Available for Sale Debt Securities

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

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 December 31, 2025 and 2024 (in thousands):


	2025
	Amortized cost		Gross unrealized gains	Gross unrealized losses	Fair value
U.S. Treasury obligations	$	274,500	190	(7,946)	266,744
Government-agency obligations	32,693		877	(31)	33,539
Mortgage-backed securities	2,705,346		23,454	(116,453)	2,612,347
Asset-backed securities	41,619		409	(267)	41,761
State and municipal obligations	119,173		1,249	(7,423)	112,999
Corporate obligations	93,498		5,429	(1,561)	97,366
	$	3,266,829	31,608	(133,681)	3,164,756


	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		3958	(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 $10.9 million and $9.7 million as of December 31, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The carrying value of available for sale debt securities that were pledged as collateral for municipal deposits and repurchase agreements was $2.2 billion and $863.9 million as of December 31, 2025 and 2024, respectively.

The amortized cost and fair value of available for sale debt securities as of December 31, 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.


	2025
	Amortized cost		Fair value
Due in one year or less	$	108,932	107,858
Due after one year through five years	196,488		190,223
Due after five years through ten years	114,951		117,101
Due after ten years	66,801		61,928
	$	487,172	477,110

Investments which pay principal on a periodic basis, which are primarily related to mortgage-backed securities, totaling $2.78 billion at amortized cost and $2.69 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.

During 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 2024, proceeds from sales of securities from the available for sale debt securities portfolio totaled $569.9 million with no gains and $3.0 million of losses recognized, of which $2.8 million was related to the sale of subordinated debt issued by Lakeland from its investment portfolio. During 2025, proceeds from calls on securities in the available for sale debt securities portfolio totaled $23.9 million with gross gains of $729,000 and no losses recognized. For 2024, proceeds from calls on securities in the available for sale debt securities portfolio totaled $780,000 with no gains and no losses recognized.

The following table shows gross unrealized losses and estimated fair value of available for sale debt securities, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of December 31, 2025 and 2024 (in thousands):


	December 31, 2025
	Less Than 12 months			12 Months or More		Total
	Fair value		Unrealized Losses	Fair value	Unrealized Losses	Fair value	Unrealized Losses
Available-for-sale:
U.S. Treasury obligations	$	—	—	245,675	(7,946)	245,675	(7,946)
Government-agency obligations	8,541		(31)	—	—	8,541	(31)
Mortgage-backed securities	133,316		(4,119)	984,261	(112,334)	1,117,577	(116,453)
Asset-backed securities	20,493		(129)	1,605	(138)	22,098	(267)
State and municipal obligations	21,613		(665)	53,173	(6,758)	74,786	(7,423)
Corporate obligations	8,994		(6)	18,742	(1,555)	27,736	(1,561)
Total	$	192,957	(4,949)	1,303,456	(128,732)	1,496,412	(133,681)

The number of securities in an unrealized loss position as of December 31, 2025 totaled 406, compared with 646 as of December 31, 2024. The decrease in the number of securities in an unrealized loss position as of December 31, 2025 was mainly due to lower current market interest rates on the intermediate part of the curve compared to rates as of December 31, 2024.

The Company concluded that no available for sale debt securities were impaired at December 31, 2025 based on consideration of several factors. The Company noted that each issuer made all the contractually due payments when required. There were no defaults on principal or interest payments, and no interest payments were deferred. Furthermore, the net unrealized losses were primarily due to changes in the general credit and interest rate environment and not credit quality. Additionally, the Company has not utilized securities sales as a source of liquidity and the Company’s liquidity plans include adequate sources of liquidity outside securities sales.