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Investment Securities
6 Months Ended
Jun. 30, 2024
Investment Securities  
Investment Securities

Note 5 — Investment Securities

The following is the amortized cost and fair value of investment securities held to maturity:

Gross

    

Gross

 

Amortized

Unrealized

Unrealized

Fair

 

(Dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Value

 

June 30, 2024:

U.S. Government agencies

$

147,270

$

$

(24,781)

$

122,489

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,370,142

(243,434)

1,126,708

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

428,468

(73,856)

354,612

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

351,181

(74,117)

277,064

Small Business Administration loan-backed securities

51,467

(11,399)

40,068

$

2,348,528

$

$

(427,587)

$

1,920,941

December 31, 2023:

U.S. Government agencies

$

197,267

$

$

(24,607)

$

172,660

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,438,102

(227,312)

1,210,790

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

444,883

(68,139)

376,744

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

354,055

(71,327)

282,728

Small Business Administration loan-backed securities

53,133

(11,319)

41,814

$

2,487,440

$

$

(402,704)

$

2,084,736

The following is the amortized cost and fair value of investment securities available for sale:

Gross

Gross

Amortized

Unrealized

Unrealized

Fair

 

(Dollars in thousands)

    

Cost

    

Gains

    

Losses

    

Value

 

June 30, 2024:

U.S. Treasuries

$

38,098

$

$

(153)

$

37,945

U.S. Government agencies

216,148

(21,025)

195,123

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

 

1,735,232

 

125

 

(286,429)

 

1,448,928

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

592,712

5

(102,173)

490,544

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,207,592

595

(199,225)

1,008,962

State and municipal obligations

 

1,124,430

 

1

 

(171,729)

 

952,702

Small Business Administration loan-backed securities

 

379,899

 

64

 

(43,221)

 

336,742

Corporate securities

30,509

(3,191)

27,318

$

5,324,620

$

790

$

(827,146)

$

4,498,264

December 31, 2023:

U.S. Treasuries

$

74,720

$

$

(830)

$

73,890

U.S. Government agencies

246,089

(21,383)

224,706

Residential mortgage-backed securities issued by U.S. government

 

agencies or sponsored enterprises

1,822,104

 

294

 

(264,092)

 

1,558,306

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

626,735

(99,313)

527,422

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,217,125

1,516

(194,471)

1,024,170

State and municipal obligations

1,129,750

 

2

 

(152,291)

 

977,461

Small Business Administration loan-backed securities

 

413,950

 

86

 

(42,350)

 

371,686

Corporate securities

 

30,533

(3,786)

26,747

$

5,561,006

$

1,898

$

(778,516)

$

4,784,388

The following is the amortized cost and carrying value of other investment securities:

Carrying

 

(Dollars in thousands)

    

Value

 

June 30, 2024:

Federal Home Loan Bank stock

$

32,336

Federal Reserve Bank stock

150,261

Investment in unconsolidated subsidiaries

 

3,563

Other nonmarketable investment securities

 

15,356

$

201,516

December 31, 2023:

Federal Home Loan Bank stock

$

22,836

Federal Reserve Bank stock

150,261

Investment in unconsolidated subsidiaries

 

3,563

Other nonmarketable investment securities

 

15,383

$

192,043

The Company’s other investment securities consist of non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of June 30, 2024, we determined that there was no impairment on other investment securities.

The amortized cost and fair value of debt securities at June 30, 2024, by contractual maturity are detailed below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties.

Securities

Securities

 

Held to Maturity

Available for Sale

 

Amortized

Fair

Amortized

Fair

 

(Dollars in thousands)

    

Cost

    

Value

    

Cost

    

Value

 

Due in one year or less

    

$

14,365

$

14,057

    

$

143,274

    

$

141,624

Due after one year through five years

 

36,511

 

32,483

 

306,612

 

285,442

Due after five years through ten years

 

456,439

 

389,368

 

1,239,040

 

1,063,459

Due after ten years

 

1,841,213

 

1,485,033

 

3,635,694

 

3,007,739

$

2,348,528

$

1,920,941

$

5,324,620

$

4,498,264

During the three and six months ended June 30, 2024, there were no sales of securities available for sale and therefore, there were no gains or losses on sale securities available for sale. During the three and six months ended June 30, 2023, there were gross gains of $1.3 million and gross losses of $1.3 million, a net gain of $45,000, realized from the sale of available for sale securities.

There were no sales of held to maturity securities during the three and six months ended June 30, 2024, or June 30, 2023.

Information pertaining to our securities with gross unrealized losses at June 30, 2024, and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is as follows:

Less Than

Twelve Months

 

Twelve Months

or More

 

Gross Unrealized

Fair

Gross Unrealized

Fair

 

(Dollars in thousands)

    

Losses

    

Value

    

Losses

    

Value

 

June 30, 2024:

Securities Held to Maturity

U.S. Government agencies

$

$

$

24,781

$

122,489

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

243,434

1,126,708

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

 

 

73,856

 

354,612

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

74,117

277,064

Small Business Administration loan-backed securities

11,399

40,068

$

$

$

427,587

$

1,920,941

Securities Available for Sale

U.S. Treasuries (1)

$

$

10,834

$

153

$

24,815

U.S. Government agencies

21,025

195,123

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

136

8,848

286,293

1,430,209

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

 

 

102,173

 

489,387

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

 

106

16,816

199,119

920,215

State and municipal obligations

 

1,860

20,142

169,869

930,359

Small Business Administration loan-backed securities

 

2

704

43,219

317,384

Corporate securities

13

485

3,178

26,833

$

2,117

$

57,829

$

825,029

$

4,334,325

December 31, 2023:

Securities Held to Maturity

U.S. Government agencies

$

$

$

24,607

$

172,660

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

227,312

1,210,790

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

 

 

68,139

 

376,745

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

71,327

282,728

Small Business Administration loan-backed securities

11,319

41,814

$

$

$

402,704

$

2,084,737

Securities Available for Sale

U.S. Treasuries

$

$

$

830

$

73,890

U.S. Government agencies

21,383

224,706

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

122

9,358

263,970

1,539,208

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

 

 

99,313

 

527,422

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

91

7,959

194,380

955,059

State and municipal obligations

177

6,340

152,114

967,305

Small Business Administration loan-backed securities

128

42,447

42,222

304,770

Corporate securities

 

18

480

3,768

26,267

$

536

$

66,584

$

777,980

$

4,618,627

(1)The U.S. Treasury securities in a continuous unrealized losses position for less than twelve months at June 30, 2024, had a combined gross unrealized loss total of less than $1,000.

The Company’s valuation methodology for securities impairment is disclosed in Note 1—Summary of Significant Accounting Policies, under “Investment Securities” section, of our Annual Report on Form 10-K for the year ended December 31, 2023. All debt securities in an unrealized loss position as of June 30, 2024, continue to perform as scheduled and management does not believe there is a credit loss or a provision for credit losses is necessary. Management does not currently intend to sell the securities within the portfolio, and it is not more-likely-than-not that the Company will be required to sell the debt securities. Management continues to monitor all of the securities with a high degree of scrutiny. See Note 2 — Summary of Significant Accounting Policies for further discussion.

At June 30, 2024, investment securities with a market value of $2.3 billion and a carrying value of $2.5 billion were pledged to secure public funds deposits and for other purposes required and permitted by law (excluding securities pledged to secure repurchase agreement disclosed in Note 20 — Short-Term Borrowings, under the “Securities Sold Under Agreements to Repurchase (“Repurchase agreements”)” section). Of the $2.5 billion carrying value of investment securities pledged, $2.2 billion were pledged to secure public funds deposits, $196.7 million were pledged to secure FHLB advances and $108.0 million were pledged to secure interest rate swap positions with correspondent banks. At December 31, 2023, investment securities with a market value of $3.0 billion and a carrying value of $3.2 billion were pledged to secure public funds deposits and for other purposes required and permitted by law. Of the $3.2 billion carrying value of investment securities pledged, $2.4 billion were pledged to secure public funds deposits, $729.4 million were pledged to secure FHLB advances and $115.0 million were pledged to secure interest rate swap positions with correspondent banks.

Trading Securities

At June 30, 2024, and December 31, 2023, trading securities, at estimated fair value, were as follows:

    

June 30,

December 31,

(Dollars in thousands)

    

2024

 

2023

U.S. Treasuries

$

20,500

$

U.S. Government agencies

10,220

1,537

Residential mortgage pass-through securities issued or guaranteed by U.S.

government agencies or sponsored enterprises

28,838

14,461

Other residential mortgage issued or guaranteed by U.S. government

 

 

agencies or sponsored enterprises

 

1,865

 

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

2,782

State and municipal obligations

26,134

14,620

Other debt securities

1,822

703

$

92,161

$

31,321

Net losses on trading securities for the three and six months ended June 30, 2024, and 2023 were as follows:

    

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in thousands)

    

2024

 

2023

2024

2023

Net gains (losses) on sales transaction

$

170

$

7

$

224

$

(40)

Net mark to mark losses

(323)

(195)

(311)

(201)

Net losses on trading securities

$

(153)

$

(188)

$

(87)

$

(241)