
	At June 30, 2025
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value

AFS
Mortgage backed securities ("MBS"):
Residential	$	164,411	$	201	$	(4,652)	$	159,960
Commercial	54,248		—		(5,405)		48,843
Collateralized mortgage obligations ("CMOs"):
Residential	325,145		44		(24,475)		300,714
Commercial	56,190		—		(3,945)		52,245
Municipal bonds	426,258		107		(54,783)		371,582
Corporate debt securities	31,121		—		(5,575)		25,546
U.S. Treasury securities	22,129		—		(1,631)		20,498
Agency debentures	9,448		—		(735)		8,713
Total	$	1,088,950	$	352	$	(101,201)	$	988,101
HTM




Municipal bonds	$	2,265	$	—	$	(12)	$	2,253


	At December 31, 2024
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value

AFS
MBS:
Residential	$	174,887	$	229	$	(7,654)	$	167,462
Commercial	54,620		—		(6,978)		47,642
CMOs:
Residential	349,348		36		(31,940)		317,444
Commercial	59,725		14		(4,794)		54,945
Municipal bonds	433,162		95		(54,998)		378,259
Corporate debt securities	31,136		—		(6,192)		24,944
U.S. Treasury securities	22,306		—		(2,319)		19,987
Agency debentures	10,320		—		(1,044)		9,276
Total	$	1,135,504	$	374	$	(115,919)	$	1,019,959
HTM
Municipal bonds	$	2,301	$	—	$	(28)	$	2,273

At June 30, 2025, and December 31, 2024, the Company held $41 million and $35 million, respectively, of trading securities, consisting of US Treasury notes used as economic hedges of our single family mortgage servicing rights, which are carried at fair value and included within investment securities on the balance sheet. For the quarters ended June 30, 2025 and 2024, the Company had net gains of $0.2 million and net losses of $0.3 million on trading securities, respectively, and for the six months ended June 30, 2025 and 2024, the Company had net gains of $1.0 million and net losses of $0.9 million on trading securities, respectively, which were recorded in servicing income.

MBS and CMOs represent securities issued or guaranteed by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being financed) issued by various municipal corporations. As of June 30, 2025 and December 31, 2024, substantially all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon nationally recognized statistical rating organizations where available and, where not available, based upon internal ratings.

Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:


	At June 30, 2025
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value

AFS
MBS:
Residential	$	(2)	$	526	$	(4,650)	$	151,754	$	(4,652)	$	152,280
Commercial	—		—		(5,405)		48,843		(5,405)		48,843
CMOs:
Residential	(13)		11,685		(24,462)		268,109		(24,475)		279,794
Commercial	(1)		3,067		(3,944)		49,178		(3,945)		52,245
Municipal bonds	(349)		15,285		(54,434)		343,646		(54,783)		358,931
Corporate debt securities	—		—		(5,575)		25,546		(5,575)		25,546
U.S. Treasury securities	—		—		(1,631)		20,498		(1,631)		20,498
Agency debentures	—		—		(735)		8,713		(735)		8,713
Total	$	(365)	$	30,563	$	(100,836)	$	916,287	$	(101,201)	$	946,850
HTM
Municipal bonds	$	—	$	—	$	(12)	$	2,253	$	(12)	$	2,253


	At December 31, 2024
	Less than 12 months				12 months or more				Total
(in thousands)	Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value

AFS
MBS:
Residential	$	(2)	$	532	$	(7,652)	$	158,044	$	(7,654)	$	158,576
Commercial	—		—		(6,978)		47,642		(6,978)		47,642
CMOs:
Residential	(78)		7,481		(31,862)		293,297		(31,940)		300,778
Commercial	—		—		(4,794)		51,834		(4,794)		51,834
Municipal bonds	(810)		28,361		(54,188)		340,571		(54,998)		368,932
Corporate debt securities	—		—		(6,192)		24,944		(6,192)		24,944
U.S. Treasury securities	—		—		(2,319)		19,987		(2,319)		19,987
Agency debentures	—		—		(1,044)		9,276		(1,044)		9,276
Total	$	(890)	$	36,374	$	(115,029)	$	945,595	$	(115,919)	$	981,969
HTM
Municipal bonds	$	—	$	—	$	(28)	$	2,273	$	(28)	$	2,273

The Company has evaluated AFS securities in an unrealized loss position and has determined the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of June 30, 2025 or December 31, 2024. The Company bases this conclusion in part on its periodic review of the credit ratings of the AFS securities or reviews of the financial condition of the issuers. In addition, as of June 30, 2025 and December 31, 2024, the Company had not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis.


	At June 30, 2025
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield

AFS
Municipal bonds	$	—	—	%	$	39,308	3.54	%	$	55,342	2.99	%	$	276,932	2.89	%	$	371,582	2.97	%
Corporate debt securities	—		—	%	2,327		1.74	%	23,219		4.44	%	—		—	%	25,546		4.20	%
U.S. Treasury securities	—		—	%	20,498		1.19	%	—		—	%	—		—	%	20,498		1.19	%
Agency debentures	—		—	%	1,587		2.17	%	4,031		2.22	%	3,095		2.21	%	8,713		2.21	%
Total	$	—	—	%	$	63,720	2.69	%	$	82,592	3.36	%	$	280,027	2.88	%	$	426,339	2.95	%

HTM
Municipal bonds	2,253		2.31	%	$	—	—	%	$	—	—	%	$	—	—	%	$	2,253	2.31	%


	At December 31, 2024
	Within one year				After one year through five years				After five years through ten years				After ten years				Total
(dollars in thousands)	Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield		Fair Value		Weighted Average Yield

AFS
Municipal bonds	$	—	—	%	$	15,531	3.88	%	$	70,678	2.92	%	$	292,050	2.93	%	$	378,259	2.97	%
Corporate debt securities	—		—	%	2,735		2.08	%	22,209		4.27	%	—		—	%	$	24,944	4.03	%
U.S. Treasury securities	—		—	%	19,987		1.15	%	—		—	%	—		—	%	$	19,987	1.15	%
Agency debentures	—		—	%	1,770		2.13	%	4,442		2.17	%	3,064		2.14	%	$	9,276	2.15	%
Total	$	—	—	%	$	40,023	2.32	%	$	97,329	3.19	%	$	295,114	2.92	%	$	432,466	2.93	%

HTM




Municipal bonds	$	2,273	2.29	%	$	—	—	%	$	—	—	%	$	—	—	%	$	2,273	2.29	%

The weighted-average yield is computed using the contractual coupon of each security weighted based on the fair value of each security. Taxable-equivalent amounts are used where applicable. MBS and CMOs are excluded from the tables above because such securities are not due on a single maturity date. The weighted average yield of MBS and CMOs as of June 30, 2025 and December 31, 2024 was 3.01%.

The following table summarizes the carrying value of securities pledged as collateral to secure public deposits, borrowings and other purposes as permitted or required by law:


(in thousands)	At June 30, 2025		At December 31, 2024


Federal Reserve Bank to secure borrowings	$	864,307	$	906,475
Washington, Oregon and California to secure public deposits	195,385		195,212

Other securities pledged	1,278		1,334
Total securities pledged as collateral	$	1,060,970	$	1,103,021

Tax-exempt interest income on investment securities was $2.6 million and $2.8 million for quarters ended June 30, 2025 and 2024, and $5.3 million and $5.6 million for the six months ended June 30, 2025 and 2024, respectively.