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Investment Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES     

Securities Available-for-Sale

The following tables present amortized cost, gross unrealized gains and losses, and fair values of AFS securities as of the dates indicated:

			March 31, 2025
																					Gross						Gross
			Amortized																		Unrealized						Unrealized						Fair
Security Type			Cost																		Gains						Losses						Value
			(In thousands)
Agency residential MBS			$	1,033,674																	$	—					$	(166,632)					$	867,042
Agency commercial MBS			62,126																		—						(922)						61,204
Agency residential CMOs			579,676																		2,541						(17,149)						565,068
Municipal securities			602																		—						(5)						597
Corporate debt securities			289,077																		423						(26,097)						263,403
Private label residential CMOs			334,859																		126						(31,658)						303,327
Collateralized loan obligations			243,485																		59						(659)						242,885
Private label commercial MBS			12,533																		—						(1,087)						11,446
Asset-backed securities			15,238																		—						(14)						15,224
SBA securities			4,123																		—						(261)						3,862
Total (1)			$	2,575,393																	$	3,149					$	(244,484)					$	2,334,058

_________________________

(1)    Excludes accrued interest receivable of $13.0 million at March 31, 2025 which is recorded in "Other assets" on the condensed consolidated balance sheets.

			December 31, 2024
																					Gross						Gross
			Amortized																		Unrealized						Unrealized						Fair
Security Type			Cost																		Gains						Losses						Value
			(In thousands)
Agency residential MBS			$	1,051,601																	$	—					$	(189,761)					$	861,840
Agency commercial MBS			52,610																		—						(1,046)						51,564
Agency residential CMOs			467,319																		223						(20,911)						446,631
Municipal securities			602																		—						(8)						594
Corporate debt securities			289,098																		—						(31,386)						257,712
Private label residential CMOs			352,615																		7						(35,712)						316,910
Collateralized loan obligations			278,976																		469						(29)						279,416
Private label commercial MBS			13,585																		—						(1,213)						12,372
Asset-backed securities			15,674																		—						(74)						15,600
SBA securities			4,564																		—						(364)						4,200
Total (1)			$	2,526,644																	$	699					$	(280,504)					$	2,246,839

_________________________

(1)    Excludes accrued interest receivable of $12.6 million at December 31, 2024 which is recorded in "Other assets" on the condensed consolidated balance sheets.

As of March 31, 2025, AFS securities with a fair value of $3.9 million were pledged as collateral solely for public deposits.

Realized Gains and Losses on Securities Available-for-Sale

The were no sales of AFS securities for the three months ended March 31, 2025 and 2024.

Unrealized Losses on Securities Available-for-Sale

The following tables present the gross unrealized losses and fair values of AFS securities that were in unrealized loss positions as of the dates indicated:

			March 31, 2025
			Less Than 12 Months												12 Months or More												Total
									Gross												Gross												Gross
			Fair						Unrealized						Fair						Unrealized						Fair						Unrealized
Security Type			Value						Losses						Value						Losses						Value						Losses
			(In thousands)
Agency residential MBS			$	—					$	—					$	867,042					$	(166,632)					$	867,042					$	(166,632)
Agency commercial MBS			49,911						(41)						11,293						(881)						61,204						(922)
Agency residential CMOs			27,981						(66)						104,865						(17,083)						132,846						(17,149)
Municipal securities			—						—						597						(5)						597						(5)
Corporate debt securities			—						—						240,730						(26,097)						240,730						(26,097)
Private label residential CMOs			97,388						(285)						129,803						(31,373)						227,191						(31,658)
Collateralized loan obligations			180,076						(659)						—						—						180,076						(659)
Private label commercial MBS			—						—						11,446						(1,087)						11,446						(1,087)
Asset-backed securities			15,224						(14)						—						—						15,224						(14)
SBA securities			—						—						3,862						(261)						3,862						(261)
Total			$	370,580					$	(1,065)					$	1,369,638					$	(243,419)					$	1,740,218					$	(244,484)

			December 31, 2024
			Less Than 12 Months												12 Months or More												Total
									Gross												Gross												Gross
			Fair						Unrealized						Fair						Unrealized						Fair						Unrealized
Security Type			Value						Losses						Value						Losses						Value						Losses
			(In thousands)
Agency residential MBS			$	—					$	—					$	861,840					$	(189,761)					$	861,840					$	(189,761)
Agency commercial MBS			40,291						(87)						11,273						(959)						51,564						(1,046)
Agency residential CMOs			273,347						(1,994)						104,757						(18,917)						378,104						(20,911)
Municipal securities			—						—						594						(8)						594						(8)
Corporate debt securities			15,968						(32)						241,744						(31,354)						257,712						(31,386)
Private label residential CMOs			180,915						(1,031)						129,178						(34,681)						310,093						(35,712)
Collateralized loan obligations			38,771						(29)						—						—						38,771						(29)
Private label commercial MBS			—						—						12,372						(1,213)						12,372						(1,213)
Asset-backed securities			15,600						(74)						—						—						15,600						(74)
SBA securities			—						—						4,200						(364)						4,200						(364)
Total			$	564,892					$	(3,247)					$	1,365,958					$	(277,257)					$	1,930,850					$	(280,504)

The securities that were in an unrealized loss position at March 31, 2025, were considered impaired and required further review to determine if the unrealized losses were credit-related. After completing such review, we concluded the unrealized losses were a result of the level of market interest rates relative to the types of securities and pricing changes caused by shifting supply and demand dynamics and not a result of downgraded credit ratings or other indicators of deterioration of the underlying issuers' ability to repay. We also considered the seniority of the tranches and U.S. government agency guarantees, if any, to assess whether an unrealized loss was credit-related. Accordingly, we determined the unrealized losses were not credit-related.

As of March 31, 2025, we believe there was no credit impairment as the decline in fair value of our securities since acquisition was primarily attributable to changes in interest rates and credit spreads. Further we do not currently intend to sell any of the securities in an unrealized loss position and it is not more likely than not the Company will be required to sell these securities before their anticipated recovery. As such, we recognized the unrealized losses in "Accumulated other comprehensive loss, net" of "Stockholders' equity" on the condensed consolidated balance sheets.

Contractual Maturities of Securities Available-for-Sale

The following tables present the contractual maturities of our AFS securities portfolio based on amortized cost and fair value as of the dates indicated:

			March 31, 2025
									Due After						Due After
			Due						One Year						Five Years						Due
			Within						Through						Through						After
Security Type			One Year						Five Years						Ten Years						Ten Years						Total
			(In thousands)
Amortized Cost:
Agency residential MBS			$	—					$	—					$	—					$	1,033,674					$	1,033,674
Agency commercial MBS			—						39,959						9,994						12,173						62,126
Agency residential CMOs			—						—						14,655						565,021						579,676
Municipal securities			—						602						—						—						602
Corporate debt securities			—						7,500						281,577						—						289,077
Private label residential CMOs			—						—						—						334,859						334,859
Collateralized loan obligations			—						—						136,918						106,567						243,485
Private label commercial MBS			—						—						580						11,953						12,533
Asset-backed securities			—						—						—						15,238						15,238
SBA securities			—						—						4,123						—						4,123
Total			$	—					$	48,061					$	447,847					$	2,079,485					$	2,575,393

			March 31, 2025
									Due After						Due After
			Due						One Year						Five Years						Due
			Within						Through						Through						After
Security Type			One Year						Five Years						Ten Years						Ten Years						Total
			(In thousands)
Fair Value:
Agency residential MBS			$	—					$	—					$	—					$	867,042					$	867,042
Agency commercial MBS			—						39,928						9,983						11,293						61,204
Agency residential CMOs			—						—						14,775						550,293						565,068
Municipal securities			—						597						—						—						597
Corporate debt securities			—						7,354						256,049						—						263,403
Private label residential CMOs			—						—						—						303,327						303,327
Collateralized loan obligations			—						—						136,471						106,414						242,885
Private label commercial MBS			—						—						571						10,875						11,446
Asset-backed securities			—						—						—						15,224						15,224
SBA securities			—						—						3,862						—						3,862
Total			$	—					$	47,879					$	421,711					$	1,864,468					$	2,334,058

CMBS, CMOs, and MBS have contractual maturity dates, but require periodic payments based upon scheduled amortization terms. Actual principal collections on these securities usually occur more rapidly than the scheduled amortization terms because of prepayments made by obligors of the underlying loan collateral.

Securities Held-to-Maturity

The following tables present amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair values of HTM securities as of the dates indicated:

			March 31, 2025
									Allowance
									for						Net						Gross						Gross
			Amortized						Credit						Carrying						Unrealized						Unrealized						Fair
Security Type			Cost						Losses						Amount						Gains						Losses						Value
			(In thousands)
Municipal securities			$	1,252,455					$	(20)					$	1,252,435					$	61					$	(59,663)					$	1,192,833
Agency commercial MBS			442,172						—						442,172						—						(28,137)						414,035
Private label commercial MBS			356,586						—						356,586						—						(19,841)						336,745
U.S. Treasury securities			190,726						—						190,726						—						(12,291)						178,435
Corporate debt securities			70,573						(580)						69,993						—						(12,131)						57,862
Total (1)			$	2,312,512					$	(600)					$	2,311,912					$	61					$	(132,063)					$	2,179,910

__________________________

(1)    Excludes accrued interest receivable of $11.3 million at March 31, 2025 which is recorded in "Other assets" on the condensed consolidated balance sheets.

			December 31, 2024
									Allowance
									for						Net						Gross						Gross
			Amortized						Credit						Carrying						Unrealized						Unrealized						Fair
Security Type			Cost						Losses						Amount						Gains						Losses						Value
			(In thousands)
Municipal securities			$	1,251,364					$	(140)					$	1,251,224					$	35					$	(54,799)					$	1,196,460
Agency commercial MBS			440,476						—						440,476						—						(37,840)						402,636
Private label commercial MBS			355,342						—						355,342						—						(26,226)						329,116
U.S. Treasury securities			189,985						—						189,985						—						(16,702)						173,283
Corporate debt securities			70,482						(1,360)						69,122						—						(13,923)						55,199
Total (1)			$	2,307,649					$	(1,500)					$	2,306,149					$	35					$	(149,490)					$	2,156,694

__________________________

(1)    Excludes accrued interest receivable of $13.4 million at December 31, 2024 which is recorded in "Other assets" on the condensed consolidated balance sheets.

As of March 31, 2025, HTM securities with an amortized cost of $2.2 billion and a fair value of $2.1 billion were pledged as collateral for the FRB secured line of credit and public deposits.

Allowance for Credit Losses on Securities Held-to-Maturity

The following tables present the changes by major security type in our allowance for credit losses on HTM securities for the periods indicated:

			Three Months Ended March 31, 2025
			Allowance for						Provision																		Allowance for
			Credit Losses,						for																		Credit Losses,
			Beginning						Credit																		End of
Security Type			of Period						Losses						Charge-offs						Recoveries						Period
			(In thousands)
Municipal securities			$	140					$	(120)					$	—					$	—					$	20
Corporate debt securities			1,360						(780)						—						—						580
Total			$	1,500					$	(900)					$	—					$	—					$	600

			Three Months Ended March 31, 2024
			Allowance for						Provision																		Allowance for
			Credit Losses,						for																		Credit Losses,
			Beginning						Credit																		End of
Security Type			of Period						Losses						Charge-offs						Recoveries						Period
			(In thousands)
Municipal securities			$	140					$	—					$	—					$	—					$	140
Corporate debt securities			1,360						—						—						—						1,360
Total			$	1,500					$	—					$	—					$	—					$	1,500

Credit losses on HTM securities are recorded at the time of purchase, acquisition, or when the Company designates securities as held-to-maturity. Credit losses on HTM securities are representative of current expected credit losses that may be incurred over the life of the investment. Accrued interest receivable on HTM securities, which is included in other assets on the condensed consolidated balance sheets, is excluded from the estimate of expected credit losses. HTM U.S. treasury securities and agency-backed MBS securities are considered to have no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. The change in fair value in the HTM private label CMBS portfolio is solely driven by changes in interest rates. The Company has no knowledge of any underlying credit issues and the cash flows underlying the debt securities have not changed and are not expected to be impacted by changes in interest rates and, thus, there is no related ACL for this portfolio. The underlying bonds in the Company’s HTM municipal securities and HTM corporate debt securities portfolios are evaluated for credit losses in conjunction with management’s estimate of the ACL based primarily on credit ratings.

Securities Held-to-Maturity by Credit Quality Indicator

The Company uses S&P, Moody's, Fitch, Kroll, and Egan Jones ratings as the credit quality indicators for its HTM securities. The following tables present our HTM securities portfolio at amortized cost by the lowest available credit rating as of the dates indicated:

			March 31, 2025
Security Type			AAA						AA+						AA						AA-												A												BBB						NR						Total
			(In thousands)
Amortized Cost:
Municipal securities			$	571,520					$	369,314					$	219,130					$	73,070											$	1,664											$	—					$	17,757					$	1,252,455
Agency commercial MBS			—						442,172						—						—												—												—						—						442,172
Private label commercial MBS			356,586						—						—						—												—												—						—						356,586
U.S. Treasury securities			—						190,726						—						—												—												—						—						190,726
Corporate debt securities			—						—						—						—												—												44,542						26,031						70,573
Total			$	928,106					$	1,002,212					$	219,130					$	73,070											$	1,664											$	44,542					$	43,788					$	2,312,512

			December 31, 2024
Security Type			AAA						AA+						AA						AA-												A												BBB						NR						Total
			(In thousands)
Amortized Cost:
Municipal securities			$	571,347					$	369,072					$	218,581					$	72,952											$	1,667											$	—					$	17,745					$	1,251,364
Agency commercial MBS			—						440,476						—						—												—												—						—						440,476
Private label commercial MBS			355,342						—						—						—												—												—						—						355,342
U.S. Treasury securities			—						189,985						—						—												—												—						—						189,985
Corporate debt securities			—						—						—						—												—												44,507						25,975						70,482
Total			$	926,689					$	999,533					$	218,581					$	72,952											$	1,667											$	44,507					$	43,720					$	2,307,649

Contractual Maturities of Securities Held-to-Maturity

The following tables present the contractual maturities of our HTM securities portfolio based on amortized cost and fair value as of the date indicated:

			March 31, 2025
									Due After						Due After
			Due						One Year						Five Years						Due
			Within						Through						Through						After
Security Type			One Year						Five Years						Ten Years						Ten Years						Total
			(In thousands)
Amortized Cost:
Municipal securities			$	—					$	20,359					$	477,179					$	754,917					$	1,252,455
Agency commercial MBS			—						32,138						410,034						—						442,172
Private label commercial MBS			—						—						36,959						319,627						356,586
U.S. Treasury securities			—						—						190,726						—						190,726
Corporate debt securities			—						—						10,141						60,432						70,573
Total			$	—					$	52,497					$	1,125,039					$	1,134,976					$	2,312,512

			March 31, 2025
									Due After						Due After
			Due						One Year						Five Years						Due
			Within						Through						Through						After
Security Type			One Year						Five Years						Ten Years						Ten Years						Total
			(In thousands)
Fair Value:
Municipal securities			$	—					$	20,333					$	459,469					$	713,031					$	1,192,833
Agency commercial MBS			—						30,082						383,953						—						414,035
Private label commercial MBS			—						—						35,137						301,608						336,745
U.S. Treasury securities			—						—						178,435						—						178,435
Corporate debt securities			—						—						9,800						48,062						57,862
Total			$	—					$	50,415					$	1,066,794					$	1,062,701					$	2,179,910

Commercial MBS have contractual maturity dates, but require periodic payments based upon scheduled amortization terms. Actual principal collections on these securities usually occur more rapidly than the scheduled amortization terms because of prepayments made by obligors of the underlying loan collateral.

Interest Income on Investment Securities

The following table presents the composition of our interest income on AFS and HTM investment securities for the periods indicated:

			Three Months Ended
			March 31,
			2025						2024
			(In thousands)
Taxable interest			$	31,447					$	27,601
Non-taxable interest			4,517						4,720
Dividend income			1,898						1,982
Total interest income on investment securities			$	37,862					$	34,303

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- Definition

The entire disclosure for investment.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//320/tableOfContent

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 321
-Publisher FASB
-URI https://asc.fasb.org//321/tableOfContent

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 325
-Publisher FASB
-URI https://asc.fasb.org//325/tableOfContent

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