Investment Securities (Tables)
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9 Months Ended |
Sep. 30, 2024 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Summary of Available-for-Sale Debt Securities |
The following is a summary of the Company’s investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | Amortized
Cost(1) | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Estimated
Fair
Value | | September 30, 2024 | | | | | | | | | Available-for-sale debt securities: | | | | | | | | | U.S. Treasury securities | $ | 278,200 | | | $ | — | | | $ | (2,396) | | | $ | 275,804 | | | | | | | | | | | Residential mortgage-backed securities | 3,323,351 | | | 19,768 | | | (112,263) | | | 3,230,856 | | | | | | | | | | | | | | | | | | | CRT securities | 12,791 | | | — | | | (789) | | | 12,002 | | | Total available-for-sale debt securities | 3,614,342 | | | 19,768 | | | (115,448) | | | 3,518,662 | | | Held-to-maturity debt securities: | | | | | | | | | Residential mortgage-backed securities | 812,432 | | | — | | | (84,689) | | | 727,743 | | | Total held-to-maturity debt securities | 812,432 | | | — | | | (84,689) | | | 727,743 | | | Equity securities | | | | | | | 74,426 | | | Total investment securities(2) | | | | | | | $ | 4,405,520 | | | December 31, 2023 | | | | | | | | | Available-for-sale debt securities: | | | | | | | | | U.S. Treasury securities | $ | 651,112 | | | $ | — | | | $ | (14,639) | | | $ | 636,473 | | | U.S. government agency securities | 125,000 | | | — | | | (18,408) | | | 106,592 | | | Residential mortgage-backed securities | 2,782,734 | | | 540 | | | (312,442) | | | 2,470,832 | | | | | | | | | | | | | | | | | | | CRT securities | 13,636 | | | — | | | (1,641) | | | 11,995 | | | Total available-for-sale debt securities | 3,572,482 | | | 540 | | | (347,130) | | | 3,225,892 | | | Held-to-maturity securities: | | | | | | | | | Residential mortgage-backed securities | 865,477 | | | — | | | (101,633) | | | 763,844 | | | Total held-to-maturity securities | 865,477 | | | — | | | (101,633) | | | 763,844 | | | Equity securities | | | | | | | 51,825 | | | Total investment securities(2) | | | | | | | $ | 4,143,194 | |
(1) Excludes accrued interest receivable of $13.9 million and $9.5 million at September 30, 2024 and December 31, 2023, respectively, related to available-for-sale debt securities and $1.3 million and $1.4 million at September 30, 2024 and December 31, 2023, respectively, related to held-to-maturity debt securities that is recorded in accrued interest receivable and other assets on the consolidated balance sheets. (2) Includes available-for-sale debt securities and equity securities at estimated fair value and held-to-maturity debt securities at amortized cost.
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| Summary of Amortized Cost, Estimated Fair Value, and Weighted Average Yields for Available-for-Sale Debt Securities |
The amortized cost and estimated fair value as of September 30, 2024, excluding accrued interest receivable, of available-for-sale and held-to-maturity debt securities are presented below by contractual maturity. Actual maturities may differ from contractual maturities of mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. | | | | | | | | | | | | | | | | | | | | | | | | | Available-for-sale | | Held-to-maturity | | (in thousands) | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | | | | | | | | | Due within one year | $ | 58,784 | | | $ | 58,315 | | | $ | — | | | $ | — | | | Due after one year through five years | 219,416 | | | 217,489 | | | — | | | — | | | Due after five years through ten years | 13,774 | | | 13,001 | | | — | | | — | | | Due after ten years | 3,322,368 | | | 3,229,857 | | | 812,432 | | | 727,743 | | | Total | $ | 3,614,342 | | | $ | 3,518,662 | | | $ | 812,432 | | | $ | 727,743 | |
The table below presents the weighted average yields for the Company’s available-for-sale debt securities for the nine months ended September 30, 2024. Weighted average yields are calculated based on amortized cost on a tax-exempt basis assuming a 21% federal tax rate, where applicable. | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Treasury securities | | U.S. government agency securities | | Residential mortgage-backed securities | | CRT securities | | Due within one year | 3.15 | % | | — | % | | — | % | | — | % | | Due after one year through five years | 3.12 | | | — | | | — | | | — | | | Due after five years through ten years | — | | | — | | | 3.91 | | | 4.95 | | | Due after ten years | — | | | — | | | 4.68 | | | — | | | Total | 3.13 | % | | — | % | | 4.68 | % | | 4.95 | % |
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| Schedule of Available-for-Sale Debt Securities in a Continuous Unrealized Loss Position |
The following table discloses the Company’s available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less Than 12 Months | | 12 Months or Longer | | Total | | (in thousands) | Fair Value | | Unrealized Loss | | Fair Value | | Unrealized Loss | | Fair Value | | Unrealized Loss | | September 30, 2024 | | | | | | | | | | | | | U.S. Treasury securities | $ | — | | | $ | — | | | $ | 275,804 | | | $ | (2,396) | | | $ | 275,804 | | | $ | (2,396) | | | U.S. government agency securities | — | | | — | | | — | | | — | | | — | | | — | | | Residential mortgage-backed securities | 458,752 | | | (873) | | | 1,404,200 | | | (111,390) | | | 1,862,952 | | | (112,263) | | | CRT securities | — | | | — | | | 12,002 | | | (789) | | | 12,002 | | | (789) | | | Total | $ | 458,752 | | | $ | (873) | | | $ | 1,692,006 | | | $ | (114,575) | | | $ | 2,150,758 | | | $ | (115,448) | | | December 31, 2023 | | | | | | | | | | | | | U.S. Treasury securities | $ | — | | | $ | — | | | $ | 636,473 | | | $ | (14,639) | | | $ | 636,473 | | | $ | (14,639) | | | U.S. government agency securities | — | | | — | | | 106,592 | | | (18,408) | | | 106,592 | | | (18,408) | | | Residential mortgage-backed securities | 910,999 | | | (19,751) | | | 1,501,340 | | | (292,691) | | | 2,412,339 | | | (312,442) | | | CRT securities | — | | | — | | | 11,995 | | | (1,641) | | | 11,995 | | | (1,641) | | | Total | $ | 910,999 | | | $ | (19,751) | | | $ | 2,256,400 | | | $ | (327,379) | | | $ | 3,167,399 | | | $ | (347,130) | |
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| Summary of Unrealized and Realized Gains/(Losses) Recognized in Net Income on Equity Securities |
The following is a summary of unrealized and realized gains/(losses) recognized on equity securities included in other non-interest income on the consolidated statements of income and other comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | (in thousands) | 2024 | | 2023 | | 2024 | | 2023 | | Net gains/(losses) recognized during the period | $ | 2,752 | | | $ | (1,262) | | | $ | 6,727 | | | $ | 934 | | | Less: Realized net gains/(losses) recognized on securities sold | 482 | | | (70) | | | 853 | | | (676) | | | Unrealized net gains/(losses) recognized on securities still held | $ | 2,270 | | | $ | (1,192) | | | $ | 5,874 | | | $ | 1,610 | |
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