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INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2026

INVESTMENT SECURITIES

INVESTMENT SECURITIES

2. INVESTMENT SECURITIES

Available-for-Sale Debt Securities

The following tables summarize the amortized cost and fair value of AFS debt securities along with the corresponding amounts of related gross unrealized gains and losses recognized in AOCI:


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
March 31, 2026 (in thousands)		Cost			Gains			Losses			Value

U.S. Treasury securities and U.S. Government agencies		$	269,953		$	62		$	(2,470)		$	267,545
Private label mortgage-backed security			—			1,359			—			1,359
Mortgage-backed securities - residential			596,356			1,913			(8,023)			590,246
Collateralized mortgage obligations			17,066			29			(397)			16,698
Corporate bonds			1,001			—			—			1,001
Trust preferred security			3,938			134			—			4,072
Total available-for-sale debt securities		$	888,314		$	3,497		$	(10,890)		$	880,921


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
December 31, 2025 (in thousands)		Cost			Gains			Losses			Value

U.S. Treasury securities and U.S. Government agencies		$	294,940		$	159		$	(1,724)		$	293,375
Private label mortgage-backed security			—			1,439			—			1,439
Mortgage-backed securities - residential			570,491			4,210			(6,792)			567,909
Collateralized mortgage obligations			17,528			27			(648)			16,907
Corporate bonds			1,001			—			—			1,001
Trust preferred security			3,924			138			—			4,062
Total available-for-sale debt securities		$	887,884		$	5,973		$	(9,164)		$	884,693

Held-to-Maturity Debt Securities

The following tables summarize the amortized cost and fair value of HTM debt securities along with the corresponding amounts of related gross unrecognized gains and losses:


					Gross			Gross
		Amortized			Unrecognized			Unrecognized			Fair
March 31, 2026 (in thousands)		Cost			Gains			Losses			Value

Mortgage-backed securities - residential		$	13		$	—		$	—		$	13
Collateralized mortgage obligations			4,762			30			(30)			4,762
Total held-to-maturity debt securities		$	4,775		$	30		$	(30)		$	4,775


					Gross			Gross
		Amortized			Unrecognized			Unrecognized			Fair
December 31, 2025 (in thousands)		Cost			Gains			Losses			Value

Mortgage-backed securities - residential		$	13		$	—		$	—		$	13
Collateralized mortgage obligations			4,931			29			(44)			4,916
Total held-to-maturity debt securities		$	4,944		$	29		$	(44)		$	4,929

There were no HTM debt securities on nonaccrual or past due 90 days or more as of March 31, 2026, and December 31, 2025. There were no HTM debt securities considered collateral dependent as of March 31, 2026, and December 31, 2025.

Sales and Calls of Available-for-Sale Debt Securities

During the three months ended March 31, 2026, and 2025, there were no material gains or losses on sales or calls of AFS debt securities.

Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities by contractual maturity as of March 31, 2026, follows. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are detailed separately.


		Available-for-Sale						Held-to-Maturity
		Debt Securities						Debt Securities
		Amortized			Fair			Amortized			Fair
March 31, 2026 (in thousands)		Cost			Value			Cost			Value

Due in one year or less		$	105,961		$	104,864		$	—		$	—
Due from one year to five years			164,993			163,682			—			—
Due from five years to ten years			—			—			—			—
Due beyond ten years			3,938			4,072			—			—
Private label mortgage-backed security			—			1,359			—			—
Mortgage-backed securities - residential			596,356			590,246			13			13
Collateralized mortgage obligations			17,066			16,698			4,762			4,762
Total debt securities		$	888,314		$	880,921		$	4,775		$	4,775

Unrealized Loss Analysis on Debt Securities

The following tables summarize AFS debt securities in an unrealized loss position for which an ACLS had not been recorded, aggregated by investment category and length of time in a continuous unrealized loss position:


		Less than 12 months						12 months or more						Total
					Unrealized						Unrealized						Unrealized
March 31, 2026 (in thousands)		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses

Available-for-sale debt securities:
U.S. Treasury securities and U.S. Government agencies		$	163,632		$	(1,340)		$	78,862		$	(1,130)		$	242,494		$	(2,470)
Mortgage-backed securities - residential			218,186			(1,459)			80,332			(6,564)			298,518			(8,023)
Collateralized mortgage obligations			598			(2)			13,868			(395)			14,466			(397)
Total available-for-sale debt securities		$	382,416		$	(2,801)		$	173,062		$	(8,089)		$	555,478		$	(10,890)


		Less than 12 months						12 months or more						Total
					Unrealized						Unrealized						Unrealized
December 31, 2025 (in thousands)		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses

Available-for-sale debt securities:
U.S. Treasury securities and U.S. Government agencies		$	84,947		$	(53)		$	78,317		$	(1,671)		$	163,264		$	(1,724)
Mortgage-backed securities - residential			84,131			(149)			86,744			(6,643)			170,875			(6,792)
Collateralized mortgage obligations			—			—			14,242			(648)			14,242			(648)
Total available-for-sale debt securities		$	169,078		$	(202)		$	179,303		$	(8,962)		$	348,381		$	(9,164)

As of March 31, 2026, the Bank’s security portfolio consisted of 198 securities, 103 of which were in an unrealized loss position.

As of December 31, 2025, the Bank’s security portfolio consisted of 198 securities, 86 of which were in an unrealized loss position.

As of March 31, 2026, and December 31, 2025, there were no holdings of debt securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity.

Accrued interest receivable on AFS debt securities is presented as a component of other assets on the Company’s balance sheet and is excluded from the ACLS, if applicable. Accrued interest on AFS debt securities totaled $5 million and $5 million as of March 31, 2026, and December 31, 2025. Accrued interest receivable on HTM debt securities totaled $11,000 as of March 31, 2026, and $12,000 as of December 31, 2025.

Mortgage-Backed Securities and Collateralized Mortgage Obligations

As of March 31, 2026, with the exception of the $1.4 million private label MBS, all other MBS’s and CMO’s held by the Bank were issued by U.S. government-sponsored entities and agencies, primarily the FHLMC and FNMA. As of March 31, 2026, and December 31, 2025, there were gross unrealized losses of approximately $8 million and $7 million related to AFS MBS’s and CMO’s. Because these unrealized losses are attributable to changes in interest rates and illiquidity, and not credit quality, and because the Bank does not have the intent to sell these securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, management does not consider these securities to have credit-related impairment that would require a provision adjustment to the ACLS.

Pledged Debt Securities

Debt securities pledged to secure public deposits, SSUAR, and debt securities held for other purposes, as required or permitted by law, were as follows:


		As of
(in thousands)		March 31, 2026			December 31, 2025

Amortized cost		$	143,060		$	168,530
Fair value			141,459			166,757
Carrying amount			141,459			166,757

Equity Securities

The following tables summarize the amortized cost and fair value of equity securities with readily determinable fair values:

 

 

Gross

 

Gross

 

 

Amortized

Unrealized

Unrealized

Fair

March 31, 2026 (in thousands)

Cost

Gains

Losses

Value

Freddie Mac preferred stock

$

—

$

945

$

—

$

945

 

 

Gross

 

Gross

 

 

Amortized

Unrealized

Unrealized

Fair

December 31, 2025 (in thousands)

Cost

Gains

Losses

Value

Freddie Mac preferred stock

$

—

$

945

$

—

$

945

For equity securities with readily determinable fair values, the gross realized and unrealized gains and losses recognized in the Company’s consolidated statements of income were as follows:

Gains (Losses) Recognized on Equity Securities

Three Months Ended March 31, 2026

 

Three Months Ended March 31, 2025

 

(in thousands)

 

Realized

 

Unrealized

 

Total

 

Realized

 

Unrealized

 

Total

Freddie Mac preferred stock

$

—

$

—

$

—

$

—

$

31

$

31