

(dollars in thousands)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

212,413

 

 

$

320

 

 

$

(10,979

)

 

$

201,754

 

Debt Securities Issued by States and Political Subdivisions

 

 

73,292

 

 

 

—

 

 

 

(10,146

)

 

 

63,146

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

1,506

 

 

 

—

 

 

 

(74

)

 

 

1,432

 

Debt Securities Issued by Corporations

 

 

704,610

 

 

 

207

 

 

 

(42,193

)

 

 

662,624

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

666,354

 

 

 

111

 

 

 

(87,536

)

 

 

578,929

 

Residential - U.S. Government-Sponsored Enterprises

 

 

773,094

 

 

 

5

 

 

 

(113,153

)

 

 

659,946

 

Commercial - Government Agencies or Sponsored Agencies

 

 

154,624

 

 

 

—

 

 

 

(24,363

)

 

 

130,261

 

Total Mortgage-Backed Securities

 

 

1,594,072

 

 

 

116

 

 

 

(225,052

)

 

 

1,369,136

 

Total

 

$

2,585,893

 

 

$

643

 

 

$

(288,444

)

 

$

2,298,092

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

131,805

 

 

$

—

 

 

$

(16,602

)

 

$

115,203

 

Debt Securities Issued by Corporations

 

 

10,867

 

 

 

—

 

 

 

(2,149

)

 

 

8,718

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,595,881

 

 

 

16

 

 

 

(277,950

)

 

 

1,317,947

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,643,443

 

 

 

9

 

 

 

(419,247

)

 

 

2,224,205

 

Commercial - Government Agencies or Sponsored Agencies

 

 

430,958

 

 

 

—

 

 

 

(94,909

)

 

 

336,049

 

Total Mortgage-Backed Securities

 

 

4,670,282

 

 

 

25

 

 

 

(792,106

)

 

 

3,878,201

 

Total

 

$

4,812,954

 

 

$

25

 

 

$

(810,857

)

 

$

4,002,122

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

223,308

 

 

$

361

 

 

$

(11,096

)

 

$

212,573

 

Debt Securities Issued by States and Political Subdivisions

 

 

73,417

 

 

 

—

 

 

 

(9,611

)

 

 

63,806

 

Debt Securities Issued by U.S. Government-Sponsored Enterprises

 

 

1,556

 

 

 

—

 

 

 

(80

)

 

 

1,476

 

Debt Securities Issued by Corporations

 

 

706,002

 

 

 

142

 

 

 

(48,443

)

 

 

657,701

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

713,918

 

 

 

194

 

 

 

(84,785

)

 

 

629,327

 

Residential - U.S. Government-Sponsored Enterprises

 

 

818,296

 

 

 

7

 

 

 

(109,176

)

 

 

709,127

 

Commercial - Government Agencies or Sponsored Agencies

 

 

157,515

 

 

 

—

 

 

 

(22,592

)

 

 

134,923

 

Total Mortgage-Backed Securities

 

 

1,689,729

 

 

 

201

 

 

 

(216,553

)

 

 

1,473,377

 

Total

 

$

2,694,012

 

 

$

704

 

 

$

(285,783

)

 

$

2,408,933

 

Held-to-Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury and Government Agencies

 

$

131,742

 

 

$

—

 

 

$

(15,211

)

 

$

116,531

 

Debt Securities Issued by Corporations

 

 

11,483

 

 

 

—

 

 

 

(1,998

)

 

 

9,485

 

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,674,076

 

 

 

20

 

 

 

(265,493

)

 

 

1,408,603

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,744,094

 

 

 

9

 

 

 

(369,965

)

 

 

2,374,138

 

Commercial - Government Agencies or Sponsored Agencies

 

 

435,940

 

 

 

—

 

 

 

(91,060

)

 

 

344,880

 

Total Mortgage-Backed Securities

 

 

4,854,110

 

 

 

29

 

 

 

(726,518

)

 

 

4,127,621

 

Total

 

$

4,997,335

 

 

$

29

 

 

$

(743,727

)

 

$

4,253,637

 
Analysis of the Contractual Maturities of Investment Securities

The table below presents an analysis of the contractual maturities of the Company’s investment securities as of June 30, 2024. Debt securities issued by government agencies (Small Business Administration securities) and mortgage-backed securities are disclosed separately in the table below as these investment securities may prepay prior to their scheduled contractual maturity dates.

 

(dollars in thousands)

 

Amortized
Cost

 

 

Fair Value

 

Available-for-Sale:

 

 

 

 

 

 

Due in One Year or Less

 

$

22,758

 

 

$

22,268

 

Due After One Year Through Five Years

 

 

439,032

 

 

 

409,582

 

Due After Five Years Through Ten Years

 

 

475,150

 

 

 

441,975

 

 

 

936,940

 

 

 

873,825

 

Debt Securities Issued by Government Agencies

 

 

54,881

 

 

 

55,131

 

Mortgage-Backed Securities:

 

 

 

 

 

 

Residential - Government Agencies

 

 

666,354

 

 

 

578,929

 

Residential - U.S. Government-Sponsored Enterprises

 

 

773,094

 

 

 

659,946

 

Commercial - Government Agencies or Sponsored Agencies

 

 

154,624

 

 

 

130,261

 

Total Mortgage-Backed Securities

 

 

1,594,072

 

 

 

1,369,136

 

Total

 

$

2,585,893

 

 

$

2,298,092

 

Held-to-Maturity:

 

 

 

 

 

 

Due in One Year or Less

 

$

244

 

 

$

242

 

Due After One Year Through Five Years

 

 

82,286

 

 

 

73,729

 

Due After Five Year Through Ten Years

 

 

60,142

 

 

 

49,950

 

 

 

142,672

 

 

 

123,921

 

Mortgage-Backed Securities:

 

 

 

 

 

 

Residential - Government Agencies

 

 

1,595,881

 

 

 

1,317,947

 

Residential - U.S. Government-Sponsored Enterprises

 

 

2,643,443

 

 

 

2,224,205

 

Commercial - Government Agencies or Sponsored Agencies

 

 

430,958

 

 

 

336,049

 

Total Mortgage-Backed Securities

 

 

4,670,282

 

 

 

3,878,201

 

Total

 

$

4,812,954

 

 

$

4,002,122

 
Schedule of Losses on Sales of Investment Securities

The table below presents the losses from the sales of investment securities for the three and six months ended June 30, 2024 and June 30, 2023:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Total Losses on Sales of Investment Securities

 

$

(1,601

)

 

$

(1,310

)

 

$

(3,098

)

 

$

(3,102

)
Schedule of AFS Debt Securities in an Unrealized Loss Position

The following table summarizes the Company’s AFS debt securities in an unrealized loss position for which an allowance for credit losses was not deemed necessary, aggregated by major security type and length of time in a continuous unrealized loss position:

 

 

 

Less Than 12 Months

 

 

12 Months or Longer

 

 

Total

 

(dollars in thousands)

 

Fair Value

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

Gross
Unrealized
Losses

 

June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury
   and Government Agencies

 

$

5,468

 

 

$

(38

)

 

$

154,437

 

 

$

(10,941

)

 

$

159,905

 

 

$

(10,979

)

Debt Securities Issued by States
   and Political Subdivisions

 

 

—

 

 

 

—

 

 

 

63,096

 

 

 

(10,146

)

 

 

63,096

 

 

 

(10,146

)

Debt Securities Issued by U.S. Government-
   Sponsored Enterprises

 

 

—

 

 

 

—

 

 

 

1,432

 

 

 

(74

)

 

 

1,432

 

 

 

(74

)

Debt Securities Issued by Corporations

 

 

—

 

 

 

—

 

 

 

612,417

 

 

 

(42,193

)

 

 

612,417

 

 

 

(42,193

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

2,645

 

 

 

(1

)

 

 

571,858

 

 

 

(87,535

)

 

 

574,503

 

 

 

(87,536

)

Residential - U.S. Government-Sponsored Enterprises

 

 

—

 

 

 

—

 

 

 

659,245

 

 

 

(113,153

)

 

 

659,245

 

 

 

(113,153

)

Commercial - Government Agencies or Sponsored Agencies

 

 

—

 

 

 

—

 

 

 

130,261

 

 

 

(24,363

)

 

 

130,261

 

 

 

(24,363

)

Total Mortgage-Backed Securities

 

 

2,645

 

 

 

(1

)

 

 

1,361,364

 

 

 

(225,051

)

 

 

1,364,009

 

 

 

(225,052

)

Total

 

$

8,113

 

 

$

(39

)

 

$

2,192,746

 

 

$

(288,405

)

 

$

2,200,859

 

 

$

(288,444

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Securities Issued by the U.S. Treasury
   and Government Agencies

 

$

7,171

 

 

$

(16

)

 

$

155,341

 

 

$

(11,080

)

 

$

162,512

 

 

$

(11,096

)

Debt Securities Issued by States
   and Political Subdivisions

 

 

237

 

 

 

(2

)

 

 

63,509

 

 

 

(9,609

)

 

 

63,746

 

 

 

(9,611

)

Debt Securities Issued by U.S. Government-
   Sponsored Enterprises

 

 

—

 

 

 

—

 

 

 

1,476

 

 

 

(80

)

 

 

1,476

 

 

 

(80

)

Debt Securities Issued by Corporations

 

 

220,987

 

 

 

(4,013

)

 

 

411,573

 

 

 

(44,430

)

 

 

632,560

 

 

 

(48,443

)

Mortgage-Backed Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential - Government Agencies

 

 

9,628

 

 

 

(13

)

 

 

613,926

 

 

 

(84,772

)

 

 

623,554

 

 

 

(84,785

)

Residential - U.S. Government-Sponsored Enterprises

 

 

—

 

 

 

—

 

 

 

708,797

 

 

 

(109,176

)

 

 

708,797

 

 

 

(109,176

)

Commercial - Government Agencies or Sponsored Agencies

 

 

—

 

 

 

—

 

 

 

134,923

 

 

 

(22,592

)

 

 

134,923

 

 

 

(22,592

)

Total Mortgage-Backed Securities

 

 

9,628

 

 

 

(13

)

 

 

1,457,646

 

 

 

(216,540

)

 

 

1,467,274

 

 

 

(216,553

)

Total

 

$

238,023

 

 

$

(4,044

)

 

$

2,089,545

 

 

$

(281,739

)

 

$

2,327,568

 

 

$

(285,783

)
Schedule of Interest Income from Taxable and Non-taxable Investment Securities

Interest income from taxable and non-taxable investment securities for the three and six months ended June 30, 2024 and June 30, 2023 were as follows:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

(dollars in thousands)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Taxable

 

$

43,057

 

 

$

46,593

 

 

$

86,943

 

 

$

94,350

 

Non-Taxable

 

 

6

 

 

 

83

 

 

 

13

 

 

 

167

 

Total Interest Income from Investment Securities

 

$

43,063

 

 

$

46,676

 

 

$

86,956

 

 

$

94,517

 
Schedule of Carrying Value of Federal Home Loan Bank of Des Moines Stock and Federal Reserve Bank Stock

As of June 30, 2024 and December 31, 2023, the carrying value of the Company’s Federal Home Loan Bank of Des Moines stock and Federal Reserve Bank stock was as follows:

 

(dollars in thousands)

 

June 30,
2024

 

 

December 31,
2023

 

Federal Home Loan Bank of Des Moines Stock

 

$

34,750

 

 

$

34,750

 

Federal Reserve Bank Stock

 

 

27,740

 

 

 

27,522

 

Total

 

$

62,490

 

 

$

62,272