v3.26.1
Investment Securities
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following table summarizes the amortized cost and fair value of securities that are classified as available-for-sale and held-to-maturity:
June 30, 2026
Available-for-Sale
Amortized
Cost
Allowance for Credit LossesNet Carrying Amount
Gross
Unrealized
Gains
Gross
Unrealized
(Losses)
Estimated
Fair Value
(In thousands)
U.S. government-sponsored enterprises$210,738 $— $210,738 $885 $(7,237)$204,386 
U.S. government-sponsored mortgage-backed securities1,302,974 — 1,302,974 1,247 (144,283)1,159,938 
Private mortgage-backed securities176,380 — 176,380 75 (8,694)167,761 
Non-government-sponsored asset backed securities97,958 — 97,958 59 (1,136)96,881 
State and political subdivisions961,342 — 961,342 1,448 (57,457)905,333 
Other securities248,023 — 248,023 1,998 (8,104)241,917 
Total$2,997,415 $— $2,997,415 $5,712 $(226,911)$2,776,216 
June 30, 2026
Held-to-Maturity
Amortized
Cost
Allowance for Credit LossesNet Carrying Amount
Gross
Unrealized
Gains
Gross
Unrealized
(Losses)
Estimated
Fair Value
(In thousands)
U.S. government-sponsored enterprises$43,984 $— $43,984 $— $(1,932)$42,052 
U.S. government-sponsored mortgage-backed securities110,969 — 110,969 37 (4,752)106,254 
State and political subdivisions1,101,854 (2,005)1,099,849 110 (99,438)1,000,521 
Total$1,256,807 $(2,005)$1,254,802 $147 $(106,122)$1,148,827 
December 31, 2025
Available-for-Sale
Amortized
Cost
Allowance for Credit LossesNet Carrying Amount
Gross
Unrealized
Gains
Gross
Unrealized
(Losses)
Estimated
Fair Value
(In thousands)
U.S. government-sponsored enterprises$246,891 $— $246,891 $998 $(7,107)$240,782 
U.S. government-sponsored mortgage-backed securities1,345,469 — 1,345,469 1,478 (133,999)1,212,948 
Private mortgage-backed securities152,578 — 152,578 126 (6,984)145,720 
Non-government-sponsored asset backed securities158,446 — 158,446 325 (927)157,844 
State and political subdivisions951,822 — 951,822 1,419 (65,403)887,838 
Other securities233,614 — 233,614 2,147 (8,962)226,799 
Total$3,088,820 $— $3,088,820 $6,493 $(223,382)$2,871,931 
December 31, 2025
Held-to-Maturity
Amortized
Cost		Allowance for Credit LossesNet Carrying AmountGross
Unrealized
Gains		Gross
Unrealized
(Losses)		Estimated
Fair Value
(In thousands)
U.S. government-sponsored enterprises$43,841 $— $43,841 $— $(1,391)$42,450 
U.S. government-sponsored mortgage-backed securities114,813 — 114,813 400 (3,258)111,955 
State and political subdivisions1,102,613 (2,005)1,100,608 71 (94,032)1,006,647 
Total$1,261,267 $(2,005)$1,259,262 $471 $(98,681)$1,161,052 
On April 1, 2026, the Company completed the acquisition of MCBI. Including the effects of the known purchase accounting adjustments, as of the acquisition date, MCBI had approximately $103.3 million in investments. The Company classified the entire balance of investments acquired from MCBI as available-for-sale at the acquisition date.
Assets, principally investment securities, having a carrying value of approximately $2.62 billion and $2.65 billion at June 30, 2026 and December 31, 2025, respectively, were pledged to secure public deposits, as collateral for repurchase agreements, and for other purposes required or permitted by law. Investment securities pledged as collateral for repurchase agreements totaled approximately $158.7 million and $155.8 million at June 30, 2026 and December 31, 2025, respectively.
The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at June 30, 2026, by contractual maturity, are shown below. Expected maturities could differ from contractual maturities because issuers may 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.
Available-for-SaleHeld-to-Maturity
Amortized
Cost
Estimated
Fair Value
Amortized
Cost
Estimated
Fair Value
(In thousands)
Due in one year or less$80,028 $79,593 $4,967 $4,933 
Due after one year through five years235,425 224,652 136,319 130,725 
Due after five years through ten years369,000 353,070 375,405 344,164 
Due after ten years735,650 694,321 629,147 562,751 
U.S. government-sponsored mortgage-backed securities1,302,974 1,159,938 110,969 106,254 
Private mortgage-backed securities176,380 167,761 — — 
Non-government-sponsored asset backed securities97,958 96,881 — — 
Total$2,997,415 $2,776,216 $1,256,807 $1,148,827 
During the three and six months ended June 30, 2026 and 2025, no available-for-sale securities were sold.
The following table shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of June 30, 2026 and December 31, 2025.
June 30, 2026
Less Than 12 Months 12 Months or More Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises$4,591 $(15)$140,606 $(7,222)$145,197 $(7,237)
U.S. government-sponsored mortgage-backed securities81,372 (1,263)1,018,954 (143,020)1,100,326 (144,283)
Private mortgage-backed securities29,096 (418)130,408 (8,276)159,504 (8,694)
Non-government-sponsored asset backed securities20,472 (130)26,350 (1,006)46,822 (1,136)
State and political subdivisions63,734 (1,058)707,971 (56,399)771,705 (57,457)
Other securities68,552 (825)116,424 (7,279)184,976 (8,104)
Total$267,817 $(3,709)$2,140,713 $(223,202)$2,408,530 $(226,911)
Held-to-maturity:
U.S. government-sponsored enterprises$14,835 $(165)$27,217 $(1,767)$42,052 $(1,932)
U.S. government-sponsored mortgage-backed securities42,013 (765)52,115 (3,987)94,128 (4,752)
State and political subdivisions26,124 (689)965,818 (98,749)991,942 (99,438)
Total$82,972 $(1,619)$1,045,150 $(104,503)$1,128,122 $(106,122)
December 31, 2025
Less Than 12 Months 12 Months or More Total
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
(In thousands)
Available-for-sale:
U.S. government-sponsored enterprises$7,152 $(32)$165,091 $(7,075)$172,243 $(7,107)
U.S. government-sponsored mortgage-backed securities26,462 (136)1,087,888 (133,863)1,114,350 (133,999)
Private mortgage-backed securities— — 135,255 (6,984)135,255 (6,984)
Non-government-sponsored asset backed securities22,987 (13)44,666 (914)67,653 (927)
State and political subdivisions15,301 (505)744,922 (64,898)760,223 (65,403)
Other securities5,505 (67)125,216 (8,895)130,721 (8,962)
Total$77,407 $(753)$2,303,038 $(222,629)$2,380,445 $(223,382)
Held-to-maturity:
U.S. government-sponsored enterprises$— $— $42,451 $(1,391)$42,451 $(1,391)
U.S. government-sponsored mortgage-backed securities16,763 (88)64,000 (3,170)80,763 (3,258)
State and political subdivisions19,137 (143)983,938 (93,889)1,003,075 (94,032)
Total$35,900 $(231)$1,090,389 $(98,450)$1,126,289 $(98,681)
Debt securities available-for-sale ("AFS") are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses. The Company first assesses whether it intends to sell or is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
Debt securities held-to-maturity ("HTM"), which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized/accreted to the call date to interest income using the constant effective yield method over the estimated life of the security. The Company evaluates all securities quarterly to determine if any securities in a loss position require a provision for credit losses. The Company measures expected credit losses on HTM securities on a collective basis by major security type, with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectability of a security is confirmed.
During the three and six months ended June 30, 2026, the Company determined no allowance for credit losses on the available-for-sale portfolio was necessary. The Company also determined the $2.0 million allowance for credit losses on the held-to-maturity portfolio was adequate. Therefore, no provision was considered necessary for either portfolio.
During the three and six months ended June 30, 2025, the Company determined the $2.2 million allowance for credit losses on the available-for-sale portfolio and the $2.0 million allowance for credit losses on the held-to-maturity portfolio were adequate. Therefore, no additional provision was considered necessary.
Available-for-Sale Investment Securities
June 30, 2026December 31, 2025
Allowance for credit losses:(In thousands)
Beginning balance, January 1$— $2,195 
Recovery of credit losses— — 
Balance, June 30
$— $2,195 
Recovery of credit loss(2,195)
Balance, December 31, 2025
$— 
Held-to-Maturity Investment Securities
June 30, 2026December 31, 2025
Allowance for credit losses:(In thousands)
Beginning balance, January 1$2,005 $2,005 
Provision for credit losses
— — 
Balance, June 30
$2,005 $2,005 
Provision for credit loss— 
Balance, December 31, 2025
$2,005 
For the six months ended June 30, 2026, the Company had available-for-sale investment securities with approximately $226.9 million in unrealized losses, of which $223.2 million had been in continuous loss positions for more than twelve months. The Company’s assessments indicated the cause of the market depreciation was primarily due to the change in interest rates and not the issuer’s financial condition or downgrades by rating agencies. In addition, approximately 48.0% of the principal balance from the Company’s investment portfolio will mature or are expected to pay down within five years or less. As a result, the Company has the ability and intent to hold such securities until maturity.
As of June 30, 2026, the Company's available-for-sale securities portfolio consisted of 1,539 investment securities, 1,256 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $226.9 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $7.2 million on 59 securities. The U.S. government-sponsored mortgage-backed securities portfolio contained $144.3 million of unrealized losses on 626 securities, and the private mortgage-backed securities portfolio contained $8.7 million of unrealized losses on 49 securities. The non-government-sponsored asset backed securities portfolio contained $1.1 million of unrealized losses on 16 securities. The state and political subdivisions portfolio contained $57.5 million of unrealized losses on 445 securities. In addition, the other securities portfolio contained $8.1 million of unrealized losses on 61 securities. The unrealized losses on the Company's investments were a result of interest rate changes, and the Company expects to recover the amortized cost basis over the term of the securities. The Company has determined that, as of June 30, 2026, a reserve for credit losses is not necessary because the decline in market value was attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.
As of June 30, 2026, the Company's held-to-maturity securities portfolio consisted of 512 investment securities, 496 of which were in an unrealized loss position. As noted in the table above, the total amount of the unrealized loss was $106.1 million. The U.S. government-sponsored enterprises portfolio contained unrealized losses of $1.9 million on 5 securities. The U.S. government-sponsored mortgage-backed securities portfolio contained unrealized losses of $4.8 million on 17 securities. The state and political subdivisions portfolio contained $99.4 million of unrealized losses on 474 securities. The unrealized losses on the Company's investments were a result of interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value was attributable to changes in interest rates and not credit quality, the Company has determined that an additional provision for credit losses was not necessary as of June 30, 2026.
The following table summarizes bond ratings for the Company’s held-to-maturity portfolio, based upon amortized cost, issued by state and political subdivisions and other securities as of June 30, 2026:
State and political subdivisionsU.S. government-sponsored enterprisesU.S. government-sponsored mortgage-backed securitiesTotal
(In thousands)
Aaa/AAA$238,532 $43,984 $— $282,516 
Aa/AA816,475 — — 816,475 
A35,002 — — 35,002 
Baa/BBB2,537 — — 2,537 
Not rated9,308 — — 9,308 
Agency backed— — 110,969 110,969 
Total$1,101,854 $43,984 $110,969 $1,256,807 
Income earned on securities for the three and six months ended June 30, 2026 and 2025, is as follows:
Three Months Ended
June 30,		For the Six Months Ended
June 30,
2026202520262025
(In thousands)
Taxable
Available-for-sale$18,454 $19,032 $35,775 $39,092 
Held-to-maturity7,333 7,412 14,740 14,785 
Non-taxable
Available-for-sale4,807 4,579 9,628 9,159 
Held-to-maturity3,004 3,047 6,012 6,117 
Total$33,598 $34,070 $66,155 $69,153