Investment Securities (Tables)
|
9 Months Ended |
Sep. 30, 2024 |
Investments, Debt and Equity Securities [Abstract] |
|
Amortized Cost and Approximate Fair Values of Investment Securities |
The amortized cost and the approximate fair values of investment securities are summarized as follows: | | | | | | | | | | | | | | | | | September 30, 2024 | Amortized Cost | | | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Available-for-Sale: | | | | | | | U.S. Treasury notes | $ | 250.2 | | | | $ | — | | $ | (19.2) | | $ | 231.0 | | State, county, and municipal securities | 252.8 | | | | — | | (31.9) | | 220.9 | | Obligations of U.S. government agencies | 171.9 | | | | — | | (6.5) | | 165.4 | | U.S. agency commercial mortgage-backed securities | 1,164.1 | | | | 1.4 | | (60.2) | | 1,105.3 | | U.S. agency residential mortgage-backed securities | 1,354.2 | | | | 2.4 | | (94.2) | | 1,262.4 | | Collateralized mortgage obligations | 1,202.1 | | | | 2.2 | | (87.7) | | 1,116.6 | | Private mortgage-backed securities | 223.3 | | | | — | | (23.7) | | 199.6 | | Collateralized loan obligation | 987.4 | | | | 0.6 | | — | | 988.0 | | Corporate securities | 260.0 | | | | — | | (14.9) | | 245.1 | | | | | | | | | Total | $ | 5,866.0 | | | | $ | 6.6 | | $ | (338.3) | | $ | 5,534.3 | |
| | | | | | | | | | | | | | | | | | | | | September 30, 2024 | Amortized Cost1 | Allowance for Credit Losses | Net Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Held-to-Maturity: | | | | | | | U.S. Treasury notes | $ | 99.6 | | $ | — | | $ | 99.6 | | $ | — | | $ | (0.4) | | $ | 99.2 | | State, county, and municipal securities | 176.7 | | — | | 176.7 | | 0.3 | | (20.6) | | 156.4 | | Obligations of U.S. government agencies | 356.4 | | — | | 356.4 | | — | | (32.0) | | 324.4 | | U.S. agency commercial mortgage-backed securities | 493.0 | | — | | 493.0 | | — | | (41.8) | | 451.2 | | U.S. agency residential mortgage-backed securities | 1,119.5 | | — | | 1,119.5 | | 0.5 | | (106.2) | | 1,013.8 | | Collateralized mortgage obligations | 439.8 | | — | | 439.8 | | 0.8 | | (57.8) | | 382.8 | | Corporate securities | 57.0 | | (0.7) | | 56.3 | | — | | (3.6) | | 52.7 | | | | | | | | | Total | $ | 2,742.0 | | $ | (0.7) | | $ | 2,741.3 | | $ | 1.6 | | $ | (262.4) | | $ | 2,480.5 | | (1) Amortized cost presented above includes $8.6 million of unamortized gains in U.S. agency residential and commercial mortgage-backed securities and collateralized mortgage obligations related to the 2021 transfer of securities from available-for-sale to held-to-maturity, and $16.5 million of unamortized losses in state, county, and municipal, obligations of U.S. government agencies and collateralized loan obligations related to the 2022 transfer of securities from available-for-sale to held-to-maturity. |
| | | | | | | | | | | | | | | | | December 31, 2023 | Amortized Cost | | | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | Available-for-Sale: | | | | | | | U.S. Treasury notes | $ | 250.2 | | | | $ | — | | $ | (25.5) | | $ | 224.7 | | State, county, and municipal securities | 256.7 | | | | — | | (36.9) | | 219.8 | | Obligations of U.S. government agencies | 179.4 | | | | — | | (10.9) | | 168.5 | | U.S. agency commercial mortgage-backed securities | 1,192.7 | | | | 0.6 | | (87.7) | | 1,105.6 | | U.S. agency residential mortgage-backed securities | 1,496.3 | | | | 1.2 | | (130.6) | | 1,366.9 | | Collateralized mortgage obligations | 1,308.5 | | | | 1.3 | | (120.3) | | 1,189.5 | | Private mortgage-backed securities | 241.3 | | | | — | | (30.9) | | 210.4 | | Collateralized loan obligation | 1,121.9 | | | | 0.1 | | (2.3) | | 1,119.7 | | Corporate securities | 260.8 | | | | — | | (24.4) | | 236.4 | | | | | | | | | Total | $ | 6,307.8 | | | | $ | 3.2 | | $ | (469.5) | | $ | 5,841.5 | |
| | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | Amortized Cost1 | Allowance for Credit Losses | Net Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | | Held-to-Maturity: | | | | | | | | U.S. Treasury notes | $ | 399.0 | | $ | — | | $ | 399.0 | | $ | — | | $ | (2.8) | | $ | 396.2 | | | State, county, and municipal securities | 179.2 | | — | | 179.2 | | 0.2 | | (24.2) | | 155.2 | | | Obligations of U.S. government agencies | 354.5 | | — | | 354.5 | | — | | (42.4) | | 312.1 | | | U.S. agency commercial mortgage-backed securities | 510.5 | | — | | 510.5 | | — | | (52.9) | | 457.6 | | | U.S. agency residential mortgage-backed securities | 1,232.6 | | — | | 1,232.6 | | — | | (137.0) | | 1,095.6 | | | Collateralized mortgage obligations | 475.9 | | — | | 475.9 | | 0.2 | | (69.0) | | 407.1 | | | Corporate securities | 57.0 | | (0.8) | | 56.2 | | — | | (6.0) | | 50.2 | | | | | | | | | | | Total | $ | 3,208.7 | | $ | (0.8) | | $ | 3,207.9 | | $ | 0.4 | | $ | (334.3) | | $ | 2,874.0 | | | (1) Amortized cost presented above includes $10.7 million of unamortized gains and $18.1 million of unamortized losses related to the 2021 and 2022 transfer of securities from available-for-sale to held-to-maturity. | |
|
Gross Unrealized Losses and Fair Values of Investment Securities |
The following tables show the gross unrealized losses and fair values of available-for-sale investment securities and the length of time individual investment securities have been in an unrealized loss position as of September 30, 2024 and December 31, 2023. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | September 30, 2024 | Fair Value | Gross Unrealized Losses | | Fair Value | Gross Unrealized Losses | | Fair Value | Gross Unrealized Losses | Available-for-Sale: | | | | | | | | | U.S. Treasury notes | $ | — | | $ | — | | | $ | 231.0 | | $ | (19.2) | | | $ | 231.0 | | $ | (19.2) | | State, county, and municipal securities | — | | — | | | 218.8 | | (31.9) | | | 218.8 | | (31.9) | | Obligations of U.S. government agencies | — | | — | | | 165.1 | | (6.5) | | | 165.1 | | (6.5) | | U.S. agency commercial mortgage-backed securities | 0.1 | | — | | | 1,048.8 | | (60.2) | | | 1,048.9 | | (60.2) | | U.S. agency residential mortgage-backed securities | — | | — | | | 1,167.0 | | (94.2) | | | 1,167.0 | | (94.2) | | Collateralized mortgage obligations | 3.2 | | — | | | 1,048.5 | | (87.7) | | | 1,051.7 | | (87.7) | | Private mortgage-backed securities | — | | — | | | 199.5 | | (23.7) | | | 199.5 | | (23.7) | | | | | | | | | | | Corporate securities | — | | — | | | 217.0 | | (14.9) | | | 217.0 | | (14.9) | | | | | | | | | | | Total | $ | 3.3 | | $ | — | | | $ | 4,295.7 | | $ | (338.3) | | | $ | 4,299.0 | | $ | (338.3) | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | December 31, 2023 | Fair Value | Gross Unrealized Losses | | Fair Value | Gross Unrealized Losses | | Fair Value | Gross Unrealized Losses | Available-for-Sale: | | | | | | | | | U.S. Treasury notes | $ | — | | $ | — | | | $ | 224.7 | | $ | (25.5) | | | $ | 224.7 | | $ | (25.5) | | State, county, and municipal securities | — | | — | | | 217.1 | | (36.9) | | | 217.1 | | (36.9) | | Obligations of U.S. government agencies | — | | — | | | 168.0 | | (10.9) | | | 168.0 | | (10.9) | | U.S. agency commercial mortgage-backed securities | 0.2 | | — | | | 1,083.1 | | (87.7) | | | 1,083.3 | | (87.7) | | U.S. agency residential mortgage-backed securities | 0.7 | | — | | | 1,287.5 | | (130.6) | | | 1,288.2 | | (130.6) | | Collateralized mortgage obligations | — | | — | | | 1,142.4 | | (120.3) | | | 1,142.4 | | (120.3) | | Private mortgage-backed securities | — | | — | | | 210.5 | | (30.9) | | | 210.5 | | (30.9) | | Collateralized loan obligation | — | | — | | | 935.7 | | (2.3) | | | 935.7 | | (2.3) | | Corporate securities | — | | — | | | 236.5 | | (24.4) | | | 236.5 | | (24.4) | | | | | | | | | | | Total | $ | 0.9 | | $ | — | | | $ | 5,505.5 | | $ | (469.5) | | | $ | 5,506.4 | | $ | (469.5) | | | | | | | | | | |
|
Debt Securities, Held-to-maturity, Credit Quality Indicator |
The following table summarizes the credit quality indicators of held-to-maturity securities at amortized cost for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | AAA | AA | A | BBB | BB | Not Rated | Total | U.S. Treasury notes | $ | 99.6 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 99.6 | | State, county, and municipal securities | 85.7 | | 74.2 | | 10.1 | | — | | — | | 6.7 | | 176.7 | | Obligations of U.S. government agencies | 356.4 | | — | | — | | — | | — | | — | | 356.4 | | U.S. agency commercial mortgage-backed securities | | | | | | | | FNMA/FHLMC | 349.7 | | — | | — | | — | | — | | — | | 349.7 | | GNMA | 143.3 | | — | | — | | — | | — | | — | | 143.3 | | U.S. agency residential mortgage-backed securities | | | | | | | | FNMA/FHLMC | 1,080.7 | | — | | — | | — | | — | | — | | 1,080.7 | | GNMA | 38.8 | | — | | — | | — | | — | | — | | 38.8 | | Collateralized mortgage obligations | | | | | | | | FNMA/FHLMC | 308.5 | | — | | — | | — | | — | | — | | 308.5 | | GNMA | 131.3 | | — | | — | | — | | — | | — | | 131.3 | | Corporate securities | — | | — | | — | | 47.0 | | 5.0 | | 5.0 | | 57.0 | | | | | | | | | | Total | $ | 2,594.0 | | $ | 74.2 | | $ | 10.1 | | $ | 47.0 | | $ | 5.0 | | $ | 11.7 | | $ | 2,742.0 | |
| | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | AAA | AA | A | BBB | BB | Not Rated | Total | U.S. Treasury notes | $ | 399.0 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 399.0 | | State, county, and municipal securities | 69.0 | | 92.3 | | 10.6 | | — | | — | | 7.3 | | 179.2 | | Obligations of U.S. government agencies | 354.5 | | — | | — | | — | | — | | — | | 354.5 | | U.S. agency commercial mortgage-backed securities | | | | | | | | FNMA/FHLMC | 359.7 | | — | | — | | — | | — | | — | | 359.7 | | GNMA | 150.8 | | — | | — | | — | | — | | — | | 150.8 | | U.S. agency residential mortgage-backed securities | | | | | | | | FNMA/FHLMC | 1,189.8 | | — | | — | | — | | — | | — | | 1,189.8 | | GNMA | 42.8 | | — | | — | | — | | — | | — | | 42.8 | | Collateralized mortgage obligations | | | | | | | | FNMA/FHLMC | 334.1 | | — | | — | | — | | — | | — | | 334.1 | | GNMA | 141.8 | | — | | — | | — | | — | | — | | 141.8 | | Corporate securities | — | | — | | — | | 47.0 | | 5.0 | | 5.0 | | 57.0 | | | | | | | | | | Total | $ | 3,041.5 | | $ | 92.3 | | $ | 10.6 | | $ | 47.0 | | $ | 5.0 | | $ | 12.3 | | $ | 3,208.7 | |
|
Maturities of Investment Securities |
| | | | | | | | | | | | | | | | | | | Available-for-Sale | | Held-to-Maturity | September 30, 2024 | Amortized Cost | Estimated Fair Value | | Amortized Cost | Estimated Fair Value | Within one year | $ | 88.7 | | $ | 87.5 | | | $ | 101.1 | | $ | 100.6 | | After one year but within five years | 1,326.9 | | 1,265.9 | | | 416.0 | | 396.8 | | After five years but within ten years | 1,166.4 | | 1,095.1 | | | 485.5 | | 437.5 | | After ten years | 3,284.0 | | 3,085.8 | | | 1,739.4 | | 1,545.6 | | Total | $ | 5,866.0 | | $ | 5,534.3 | | | $ | 2,742.0 | | $ | 2,480.5 | |
|