The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s debt securities:


	March 31, 2024
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Available-for-sale
U.S. government and federal agency	$	484,765	9	(29,957)	454,817
U.S. government sponsored enterprises	329,392		—	(22,766)	306,626
State and local governments	101,090		74	(3,782)	97,382
Corporate bonds	14,881		—	(675)	14,206
Residential mortgage-backed securities	3,028,348		3	(350,700)	2,677,651
Commercial mortgage-backed securities	1,166,124		290	(88,023)	1,078,391
Total available-for-sale	$	5,124,600	376	(495,903)	4,629,073
Held-to-maturity
U.S. government and federal agency	854,791		—	(71,911)	782,880
State and local governments	1,641,551		1,344	(205,613)	1,437,282
Residential mortgage-backed securities	955,241		—	(84,209)	871,032
Total held-to-maturity	3,451,583		1,344	(361,733)	3,091,194
Total debt securities	$	8,576,183	1,720	(857,636)	7,720,267


	December 31, 2023
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
Available-for-sale
U.S. government and federal agency	$	485,005	11	(29,669)	455,347
U.S. government sponsored enterprises	321,993		—	(22,774)	299,219
State and local governments	101,903		302	(3,273)	98,932
Corporate bonds	27,007		2	(756)	26,253
Residential mortgage-backed securities	3,166,589		7	(355,333)	2,811,263
Commercial mortgage-backed securities	1,180,756		519	(86,570)	1,094,705
Total available-for-sale	$	5,283,253	841	(498,375)	4,785,719
Held-to-maturity
U.S. government and federal agency	853,273		—	(65,472)	787,801
State and local governments	1,650,000		2,843	(181,192)	1,471,651
Residential mortgage-backed securities	999,138		—	(78,396)	920,742
Total held-to-maturity	3,502,411		2,843	(325,060)	3,180,194
Total debt securities	$	8,785,664	3,684	(823,435)	7,965,913

The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at March 31, 2024. Actual maturities may differ from expected or contractual maturities since some issuers have the right to prepay obligations with or without prepayment penalties.


	March 31, 2024
	Available-for-Sale			Held-to-Maturity
(Dollars in thousands)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Due within one year	$	11,544	11,527	5,212	5,194
Due after one year through five years	846,883		793,437	934,210	860,793
Due after five years through ten years	33,140		32,114	181,452	173,245
Due after ten years	38,561		35,953	1,375,468	1,180,930
	930,128		873,031	2,496,342	2,220,162
Mortgage-backed securities 1	4,194,472		3,756,042	955,241	871,032
Total	$	5,124,600	4,629,073	3,451,583	3,091,194

Proceeds from sales and calls of debt securities and the associated gains and losses that have been included in earnings are listed below:


	Three Months ended
(Dollars in thousands)	March 31, 2024		March 31, 2023
Available-for-sale
Proceeds from sales and calls of debt securities	$	173,268	31,279
Gross realized gains 1	29		145
Gross realized losses 1	—		(176)
Held-to-maturity
Proceeds from calls of debt securities	5,535		4,635
Gross realized gains 1	—		8
Gross realized losses 1	(13)		(91)

In assessing whether a credit loss existed on available-for-sale debt securities with unrealized losses, the Company compared the present value of cash flows expected to be collected from the debt securities with the amortized cost basis of the debt securities. In addition, the following factors were evaluated individually and collectively in determining the existence of expected credit losses:

•the overall deal and payment structure of the debt securities, including the investor entity’s position within the structure, underlying obligors, financial condition and near-term prospects of the issuer, including specific events which may affect the issuer’s operations or future earnings, and credit support or enhancements; and

The following tables summarize available-for-sale debt securities that were in an unrealized loss position for which an ACL has not been recorded, based on the length of time the individual securities have been in an unrealized loss position. The number of available-for-sale debt securities in an unrealized position is also disclosed.


	March 31, 2024
	Number of Securities	Less than 12 Months			12 Months or More		Total
(Dollars in thousands)		Fair Value		Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Available-for-sale
U.S. government and federal agency	56	$	2,512	(42)	449,659	(29,915)	452,171	(29,957)
U.S. government sponsored enterprises	16	6,931		(5)	299,695	(22,761)	306,626	(22,766)
State and local governments	99	14,909		(43)	64,440	(3,739)	79,349	(3,782)
Corporate bonds	2	—		—	13,362	(675)	13,362	(675)
Residential mortgage-backed securities	402	1,040		(28)	2,677,271	(350,672)	2,678,311	(350,700)
Commercial mortgage-backed securities	152	31,890		(1,685)	1,024,142	(86,338)	1,056,032	(88,023)
Total available-for-sale	727	$	57,282	(1,803)	4,528,569	(494,100)	4,585,851	(495,903)


	December 31, 2023
	Number of Securities	Less than 12 Months			12 Months or More		Total
(Dollars in thousands)		Fair Value		Unrealized Loss	Fair Value	Unrealized Loss	Fair Value	Unrealized Loss
Available-for-sale
U.S. government and federal agency	57	$	3,702	(56)	448,909	(29,613)	452,611	(29,669)
U.S. government sponsored enterprises	14	—		—	299,220	(22,774)	299,220	(22,774)
State and local governments	85	3,039		(2)	64,645	(3,271)	67,684	(3,273)
Corporate bonds	4	—		—	23,262	(756)	23,262	(756)
Residential mortgage-backed securities	402	1,430		(44)	2,809,482	(355,289)	2,810,912	(355,333)
Commercial mortgage-backed securities	151	21,232		(268)	1,034,183	(86,302)	1,055,415	(86,570)
Total available-for-sale	713	$	29,403	(370)	4,679,701	(498,005)	4,709,104	(498,375)

With respect to severity, the majority of available-for-sale debt securities with unrealized loss positions at March 31, 2024 have unrealized losses as a percentage of book value of less than five percent. A substantial portion of such securities were issued by Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”), Government National Mortgage Association (“Ginnie Mae”) and other agencies of the U.S. government or have credit ratings issued by one or more of the NRSRO entities in the four highest credit rating categories. All of the Company’s available-for-sale debt securities with unrealized loss positions at March 31, 2024 have been determined to be investment grade.

The Company did not have any past due available-for-sale debt securities as of March 31, 2024 and December 31, 2023, respectively. Accrued interest receivable on available-for-sale debt securities totaled $9,315,000 and $9,319,000 at March 31, 2024, and December 31, 2023, respectively, and was excluded from the estimate of credit losses.

Based on an analysis of its available-for-sale debt securities with unrealized losses as of March 31, 2024, the Company determined the decline in value was unrelated to credit losses and was primarily the result of changes in interest rates and market spreads subsequent to acquisition. The fair value of the debt securities is expected to recover as payments are received and the debt securities approach maturity. In addition, as of March 31, 2024, management determined it did not intend to sell available-for-sale debt securities with unrealized losses, and there was no expected requirement to sell such securities before recovery of their amortized cost. As a result, no ACL was recorded on available-for-sale debt securities at March 31, 2024. As part of this determination, the Company considered contractual obligations, regulatory constraints, liquidity, capital, asset/liability management and securities portfolio objectives and whether or not any of the Company’s investment securities were managed by third-party investment funds.

The Company measured expected credit losses on held-to-maturity debt securities on a collective basis by major security type and NRSRO credit ratings, which is the Company’s primary credit quality indicator for state and local government securities. The estimate of expected credit losses considered historical credit loss information that was adjusted for current conditions as well as reasonable and supportable forecasts. The following table summarizes the amortized cost of held-to-maturity municipal bonds aggregated by NRSRO credit rating:


(Dollars in thousands)	March 31, 2024		December 31, 2023
Municipal bonds held-to-maturity
S&P: AAA / Moody’s: Aaa	$	422,288	427,918
S&P: AA+, AA, AA- / Moody’s: Aa1, Aa2, Aa3	1,180,187		1,182,894
S&P: A+, A, A- / Moody’s: A1, A2, A3	35,015		37,742

Not rated by either entity	4,061		1,446

Total municipal bonds held-to-maturity	$	1,641,551	1,650,000

The Company’s municipal bonds in the held-to-maturity debt securities portfolio is primarily comprised of general obligation and revenue bonds with NRSRO ratings in the four highest credit rating categories. All of the Company’s municipal bonds that are classified as held-to-maturity debt securities at March 31, 2024 have been determined to be investment grade. Held-to-maturity debt securities included in the Company’s U.S. government and federal agency and residential mortgage-backed security categories are issued and guaranteed by the U.S. Treasury, Fannie Mae, Freddie Mac, Ginnie Mae and other agencies of the U.S. government are considered to be zero-loss securities. This determination is in consideration of the explicit and implicit guarantees by the US Government, the US Government’s ability to print its own currency, a history of no credit losses by the US Government and noted agencies and the current economic and financial condition of the United States and US Government providing no indication the zero-loss determination is unjustified.

As of March 31, 2024 and December 31, 2023, the Company did not have any held-to-maturity debt securities past due. Accrued interest receivable on held-to-maturity debt securities totaled $21,685,000 and $16,990,000 at March 31, 2024 and December 31, 2023, respectively, and were excluded from the estimate of credit losses.