| Securities |
Note 4—Securities The following tables summarize the amortized cost and fair values of securities available-for-sale as of the dates presented and the corresponding amounts of gross unrealized gains and losses and cumulative basis adjustments for fair value:
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|
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|
|
|
|
|
|
June 30, 2026 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Basis Adjustments(1) |
|
|
Fair
Value |
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes |
|
$ |
29,747 |
|
|
$ |
35 |
|
|
$ |
(44 |
) |
|
$ |
— |
|
|
$ |
29,738 |
|
U.S. Government agencies |
|
|
116,025 |
|
|
|
1 |
|
|
|
(9,425 |
) |
|
|
— |
|
|
|
106,601 |
|
Obligations of states, municipalities, and
political subdivisions |
|
|
37,292 |
|
|
|
59 |
|
|
|
(2,338 |
) |
|
|
(92 |
) |
|
|
34,921 |
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
956,867 |
|
|
|
3,366 |
|
|
|
(69,225 |
) |
|
|
(424 |
) |
|
|
890,584 |
|
Non-agency |
|
|
149,271 |
|
|
|
40 |
|
|
|
(16,570 |
) |
|
|
(378 |
) |
|
|
132,363 |
|
Commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
370,382 |
|
|
|
365 |
|
|
|
(29,894 |
) |
|
|
(530 |
) |
|
|
340,323 |
|
Corporate securities |
|
|
20,791 |
|
|
|
— |
|
|
|
(588 |
) |
|
|
(21 |
) |
|
|
20,182 |
|
Asset-backed securities |
|
|
62,977 |
|
|
|
— |
|
|
|
(921 |
) |
|
|
(20 |
) |
|
|
62,036 |
|
Total |
|
$ |
1,743,352 |
|
|
$ |
3,866 |
|
|
$ |
(129,005 |
) |
|
$ |
(1,465 |
) |
|
$ |
1,616,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Basis Adjustments (1) |
|
|
Fair
Value |
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes |
|
$ |
29,655 |
|
|
$ |
268 |
|
|
$ |
(33 |
) |
|
$ |
— |
|
|
$ |
29,890 |
|
U.S. Government agencies |
|
|
118,674 |
|
|
|
32 |
|
|
|
(8,959 |
) |
|
|
— |
|
|
|
109,747 |
|
Obligations of states, municipalities, and
political subdivisions |
|
|
56,705 |
|
|
|
309 |
|
|
|
(2,470 |
) |
|
|
10 |
|
|
|
54,554 |
|
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
881,735 |
|
|
|
8,407 |
|
|
|
(64,874 |
) |
|
|
30 |
|
|
|
825,298 |
|
Non-agency |
|
|
143,372 |
|
|
|
419 |
|
|
|
(16,083 |
) |
|
|
23 |
|
|
|
127,731 |
|
Commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
243,762 |
|
|
|
752 |
|
|
|
(27,518 |
) |
|
|
33 |
|
|
|
217,029 |
|
Corporate securities |
|
|
30,318 |
|
|
|
1 |
|
|
|
(887 |
) |
|
|
1 |
|
|
|
29,433 |
|
Asset-backed securities |
|
|
12,155 |
|
|
|
36 |
|
|
|
(768 |
) |
|
|
1 |
|
|
|
11,424 |
|
Total |
|
$ |
1,516,376 |
|
|
$ |
10,224 |
|
|
$ |
(121,592 |
) |
|
$ |
98 |
|
|
$ |
1,405,106 |
|
(1) Basis adjustments represent the amount of fair value hedging adjustments included in the carrying amounts of fixed-rate investment securities designated in fair value hedging arrangements. Refer to Note 16—Derivative Instruments and Hedge Activities for additional discussion. The Company did not classify securities as trading during the three and six months ended June 30, 2026 or during 2025. There were no securities classified as held-to-maturity in our investment portfolio as of June 30, 2026 or December 31, 2025. Gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates presented, are summarized as follows:
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|
|
|
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|
|
|
|
|
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|
Less than 12 Months |
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|
12 Months or Longer |
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|
Total |
|
June 30, 2026 |
|
Number of
Securities |
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes |
|
|
1 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,946 |
|
|
$ |
(44 |
) |
|
$ |
4,946 |
|
|
$ |
(44 |
) |
U.S. Government agencies |
|
|
15 |
|
|
1,425 |
|
|
|
(3 |
) |
|
|
103,240 |
|
|
|
(9,422 |
) |
|
|
104,665 |
|
|
|
(9,425 |
) |
Obligations of states,
municipalities and political
subdivisions |
|
|
15 |
|
|
6,006 |
|
|
|
(91 |
) |
|
|
19,885 |
|
|
|
(2,247 |
) |
|
|
25,891 |
|
|
|
(2,338 |
) |
Residential mortgage-backed
securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
118 |
|
|
244,278 |
|
|
|
(4,106 |
) |
|
|
414,338 |
|
|
|
(65,119 |
) |
|
|
658,616 |
|
|
|
(69,225 |
) |
Non-agency |
|
|
22 |
|
|
30,724 |
|
|
|
(724 |
) |
|
|
82,469 |
|
|
|
(15,846 |
) |
|
|
113,193 |
|
|
|
(16,570 |
) |
Commercial mortgage-backed
securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
60 |
|
|
138,759 |
|
|
|
(1,932 |
) |
|
|
158,715 |
|
|
|
(27,962 |
) |
|
|
297,474 |
|
|
|
(29,894 |
) |
Corporate securities |
|
|
10 |
|
|
5,445 |
|
|
|
(50 |
) |
|
|
14,487 |
|
|
|
(538 |
) |
|
|
19,932 |
|
|
|
(588 |
) |
Asset-backed securities |
|
|
11 |
|
|
55,238 |
|
|
|
(136 |
) |
|
|
6,069 |
|
|
|
(785 |
) |
|
|
61,307 |
|
|
|
(921 |
) |
Total |
|
|
252 |
|
$ |
481,875 |
|
|
$ |
(7,042 |
) |
|
$ |
804,149 |
|
|
$ |
(121,963 |
) |
|
$ |
1,286,024 |
|
|
$ |
(129,005 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
December 31, 2025 |
|
Number of
Securities |
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
Available-for-sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes |
|
|
1 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,952 |
|
|
$ |
(33 |
) |
|
$ |
4,952 |
|
|
$ |
(33 |
) |
U.S. Government agencies |
|
|
14 |
|
|
— |
|
|
|
— |
|
|
|
103,722 |
|
|
|
(8,959 |
) |
|
|
103,722 |
|
|
|
(8,959 |
) |
Obligations of states,
municipalities and
political subdivisions |
|
|
15 |
|
|
1,032 |
|
|
|
(10 |
) |
|
|
31,802 |
|
|
|
(2,460 |
) |
|
|
32,834 |
|
|
|
(2,470 |
) |
Residential mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
94 |
|
|
31,077 |
|
|
|
(47 |
) |
|
|
459,883 |
|
|
|
(64,827 |
) |
|
|
490,960 |
|
|
|
(64,874 |
) |
Non-agency |
|
|
21 |
|
|
2,878 |
|
|
|
(5 |
) |
|
|
104,650 |
|
|
|
(16,078 |
) |
|
|
107,528 |
|
|
|
(16,083 |
) |
Commercial mortgage-backed securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agency |
|
|
44 |
|
|
1,697 |
|
|
|
(10 |
) |
|
|
164,229 |
|
|
|
(27,508 |
) |
|
|
165,926 |
|
|
|
(27,518 |
) |
Corporate securities |
|
|
15 |
|
|
3,477 |
|
|
|
(16 |
) |
|
|
25,705 |
|
|
|
(871 |
) |
|
|
29,182 |
|
|
|
(887 |
) |
Asset-backed securities |
|
|
1 |
|
|
— |
|
|
|
— |
|
|
|
6,149 |
|
|
|
(768 |
) |
|
|
6,149 |
|
|
|
(768 |
) |
Total |
|
|
205 |
|
$ |
40,161 |
|
|
$ |
(88 |
) |
|
$ |
901,092 |
|
|
$ |
(121,504 |
) |
|
$ |
941,253 |
|
|
$ |
(121,592 |
) |
Certain securities have fair values less than amortized cost and, therefore, contain unrealized losses. The Company evaluated the securities which had unrealized losses for potential credit losses and determined there were none. There were 252 securities available-for-sale with unrealized losses at June 30, 2026. The evaluation for potential credit losses is based upon factors such as the creditworthiness of the issuers/guarantors, the underlying collateral, if applicable, and the continuing payment performance of the securities. Accrued interest receivable on securities available-for-sale totaled $5.0 million at June 30, 2026 and $4.6 million at December 31, 2025, respectively, and are excluded from the estimate of credit losses. The Company anticipates full recovery of amortized cost with respect to these securities by maturity. The Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell them before recovery of their amortized cost basis, which may be at maturity. The proceeds from all sales and calls of securities available-for-sale, and the associated gains and losses were as follows for the periods presented:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Proceeds |
|
$ |
19,202 |
|
|
$ |
14,221 |
|
|
$ |
19,202 |
|
|
$ |
14,221 |
|
Gross gains |
|
|
106 |
|
|
|
90 |
|
|
|
106 |
|
|
|
90 |
|
Gross losses |
|
|
85 |
|
|
|
127 |
|
|
|
85 |
|
|
|
127 |
|
Securities posted and pledged as collateral for the following purpose or beneficiary as of the following dates:
|
|
|
|
|
|
|
|
|
Purpose or beneficiary |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Public fund deposits |
|
$ |
488,764 |
|
|
$ |
393,845 |
|
Customer repurchase agreements |
|
|
89,872 |
|
|
|
75,681 |
|
Letters of credit |
|
|
31,030 |
|
|
|
33,883 |
|
Federal Reserve Bank |
|
|
— |
|
|
|
— |
|
Total pledged securities |
|
$ |
609,666 |
|
|
$ |
503,409 |
|
At June 30, 2026 and December 31, 2025, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. At June 30, 2026, the amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.
|
|
|
|
|
|
|
|
|
|
|
Amortized
Cost |
|
|
Fair
Value |
|
Available-for-sale |
|
|
|
|
|
|
Due in one year or less |
|
$ |
29,285 |
|
|
$ |
29,241 |
|
Due from one to five years |
|
|
169,103 |
|
|
|
161,836 |
|
Due from five to ten years |
|
|
43,297 |
|
|
|
40,067 |
|
Due after ten years |
|
|
25,147 |
|
|
|
22,334 |
|
Mortgage-backed securities |
|
|
1,476,520 |
|
|
|
1,363,270 |
|
Total |
|
$ |
1,743,352 |
|
|
$ |
1,616,748 |
|
The Company hedges interest rates on certain investment securities using interest rate swaps, through which the Company pays fixed amounts and receives variable amounts. Refer to Note 16—Derivative Instruments and Hedging Activities for additional discussion. |