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Investment Securities | 6 Months Ended
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Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities As of June 30, 2025, the Company had $3.02 billion and $308.7 million in available for sale debt securities and held to maturity debt securities, respectively. Many factors, including lack of liquidity in the secondary market for certain securities, variations in pricing information, changes in interest rates, regulatory actions, changes in the business environment or any changes in the competitive marketplace, could have an adverse effect on the Company’s investment portfolio. Available for Sale Debt Securities The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the fair value for available for sale debt securities as of June 30, 2025 and December 31, 2024 (in thousands):
|  | June 30, 2025
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
U.S. Treasury obligations |  | $ | 331,283 |  |  | 263 |  |  | (12,101) |  |  | 319,445 |
Government-agency obligations |  | 39,483 |  |  | 1,128 |  |  | (50) |  |  | 40,561 |
Mortgage-backed securities |  | 2,537,641 |  |  | 12,708 |  |  | (140,824) |  |  | 2,409,525 |
Asset-backed securities |  | 44,855 |  |  | 429 |  |  | (353) |  |  | 44,931 |
State and municipal obligations |  | 119,730 |  |  | 467 |  |  | (10,602) |  |  | 109,595 |
Corporate obligations |  | 93,496 |  |  | 4,779 |  |  | (2,536) |  |  | 95,739 |
|  | $ | 3,166,488 |  |  | 19,774 |  |  | (166,466) |  |  | 3,019,796 |
|  | December 31, 2024
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair value
U.S. Treasury obligations |  | $ | 348,621 |  |  | 317 |  |  | (18,340) |  |  | 330,598 |
Government-agency obligations |  | 105,965 |  |  | 1,461 |  |  | (191) |  |  | 107,235 |
Mortgage-backed securities |  | 2,243,725 |  |  | 4,982 |  |  | (186,548) |  |  | 2,062,159 |
Asset-backed securities |  | 47,203 |  |  | 645 |  |  | (285) |  |  | 47,563 |
State and municipal obligations |  | 126,766 |  |  | 243 |  |  | (10,092) |  |  | 116,917 |
Corporate obligations |  | 103,415 |  |  | 3,958 |  |  | (2,930) |  |  | 104,443 |
|  | $ | 2,975,695 |  |  | 11,606 |  |  | (218,386) |  |  | 2,768,915 |
Accrued interest on available for sale debt securities, which is excluded from the amortized cost, totaled $10.5 million and $9.7 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. The amortized cost and fair value of available for sale debt securities as of June 30, 2025, by contractual maturity, are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
|  | June 30, 2025
|  | Amortized cost |  | Fair value
Due in one year or less |  | $ | 107,849 |  |  | 106,282 |
Due after one year through five years |  | 258,931 |  |  | 248,809 |
Due after five years through ten years |  | 110,734 |  |  | 110,382 |
Due after ten years |  | 66,995 |  |  | 59,307 |
|  | $ | 544,509 |  |  | 524,780 |
Investments which pay principal on a periodic basis totaling $2.62 billion at amortized cost and $2.50 billion at fair value are excluded from the table above as their expected lives are likely to be shorter than the contractual maturity date due to principal prepayments. For the three months ended June 30, 2025, no securities were sold or called from the available for sale debt securities portfolio. For the six months ended June 30, 2025, proceeds from sales on securities in the available for sale debt securities portfolio totaled $1.7 million, with gross gains of $87,000 and no losses recognized. For the three and six months ended June 30, 2024, proceeds from sales on available for sale debt securities portfolio totaled $568.4 million, with no gains and $3.0 million of losses recognized. For the three months ended June 30, 2025 no securities were called from the available for sale debt securities portfolio. For the six months ended June 30, 2025, proceeds from calls on securities in the available for sale debt securities portfolio totaled $9.6 million with no gains or losses recognized. For the three and six months ended June 30, 2024, there were no proceeds from calls on securities in the available for sale debt securities portfolio. The number of available for sale debt securities in an unrealized loss position as of June 30, 2025 totaled 504, compared with 646 as of December 31, 2024. The decrease in the number of securities in an unrealized loss position as of June 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024. All securities in an unrealized loss position were investment grade as of June 30, 2025. Held to Maturity Debt Securities The following tables present the amortized cost, gross unrealized gains, gross unrealized losses and the estimated fair value for held to maturity debt securities, excluding allowances for credit losses of $20,000 and $14,000, as of June 30, 2025 and December 31, 2024, respectively (in thousands):
|  | June 30, 2025
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  |  |  | Fair value
Government-agency obligations |  | $ | 8,399 |  |  | — |  |  | (115) |  |  |  |  | 8,284 |
State and municipal obligations |  | 296,727 |  |  | 32 |  |  | (10,120) |  |  |  |  | 286,639 |
Corporate obligations |  | 3,598 |  |  | — |  |  | (63) |  |  |  |  | 3,535 |
|  | $ | 308,724 |  |  | 32 |  |  | (10,298) |  |  |  |  | 298,458 |
|  | December 31, 2024
|  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  |  |  | Fair value
Government-agency obligations |  | 9,999 |  |  | — |  |  | (292) |  |  |  |  | 9,707 |
State and municipal obligations |  | 311,118 |  |  | 689 |  |  | (14,133) |  |  |  |  | 297,674 |
Corporate obligations |  | 6,520 |  |  | — |  |  | (168) |  |  |  |  | 6,352 |
|  | $ | 327,637 |  |  | 689 |  |  | (14,593) |  |  |  |  | 313,733 |
Accrued interest on held to maturity debt securities, which is excluded from the amortized cost, totaled $2.8 million and $2.9 million as of June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition. The Company generally purchases securities for long-term investment purposes, and differences between amortized cost and fair value may fluctuate during the investment period. There were no sales of securities from the held to maturity debt securities portfolio for the three and six months ended June 30, 2025 and 2024. For the three and six months ended June 30, 2025, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $5.2 million and $10.1 million, respectively. For the three and six months ended June 30, 2025 there were no gross gains or gross losses related to these calls on securities. For the three and six months ended June 30, 2024, proceeds from calls on securities in the held to maturity debt securities portfolio totaled $1.2 million and $2.4 million, respectively. As to these calls on securities, for the three months ended June 30, 2024, there were no gross gains or gross losses, while for the six months ended June 30, 2024, there were no gross gains, while gross losses totaled $1,200. The amortized cost and fair value of investment securities in the held to maturity debt securities portfolio as of June 30, 2025 by contractual maturity are shown below (in thousands). Expected maturities may differ from contractual maturities due to prepayment or early call privileges of the issuer.
|  | June 30, 2025
|  | Amortized cost |  | Fair value
Due in one year or less |  | $ | 50,292 |  |  | 50,125 |
Due after one year through five years |  | 158,612 |  |  | 157,107 |
Due after five years through ten years |  | 83,208 |  |  | 78,181 |
Due after ten years |  | 16,612 |  |  | 13,045 |
|  | $ | 308,724 |  |  | 298,458 |
The allowance for credit losses on held to maturity debt securities as of June 30, 2025 and December 31, 2024 was $20,000 and $14,000, respectively, and are excluded from amortized cost in the table above. The number of held to maturity debt securities in an unrealized loss position as of June 30, 2025 totaled 420, compared with 512 as of December 31, 2024. The decrease in the number of securities in an unrealized loss position as of June 30, 2025, was due to lower current market interest rates compared to rates as of December 31, 2024. Management measures expected credit losses on held to maturity debt securities on a collective basis by security type. Management classifies the held to maturity debt securities portfolio into the following security types: •Government-agency obligations; •Mortgage-backed securities; •State and municipal obligations; and •Corporate obligations. All of the agency obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The majority of the state and municipal and corporate obligations carry credit ratings from the rating agencies as of June 30, 2025 that were no lower than an A rating and the Company had no securities rated BBB or worse by Moody’s Ratings ("Moody's"). Credit Quality Indicators. The following table provides the amortized cost of held to maturity debt securities by credit rating as of June 30, 2025 and December 31, 2024 (in thousands):
|  | June 30, 2025
Total Portfolio |  | AAA |  | AA |  | A |  | BBB |  | Not Rated |  | Total
Government-agency obligations |  | $ | 8,399 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,399 |
State and municipal obligations |  | 45,144 |  |  | 219,904 |  |  | 21,601 |  |  | — |  |  | 10,078 |  |  | 296,727 |
Corporate obligations |  | — |  |  | 575 |  |  | 3,023 |  |  |  |  | — |  |  | 3,598 |
|  | $ | 53,543 |  |  | 220,479 |  |  | 24,624 |  |  | — |  |  | 10,078 |  |  | 308,724 |
|  | December 31, 2024
Total Portfolio |  | AAA |  | AA |  | A |  | BBB |  | Not Rated |  | Total
Government-agency obligations |  | 9,999 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,999 |
State and municipal obligations |  | 44,821 |  |  | 234,212 |  |  | 28,735 |  |  | — |  |  | 3,350 |  |  | 311,118 |
Corporate obligations |  | 501 |  |  | 2,013 |  |  | 3,981 |  |  | — |  |  | 25 |  |  | 6,520 |
|  | $ | 55,321 |  |  | 236,225 |  |  | 32,716 |  |  | — |  |  | 3,375 |  |  | 327,637 |
Credit quality indicators are metrics that provide information regarding the relative credit risk of debt securities. As of June 30, 2025, the held to maturity debt securities portfolio was comprised of 17% rated AAA, 71% rated AA, 8% rated A, and less than 3% either below an A rating or not rated by Moody’s or Standard and Poor’s. Securities not explicitly rated, such as U.S. government issued mortgage-backed securities, were grouped where possible under the credit rating of the issuer of the security.

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