XML 22 R12.htm IDEA: XBRL DOCUMENT

Investment Securities

9 Months Ended

Sep. 30, 2025

Investment Securities

Investment Securities

Note 3 Investment Securities

The Company’s investment securities portfolio is comprised of available-for-sale and held-to-maturity investment securities. These investment securities totaled $1.3 billion at September 30, 2025 and included $0.6 billion of available-for-sale securities and $0.7 billion of held-to-maturity securities. At December 31, 2024, investment securities totaled $1.0 billion and included $0.5 billion of available-for-sale securities and $0.5 billion of held-to-maturity securities.

Available-for-sale

Available-for-sale securities are summarized as follows as of the dates indicated:


		September 30, 2025
		Amortized			Gross			Gross
		cost			unrealized gains			unrealized losses			Fair value
U.S. Treasury securities		$	72,930		$	1,032		$	—		$	73,962
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			229,757			1,113			(22,353)			208,517
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			373,555			640			(46,668)			327,527
Corporate debt			2,000			—			(10)			1,990
Other securities			723			—			—			723
Total investment securities available-for-sale		$	678,965		$	2,785		$	(69,031)		$	612,719


		December 31, 2024
		Amortized			Gross			Gross
		cost			unrealized gains			unrealized losses			Fair value
U.S. Treasury securities		$	24,958		$	—		$	(84)		$	24,874
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			164,785			53			(29,793)			135,045
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			425,476			432			(60,970)			364,938
Corporate debt			2,000			—			(38)			1,962
Other securities			728			—			—			728
Total investment securities available-for-sale		$	617,947		$	485		$	(90,885)		$	527,547

During the nine months ended September 30, 2025 and 2024, purchases of available-for-sale securities totaled $164.7 million and $199.1 million, respectively. Maturities and paydowns of available-for-sale securities during the nine months ended September 30, 2025 and 2024 totaled $100.4 million and $137.6 million, respectively. There were no sales of available-for-sale securities during the nine months ended September 30, 2025 or 2024.

At September 30, 2025 and December 31, 2024, the Company’s available-for-sale investment portfolio was primarily comprised of U.S. Treasury securities and mortgage-backed securities. All mortgage-backed securities were backed by GSE collateral such as FHLMC and FNMA and the government-owned agency GNMA.

The tables below summarize the available-for-sale securities with unrealized losses, along with the length of time they have been in an unrealized loss position, as of the dates shown:


		September 30, 2025
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises		$	17,480		$	(39)		$	126,521		$	(22,314)		$	144,001		$	(22,353)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			6,367			(12)			250,580			(46,656)			256,947			(46,668)
Corporate debt			—			—			1,990			(10)			1,990			(10)
Total		$	23,847		$	(51)		$	379,091		$	(68,980)		$	402,938		$	(69,031)


		December 31, 2024
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
U.S. Treasury securities		$	—		$	—		$	24,874		$	(84)		$	24,874		$	(84)
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			—			—			132,935			(29,793)			132,935			(29,793)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			41,426			(95)			264,621			(60,875)			306,047			(60,970)
Corporate debt			—			—			1,963			(38)			1,963			(38)
Total		$	41,426		$	(95)		$	424,393		$	(90,790)		$	465,819		$	(90,885)

Management regularly monitors the investment securities portfolio in its entirety and further evaluates all of the available-for-sale securities in an unrealized loss position at each reporting period. The portfolio included 168 securities which were in an unrealized loss position at September 30, 2025, compared to 180 securities at December 31, 2024. The unrealized losses in the Company’s investment portfolio at September 30, 2025 were caused by changes in interest rates. The Company has no intention to sell these securities and believes it will not be required to sell the securities before the recovery of their amortized cost. Management believes that default of the available-for-sale securities is highly unlikely. FHLMC, FNMA and GNMA guaranteed mortgage-backed securities and U.S. Treasury securities have a long history of zero credit losses, an explicit guarantee by the U.S. government (although limited for FNMA and FHLMC securities) and yields that generally trade based on market views of prepayment and liquidity risk rather than credit risk.

Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the FRB, if needed. The fair value of available-for-sale investment securities pledged as collateral totaled $140.8 million and $238.6 million at September 30, 2025 and at December 31, 2024, respectively. The Company may also pledge available-for-sale investment securities as collateral for FHLB advances. No securities were pledged for this purpose at September 30, 2025 or December 31, 2024.

A summary of the available-for-sale securities by maturity is shown in the following table as of September 30, 2025. Mortgage-backed securities may have actual maturities that differ from contractual maturities depending on the repayment characteristics and experience of the underlying financial instruments and are therefore not included in the table below. The Company holds other available-for-sale securities with an amortized cost and fair value of $0.7 million as of September 30, 2025 that have no stated contractual maturity date.


		September 30, 2025
								Weighted
		Amortized cost			Fair value			average yield
U.S. Treasury securities
After one but within five years		$	72,930		$	73,962		4.35%
Corporate debt
After one but within five years			2,000			1,990		9.68%

As of September 30, 2025 and December 31, 2024, AIR from available-for-sale investment securities totaled $1.5 million and $1.3 million, respectively, and was included within other assets in the consolidated statements of financial condition.

Held-to-maturity

Held-to-maturity investment securities are summarized as follows as of the dates indicated:


		September 30, 2025
					Gross			Gross
		Amortized			unrealized			unrealized
		cost			gains			losses			Fair value
U.S. Treasury securities		$	24,840		$	—		$	(120)		$	24,720
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			244,916			469			(25,682)			219,703
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			419,730			2,008			(35,359)			386,379
Total investment securities held-to-maturity		$	689,486		$	2,477		$	(61,161)		$	630,802


		December 31, 2024
					Gross			Gross
		Amortized			unrealized			unrealized
		cost			gains			losses			Fair value
U.S. Treasury securities		$	49,639		$	—		$	(480)		$	49,159
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			271,105			51			(36,870)			234,286
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			212,364			—			(44,423)			167,941
Total investment securities held-to-maturity		$	533,108		$	51		$	(81,773)		$	451,386

During the nine months ended September 30, 2025, purchases of held-to-maturity securities totaled $260.3 million. There were no purchases of held-to-maturity securities during the nine months ended September 30, 2024. Maturities and paydowns of held-to-maturity securities totaled $105.0 million and $47.4 million during the nine months ended September 30, 2025 and 2024, respectively.

The held-to-maturity portfolio included 112 securities which were in an unrealized loss position as of September 30, 2025, compared to 160 securities at December 31, 2024. The tables below summarize the held-to-maturity securities with unrealized losses, along with the length of time they have been in an unrealized loss position, as of the dates shown:


		September 30, 2025
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
U.S. Treasury securities		$	—		$	—		$	24,720		$	(120)		$	24,720		$	(120)
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			10,245			(26)			174,132			(25,656)			184,377			(25,682)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			—			—			147,427			(35,359)			147,427			(35,359)
Total		$	10,245		$	(26)		$	346,279		$	(61,135)		$	356,524		$	(61,161)


		December 31, 2024
		Less than 12 months						12 months or more						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		value			losses			value			losses			value			losses
U.S. Treasury securities		$	—		$	—		$	49,159		$	(480)		$	49,159		$	(480)
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			45,427			(880)			185,558			(35,990)			230,985			(36,870)
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			2,818			(51)			165,123			(44,372)			167,941			(44,423)
Total		$	48,245		$	(931)		$	399,840		$	(80,842)		$	448,085		$	(81,773)

The Company does not measure expected credit losses on a financial asset, or group of financial assets, in which historical credit loss information adjusted for current conditions and reasonable and supportable forecasts results in an expectation that nonpayment of the amortized cost basis is zero. Management evaluated held-to-maturity securities noting they are backed by loans guaranteed by either U.S. government agencies or U.S. government sponsored entities, and management believes that default is highly unlikely given this governmental backing and long history without credit losses. Additionally, management notes that yields on which the portfolio generally trades are based upon market views of prepayment and liquidity risk and not credit risk. The Company has no intention to sell any held-to-maturity securities and believes it will not be required to sell any held-to-maturity securities before the recovery of their amortized cost.

The table below summarizes the credit quality indicators, by amortized cost, of held-to-maturity securities as of the dates shown:


		September 30, 2025			December 31, 2024
		AA+			AA+
U.S. Treasury securities		$	24,840		$	49,639
Mortgage-backed securities:
Residential mortgage pass-through securities issued or guaranteed by U.S. government agencies or sponsored enterprises			244,916			271,105
Other residential MBS issued or guaranteed by U.S. government agencies or sponsored enterprises			419,730			212,364
Total investment securities held-to-maturity		$	689,486		$	533,108

Certain securities are pledged as collateral for public deposits, securities sold under agreements to repurchase and to secure borrowing capacity at the FRB, if needed. The carrying value of held-to-maturity investment securities pledged as collateral totaled $531.6 million and $500.5 million at September 30, 2025 and December 31, 2024, respectively. The Company may also pledge held-to-maturity investment securities as collateral for FHLB advances. No held-to-maturity investment securities were pledged for this purpose at September 30, 2025 or December 31, 2024.

A summary of the held-to-maturity securities by maturity is shown in the following table as of September 30, 2025. Actual maturities of mortgage-backed securities may differ from scheduled maturities depending on the repayment characteristics and experience of the underlying financial instruments and are therefore not included in the table below.


		September 30, 2025
								Weighted
		Amortized cost			Fair value			average yield
U.S. Treasury securities
Within one year		$	24,840		$	24,720		3.10%

As of September 30, 2025 and December 31, 2024, AIR from held-to-maturity investment securities totaled $1.7 million and $0.9 million, respectively, and was included within other assets in the consolidated statements of financial condition.