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Note 3 - Investment Securities

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

3. Investment Securities

Investment Securities. The following tables set forth the amortized cost, gross unrealized gains, gross unrealized losses, and fair values of debt securities available-for-sale ("AFS") as of December 31, 2024, and December 31, 2023:

		*As of December 31, 2024*
						*Gross*				*Gross*
		*Amortized*				*Unrealized*				*Unrealized*
		*Cost*				*Gains*				*Losses*				*Fair Value*
		(In thousands)
Securities AFS
U.S. treasury securities		$	621,212			$	250			$	—			$	621,462
U.S. government agency entities			9,226				50				127				9,149
Mortgage-backed securities			797,145				67				113,196				684,016
Collateralized mortgage obligations			27,747				—				3,191				24,556
Corporate debt securities			213,331				145				5,531				207,945
Total		$	1,668,661			$	512			$	122,045			$	1,547,128

		*As of December 31, 2023*
						*Gross*				*Gross*
		*Amortized*				*Unrealized*				*Unrealized*
		*Cost*				*Gains*				*Losses*				*Fair Value*
		(In thousands)
Securities AFS
U.S. treasury securities		$	495,167			$	153			$	20			$	495,300
U.S. government agency entities			48,282				117				230				48,169
Mortgage-backed securities			892,942				223				106,442				786,723
Collateralized mortgage obligations			31,238				—				3,194				28,044
Corporate debt securities			258,451				22				12,139				246,334
Total		$	1,726,080			$	515			$	122,025			$	1,604,570

The amortized cost and fair value of AFS securities as of December 31, 2024, by contractual maturities, are set forth in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or repayment penalties.

		*Securities AFS*
		*As of December 31, 2024*
		*Amortized Cost*				*Fair Value*
		(In thousands)
Due in one year or less		$	671,499			$	671,217
Due after one year through five years			169,826				164,819
Due after five years through ten years			109,494				102,445
Due after ten years			717,842				608,647
Total		$	1,668,661			$	1,547,128

Proceeds from the sale of investment securities were $33.7 million during the year ended December 31, 2024. There were no sales of investment securities during the years ended December 31, 2023, and 2022. Gross realized gain on sale of investment securities was of $1.1 million for the year ended December 31, 2024.

Allowance for Credit Losses

The AFS securities that were in an unrealized loss position as of December 31, 2024, were evaluated to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 Summary of Significant Accounting Policies - Allowance for Credit Losses on Available for Sale Securities to the Consolidated Financial Statements.

The Company concluded the unrealized losses were primarily attributed to yield curve movement, together with widened liquidity spreads and credit spreads. The issuers have not, to the Company’s knowledge, established any cause for default on these securities. The Company expects to recover the amortized cost basis of its securities and has no present intent to sell and will not be required to sell securities AFS that have declined below their cost before their anticipated recovery. Accordingly, no allowance for credit losses was recorded as of December 31, 2024, and 2023, against these securities, and there was no provision for credit losses recognized for the years ended December 31, 2024, 2023 and 2022.

The tables below show the related fair value and the gross unrealized losses of the Company’s investment portfolio, aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2024, and December 31, 2023:

		*As of December 31, 2024*
		*Less than 12 months*								*12 months or longer*								*Total*
		*Fair*				*Gross Unrealized*				*Fair*				*Gross Unrealized*				*Fair*				*Gross Unrealized*
		*Value*				*Losses*				*Value*				*Losses*				*Value*				*Losses*
		(In thousands)

Securities AFS
U.S. government agency entities		$	4,199			$	8			$	2,108			$	119			$	6,307			$	127
Mortgage-backed securities			29,955				959				653,236				112,237				683,191				113,196
Collateralized mortgage obligations			—				—				24,556				3,191				24,556				3,191
Corporate debt securities			24,900				100				127,744				5,431				152,644				5,531
Total		$	59,054			$	1,067			$	807,644			$	120,978			$	866,698			$	122,045

		*As of December 31, 2023*
		*Less than 12 months*								*12 months or longer*								*Total*
		*Fair*				*Gross Unrealized*				*Fair*				*Gross Unrealized*				*Fair*				*Gross Unrealized*
		*Value*				*Losses*				*Value*				*Losses*				*Value*				*Losses*
		(In thousands)

Securities AFS
U.S. treasury securities		$	49,831			$	20			$	—			$	—			$	49,831			$	20
U.S. government agency entities			18,301				108				1,313				122				19,614				230
Mortgage-backed securities			—				—				768,274				106,442				768,274				106,442
Collateralized mortgage obligations			—				—				28,044				3,194				28,044				3,194
Corporate debt securities			64,448				552				166,864				11,587				231,312				12,139
Total		$	132,580			$	680			$	964,495			$	121,345			$	1,097,075			$	122,025

As of December 31, 2024, the Company had a total of 182 AFS securities in a gross unrealized loss position with no credit impairment, consisting primarily of 154 mortgage-backed securities, 16 corporate debt securities, nine U.S. government agencies securities and three collateralized mortgage obligations. In comparison, as of December 31, 2023, the Company had a total of 192 AFS securities in a gross unrealized loss position with no credit impairment, consisting primarily of 154 mortgage-backed securities, 24 corporate debt securities, eight U.S. government agencies securities, five collateralized mortgage obligations and one U.S. treasury security.

AFS securities having a carrying value of $17.8 million and $134.2 million as of December 31, 2024, and December 31, 2023, respectively, were pledged to secure public deposits, and other borrowings.

Equity securities were $34.4 million and $40.4 million as of December 31, 2024, and 2023, respectively. The Company recognized a net unrealized loss on equity securities of $7.5 million for the year ended December 31, 2024. The company recognized net unrealized gains on equity securities of $18.2 million and $0.3 million for the years ended December 31, 2023 and 2022, respectively. The Company received proceeds of $553 thousand and realized a loss of $101 thousand on the sale of equity securities for the year ended December 31, 2022.