Securities

9 Months Ended

Sep. 30, 2025

5.	Securities

The amortized cost, estimated fair value and unrealized gains (losses) of AFS securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of September 30, 2025
U.S. treasury	$	104,221	$	32	$	(3,173	)	$	101,080
Federal agency		248,321		-		(19,265	)		229,056
State & municipal		93,356		5		(4,664	)		88,697
Mortgage-backed:
Government-sponsored enterprises		477,863		1,348		(27,176	)		452,035
U.S. government agency securities		116,835		513		(4,080	)		113,268
Collateralized mortgage obligations:
Government-sponsored enterprises		621,058		1,810		(29,137	)		593,731
U.S. government agency securities		226,606		175		(23,406	)		203,375
Corporate		34,000		6		(2,054	)		31,952
Total AFS securities	$	1,922,260	$	3,889	$	(112,955	)	$	1,813,194
As of December 31, 2024
U.S. treasury	$	108,838	$	59	$	(6,107	)	$	102,790
Federal agency		248,348		-		(29,831	)		218,517
State & municipal		95,457		-		(7,967	)		87,490
Mortgage-backed:
Government-sponsored enterprises		435,825		2		(41,528	)		394,299
U.S. government agency securities		76,528		9		(6,471	)		70,066
Collateralized mortgage obligations:
Government-sponsored enterprises		546,685		142		(42,831	)		503,996
U.S. government agency securities		179,136		39		(26,683	)		152,492
Corporate		48,482		-		(3,468	)		45,014
Total AFS securities	$	1,739,299	$	251	$	(164,886	)	$	1,574,664

There was no allowance for credit losses on AFS securities as of September 30, 2025 and December 31, 2024.

During the three and nine months ended September 30, 2025, there were no gains or losses reclassified out of accumulated other comprehensive income (loss) (“AOCI”) and into earnings. During the three months ended September 30, 2024, there were no gains or losses reclassified out of AOCI and into earnings. During the nine months ended September 30, 2024, the Company sold a previously written-off security and recognized a gain of $2.3 million into earnings in net securities gains (losses) in the unaudited interim consolidated statements of income.

The amortized cost, estimated fair value and unrealized gains (losses) of HTM securities are as follows:

(In thousands)	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
As of September 30, 2025
Federal agency	$	100,000	$	-	$	(11,512	)	$	88,488
Mortgage-backed:
Government-sponsored enterprises		193,775		-		(24,801	)		168,974
U.S. government agency securities		13,665		1		(122	)		13,544
Collateralized mortgage obligations:
Government-sponsored enterprises		141,398		84		(6,099	)		135,383
U.S. government agency securities		57,951		-		(9,746	)		48,205
State & municipal		264,685		16		(13,004	)		251,697
Total HTM securities	$	771,474	$	101	$	(65,284	)	$	706,291
As of December 31, 2024
Federal agency	$	100,000	$	-	$	(16,656	)	$	83,344
Mortgage-backed:
Government-sponsored enterprises		208,579		-		(34,349	)		174,230
U.S. government agency securities		15,611		1		(516	)		15,096
Collateralized mortgage obligations:
Government-sponsored enterprises		168,018		-		(11,554	)		156,464
U.S. government agency securities		60,906		-		(11,245	)		49,661
State & municipal		289,807		41		(18,698	)		271,150
Total HTM securities	$	842,921	$	42	$	(93,018	)	$	749,945

At September 30, 2025 and December 31, 2024, all of the mortgage-backed HTM securities were comprised of U.S. government agency and government-sponsored enterprises securities.

The Company recorded no gains from calls on HTM securities for the three and nine months ended September 30, 2025 and 2024.

AFS and HTM securities with amortized costs totaling $1.82 billion at September 30, 2025 and $1.60 billion at December 31, 2024, were pledged to secure public deposits and for other purposes required or permitted by law. Additionally, at September 30, 2025 and December 31, 2024, AFS and HTM securities with an amortized cost of $213.2 million and $234.2 million, respectively, were pledged as collateral for securities sold under repurchase agreements.

The following tables set forth information with regard to gains and (losses) on equity securities:

	Three Months Ended September 30,
(In thousands)	2025			2024
Net (losses) gains recognized on equity securities	$	(2	)	$	476
Less: Net (losses) gains recognized on equity securities sold during the period		-			-
Unrealized (losses) gains recognized on equity securities still held	$	(2	)	$	476

	Nine Months Ended September 30,
(In thousands)	2025			2024
Net gains (losses) recognized on equity securities	$	6		$	283
Less: Net gains (losses) recognized on equity securities sold during the period		(35	)		-
Unrealized gains (losses) recognized on equity securities still held	$	41		$	283

As of September 30, 2025 and December 31, 2024, the carrying value of equity securities without readily determinable fair values was $1.0 million. The Company performed a qualitative assessment to determine whether the investments were impaired and identified no areas of credit concern as of September 30, 2025 and 2024. There were no impairments, or downward or upward adjustments recognized for equity securities without readily determinable fair values during the three and nine months ended September 30, 2025 and 2024.

The following table sets forth information with regard to contractual maturities of debt securities at September 30, 2025:

(In thousands)	Amortized Cost		Estimated Fair Value
AFS debt securities:
Within one year	$	80,906	$	80,486
From one to five years		660,218		625,704
From five to ten years		196,034		187,005
After ten years		985,102		919,999
Total AFS debt securities	$	1,922,260	$	1,813,194
HTM debt securities:
Within one year	$	85,322	$	85,264
From one to five years		229,828		214,776
From five to ten years		107,531		98,939
After ten years		348,793		307,312
Total HTM debt securities	$	771,474	$	706,291

Maturities of mortgage-backed, collateralized mortgage obligations and asset-backed securities are stated based on their estimated average lives. Actual maturities may differ from estimated average lives or contractual maturities because, in certain cases, borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

Except for U.S. government securities and government-sponsored enterprises securities, there were no holdings, when taken in the aggregate, of any single issuer that exceeded 10% of consolidated stockholders’ equity at September 30, 2025 and December 31, 2024.

The following table sets forth information with regard to investment securities with unrealized losses, for which an allowance for credit losses has not been recorded, segregated according to the length of time the securities were in a continuous unrealized loss position:

	Less Than 12 Months							12 Months or Longer							Total
(In thousands)	Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions		Fair Value		Unrealized Losses			Number of Positions
As of September 30, 2025
AFS securities:
U.S. treasury	$	-	$	-			-	$	96,046	$	(3,173	)		5	$	96,046	$	(3,173	)		5
Federal agency		-		-			-		229,056		(19,265	)		16		229,056		(19,265	)		16
State & municipal		-		-			-		87,933		(4,664	)		65		87,933		(4,664	)		65
Mortgage-backed		35,208		(282	)		4		347,339		(30,974	)		143		382,547		(31,256	)		147
Collateralized mortgage obligations		47,936		(53	)		6		451,292		(52,490	)		111		499,228		(52,543	)		117
Corporate		-		-			-		25,447		(2,054	)		9		25,447		(2,054	)		9
Total securities with unrealized losses	$	83,144	$	(335	)		10	$	1,237,113	$	(112,620	)		349	$	1,320,257	$	(112,955	)		359
HTM securities:
Federal agency	$	-	$	-			-	$	88,488	$	(11,512	)		4	$	88,488	$	(11,512	)		4
Mortgage-backed		10,756		(86	)		1		171,725		(24,837	)		33		182,481		(24,923	)		34
Collateralized mortgage obligation		-		-			-		177,303		(15,845	)		47		177,303		(15,845	)		47
State & municipal		5,210		(179	)		8		153,043		(12,825	)		161		158,253		(13,004	)		169
Total securities with unrealized losses	$	15,966	$	(265	)		9	$	590,559	$	(65,019	)		245	$	606,525	$	(65,284	)		254
As of December 31, 2024
AFS securities:
U.S. treasury	$	-	$	-			-	$	92,737	$	(6,107	)		5	$	92,737	$	(6,107	)		5
Federal agency		-		-			-		218,517		(29,831	)		16		218,517		(29,831	)		16
State & municipal		759		(4	)		1		86,731		(7,963	)		66		87,490		(7,967	)		67
Mortgage-backed		95,153		(1,374	)		16		368,589		(46,625	)		152		463,742		(47,999	)		168
Collateralized mortgage obligations		98,494		(1,128	)		14		480,891		(68,386	)		116		579,385		(69,514	)		130
Corporate		1,478		(9	)		1		43,536		(3,459	)		14		45,014		(3,468	)		15
Total securities with unrealized losses	$	195,884	$	(2,515	)		32	$	1,291,001	$	(162,371	)		369	$	1,486,885	$	(164,886	)		401
HTM securities:
Federal agency	$	-	$	-			-	$	83,344	$	(16,656	)		4	$	83,344	$	(16,656	)		4
Mortgage-backed		-		-			-		189,271		(34,865	)		34		189,271		(34,865	)		34
Collateralized mortgage obligations		7,147		(7	)		1		198,978		(22,792	)		52		206,125		(22,799	)		53
State & municipal		9,458		(107	)		12		168,945		(18,591	)		186		178,403		(18,698	)		198
Total securities with unrealized losses	$	16,605	$	(114	)		13	$	640,538	$	(92,904	)		276	$	657,143	$	(93,018	)		289

The Company does not believe the AFS securities that were in an unrealized loss position as of September 30, 2025 and December 31, 2024, which consisted of 359 and 401 individual securities, respectively, represented a credit loss impairment. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. As of September 30, 2025 and December 31, 2024, the majority of the AFS securities in an unrealized loss position consisted of debt securities issued by U.S. government agencies or U.S. government-sponsored enterprises that carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Total gross unrealized losses were primarily attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. The Company does not intend to sell, nor is it more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be at maturity. The Company elected to exclude accrued interest receivable (“AIR”) from the amortized cost basis of debt securities. AIR on AFS debt securities totaled $4.7 million and $4.4 million at September 30, 2025 and December 31, 2024, respectively, and is excluded from the estimate of credit losses and reported in the other assets financial statement line.

None of the Bank’s HTM debt securities were past due or on nonaccrual status as of September 30, 2025 and December 31, 2024. There was no accrued interest reversed against interest income for the three and nine months ended September 30, 2025 or the year ended December 31, 2024 as all securities remained in accrual status. In addition, there were no collateral-dependent HTM debt securities as of September 30, 2025 and December 31, 2024. There was no allowance for credit losses on HTM securities as of September 30, 2025 and December 31, 2024. As of September 30, 2025 and December 31, 2024, 66% of the Company’s HTM debt securities were issued by U.S. government agencies or U.S. government-sponsored enterprises with bond ratings of A to AAA. These securities carry the explicit and/or implicit guarantee of the U.S. government, which are widely recognized as “risk-free” and have a long history of zero credit losses. Therefore, the Company did not record an allowance for credit losses for these securities as of September 30, 2025 and December 31, 2024. The remaining HTM debt securities at September 30, 2025 and December 31, 2024 were comprised of state and municipal obligations with bond ratings of A to AAA excluding the $79.2 million and $84.7 million, respectively, of local municipal bonds which are not rated. Based on the Company’s current expected credit losses (“CECL”) methodology, the expected credit loss on the HTM municipal bond portfolio was deemed immaterial, therefore no allowance for credit loss was recorded as of September 30, 2025 and December 31, 2024. AIR on HTM debt securities totaled $3.6 million at September 30, 2025 and $4.4 million at December 31, 2024 and is excluded from the estimate of credit losses and reported in the other assets financial statement line.