Investment Securities (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Summary of Amortized Cost and Estimated Fair Value of Investment Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
(Dollars in thousands) |
Amortized Cost |
|
|
Gross Unrealized Holding Gain |
|
|
Gross Unrealized Holding Loss |
|
|
Fair Value |
|
|
Total Percent |
|
AFS investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
45,601 |
|
|
$ |
— |
|
|
$ |
(152 |
) |
|
$ |
45,449 |
|
|
|
1.29 |
% |
Mortgage-backed securities |
|
2,787,437 |
|
|
|
704 |
|
|
|
(294,750 |
) |
|
|
2,493,391 |
|
|
|
70.67 |
% |
CMO/REMIC |
|
1,068,362 |
|
|
|
— |
|
|
|
(142,978 |
) |
|
|
925,384 |
|
|
|
26.23 |
% |
Municipal bonds |
|
21,439 |
|
|
|
9 |
|
|
|
(1,863 |
) |
|
|
19,585 |
|
|
|
0.56 |
% |
Collateralized loan obligations |
|
42,000 |
|
|
|
48 |
|
|
|
— |
|
|
|
42,048 |
|
|
|
1.19 |
% |
Other securities |
|
1,976 |
|
|
|
— |
|
|
|
— |
|
|
|
1,976 |
|
|
|
0.06 |
% |
Unallocated portfolio layer fair value basis
adjustments (1) |
|
(23,595 |
) |
|
|
— |
|
|
|
23,595 |
|
|
|
— |
|
|
|
0.00 |
% |
Total AFS investment securities |
$ |
3,943,220 |
|
|
$ |
761 |
|
|
$ |
(416,148 |
) |
|
$ |
3,527,833 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HTM investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
486,549 |
|
|
$ |
— |
|
|
$ |
(105,731 |
) |
|
$ |
380,818 |
|
|
|
22.16 |
% |
Mortgage-backed securities |
|
527,556 |
|
|
|
— |
|
|
|
(112,919 |
) |
|
|
414,637 |
|
|
|
24.03 |
% |
CMO/REMIC |
|
724,832 |
|
|
|
— |
|
|
|
(184,437 |
) |
|
|
540,395 |
|
|
|
33.02 |
% |
Municipal bonds |
|
435,577 |
|
|
|
2 |
|
|
|
(57,723 |
) |
|
|
377,856 |
|
|
|
19.84 |
% |
Other securities (2) |
|
20,778 |
|
|
|
— |
|
|
|
— |
|
|
|
20,778 |
|
|
|
0.95 |
% |
Total HTM investment securities |
$ |
2,195,292 |
|
|
$ |
2 |
|
|
$ |
(460,810 |
) |
|
$ |
1,734,484 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
(Dollars in thousands) |
Amortized Cost |
|
|
Gross Unrealized Holding Gain |
|
|
Gross Unrealized Holding Loss |
|
|
Fair Value |
|
|
Total Percent |
|
AFS investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
35,348 |
|
|
$ |
17 |
|
|
$ |
(81 |
) |
|
$ |
35,284 |
|
|
|
1.32 |
% |
Mortgage-backed securities |
|
2,089,155 |
|
|
|
2,199 |
|
|
|
(203,700 |
) |
|
|
1,887,654 |
|
|
|
70.35 |
% |
CMO/REMIC |
|
800,896 |
|
|
|
2,314 |
|
|
|
(108,060 |
) |
|
|
695,150 |
|
|
|
25.91 |
% |
Municipal bonds |
|
21,787 |
|
|
|
27 |
|
|
|
(524 |
) |
|
|
21,290 |
|
|
|
0.79 |
% |
Collateralized loan obligations |
|
42,000 |
|
|
|
— |
|
|
|
— |
|
|
|
42,000 |
|
|
|
1.57 |
% |
Other securities |
|
1,692 |
|
|
|
— |
|
|
|
— |
|
|
|
1,692 |
|
|
|
0.06 |
% |
Unallocated portfolio layer fair value basis
adjustments (1) |
|
(8,650 |
) |
|
|
8,650 |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
% |
Total AFS investment securities |
$ |
2,982,228 |
|
|
$ |
13,207 |
|
|
$ |
(312,365 |
) |
|
$ |
2,683,070 |
|
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HTM investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
498,513 |
|
|
$ |
— |
|
|
$ |
(82,741 |
) |
|
$ |
415,772 |
|
|
|
21.96 |
% |
Mortgage-backed securities |
|
557,860 |
|
|
|
25 |
|
|
|
(84,512 |
) |
|
|
473,373 |
|
|
|
24.57 |
% |
CMO/REMIC |
|
751,639 |
|
|
|
— |
|
|
|
(152,417 |
) |
|
|
599,222 |
|
|
|
33.10 |
% |
Municipal bonds |
|
444,694 |
|
|
|
1,572 |
|
|
|
(26,826 |
) |
|
|
419,440 |
|
|
|
19.59 |
% |
Other securities (2) |
|
17,685 |
|
|
|
— |
|
|
|
— |
|
|
|
17,685 |
|
|
|
0.78 |
% |
Total HTM investment securities |
$ |
2,270,391 |
|
|
$ |
1,597 |
|
|
$ |
(346,496 |
) |
|
$ |
1,925,492 |
|
|
|
100.00 |
% |
(1)Represents the amount of portfolio layer method basis adjustments related to AFS mortgage-backed securities (“MBS”) securities hedged in a closed portfolio. Under GAAP, these basis adjustments are not allocated to individual securities, however the amounts impact the unrealized gains or losses of the hedged AFS securities. Refer to Note 11 for additional information. (2)Represents Commercial Property Assessed Clean Energy (“C-PACE”) bonds.
|
| Summary of Interest Income Earned on Investment Securities |
The following table provides information about the amount of interest income earned on investment securities which is fully taxable, and interest income on investment securities which is exempt from regular federal income tax.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
(Dollars in thousands) |
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
AFS investment securities |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
$ |
29,237 |
|
|
$ |
18,722 |
|
|
$ |
71,575 |
|
|
$ |
55,466 |
|
Tax-advantaged |
|
147 |
|
|
|
145 |
|
|
|
438 |
|
|
|
434 |
|
Total interest income from AFS investment securities |
|
29,384 |
|
|
|
18,867 |
|
|
|
72,013 |
|
|
|
55,900 |
|
HTM investment securities |
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
9,926 |
|
|
|
10,494 |
|
|
|
30,134 |
|
|
|
31,690 |
|
Tax-advantaged |
|
2,254 |
|
|
|
2,318 |
|
|
|
6,834 |
|
|
|
7,029 |
|
Total interest income from HTM investment securities |
|
12,180 |
|
|
|
12,812 |
|
|
|
36,968 |
|
|
|
38,719 |
|
Total interest income from investment securities |
$ |
41,564 |
|
|
$ |
31,679 |
|
|
$ |
108,981 |
|
|
$ |
94,619 |
|
|
| Summary Of Unrealized Loss On Investments |
The following table presents the Company’s AFS and HTM investment securities, by investment category, in an unrealized loss position for which an allowance for credit losses has not been recorded as of September 30, 2026 and December 31, 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
Less Than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
(Dollars in thousands) |
Fair Value |
|
|
Gross Unrealized Holding Losses (1) |
|
|
Fair Value |
|
|
Gross Unrealized Holding Losses (1) |
|
|
Fair Value |
|
|
Gross Unrealized Holding Losses |
|
AFS investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
44,893 |
|
|
$ |
(152 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
44,893 |
|
|
$ |
(152 |
) |
Mortgage-backed securities |
|
950,317 |
|
|
|
(35,406 |
) |
|
|
1,359,153 |
|
|
|
(259,344 |
) |
|
|
2,309,470 |
|
|
|
(294,750 |
) |
CMO/REMIC |
|
615,345 |
|
|
|
(15,048 |
) |
|
|
310,039 |
|
|
|
(127,930 |
) |
|
|
925,384 |
|
|
|
(142,978 |
) |
Municipal bonds |
|
2,566 |
|
|
|
(179 |
) |
|
|
16,055 |
|
|
|
(1,684 |
) |
|
|
18,621 |
|
|
|
(1,863 |
) |
Total AFS investment securities |
$ |
1,613,121 |
|
|
$ |
(50,785 |
) |
|
$ |
1,685,247 |
|
|
$ |
(388,958 |
) |
|
$ |
3,298,368 |
|
|
$ |
(439,743 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HTM investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
— |
|
|
$ |
— |
|
|
$ |
380,818 |
|
|
$ |
(105,731 |
) |
|
$ |
380,818 |
|
|
$ |
(105,731 |
) |
Mortgage-backed securities |
|
20,833 |
|
|
|
(1,059 |
) |
|
|
393,804 |
|
|
|
(111,860 |
) |
|
|
414,637 |
|
|
|
(112,919 |
) |
CMO/REMIC |
|
— |
|
|
|
— |
|
|
|
540,395 |
|
|
|
(184,437 |
) |
|
|
540,395 |
|
|
|
(184,437 |
) |
Municipal bonds |
|
93,341 |
|
|
|
(7,963 |
) |
|
|
283,219 |
|
|
|
(49,760 |
) |
|
|
376,560 |
|
|
|
(57,723 |
) |
Total HTM investment securities |
$ |
114,174 |
|
|
$ |
(9,022 |
) |
|
$ |
1,598,236 |
|
|
$ |
(451,788 |
) |
|
$ |
1,712,410 |
|
|
$ |
(460,810 |
) |
(1)The gross unrealized holding losses of available-for-sale securities excludes the portfolio layer fair value hedge basis adjustments of $23.6 million at September 30, 2026.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
Less Than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
(Dollars in thousands) |
Fair Value |
|
|
Gross Unrealized Holding Losses |
|
|
Fair Value |
|
|
Gross Unrealized Holding Losses |
|
|
Fair Value |
|
|
Gross Unrealized Holding Losses |
|
AFS investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
5,919 |
|
|
$ |
(81 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,919 |
|
|
$ |
(81 |
) |
Mortgage-backed securities |
|
32,579 |
|
|
|
(71 |
) |
|
|
1,586,803 |
|
|
|
(203,629 |
) |
|
|
1,619,382 |
|
|
|
(203,700 |
) |
CMO/REMIC |
|
— |
|
|
|
— |
|
|
|
344,865 |
|
|
|
(108,060 |
) |
|
|
344,865 |
|
|
|
(108,060 |
) |
Municipal bonds |
|
— |
|
|
|
— |
|
|
|
17,600 |
|
|
|
(524 |
) |
|
|
17,600 |
|
|
|
(524 |
) |
Total AFS investment securities |
$ |
38,498 |
|
|
$ |
(152 |
) |
|
$ |
1,949,268 |
|
|
$ |
(312,213 |
) |
|
$ |
1,987,766 |
|
|
$ |
(312,365 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HTM investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government agency/GSE |
$ |
— |
|
|
$ |
— |
|
|
$ |
415,772 |
|
|
$ |
(82,741 |
) |
|
$ |
415,772 |
|
|
$ |
(82,741 |
) |
Mortgage-backed securities |
|
— |
|
|
|
— |
|
|
|
455,255 |
|
|
|
(84,512 |
) |
|
|
455,255 |
|
|
|
(84,512 |
) |
CMO/REMIC |
|
— |
|
|
|
— |
|
|
|
599,222 |
|
|
|
(152,417 |
) |
|
|
599,222 |
|
|
|
(152,417 |
) |
Municipal bonds |
|
3,690 |
|
|
|
(11 |
) |
|
|
321,723 |
|
|
|
(26,815 |
) |
|
|
325,413 |
|
|
|
(26,826 |
) |
Total HTM investment securities |
$ |
3,690 |
|
|
$ |
(11 |
) |
|
$ |
1,791,972 |
|
|
$ |
(346,485 |
) |
|
$ |
1,795,662 |
|
|
$ |
(346,496 |
) |
|
| Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity |
Mortgage-backed securities and CMO/REMIC securities are included in maturity categories based upon estimated average lives which incorporate estimated prepayment speeds.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
Available-for-sale |
|
|
Held-to-maturity |
|
(Dollars in thousands) |
Amortized Cost |
|
|
Fair Value |
|
|
Amortized Cost |
|
|
Fair Value |
|
Due in one year or less |
$ |
51,593 |
|
|
$ |
51,424 |
|
|
$ |
3,256 |
|
|
$ |
3,240 |
|
Due after one year through five years |
|
98,047 |
|
|
|
106,749 |
|
|
|
133,396 |
|
|
|
121,128 |
|
Due after five years through ten years |
|
1,713,645 |
|
|
|
1,457,665 |
|
|
|
525,373 |
|
|
|
422,906 |
|
Due after ten years |
|
2,079,935 |
|
|
|
1,911,995 |
|
|
|
1,533,267 |
|
|
|
1,187,210 |
|
Total investment securities |
$ |
3,943,220 |
|
|
$ |
3,527,833 |
|
|
$ |
2,195,292 |
|
|
$ |
1,734,484 |
|
|