

	September 30, 2025
	Amortized Cost		Gross Unrealized				Carrying Value
			Gains		Losses
Investment securities available for sale:
U.S. Treasury securities	$	175,307	$	1,035	$	(7,625)	$	168,717
U.S. Government agency and sponsored enterprise residential MBS	2,699,845		12,055		(16,398)		2,695,502
U.S. Government agency and sponsored enterprise commercial MBS	571,192		565		(45,032)		526,725
Private label residential MBS and CMOs	2,562,963		2,439		(209,197)		2,356,205
Private label commercial MBS	2,277,909		4,792		(22,321)		2,260,380
Single family real estate-backed securities	229,293		329		(2,541)		227,081
Collateralized loan obligations	988,160		747		(552)		988,355
Non-mortgage asset-backed securities	68,711		249		(1,062)		67,898
State and municipal obligations	111,421		238		(5,894)		105,765
SBA securities	63,554		26		(1,795)		61,785

	$	9,748,355	$	22,475	$	(312,417)	$	9,458,413


Marketable equity securities							8,669
							$	9,467,082



	December 31, 2024
	Amortized Cost		Gross Unrealized				Carrying Value
			Gains		Losses
Investment securities available for sale:
U.S. Treasury securities	$	214,796	$	165	$	(12,009)	$	202,952
U.S. Government agency and sponsored enterprise residential MBS	2,672,554		3,607		(26,471)		2,649,690
U.S. Government agency and sponsored enterprise commercial MBS	557,489		156		(61,892)		495,753
Private label residential MBS and CMOs	2,491,033		506		(253,493)		2,238,046
Private label commercial MBS	1,822,881		1,836		(40,688)		1,784,029
Single family real estate-backed securities	335,047		108		(8,074)		327,081
Collateralized loan obligations	1,131,088		1,804		(193)		1,132,699
Non-mortgage asset-backed securities	96,865		144		(2,555)		94,454
State and municipal obligations	110,388		13		(6,391)		104,010
SBA securities	74,900		37		(2,235)		72,702

	$	9,507,041	$	8,376	$	(414,001)	$	9,101,416


Marketable equity securities							28,828
							$	9,130,244


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024

Gross realized gains on investment securities AFS	$	674	$	76	$	2,267	$	501
Gross realized losses on investment securities AFS	(15)		(67)		(170)		(170)
Net realized gain	659		9		2,097		331

Net gain (loss) on marketable equity securities recognized in earnings	(11)		118		(157)		992

Gain on investment securities, net	$	648	$	127	$	1,940	$	1,323

The following tables present the aggregate fair value and the aggregate amount by which amortized cost exceeded fair value for investment securities available for sale in unrealized loss positions aggregated by investment category and length of time that individual securities had been in continuous unrealized loss positions at the dates indicated (in thousands):


	September 30, 2025

	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	25,205	$	(219)	$	97,412	$	(7,406)	$	122,617	$	(7,625)
U.S. Government agency and sponsored enterprise residential MBS	86,533		(557)		734,596		(15,841)		821,129		(16,398)
U.S. Government agency and sponsored enterprise commercial MBS	24,643		(116)		438,933		(44,916)		463,576		(45,032)

Private label residential MBS and CMOs	18,006		(197)		1,943,761		(209,000)		1,961,767		(209,197)
Private label commercial MBS	182,380		(392)		488,270		(21,929)		670,650		(22,321)
Single family real estate-backed securities	—		—		152,836		(2,541)		152,836		(2,541)
Collateralized loan obligations	186,929		(454)		30,402		(98)		217,331		(552)
Non-mortgage asset-backed securities	—		—		15,678		(1,062)		15,678		(1,062)
State and municipal obligations	1,190		(5)		51,780		(5,889)		52,970		(5,894)
SBA securities	—		—		58,136		(1,795)		58,136		(1,795)

	$	524,886	$	(1,940)	$	4,011,804	$	(310,477)	$	4,536,690	$	(312,417)


	December 31, 2024
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	126,710	$	(3,195)	$	40,791	$	(8,814)	$	167,501	$	(12,009)
U.S. Government agency and sponsored enterprise residential MBS	895,759		(5,474)		936,106		(20,997)		1,831,865		(26,471)
U.S. Government agency and sponsored enterprise commercial MBS	55,431		(1,545)		394,735		(60,347)		450,166		(61,892)

Private label residential MBS and CMOs	147,700		(954)		2,040,335		(252,539)		2,188,035		(253,493)
Private label commercial MBS	44,000		(302)		1,199,150		(40,386)		1,243,150		(40,688)
Single family real estate-backed securities	—		—		301,973		(8,074)		301,973		(8,074)
Collateralized loan obligations	336,924		(189)		7,726		(4)		344,650		(193)
Non-mortgage asset-backed securities	—		—		71,789		(2,555)		71,789		(2,555)
State and municipal obligations	15,765		(148)		54,820		(6,243)		70,585		(6,391)
SBA securities	—		—		67,880		(2,235)		67,880		(2,235)

	$	1,622,289	$	(11,807)	$	5,115,305	$	(402,194)	$	6,737,594	$	(414,001)

The Company monitors its investment securities available for sale for credit loss impairment on an individual security basis. No securities were determined to be credit loss impaired during the three and nine months ended September 30, 2025 and 2024. At September 30, 2025, the Company did not have an intent to sell securities that were in significant unrealized loss positions, and it was not more likely than not that the Company would be required to sell these securities before recovery of the amortized cost basis, which may be at maturity. In making this determination, the Company considered its current and projected liquidity position including its ability to pledge securities to generate liquidity, its investment policy as to permissible holdings and concentration limits, regulatory requirements and other relevant factors.

At September 30, 2025, 343 securities available for sale were in unrealized loss positions. The amount of unrealized losses related to 89 of these securities was considered insignificant both individually and in the aggregate, totaling approximately $0.8 million and no further analysis with respect to these securities was considered necessary. The basis for concluding that AFS securities were not credit loss impaired and no ACL was considered necessary at September 30, 2025, is further discussed below.

Unrealized losses were primarily attributable to a sustained higher interest rate environment and in some cases, wider spreads compared to levels at which securities were purchased. The investment securities AFS portfolio was in a net unrealized loss position of $289.9 million at September 30, 2025, compared to $405.6 million at December 31, 2024, improving by $115.7 million during the nine months ended September 30, 2025, largely due to a declining interest rate environment. While the majority of securities in the portfolio were floating rate at September 30, 2025, fixed rate securities accounted for the majority of unrealized losses.

At September 30, 2025, seven U.S. treasury, 55 U.S. Government agency and sponsored enterprise residential MBS, 22 U.S. Government agency and sponsored enterprise commercial MBS and 17 SBA securities were in unrealized loss positions. The timely payment of principal and interest on these securities is explicitly or implicitly guaranteed by the U.S. Government. As such, there is an assumption of zero credit loss and the Company expects to recover the amortized cost basis of these securities.

None of the impaired private label securities had missed principal or interest payments or had been downgraded by a NRSRO at September 30, 2025. The Company performed an analysis comparing the present value of cash flows expected to be collected to the amortized cost basis of impaired securities. This analysis was based on a scenario that we believe to be generally more conservative than our reasonable and supportable economic forecast at September 30, 2025, and incorporated assumptions about voluntary prepayment rates, collateral defaults, delinquencies, severity and other relevant factors as described further below. Our analysis also considered the structural characteristics of each security and the level of credit enhancement provided by that structure.

At September 30, 2025, 109 private label residential MBS and CMOs were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, voluntary prepayment rates, loss severity, delinquencies and recovery lag. In developing those assumptions, we took into account collateral quality measures such as FICO, LTV, documentation, loan type, property type, agency availability criteria and performing status. We also regularly monitor sector data including home price appreciation, forbearance, delinquency, special servicing and prepay trends as well as other economic data that could be indicative of stress in the sector. Underlying delinquencies in this sector remain low. Our September 30, 2025 analysis projected weighted average collateral losses for impaired securities in this category of 2.3% compared to weighted average credit support of 18.3%. As of September 30, 2025, 96% of impaired securities in this category, based on carrying value, were externally rated AAA and 4% were rated AA.

At September 30, 2025, 26 private label commercial MBS were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, voluntary prepayment rates, loss severity, delinquencies and recovery lag. In developing those assumptions, we took into account collateral quality and type, loan size, loan purpose and other qualitative factors. We also regularly monitor collateral concentrations, collateral watch lists, bankruptcy data, defeasance data, special servicing trends, delinquency and other economic data that could be indicative of stress in the sector. We consider collateral, deal, sector and tranche level performance as well as maturity and refinance risk. While we have observed some deterioration in collateral performance in this segment, particularly in the office sector, the high credit quality of these securities and adequacy of subordination to cover projected collateral losses supports the conclusion that there is no credit loss impairment. Our September 30, 2025 analysis projected weighted average collateral losses for impaired securities in this category of 7.1% compared to weighted average credit support of 46.7%. As of September 30, 2025, 90% of impaired securities in this category, based on carrying value, were externally rated AAA, 9% were rated AA and 1% were rated A. There was no single-asset, single-borrower exposure.

At September 30, 2025, six single family real estate-backed securities were in unrealized loss positions. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, delinquencies and recovery lag. We regularly monitor sector data including home price appreciation, forbearance, delinquency and prepay trends as well as other economic data that could be indicative of stress in the sector. We consider collateral, deal, sector and tranche level performance as well as maturity and refinance risk. Our September 30, 2025 analysis projected weighted average collateral losses for this category of 6.8% compared to weighted average credit support of 60.3%. As of September 30, 2025, 56% of impaired securities in this category, based on carrying value, were externally rated AAA and 44% were rated AA.

At September 30, 2025, five collateralized loan obligations were in unrealized loss positions. Unrealized losses totaled less than 1% of total amortized cost of this segment at September 30, 2025. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, and delinquencies, calibrated to take into account idiosyncratic risks associated with the underlying collateral. In developing those assumptions, we took into account each sector’s performance pre-, during and post the 2008 financial crisis. We regularly engage with bond managers to monitor trends in underlying collateral including potential downgrades and subsequent cash flow diversions, liquidity, ratings migration, and any other relevant developments. The high credit quality of these securities and adequacy of subordination to cover projected collateral losses supports the conclusion that there is no credit loss impairment. Our September 30, 2025 analysis projected weighted average collateral losses for impaired securities in this category of 16.2% compared to weighted average credit support of 39.1%. As of September 30, 2025, 61% of the impaired securities in this category, based on carrying value, were externally rated AAA, and 39% were rated AA.

At September 30, 2025, three non-mortgage asset-backed securities were in unrealized loss positions. These securities are backed by student loan collateral. Our analysis of cash flows expected to be collected on these securities incorporated assumptions about collateral default rates, loss severity, delinquencies, voluntary prepayment rates and recovery lag. In developing assumptions, we took into account collateral type, delineated by whether collateral consisted of loans to borrowers in school, refinancing, or a mixture. Our September 30, 2025 analysis projected weighted average collateral losses for impaired securities in this category of 3.9% compared to weighted average credit support of 22.8%. As of September 30, 2025, all of the impaired securities in this category, based on carrying value, were externally rated AAA.